1. Weekly News

Türkiye

Peanut Production in Adana, Türkiye Expected to Increase 30% YoY in 2024

Peanut harvesting in Adana, Türkiye, has commenced, and the production is anticipated to increase by 30% year-on-year (YoY) in 2024 from 89 thousand metric tons (mt) in 2023. Adana is responsible for 50% of the country's total peanut production. This cultivation boost is attributed to the favorable peanut prices in recent years. Peanut ranks fourth in production among oilseed plants used as vegetable oil sources in Türkiye. The peanut harvest in Adana follows the watermelon harvest and is expected to be completed at the beginning of Oct-24.

Peanut Farmers in Osmaniye, Türkiye Struggle as Peanut Prices Plummet

Peanut farmers in Osmaniye, Türkiye, face financial challenges due to a sharp decline in peanut prices, which have dropped from USD 1.65 per kilogram(kg) in 2023 to USD 0.83/kg in 2024. Meanwhile, peanut production costs have doubled, leaving many farmers unable to cover their expenses. They express concerns about their ability to continue farming and call for support, warning that widespread bankruptcies among peanut farmers may occur if prices do not improve.

United States

Georgia Peanut Prices Expected to Hold Steady Despite Flooding in Alabama and Florida

The Georgia Peanut Commission (GPC) expects retail peanut prices to remain stable despite significant crop losses in neighboring Alabama and Florida due to heavy flooding. Georgia's stabilization program prioritizes peanuts for the domestic market, ensuring a steady supply. According to a GPC official, any potential shortages will likely affect the export market rather than domestic availability.

2. Weekly Pricing

Weekly Peanut Pricing Important Exporters (USD/kg)

Yearly Change in Peanut Pricing Important Exporters (W36 2023 to W36 2024)

India

Peanut prices in India rose 6.35% week-on-week (WoW) to USD 0.67/kg in W36, maintaining the same level month-on-month (MoM) but reflecting a 19.28% YoY decline. This week's price increase is mainly attributed to logistic changes due to recent heavy rain. Despite this weekly price change, high production levels resulting from favorable weather and expanded cultivation areas continue to push prices down in the long term. Moreover, weak domestic demand for peanut oil will also keep prices under pressure.

United States

In W36 2024, US peanut prices increased to USD 0.60/kg, reflecting a 3.45% WoW rise and a 5.26% YoY increase from USD 0.57/kg in W36 2023. This price rise is driven by a drop in production output due to unfavorable weather conditions, particularly affecting key peanut-growing regions. Prolonged dry spells and erratic rainfall have impacted crop yields, leading to supply shortages. Additionally, the need for better irrigation systems has increased input costs, particularly for water and production, further contributing to the price hike. While prices remained stable month-on-month, production challenges continue to exert upward pressure on the market.

Brazil

Brazil’s peanut prices increased by 8.63% WoW to USD 3.02/kg in W36, marking an 11.03% MoM rise but reflecting a 16.11% YoY drop. The weekly price rise is due to the ongoing drought, which has negatively impacted the country’s peanut yields and quality. Despite these production challenges, lower demand from international markets, especially from China, combined with the high availability in India, will put downward pressure on prices in the long term.

3.Actionable Recommendations

Diversify Product Offerings to Stabilize Prices

Peanut processors and exporters in India should focus on diversifying their product offerings, such as producing peanut-based snacks, peanut butter, and other value-added products. This can help reduce the dependence on raw peanut sales and peanut oil, which is currently facing weak demand. By tapping into the growing domestic and international markets for processed peanut products, businesses can create new revenue streams and stabilize prices in the long term.

Support Peanut Farmers with Subsidies and Market Access

The Turkish government and agricultural organizations should provide targeted financial support to peanut farmers in Osmaniye and other affected regions struggling with plummeting prices and rising production costs. This could include temporary subsidies or financial relief programs to help cover input costs. Additionally, expanding market access through export agreements or promoting peanut-based products in domestic markets can provide farmers with more sales channels and stabilize prices over time.

Invest in Irrigation Infrastructure to Mitigate Drought Impact

Peanut farmers in Brazil should prioritize investments in irrigation infrastructure to mitigate the impact of ongoing droughts on peanut yields and quality. Government and private sector support in providing low-interest loans or subsidies for advanced irrigation systems can help farmers maintain consistent production levels despite erratic weather conditions. In parallel, strengthening partnerships with international buyers can maintain demand as competition from India increases.

Sources: Tridge, Iha, Sondakika, Supermarket News,