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15 October 2011 @ 10:30 am
Peanut Crop Will Send Prices Soaring  
Stock up soon on peanut butter if you love it like I do. Prices are going way up.

From:

http://money.cnn.com/2011/10/14/markets/peanut_butter_prices/index.htm?hpt=hp_t2

NEW YORK (CNNMoney) -- Brace yourselves, peanut butter lovers -- prices are set to spike following one of the worst peanut harvest seasons growers have seen in years.

Prices for a ton of runner peanuts, commonly used to make peanut butter, hit nearly $1,200 this week, according to the U.S. Department of Agriculture. That's up from just $450 per ton a year ago.

It won't be long before consumers see this price increase reflected on store shelves.

Kraft (KFT, Fortune 500) will raise prices for its Planters brand peanut butter by 40% starting Oct. 31, while ConAgra (CAG, Fortune 500) expects increases of more than 20% for its Peter Pan brand.

A spokesperson for Unilever (UL), which makes Skippy, would say only that it's watching the situation "very closely."

Representatives for J.M. Smucker (SJM, Fortune 500), which makes Jif, did not respond to a request for comment, though the Associated Press reported that Jif's wholesale prices are set to rise 30% in November.
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Mari Adkinsmariadkins on October 15th, 2011 07:41 pm (UTC)
i hate this. i really hate it.

Pepper Sauceginamariewade on October 15th, 2011 07:41 pm (UTC)
I wonder how much of this was an actual bad crop and how much of it was due to the shortage of Mexican labor due to the draconian anti-immigrant policies of Georgia and Alabama, where most peanuts are grown, which left farmers with crops rotting in the field because no one was there to harvest them?

axolotl9axolotl9 on October 15th, 2011 11:43 pm (UTC)
valid point
there was a lot of that going around, wasn't there?

I believe Alabama ended up using chain-gang prisoners (excuse me - "labor details") to do harvests.
Tapatitapati on October 16th, 2011 02:23 am (UTC)
I heard it was weather related--the crops just weren't as plentiful as normal.

Though I wouldn't doubt that they had problems with the harvest if they had their usual amount to harvest.
axolotl9: pirateaxolotl9 on October 15th, 2011 11:41 pm (UTC)
let me guess
bad weather? I don't imagine peanuts respond well to the ground being as moist as it was in the peanut-farming areas this spring...
Tapatitapati on October 16th, 2011 02:23 am (UTC)
Re: let me guess
Yes I heard it was weather related.