1. Weekly News

Argentina

Agro-Industrial Growth Drove Argentina's Peanut Exports in 2024

Peanuts were among Argentina's top ten agro-industrial export sectors in 2024, contributing to a 56% increase in overall agricultural exports. This growth was driven by administrative simplifications, market expansion, and improved production supply, reinforcing Argentina's position as a key player in the global food trade.

South Korea

South Korea's Peanut Prices Surge Over 11% YoY Due to Supply Constraints and Rising Demand

Peanut prices in South Korea have risen significantly ahead of February 12, the first full moon of the Lunar New Year, with traditional market prices increasing 11.1% year-over-year (YoY) to USD 6.89 per 400 grams (KRW 10,000/400g) and large mart prices rising 13.4% to USD 9.35 (KRW 13,560/400g). The Korea Price Information Service (KOSIS) attributes these increases to reduced cultivation areas, abnormal weather, and growing consumer demand for health-conscious foods. In response, major retailers are expanding imports, offering discounted Chinese roasted peanuts and American walnuts as part of promotional events.

United States

Uncertainty Over USAID's Future Puts Georgia's Peanut-Based Humanitarian Aid at Risk

The potential dismantling of the United States Agency for International Development (USAID) has raised concerns over disruptions to peanut-based humanitarian aid, particularly Georgia’s production of ready-to-use therapeutic food (RUTF). Mother Administered Nutritive Aid (MANA), a nonprofit organization in Fitzgerald, Georgia, relies heavily on USAID funding to produce vitamin-rich peanut paste for malnourished children worldwide. While a temporary halt in operations was lifted, uncertainties remain regarding USAID’s supply chain logistics and future funding. MANA plays a vital role in global food aid efforts while also supporting local farmers in Georgia, the top peanut-producing state in the United States (US). Through its operations, MANA helps combat malnutrition worldwide while strengthening the regional agricultural economy.

Peanut Research Key to Industry Sustainability as Georgia Peanut Commission Supports 40 Research Projects in 2024

Peanut research remains crucial for industry sustainability, especially during economic challenges. At the Georgia Peanut Commission's Research Report Day, experts from the University of Georgia (UGA) and the United States Department of Agriculture (USDA) shared findings on production issues such as pest management, tomato spotted wilt virus (TSWV), and seed quality. The research chairman at Georgia Peanut Commission (GPC), emphasized the importance of research in reducing costs and improving yields. In 2024, the commission allocated USD 791,139 to fund 40 peanut research projects at UGA, Abraham Baldwin Agricultural College (ABAC), and USDA.

USDA Reports Slight Decline in US Peanut Stocks

The USDA reported a slight decline in peanut stocks, totaling 4.30 billion pounds (lbs) in commercial storage as of December 31, 2024, down from 4.36 billion lbs a year ago. Shelled edible grade peanuts on hand reached 437 million lbs, with Runners making up the largest share at 316 million lbs. Dec-24 millings totaled 419 million lbs, while commercial processors utilized 189 million lbs for peanut butter, candy, and snacks. Government nutrition programs received 2.38 million lbs of peanut butter and 51,840 lbs of roasted peanuts.

2. Weekly Pricing

Weekly Peanut Pricing Important Exporters (USD/kg)

Yearly Change in Peanut Pricing Important Exporters (W6 2024 to W6 2025)

United States

US peanut prices declined to USD 0.55 per kilogram (kg) in W6, reflecting a 6.78% week-on-week (WoW) drop amid lower farmer stock marketings and declining farmgate prices. Despite a slight decrease in commercial peanut stocks to 4.30 billion lbs, shelled edible-grade peanuts remained abundant, with Runners comprising the majority. While demand from commercial processors and government nutrition programs persists, lower prices could signal weaker short-term demand or improved supply. Future price movements will depend on processing trends, stock levels, and potential shifts in domestic and export demand.

Brazil

Brazil's peanut prices were USD 3.10/kg in W6, reflecting a 2.52% drop WoW, although they remained 9.93% higher month-on-month (MoM). This fluctuation is primarily attributed to the fluctuating weather conditions affecting Brazil's major peanut-producing regions.

The ongoing extreme rainfall and flooding in the northeastern states, such as Pernambuco and Alagoas, pose risks to harvests, potentially reducing peanut supply and driving prices higher in the short term. On the other hand, the heatwave in Rio Grande do Sul may also hinder production, further complicating the supply situation. Meanwhile, favorable conditions in Mato Grosso do Sul and Minas Gerais could offset some of these challenges, potentially stabilizing yields.

Inconsistent rainfall in Paraná may negatively affect production, adding to market uncertainty. However, the recovery of production in São Paulo, supported by favorable weather and the integration of peanut farming with sugarcane production, could help balance the supply-demand dynamic and mitigate upward price pressures.

Looking ahead, Brazil's peanut prices will likely continue to fluctuate based on the weather conditions in key producing states. Disruptions caused by adverse weather patterns could lead to higher prices, while favorable conditions may provide price stabilization or moderate reductions, particularly if the impact of regional disparities is managed effectively.

3. Actionable Recommendations

Leverage Global Market Expansion

Argentina's growing position in global peanut exports presents an opportunity for companies to capitalize on rising supply levels. Stakeholders should explore partnerships with Argentine producers, ensuring access to the increased peanut availability. Additionally, expanding into regions with heightened demand, such as South Korea and other parts of Asia, where consumer interest in health-conscious foods is growing, could increase market share.

Mitigate Supply Chain Risks Due to Weather Variability

The weather-related disruptions in major peanut-producing countries like Brazil and the US present ongoing risks to supply stability. Companies in peanut sourcing and processing should diversify their supply chains across multiple regions with different climate conditions to reduce dependency on a single source. In addition, investing in weather forecasting and crop insurance can help buffer against potential price volatility driven by adverse weather events.

Invest in Research and Innovation for Production Efficiency

As peanut production faces challenges such as pest management and climate-induced stress, continued investment in research and development is crucial. By supporting initiatives like those from the GPC, stakeholders can contribute to innovations that enhance yield efficiency and pest resistance. This proactive approach ensures long-term sustainability and competitiveness in the market while addressing global food security needs.

Sources: Tridge, Nongmin, 3tres3, Georgia Public Radio, Southeast AgNet