1. Weekly News

Russia

Rosselkhoznadzor and Uzbekistan's Quarantine Agency Collaborate on Pest Control

Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) specialists in Chelyabinsk Region, Russia, recently met with representatives of Uzbekistan's Agency for Quarantine and Plant Protection to discuss pest control strategies. The meeting focused on phytosanitary control and supervision within temporary storage warehouses. According to the Ural Interregional Administration, approximately 60% of quarantine products in the Urals Federal District are imported from Uzbekistan, with key imports including fresh and dried fruits, vegetables, and peanuts. The collaboration highlights the importance of pest control measures as regional agricultural challenges, such as low moisture levels affecting winter crop sowing, continue to impact the sector.

Ukraine

Ukraine's Peanut Yields Fall Short Due to Drought

As of W41, Ukraine's peanut yields are low, averaging 0.5 to 1 metric ton (mt) per hectare (ha), compared to global averages of 2 to 4 mt/ha. The director of the agro-industrial department of AgroTrade Group noted that although the harvest process is underway, yields appear lower than expected due to a lack of rainfall since planting. Despite peanuts' drought tolerance, dry conditions have impacted quantity and quality.

United States

Hurricane Helene Causes Severe Damage to Georgia's Peanut Crop and Triggers Recovery Initiatives

Hurricane Helene has severely impacted Georgia's agricultural sector, particularly peanut fields, with initial estimates indicating that about 10% of the peanut crop sustained direct damage. If power restoration is delayed, losses could rise to 30%. Over 4.8 million acres were affected, leading to complications for more than 38 thousand crop insurance policies. The United States Department of Agriculture (USDA) has deployed surge teams to assist recovery efforts, expedited insurance payments, and introduced flexibilities to aid producers. Major food corporations, including Tyson Foods and Nestlé, are providing immediate support, while local farmers utilize agricultural drones to deliver necessities. The overall cost of damage from the hurricane is projected to reach billions, with insurance payments anticipated by Nov-24.

2. Weekly Pricing

Weekly Peanut Pricing Important Exporters (USD/kg)

Yearly Change in Peanut Pricing Important Exporters (W41 2023 to W41 2024)

India

India's peanut prices increased to USD 0.63 per kilogram (kg) in W41, marking a 1.61% week-on-week (WoW) increase but a 19.23% year-on-year (YoY) decrease from USD 0.78/kg. Drought in the Annamayya district severely impacted peanut crops, leading to significant losses for farmers during the Kharif season. Only 1 thousand ha were cultivated this season, a decrease from the typical 2 thousand ha. Farmers face heightened risks of crop failure and are losing interest in peanut farming due to consistent losses and accumulating debts. This decline in groundnut cultivation could reduce the supply, potentially stabilizing or increasing prices in the short term. However, ongoing losses may prompt farmers to shift to alternative crops, further constraining groundnut availability.

United States

In W41, US wholesale peanut prices rose to USD 0.58/kg, reflecting a 9.43% WoW increase and remaining stable compared to the previous year. This price increase comes amidst significant challenges faced by Georgia's peanut farmers due to Hurricane Helene, which has inflicted approximately USD 6.46 billion in losses across the state's agricultural sector, as the University of Georgia College of Agriculture and Environmental Sciences (CAES) estimated. Peanut prices' resilience will depend on the effectiveness of recovery efforts and the restoration of supply chains in the coming months.

Brazil

Brazil's peanut prices slightly increased to USD 3.35/kg in W41, an increase of 0.90% WoW and a 15.52% month-on-month (MoM) rise from USD 2.90/kg. Significant rainfall has been reported in Brazil, with storms affecting various regions. A yellow alert for storms was issued in W41, impacting Paraná, La Paz, Diamante, Villaguay, Nogoyá, Concordia, Federal, Federación, Feliciano, and San Salvador. The area is experiencing rain and storms of varying intensities, some locally strong, accompanied by heavy rainfall in short bursts, intense electrical activity, occasional hail, and strong gusts. Accumulated precipitation is expected to range from 40 to 70 millimeters, with local amounts possibly exceeding these estimates. This rainfall is crucial for farmers, as it could facilitate timely planting and stabilize peanut prices.

3. Actionable Recommendations

Enhance Pest Control Measures

Given the significant imports of peanuts from Uzbekistan and ongoing agricultural challenges, stakeholders in Russia should strengthen pest control measures through enhanced collaboration with Uzbek authorities. This can include joint training programs on phytosanitary practices and improved supervision protocols in storage facilities. Implementing advanced pest management techniques will help ensure the quality of peanut supplies and mitigate risks associated with pest infestations.

Support Infrastructure Resilience

To address indirect damages from adverse weather events like Hurricane Helene, stakeholders should invest in infrastructure resilience for peanut drying and storage facilities. This includes upgrading power systems to minimize disruptions and implementing backup solutions, such as generators or renewable energy sources. Ensuring facilities can handle power outages will reduce post-harvest losses and maintain product quality.

Promote Sustainable Farming Practices

In response to declining peanut yields in regions like Ukraine and India, stakeholders should promote sustainable farming practices among peanut farmers. Initiatives can include providing training on drought-resistant cultivation methods and soil moisture management techniques such as mulching and drip irrigation. Financial incentives could encourage farmers to enhance productivity while reducing risks associated with climate variability.

Sources: RT, East Fruit, Southeast AgNet, Agriculture Dive, The Hindu, Sao Paulo, Uno Entre Rios