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FBN's Jeff Flock finds out how a company that makes peanut butter has been impacted by rising costs.
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Bob also think -- rating to talk -- rising food inflation a drought in the south is causing the cost up you know that's a rise.
Putting makers a peanut butter and a very difficult situation Jeff Flock is -- a peanut butter company in Grand Rapids, Michigan.
Jeff how much more are we gonna be pain.
Well -- say if you pay as much more as they manufacturers are paying you would be okay.
Three times more because that's what -- raw material costs have gone up or acting -- -- plant here in Grand Rapids you're looking at what are we looking at.
Hot Virginia he not gone down about and in -- our quality whose need makes cream.
Peanut butter and of course are huge peanut -- wars out -- -- -- from -- to skipping to all the rest but this is a very particular product.
And if you look at it over here they've been making it this way for about eighty years here outside.
Well I have and in north land of Michigan and watch it come out what what I see right there.
OK so this is the peanuts and immediately following the grinding process that I go through a little grinder.
And yet -- -- so we've got peanuts and salt.
And back and we try to together and -- that I wanna put that in the numbers up for Virginia peanuts they have almost tripled in cost -- you.
How do you deal.
-- while it's painful.
Partly we pray that they're gonna go down again and partly we you know we have to push a price increase through.
And -- -- -- and you could do about.
There's no futures market there's no -- -- manufacture our size we just have to be prepared and -- happened.
From now every 1015 years you know -- haven't you been making -- -- -- eighty.
Yes since 1925 and this is say -- a natural peanut butter it's not like the stuff you get you know what no no offense to champion -- which we all grew up on.
But this is a natural product.
All it has inside there is peanuts and a little bit assault which is just the way your great grandfather.
Yeah now that's exactly right this product is unchanged.
And now average that that was invented except for the price which of course is much.
Fire and no absolutely Jeff Flock Jeff -- report and I have to say by the way -- -- say I I.
But I would never on the -- -- -- -- whole wheat bread.
For my peanut butter sandwich later today in the little upset but I do it the only natural -- but it is expensive right -- sending you pay more -- -- restore.
For like these basic Staples of our diet got milk eggs in mean you name -- it's -- going up and anyone who questions and dismissed reports should go food shopping and one day -- you'll see it instantaneously how you can spend -- hundred dollars and have for things your -- I tell you what a David I had -- CEO of a major American -- Texas -- -- commodities and then you know food inflation isn't a problem prices -- -- -- -- I see reports like business into commodities -- -- I think this guy's gonna have to raise prices right day.
Absolutely I mean Texas Roadhouse.
-- -- been to a few but I mean are parents love them but.
How does that I don't understand how the prices are not going up I'm going I'm going to -- grocery store buying a stake.
And it's causing me a lot more than it did five years ago right something has to give that they're charging the same president today they're losing money.
-- -- that as the prices are gonna increase soon in.
I don't Soledad peanut -- that when I got the email about that we're doing.
