Peanut butter prices are likely to fall this year, thanks to a good crop.
Though the country is undergoing a drought, the Southeastern part of the U.S., where most peanut farms lie, have been seeing good weather. Consequently, farmers in the region believe that they will have a very good output this year.
According to the Associated Press, farmers are now expected to bring in two-thirds more peanuts than they did in 2011. That could mean a price drop at the grocery store.
"After last year's small crop, we saw peanut butter prices on average rise 30 percent or more," said Patrick Archer, president of the American Peanut Council, to AP. "With this year's excellent crop, the supply and demand should come back into balance and peanut butter prices should come back to a more normal level at the retail level."
The last few months had people thinking that a peanut shortage would arise because of the drought. However, according to the latest figures released by the U.S. Department of Agriculture, the 2012 peanut harvest is expected to hit 6.1 billion pounds. This will top even the 2008 record of almost 5.2 billion pounds. It is also 66 percent more than the harvest in 2011.
This will bring down the prices of popular brands of peanut butter like Jif and Skippy, both of which raised their prices due to the shortage.
The likely drop in prices will not only be a blessing for parents packing lunches for their kids amid rise in the price of groceries, it will also be a big help for food banks around the country. As AP reports, most food banks buy protein rich food stuff, which includes peanut butter.
"If costs go down 10 percent or 20 percent, we can buy that much more product," said Bill Bolling, founder and executive director of Atlanta Community Food Bank, to The Associated Press. A big supply also increases the possibility of donations. For instance, a company may donate large batches in cases of surplus and mistakes in the packaging.
Salmonella Peanut Butter Makes 38 Ill
Trader Joe's Valencia Creamy Salted Peanut Butter, manufactured by Sunland Inc., Mexico, has allegedly sickened 38 so far. The peanut butter is suspected to be tainted with Salmonella Bredeney.
Sunland Inc., after issuing a recall for its peanut butter, soon issued a recall for other peanut-based products, including raw, roasted and shelled peanuts.
The Food and Drug Administration is still carrying out investigations.
