Peanut Butter Prices Possibly Dropping

Bumper crops mean good news for food banks

Grocery store prices may continue to rise, but a particularly good year for peanut crops means there could well be a price break on the way for fans of President Carter’s favorite legume.

According to the Chicago Tribune, drought and high temperatures in the peanut-growing regions of the U.S. last year meant the 2011 peanut crop was comparatively miniscule, and peanut butter prices spiked. But this year farmers have peanuts aplenty, and the American Peanut Council expects prices to drop in response.

“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,” said American Peanut Council president Patrick Archer.

A slightly cheaper jar of peanut butter might not be a huge deal for most individual shoppers, but it’s very good news for food banks, which like to buy peanut butter because it’s high in protein, has a long shelf life, and people are eager to eat it.

The Atlanta Community Food Bank buys between 200,000 and 400,000 pounds of peanut butter every year, according to executive director Bill Bolling.

“If costs go down 10 percent or 20 percent, we can buy that much more product,” he said.

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