2018 Peanut Crop Value
According to USDA’s National Agricultural Statistics Service, the price of peanuts averaged $0.214 per pound ($428 ton) last season, 6.5 percent lower than 2017. The value of the 2018 peanut crop at farm level is $1,155,709,000, a 29.3 percent decrease from 2017. Harvested peanut acres were down 22 percent.
The highest average price was paid in New Mexico at $594 per ton followed by Texas at $500 per ton. The lowest price average was paid in Arkansas at $386 per ton. Georgia was next lowest at $400 per ton followed by Mississippi at $408 per ton.
About 50 percent of the revenue from peanuts was produced in Georgia. Ranking second with revenue is Texas at 10.4 percent followed by Alabama at 10.2 percent.
The percentage growth in peanut usage is about the same as the population growth. Edible peanut consumption is about 8 pounds per person and added with peanut oil/crushing, it is about 8.69 pounds per person. The per capita consumption of almonds is 2.37 pounds per year, walnuts is 0.49 pounds per year, pecans comes in at 0.45 pounds per year, followed by pistachios at 0.42 pounds per year.
These nut industries invest in advertising, research and education in hopes of luring consumers away from the best buy on the shelf: peanuts and peanut butter.
Meeting With Trade Officials
A delegation of peanut leaders recently met with trade policymakers in Washington, D.C. The group met with Rep. Drew Ferguson (R-Ga), House Foreign Affairs Committee’s Asia Subcommittee Ranking member Rep. Ted Yoho (R-Fla.), plus USDA’s trade team and U.S. Trade Rep. Greg Doud, the top ag trade negotiator.
Participating in these trade talks were members from the Georgia Peanut Commission, the Southern Peanut Farmers Federation, the National Peanut Buying Points Association and the American Peanut Shellers Association.
The delegation expressed support for the Trans Pacific Partnership, which would increase peanut exports to Japan and take away Japanese tariffs. Japan has an in-quota tariff of 10 percent.
The 2018 total imports were 91,000 MT. The delegation also supported getting back to regular trade with China and supporting trade with Vietnam. Additionally, if the United Kingdom leaves the European Union, the peanut industry supports continued duty-free access to that market.
A Decade Of Growth In Mexico
Mexico’s demand for peanuts outweighs their own ability to supply so the United States is a top source, and it’s been growing in importance. From 2007 to 2017, U.S. peanut sales to Mexico more than quadrupled.
In the United States, the number one way to enjoy peanuts is in peanut butter. But in Mexico, it’s all about peanut snacks. Walking along the streets of Cuernavaca, Guadalajara or Mexico City, you’ll find vendors selling roasted, salted “cacahuetes” in long tubes or expertly tied plastic or paper bags.
Japanese-style peanuts, which are roasted peanuts coated in a crunchy shell—like a savory version of an M&M coating—are very popular and sold by brands like Michel and Mafer in a variety of spiced flavors.
Enchilada is a popular flavor for peanut snacks, but more nuanced flavors like lemon and lime, and functional mixes for energy, antioxidants and protein are gaining traction as well.
With the focus on peanut snacks, you might wonder how much peanut butter people in Mexico eat. The answer is not much—yet. In the United States, about 94 percent of American households contain at least one jar of peanut butter. In Mexico, it’s about 10 percent.
One Mexican peanut butter brand, Aladino, is seeking to change that by promoting the nutrition, flavor and versatility of peanut butter to Mexican consumers.
Supporting The USO
Within the past year, the Virginia-Carolina promotions team has been working with United Service Organizations (USO) centers affiliated with airports and bases in the Virginia-Carolina region.
They have partnered with more than 15 centers and have donated a box of Virginia-Carolina grown peanuts each month. The promotion started with donations in Virginia and then North and South Carolina.
The military holds a large presence in the V-C region. Marianne Copelan, Executive Director Virginia Carolinas Peanut Promotions, said, “We will continue to support our troops and give back to each USO center at major airports in our region and hope they enjoy our snack as much as our farmers love to grow them.”
The peanuts snacks are perfect for a quick, portable source of protein. Copelan says they have received such positive feedback from all the centers, with some centers ordering more than one box a month.
APC Seeking New Sales Outlets
The American Peanut Council staff will attend the U.S.-Colombia Agribusiness Trade Mission sponsored by USDA scheduled for June 4-7 in Bogota, Colombia. Exports to Colombia have grown 181 percent (1,675 to 4,713 MT) since APC identified it as a priority market and began trade promotion efforts there.
Plans are also underway to bring Colombian buyers to the Texas harvest tour this fall.
The APC also took an industry team to Japan to interview agencies to help execute planned consumer and trade promotions there. While APC has had a trade promotion program in Japan since 2010 and exports have increased by 54 percent during that time (12,102 to 18,639 MT), with additional money from USDA, they have been able to launch a new consumer campaign.
The new campaign will promote the health and nutritional benefits of peanuts, which are not as well known in Japan as it is for tree nuts.
International Peanut Forum Set
The next International Peanut Forum (IPF) will take place at the prestigious Corinthia Hotel in Budapest, Hungary, April 22-24, 2020.
The International Peanut Forum provides an opportunity to increase your company’s visibility within the global peanut industry. It is an opportunity to promote your services, products and brand to the key decision makers attending this industry-wide event.
All sponsors will receive recognition on IPF mailings, on the IPF webpages and on the official meeting app, with links through to your company website whenever possible.
There will also be prominent sponsorship signage at the event. For information on sponsorship or participation opportunities, email Louise McKerchar at email@example.com.