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Published October 24, 2011, 06:50 PM

Southern Plains drought leads to rise in peanut prices

Fargo, ND (WDAY TV) - Your morning peanut butter and toast will soon cost you more, and your favorite Halloween treats that feature nuts and peanut butter may also be on the high side this fall, thanks to the weather. Hot, dry weather and a historic drought in Texas are to blame.

By: Kevin Wallevand, WDAY

Your morning peanut butter and toast will soon cost you more, and your favorite Halloween treats that feature nuts and peanut butter may also be on the high side this fall, thanks to the weather. Hot, dry weather and a historic drought in Texas are to blame.

As Lee Paseka prepares for another big Holiday season at his Sweet Dreams Confections, he is mindful of the vicious cycle of home made treats....commodities. Chocolate, sugar, now peanut butter. Nuts and peanut butter are found in a lot of his delicacies.

Lee Paseka – Sweet Dream Confections: “People see it in the grocery store but we sit it all the time, it is a rollercoaster we deal with it everyday.”

With peanut butter expected to jump 25-30% next month because of the poor crop, even food pantries like this one in Fargo will see an impact. Food shelves love to have a big supply of peanut butter on hand because of its protein value.

Linda Clark – Fargo Food Pantry: “It is a Healthy food item and it does not spoil and if they live in cars or tents like we do have it is something that won't spoil, quick and easy and kids love it.”

The shortage of peanuts and the price increase come at critical time when candy producers are putting out a huge quantity for Halloween, but many retailers say they will not be jacking up the prices during the holiday.

Since sweet treat producers like Lee buy peanut butter in bulk, he hopes to ride out his price increases without bumping up the price for customers. The cost of doing a sweet tooth business.

Local schools we visited with tell us they don't stock that much peanut butter because of students who are allergic to nuts.

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