Recently, a large amount of peanut butter was discarded at a New Mexico dump as reported by the AP in a March 28, 2014 article.

This was done so that the plant that manufactured the peanut butter, Sunland Inc., could be sold faster. This peanut butter manufacturing facility is well known because it “was at the heart of a 2012 salmonella outbreak and nationwide recall,” and it filed for Chapter 13 bankruptcy last year.  A Chapter 13 allows the company to establish and follow a repayment plan to its creditors. Selling the facility will bring in money that the plant can use to repay its creditors. Thus, the faster it is sold, the faster it can reduce its debt.

The peanut butter was thrown out pursuant to the bankruptcy trustee’s order, as Costco did not want it. Costco claimed that it was not fit for sale since oil was dripping from the containers. Moreover, this peanut butter was not donated to any food banks or other facilities that could have used it, since the peanut butter was not safe for use. Many food banks are disappointed as peanut butter is high in protein and very valuable. Furthermore, the food banks would have made arrangements to keep the peanut butter.

Initially, Costco gave the trustee permission to sell the product but after, it found out the product was not fit for sale, Costco wanted it to be thrown away, rather than being used for something else. As a result, this was done. The discarded peanut butter was valued at a little over $2.5 million.

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