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After reaching 585,000 mt of shelled peanuts (Arachis hypogaea L.) used in peanut butter and snack peanuts in 1989, use has decreased. In a national survey consumers agreed strongly that peanuts were good tasting, a good source of protein, and could be part of a balanced diet. Less than one-half agreed that peanuts are a healthy snack and are low in saturated fat. When thinking of snack foods, peanuts were placed low on the list of preferences. In policy discussions, price is mentioned as the factor that may inhibit consumption growth. Retail price data on peanut butter and peanut snacks indicated a wide range in prices among cities, among stores within cities, and among brands. The farmer's share of the retail price of a jar of peanut butter averages 26%. Retail prices increased 39 cents per 510 g jar from 1984 to 1992, while the farm value of the peanuts increased seven cents. Decreasing the support price for peanuts by $250 per 907 kg, decreases the farm value of peanuts in a jar of peanut butter from 56 cents to 35 cents. The decrease would result in an increase in peanut butter use of about five percent or about 35,000 mt. Price may be only one of several factors impacting consumption trends. |
