PEANUT butter prices are set to soar following a poor harvest.
Extreme heat and drought are being blamed for the problem, which has seen the cost of peanuts soar from $450 a tonne to just under $1,200.
Several manufacturers, including Kraft, say they will have to increase their prices.
While a spokesperson for Unilever said that it’s watching the situation “very closely.”
Speaking to a local American newspaper, Patrick Archer, president of the American Peanut Council, remained optimistic about the future of the industry.
He said: “Though consumption will probably be disrupted to some degree, it’s still a valuable food for many people, so I don’t think people will stop buying it.”
It’s believed manufacturers could suspend production of less popular products, such as low-fat peanut butter, so they can use all their peanuts in their best-sellers.
According to the National Peanut Board, the industry contributes more than $4 billion to the America economy each year.
