COMMENTARY | A lot of attention is being paid to the “Great Peanut Shortage of 2011.” Prices for peanuts are edging into the realm of the ridiculous $1,200 per ton, which is up from $450 per ton just one year ago. Of course, peanuts are a main ingredient of a staple in my house, peanut butter. Being the end consumer, that means higher prices for peanut butter. Companies are lining up to increase prices 20 percent or 30 percent and potentially higher.
Just like any other price increase, reasons accompany the surge in peanut prices with the weather (or lack there of) being one of the main culprits. However, prices have been rising at the grocery store for a while now. Everything from the price of commodities, like corn and wheat, to the fuel surcharges delivery companies are tacking on to the local market results in a hike for the consumer.
Fortunately, a few dollars of price increases are usually offset by coupons on other products. Plus, buying frequently used items from large wholesale warehouse stores usually nets a smaller increase. However, just like many consumers, I fall into the price-conscious category. Sure, cheaper is not always better, but when cheaper is adequate, it usually wins the race. However, large price spikes can be troublesome for any family.
Similar to the rise in fuel prices earlier in the year, we conserved fuel by limiting trips or using the vehicle smarter. When food prices rise, just like they are with peanut butter, riding out the price spike is a matter of necessity. Since the kids like the product, that usually means sacrifice for Dad. Of course, passing on the bag of junk food or toaster pastries will not exactly be a bad thing.
As long as the spike is temporary, spending around the peanut butter will not be a problem. In the long-term, as all the other prices start to rise, working around massive fluctuations will be difficult. Usually, I set a ceiling price and stick to it. But conservation also starts to play a role as well, and cutting usage of peanut butter and peanut related products is easy in my home.
When the trip to store starts to ring in at $60 for four bags of groceries, it hurts everybody. Eating habits and menu planning start to evolve, and not necessarily in a good way. The main issue with prices is they always seem to climb more easily than they fall.