The U.S. Department of Agriculture recently increased its forecast for rising food prices. One of the products that will see a big increase is peanut butter. Bloomberg reports that peanut butter could soon reach its highest price in over 25 years.
Bloomberg says contract prices for peanuts harvested last fall have jumped 40% to 50% from the year before. It isn't clear how much of this price jump will be passed on to consumers, but consumers are likely to see at least some increase.
The Omaha World-Herald has an article explaining why peanut butter prices are climbing so much. This year's peanut crop was a disaster because of drought. The article says one third of J.M. Smucker Co.'s peanut crop is unedible. Consumers will see higher prices and possibly reduced supply of some peanut butter products this year.
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