Skip to main content Skip to header navigation

What’s behind the peanut butter price spike?

In case you haven’t heard, the price of peanut butter is expected to skyrocket in the upcoming months—potentially as much as three times its current price! What’s to blame?

In case you haven’t heard, the price of peanut butter is expected to skyrocket in the upcoming months—potentially as much as three times its current price! What’s to blame?

Usually when end-user produce prices increase, a poor crop or high prices is to blame. So was there some or peanut pest responsible for a lackluster harvest? Did farmers bump up prices? Actually, no.

Interestingly enough, supply and demand is driving up the prices. Most farmers of commodity crops like peanuts contract their prices before planting, allowing them to be paid up front so they can purchase seeds and supplies. Prices were low this year, so less peanuts were planted.

according to the Georgia Peanut Commission website: “A low supply of peanuts left from last year’s crop, poor market prices at planting and drought conditions throughout this year’s growing season have converged at one time to create a perfect storm that is driving up the price of peanuts.”

So, now you know.

Read more about peanut prices here>>>

 

Leave a Comment

Comments are closed.