Smooth Or Crunchy, Peanut Butter Will Cost More

Heat and drought in Texas and the Southeast did a number on this year's peanut crop. Because of that, peanut butter prices are expected to rise by about 30 percent next month.

Copyright © 2011 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

STEVE INSKEEP, HOST:

And for today's last word in business, we move from breakfast to lunch, the meal at which you are most likely to eat a peanut butter and jelly sandwich. Peanut butter prices are about to go up. Heat and drought in Texas and the Southeast did a number on this year's peanut crop. Reports this week say companies like J.M. Smucker, maker of Jiff, will raise prices about 30 percent next month. Other brands may hike prices up to 40 percent.

Patrick Archer, the president of the American Peanut Council, says that might affect sales, but his product, he argues, is still a bargain.

PATRICK ARCHER: Now, even so, peanuts remain an economical healthy source of protein that kids and a lot of us adults really love.

INSKEEP: And cheaper than the alternative, which might explain why since the beginning of the economic downturn there's been more demand for peanut butter. The Department of Agriculture says peanut butter consumption has gone up 10 percent since 2008. In a nutshell, that's the business news on MORNING EDITION, from NPR News. I'm Steve Inskeep.

Copyright © 2011 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.