Peanut butter prices are going up.
ATLANTA -- A cheap source of protein is getting more expensive with one manufacturer announcing plans to nearly double the price of peanut butter.
Kraft, which makes Planters Peanut Butter, is expected to raise prices 40 percent starting Monday, while the J.M. Smucker Company, which makes Jif, plans to hike wholesale prices 30 percent in November.
"An immediate jump of 40 percent is going to get people's attention, especially on an item that so many people put in their shopping cart," said Bettina Elias Seigel, creator of a blog called "The Lunch Tray."
A shrinking supply of Georgia peanuts combined with rising demand is forcing peanut butter prices up.
"It's definately not ideal," said Leslie Wagner, a promoter of peanut products who runs the web site www.peanutbutterlovers.com. "In the grand scheme of things, most food costs have gone up over the last few years."
Earlier in October, Wagner purchased a 28 ounce jar of Planters for $3.66. On Monday, 11Alive's Jerry Carnes found the same product for $4.39. A 40-percent increase, as Planters has projected, would take the price to $5.12.
Wagner said increased prices would stay until next year's peanut crop.
"If there's plenty of crop, prices will be lower," said Wagner. "I would hope to see prices go back down. They may not go back down the entire 30 or 40-percent."
Peanut butter is found in 90 percent of American households, and most children eat as many as 1,500 peanut butter and jelly sandwiches before graduating from high school.
Rising fuel costs combined with this year's drought are pushing peanut prices to record levels.
Georgia farmers saw their worst peanut crop in more than 20 years.
"It looks like a peanut. Then when you pop it, there's nothing inside," said farmer David Bishop. "You'll be able to harvest some, but it will probably be 25 percent of a normal year."
According to the USDA, peanut prices have soared from $450 a ton last year to almost $1,200 a ton today.