Odessa American- Peanut Butter Prices Pressure WTFB

By John Corrales

A chain of events behind peanut butter has also affected the West Texas Food Bank’s purchasing methods.

Since the U.S. Department of Agriculture made cutbacks in the summer, discontinuing providing certain items including peanut butter at 10 cents per pound, the purchasing program of the Odessa branch for the West Texas Food Bank has experienced a drop in overall volume.

“Twenty semi-loads of food have been canceled since then,” West Texas Food Bank Director of Program Services John Crooks said.

The USDA used to provide the food bank with 15-pound cases of peanut butter for $1.50 each.

“Peanut butter is a target staple. When we saw prices were rising, we tried to get as much as we could. It’s what’s called a ‘forward buy,’ ” he said.

After the USDA discontinued providing peanut butter, Crooks said the WTFB purchased 135 15-pound cases at $17.90 on Aug. 15.

On Nov. 21, Crooks said the WTFB purchased 554 15-pound cases at $20.20.

Crooks said the food bank will always provide peanut butter regardless of its price, but because the food bank now provides peanut butter at retail prices, the food bank might see some partners buy it themselves.

“Between the time when the USDA stopped providing us with peanut butter and we hadn’t purchased any, our partners would go and buy it themselves,” he said. “Ultimately, the party’s over—we can only fill the gap for so long.”

In addition to price woes, the WTFB has experienced peanut butter shipment cancelations too.

“A report of a peanut butter fungus canceled two truckloads in October, and there are 1,824 cases per truck,” West Texas Food Bank Marketing Director Paige Phelps said.

“Right now, 70 percent of our peanut butter, jelly, rice, beans and chili are gone right now because we can only purchase as money comes in,” she said. “It will be about a week or two before we can release funds again.”

Prices for rice and pinto beans have risen as well.

In August, a 31-pound bag of rice cost $13.90, but the food bank paid $16.53 on its last purchase Nov. 21.

A 25-pound bag of pinto beans cost $14.90 in August, but cost the food bank $17.52 on Nov. 21.

To help ease the burden of their new costs, the food bank has resorted to new measures.

Instead of paying for full truckloads of just one product, the food bank sought out F&AM Inc. based out of Wayland, Mich., who provides less than truckload shipping with a variety of products.

Crooks said this proves to be more cost efficient.

“Your best landed price will be on full truckloads, but if we were to carry on we wouldn’t be able to afford full truckloads down the road,” he said. “With less than full truckloads, we can still refill shelves when things are drying up.”