Argentina’s peanut harvests generally commence in May, after it is planted in October. The main growing regions are spread within the Cordoba, La Pampa, San Luis, and Buenos Aires provinces.
For the 2020/2021 peanut season in Argentina, production will be up by 45K tons from the previous season with 1.3 million MT, as a result of increased acreage, up by 7.8%, with 340K ha. With reduced export taxes stated in Decree 230/2020, farmers will move toward planting peanuts rather than soybeans or other grains. In addition, even though mid-February and mid-March had dry weather conditions, rains have relieved the soil profile. Crushed peanut production for 2020/2021 is predicted to be the same as the previous season, 2019/2020, with 340K tons.
The main market for Argentine peanuts has consistently been to the European Union, which in the 2018/2019 season, Argentina exported 735K tons. These exports consist of high-quality blanched peanuts. Argentina, unlike other major producers, is heavily focused on the export market and has catered to the large European market by producing its peanuts in alignment with its strict regulations.
The coronavirus has not severely hampered Argentina’s agricultural industry, as the government has deemed the continuation of its operations essential to the country’s economy. However, there could be minor setbacks if workers in transportation, processing, or in ports get sick. Exports for the 2019/2020 season are up by 24%, with 900K tons. Exports in 2020/2021 are expected to decrease by 11% with 800K tons.
In San Paulo, Brazil, there are two harvest seasons, in which the first crop is harvested from January to February and the second crop from May to June. The peanut variety Runner is highly produced and exported as it carries two peanuts per pod, and it has a light color which makes it easier to detect peanuts with defects.
Peanut acreage for Brazil is slightly up for the 2020/2021 season, with 160K ha, an increase of 2K ha from 2019/2020 acreage. Estimates for the 2020/2021 season’s production is at 550K MT. The same goes for the production volume in 2019/2020, which is an increase of 435 MT from 2018/2019 when weather conditions were not optimal.
Domestic consumption within the 2019/2020 season will experience a slight increase from 232KMT last season to 236K MT. For the 2020/2021 season, consumption will be up by 2%, at 241K MT.
Russia remains the leading destination for Brazil’s shelled peanut exports and will continue to be so for future seasons. In the 2017/2018 marketing year, Russia dominated nearly 37% of Brazil’s shelled peanut exports, coming a long way from 2013 when it took up only 13% of exports.
Even throughout the pandemic, markets with large purchasing power in Europe and the Middle East are still expected to continue purchases of peanuts. Exports in the 2019/2020 season are projected to be at 285K MT. Estimates for exports in 2020/2021 will be at 300K MT, which indicates a slow in growth rate, but nevertheless following a trend of increase over the past decade.
Tanzania is one of the major producers of peanuts in the African continent, following Nigeria, occupying 2.1% of the global production volume. Peanuts (Groundnuts) are harvested from May to June mainly in the Urambo district of the Tabora region in Tanzania. It is among the most important crops for smallholder farmers in Tanzania, providing both food and income for households.
Among the improved varieties grown in Tanzania are Mnanje 2009, Mangaka 2009, Pendo 98, and Naru nut 2015. Despite the recent developments in improving product quality, the crop is still sold between USD 2.58 to USD 3.44 per kg which is a low and unprofitable price for most of the farmers. This is due to the fact that groundnuts from Tanzania have been diagnosed to have comparatively high aflatoxin levels. However, there have been movements in recent years to distribute aflatoxin tester kits to local farmers and educate them to maintain the quality of the global standards.
Recently, the government of Tanzania has banned importers from abroad to buy products directly from farmers. Due to that, the government is ordering the following things to be done: ensure that in every village there is a market where local citizens can initially sell their produce. In addition, there will be a secondary market in which citizens, cooperatives, and local traders will be allowed to sell their products to foreign traders. Peanuts are considered to be one of the major products that would be affected by this new regulation.
The harvest for ginger in Brazil typically starts in May, with Espirito Santo the main producing region. The harvest for Baby ginger ranges from May to June, and Conventional ginger from July to December.
Exports for Brazilian ginger have been increasing to 15K MT in 2018 and 22K MT in 2019. Demand for ginger has especially been on the rise since early 2020 as customers searched for products to boost immunity and Chinese production was delayed from the coronavirus. According to Tridge data, global ginger prices have risen by 40% in the last quarter and Brazilian ginger prices by 9.9%.
Brazil acts as an alternative import destination for North American customers ever since the country has started exporting the products last year.
Due to large production volumes in 2019, Brazilian ginger had been sold at a cheaper price than Chinese products even before the COVID outbreak. In addition, as the main export season for Chinese ginger is currently nearing its close, Brazil has a considerable advantage in increasing exports to some of China’s major customers such as the United States and the Netherlands, to be re-exported to other European countries.
The Graphs Above Indicate Export Volumes for HS Code 1202 Ground nuts;not roasted or otherwise cooked, whether or not shelled or broken