1. Weekly News

United States

USDA Announces 2024-Crop Loan Rates for Peanuts

The United States Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) announced the 2024 crop loan rates for four types of peanuts on June 6, 2024. These rates will take effect on August 1, 2024, marking the start of the peanut crop year. Eligible producers can access peanut loans through their local Farm Service Agency (FSA) county offices or alternative delivery partners, such as Designated Marketing Associations (DMA) and Cooperative Marketing Associations (CMA). These loans offer interim financing for producers and support the orderly distribution of loan-eligible peanuts throughout the year.

The CCC used the national loan rate, five-year average quality factors, and a three-year simple average weighted production to calculate. The loan levels for runner-type, Spanish-type, Valencia-type, and Virginia-type peanuts are set at USD 354.33, USD 344.85, USD 360.21, and USD 360.21 per metric ton (mt).

Argentina

Córdoba's Peanuts Ensure Quality for Europe's Consumption

The province of Córdoba in Argentina exports a significant amount of peanuts, accounting for 70% of the European Union (EU) consumption. The region around General Cabrera and General Deheza has grown into a productive hub with a high GDP per capita owing to its significant exporting profile. JLA, an Argentinian chemical engineering company, ensures the safety and quality of these exports by focusing on meeting the EU's stringent aflatoxin requirements. The company conducts tests for aflatoxins and other quality parameters to ensure the final product meets European standards and the requirements of purchasing firms, thus maintaining Argentina's reputation for exporting high-quality peanuts and preventing market risks.

United Kingdom

Tesco Recalls Chocolate Bars Due to Potential Peanut Allergies

Tesco has issued a recall for its Dreamy Caramel Chocolate Bars Multipack and Nutty Nougat Caramel Chocolate Bars Multipack due to the possibility of undeclared peanuts, which can be extremely harmful to people who are allergic to peanuts. Anaphylactic shock and other serious allergic reactions could be brought on by these products. Following the guidelines provided by the Food Standards Agency, Tesco has instructed customers to return the chocolate bars for a complete refund and not to eat them.

2. Weekly Pricing

Yearly Change in Peanut Pricing Important Exporters (W23 2023 to W23 2024)

Argentina

Argentina's peanut prices decreased slightly to USD 1.62/kg in W23, compared to USD 1.63/kg in W22. Argentina's peanut exports are set to recover in 2024 after a significant production drop in the previous campaign due to a severe drought. The country's peanut production is expected to reach 700 thousand mt this season, with a cultivation area increased by 5% YoY to 400 thousand hectares (ha). The yield is expected to reach 3.5 mt/ha.

India

Peanut prices in India increased by 1.43% WoW to USD 0.71/kg in W23 compared to USD 0.70/kg in W22. Despite the price fluctuations, India’s peanut price is expecting a downward trend as the new harvest arrives. This year’s crop is of good quality, with consistent orders from Vietnam, Indonesia, and the Philippines. In addition, India faces intense competition from African countries, including Mozambique and Tanzania, which offer lower prices.

Brazil

Brazil’s peanut prices surged by 14.86% WoW to USD 2.86/kg in W23, up from USD 2.49/kg in W22. This significant increase is attributed to reduced 2024/25 production forecasts caused by irregular climate patterns, including a lack of rainfall and high temperatures, which have led to a higher incidence of pests. In addition, the 2023/24 harvest is in its final stages, and a production of 609 thousand mt is expected.

3.Actionable Recommendations

Enhance Quality Control and Compliance Standards

Peanut producers should adopt stringent quality control measures to maintain and expand market access. Ensuring compliance with international standards is crucial. This includes regular testing, certification, and adherence to best practices in farming and processing. Enhanced quality control not only safeguards consumer health but also bolsters the reputation and competitiveness of peanuts in global markets.

Invest in Sustainable and Climate-Resilient Farming Practices

Given the increasing impacts of climate change on agriculture, peanut farmers must invest in sustainable and climate-resilient practices. These include adopting advanced irrigation techniques, crop rotation, and integrated pest management. Utilizing climate-resilient seed varieties and diversifying crops can also help mitigate the risks associated with extreme weather conditions. Sustainable farming practices will contribute to long-term productivity and environmental conservation.

Leverage Technological Innovations

Innovations in technology have the potential to greatly increase the production and efficiency of the peanut sector. To monitor crop health and maximize resource utilization, producers should invest in precision agriculture tools such as drones and satellite imaging. Digital platforms and mobile apps can also help to increase traceability, expedite supply chain management, and open up new markets. Adoption of new technologies will boost the peanut industry's competitiveness and creativity.

Sources: USDA, Bichos de campo, Independent, CMB News