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Trade4go
Dec 20th, 2024
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Argentina's peanut exports contributed significantly to the country's agro-industrial sector, which saw a 51% increase in export volume and a 23% rise in revenue from Jan-24 to Oct-24, compared to the same period in 2023. Peanuts ranked among the top 10 agro-industrial complexes, accounting for 86.4% of total export value alongside soybeans, corn, and livestock. Key factors driving this growth include improved climate conditions, government measures to facilitate trade, and expanded market access. The European Union (EU), China, Brazil, and the United States (US) were major destinations for Argentine peanuts and other products.
Heavy rains and flooding in Tamil Nadu, India, exacerbated by overflow from Veeranam Lake, have caused significant damage to crops, including peanuts. After inspecting affected areas in Kattumannarkoil and Kumaratchi, the Minister of Agriculture and Farmers' Welfare of Tamil Nadu reported severe waterlogging impacting peanuts and paddy fields. The flooding has affected approximately 359,000 hectares (ha) of crops across Tamil Nadu. While floodwaters subside, further assessment of the damage will be conducted. Local authorities have mobilized relief efforts, with Neyveli Lignite Corporation India Limited (NLCIL), a central public sector undertaking under the administrative control of the Ministry of Coal, deploying industrial pumps for dewatering. The minister emphasized ongoing flood relief operations and the need for further safety measures.
In Uganda, demonstration plots transform agricultural practices by showcasing drought-tolerant peanut varieties such as SERENUT 8R, SERENUT 11, and SERENUT 14. Farmers have successfully used these improved varieties to enhance yields and inspire neighboring farmers to adopt climate-resilient crops. These plots are part of the Accelerated Varietal Improvement and Seed Systems (AVISA) project, which aims to improve crop varieties and seed systems to enhance food security, climate resilience, and productivity across sub-Saharan Africa. The initiative is supported by the National Semi-Arid Resources Research Institute (NaSARRI) and the International Maize and Wheat Improvement Center (CIMMYT). It serves as a learning hub and seed source, enabling farmers to test and select varieties suited to their environments. Increased adoption of these improved varieties boosts food security and resilience, particularly in regions vulnerable to climate change.
Georgia's peanut yields have declined significantly in 2024, averaging 3,500 pounds (lbs) per acre—500 lbs below the state's average and the lowest in years. Adverse weather, including excessive May-24 rains, five storms (two hurricanes among them), and a cooler-than-usual fall, caused planting delays and extended the crop's maturity period from the usual 140 to 145 days to 170 to 180 days. Over 50% of the 840,000 acres planted were severely impacted, with some requiring replanting. Typically concluding by mid-November, the extended harvest stretched into Dec-24, with cold temperatures further affecting the remaining crop.
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US peanut prices fell to USD 0.48 per kilogram (kg) in W50, reflecting an 11.11% decrease both week-on-week (WoW) and month-on-month (MoM). The decline is primarily attributed to reduced yields in Georgia, the leading peanut-producing state. Average yields dropped to 3,500 lbs/acre—500 lbs below the state's historical average and the lowest in years.
Adverse weather conditions, including excessive rains in May-24, storms, and an unusually cool fall, caused significant disruptions. Delayed planting extended crop maturity to 170–180 days, with over 50% of the 840,000 acres planted severely impacted, necessitating replanting in some areas. The prolonged harvest, ending in Dec-24 rather than mid-Nov-24, compounded by cold temperatures, further diminished production. Despite the decline in production, output from other peanut-growing regions has partially offset the shortfall in Georgia.
Brazil's peanut prices fell to USD 2.90/kg in W50, reflecting an 11.31% WoW decrease and a 21.62% drop year-on-year (YoY). The 2024/25 season is projected to achieve a record production of 832,300 metric tons (mt), a 40.6% YoY increase from the prior year. This production surge could lead to an oversupply, pressuring prices downward, especially if demand from key sectors like oil mills does not align with increased supply. Additionally, challenges such as weed resistance and pest management may affect competitiveness. Struggling with drought-induced delays, the Itaju region faces planting setbacks, impacting peanuts and the oil industry. However, a significant portion of the region remains productive, with a favorable harvest outlook.
Given the strong export growth in Argentina’s peanut sector, stakeholders should focus on expanding their market reach to new regions beyond traditional buyers like the EU, China, and the US. By targeting emerging markets in Asia and Africa, where demand for peanuts and related products is growing, producers can ensure sustained export growth and reduce dependency on established markets. Building relationships with new customers and tailoring products to meet regional preferences will help safeguard against market volatility and strengthen the global market position.
To mitigate the impact of adverse weather conditions, such as floods in Tamil Nadu and drought in Brazil, peanut producers should prioritize the adoption of drought-resistant and flood-tolerant varieties, like those demonstrated in Uganda. Collaborating with agricultural research institutes to develop and disseminate these varieties will enhance yields and ensure more stable production, especially in regions vulnerable to climate change. This approach will increase food security and improve peanut crops' resilience in fluctuating environmental conditions.
Sources: Tridge, Portal DBO, Southeast AgNet, CIMMYT, The New Indian Express
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