A record number of peanut acres of have been planted in the Virginia-Carolinas region this year, and peanuts commanded a record price. Even though meat prices are expected to skyrocket in 2013, making peanut products a more attractive protein source Dell Cotton, Manager of Peanut Growers Cooperative Association in Franklin Virginia says peanut prices in 2013 probably will decline:
The prices that growers get are going to take a hit because of the number of acres that have been planted this year. We are expecting a good crop all across the country. We do need a big crop to resupply the trade, but the more you have the cheaper its going to be. What we need is for consumption to increase significantly to absorb some of those increases in production. I think it’s a good opportunity, with the drought in the Midwest, the price of meat will be higher. Peanut butter has more protein than any other meat, so with the current economy, and peanut butter being a cheap source of protein, you’d think that we would see an increase in peanut butter consumption.
Next year will not be planted what it is this year.
I’m not sure what kind of prices we are looking at. In some areas there are limits to the prices that the growers would take. But sometimes you don’t have a choice. This year was $700 and it’s the highest price that we have seen. I think if you get down to $500 or less you would lose a significant number of acres in Virginia and North Carolina because most of the growers cant afford to grow them for that price.”