Area Expert Says Drought and Recession Are Fueling Peanut Butter Shortage
DOYLESTOWN, Pa. (CBS) - You may not be able to find your favorite peanut butter brands on store shelves these days, due to a peanut shortage.
The drought in peanut-growing states like Georgia and Texas is part of the reason for the shortage, according to Tom Kennedy, director of MBA programs at Delaware Valley College in Doylestown, who specializes in food and agricultural business.
Another reason for the dwindling supply, he says, is an increase in demand.
“Why are peanuts and peanut butter in an increased demand? It’s tied to the recession,” Kennedy says. “Peanut butter and jelly sandwiches are the staple of a tradition in America that just won’t quit. So, consequently, if you have a recession you are going to see people increase their usage of that product.”
Kennedy says you could see an increase in prices in the coming months — he estimates up to as much as 30 percent more — until next year’s peanut crop hits the market.
Reported by John McDevitt, KYW Newsradio 1060