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Peanut industry weathers storms as consumers return to the all-American staple

Texas

According to U.S. Department of Agriculture's November crop report, Texas peanut farmers will continue to face big challenges in 2009 with crop forecasts down nearly 37 percent from last year. So far this year, Texas peanut farmers have harvested 160,000 acres of peanuts producing around 528 million pounds.

But despite the drop in production, Texas' peanut farmers and their families have something to be thankful for this holiday season as retail data shows a dramatic increase in peanut butter sales as consumers move past January's product recall.

In January, farmers watched recalled peanut products being pulled from shelves while unaffected peanut products, such as peanut butter, sat unpurchased. Through the National Peanut Board and Texas Peanut Producers Board's integrated marketing campaign--incorporating public relations, advertising and special events--farmers were front and center before the consumers who buy their products to allay concerns and remind consumers of the great taste of peanuts and peanut butter and its role in a healthy diet.

"We were brokenhearted to see a crop we raised and relied upon for our family's success involved in such a large food recall due to negligence of one food manufacturer," said Roger Neitsch, a Seminole, Texas peanut farmer and chairman of the NPB. "Although we weren't responsible for the manufacturing problem, we knew we had to do something."

Their efforts are achieving dramatic results; peanut butter sales continue to recover from a devastating 19.42 percent drop in volume during the January recall to positive volume growth for peanut butter in all outlets as early as March 2009. Back-to-school season in August was an important test of confidence for the American consumer and data showed an 18.6 percent increase in volume over the same period in 2008.

"Peanut farmers are passionate about what they do and the food they grow," said Shelly Nutt, TPPB executive director. "It's been a tough year, but our peanut farmers are still dedicated to producing a safe, quality food product."

With increases in peanut butter volume sales recorded every month since March the efforts of the industry have paid off and are proving to be a sunny spot in an otherwise rainy harvest season. Before October, many peanut producers were expecting an especially productive harvest but uncommon and heavy rains across the southeast have proven to be the next challenge to hit America's peanut farmers.


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