Record Crop Causes Peanut Prices to Plunge : Agriculture: One result is an unprecedented number of new products.

CHICAGO — A record 1991 crop is ensuring an abundance of low-cost peanuts for candy companies and consumers, and spawning an unprecedented number of new peanut products.

The Agriculture Department confirmed Monday that peanut production last year neared 5 million pounds. That’s up 37% from 1990, when a drought damaged crops in the Southeast, where most of the crop is grown.

“We’re trying to find homes for a lot of orphan peanuts,” joked Ian McCormick, agricultural economist with the department.

The result: cheaper treats for goober gobblers.

Nationally, for example, retail peanut butter prices tumbled to $2.07 a pound in November from $2.21 six months earlier.

“Consumers can expect to see another 5% drop in retail peanut butter prices in the next six months,” said Mitch Head, executive director of the Peanut Advisory Board.

The bumper crop and lower prices have prompted processors to find more uses for the peanut.

“We’ve seen an unprecedented number of new products in the last six months,” Head said.

Head cited CPC International Inc.’s roasted honey nut Skippy, which may be the first significant change to peanut butter in 20 years. Also, Procter & Gamble Co.’s Jif has come out with a low-sugar, low-salt variety, he added.

Confectioners have jumped on the bandwagon as well, with Mars introducing Peanut Butter M&M;’s and Peanut Butter Snickers.