National Peanut Butter Day Getting Pricier to Celebrate

by InvestorPlace Staff | January 24, 2012 1:35 pm

National Peanut Butter Day Getting Pricier to Celebrate

While National Peanut Butter Day traditionally is a cause for celebration every Jan. 24 (for the 15 people who remember it), this year’s observance seems a bit muted.

You can thank skyrocketing prices in 2011 for that — and it’s about to get worse. According to Kraft (NYSE:KFT[1]) Canada, peanut butter prices are going up another 35%[2] at the end of January thanks to continuing peanut harvest problems.

This is merely a continuation of 2011, when a weak peanut crop caused numerous companies to raise their peanut butter prices throughout the year, with the biggest hits coming in October[3]. Among the headline price jumps floated about?

The most recent numbers from the Bureau of Labor Statistics reflect the jumps. Peanut butter sold for $2.23 per pound in November 2011 — the highest since it started tracking prices in 1984. The previous peak was $2.21 in April 1991.

While droughts in Texas and Georgia hurt supplies, a trend of farmers away from peanuts and toward higher-margin crops like corn and soybeans also heavily contributed to the shortage.

Now it appears that same trend will put further upward pressure on prices in 2012.

– Kyle Woodley, InvestorPlace.com Assistant Editor

Endnotes:
  1. KFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KFT
  2. going up another 35%: http://www.owensoundsuntimes.com/ArticleDisplay.aspx?e=3364481
  3. biggest hits coming in October: http://investorplace.com/2011/09/inflation-consumer-staples-food-prices-coca-cola/
  4. SJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=SJM
  5. CAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAG

Source URL: http://investorplace.com/2012/01/national-peanut-butter-day-prices-2012/
Short URL: http://invstplc.com/1nzbAht