Major food companies begin large increases in peanut butter prices following one of the worst peanut harvests in decades; Kraft, ConAgra, J.M. Smucker all raise prices
November 1, 2011
– Major food companies have begun large increases in peanut butter prices following one of the worst peanut harvests in decades, CNNMoney.com reported Oct. 31.
Kraft is raising prices for its Planters brand peanut butter by 40%. Earlier this month, ConAgra instituted increases of more than 20% for its Peter Pan brand. Meanwhile, J.M. Smucker, which makes Jif, introduced price hikes of around 30%.
According to the U.S. Department of Agriculture (USDA), the price for a ton of runner peanuts – which is normally used to make peanut butter – was at nearly US$1,200 in October, up from $450 last year. U.S. peanut production will fall 13% this year to 3.6 billion pounds, the USDA projected, in part due to extreme heat that hit the southern U.S. this year.
The primary source of this article is CNNMoney.com, Atlanta, Georgia, on Oct. 31, 2011.