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National Peanut Prices Soar Because Georgia Drought

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Posted: Thu 6:21 PM, Nov 17, 2011

Harsh drought conditions in Georgia mean parents from Boston to San Francisco are going to be paying more for products like peanut butter.

Georgia is the country's largest producer of peanuts.
And that's bad news for peanut farmers trying to make a living.

Cory Tawzer is a peanut farmer in Tift County, Georgia.

He's watched the drought wreak havoc on peanut farms across the region this year.

"And the drought come by, six weeks drought, and you're ruined without irrigation and there's a lot of us that don't have irrigation," Tawzer tells Eyewitness News reporter Greg Gullberg.

Tawzer says he's one of the few lucky ones - his patch of land saw some decent rainfall this harvest season.

But his friends more than five miles in either direction are not so lucky.

Peanut prices are skyrocketing on average by about 30%.

Tawzer describes it as a "perfect storm" of harvest complications.
But he says the extra cost in the stores is nothing compared to the cost to the farmers.

"With the money we put in a crop, you can't miss a crop. I mean you're gone. You lose everything."

Analysts attribute the drop in production to the intense heat and lack of rain throughout the region.

But farmers like Tawzer say they taste just as good as ever.

Sharp increases in peanut prices forced a number of companies to increase the price of their peanut products, like peanut butter.

Starting last month, the prices for Planters brand peanut butter went up 40 percent; Jif 30 percent and Peter Pan 20 percent.

It's a pinch many families are feeling when they look at their grocery bill.

It's clear that the peanut industry is under serious pressure after one of the worst harvests in recent memory.


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