PORTALES, N.M.—Recessions usually mean big business for peanut producers as shoppers flock to low-cost, high-protein foods like peanut butter.
But a highly publicized salmonella outbreak early this year linked to the Peanut Corporation of America (PCA), combined with a 2008 bumper crop, has left peanut producers and businesses alike in a less than favorable position.
"For a while there, one bad apple had spoiled consumer confidence, and the timing couldn't have been worse," said Jimmie Shearer, CEO of Portales-based Sunland, Inc., which produces high-end peanut butter varieties. "Our industry, from the producers to the processors, will see a big hit this year."