1. Weekly News

Brazil

Brazilian Delegation Reviews Russian Quality Controls, Reinforces Commitment to Peanut Export Standards

On October 21, Brazilian specialists visited the Grain Quality Assessment Center's St. Petersburg branch at the Vysotsk Port to review Russia's phytosanitary controls on exported grain. This delegation, including officials from Brazil's plant inspection and quarantine services, observed quality and safety protocols for grain exports. Brazilian representatives noted the professionalism of Russian experts and confirmed their commitment to rigorous quality control on exports to Russia. The meeting emphasized mutual agricultural interests, with Brazil exporting peanuts and coffee to Russia for quality evaluation.

Türkiye

Şırnak’s Silopi District Celebrates Peanut Harvest Festival, Showcasing New Investments in Agricultural Growth

A peanut harvest festival was held in Şırnak's Silopi district, Türkiye's third-largest peanut-producing region, celebrating the region's agricultural progress. The Deputy Minister of Agriculture and Forestry joined local leaders and farmers to showcase support for expanding peanut production. The Minister highlighted two main initiatives by the Ministry to boost local output: distributing Masal, a native peanut seed, to ensure production sustainability and constructing a peanut processing facility, expected to cost approximately USD 78,763.13 (TRY 2 million), with additional grants of around USD 145,857.65 (TRY 5 million) secured this year. These efforts are part of a broader strategy to strengthen Şırnak's agricultural infrastructure and increase crop yields, especially with expanded irrigation.

Manavgat Peanut Harvest Sees Strong Yield Despite Plummeting Prices and Rising Production Costs

Peanut harvesting is underway in Manavgat, Türkiye, where an expected yield of 10 to 12 thousand metric tons (mt) from 25 thousand acres contrasts sharply with falling prices. This season, peanuts are selling for USD 0.73 per kilogram (TRY 25/kg), nearly half last year's price of USD 1.31/kg (TRY 45/kg), despite rising production costs. The Manavgat Chamber of Agriculture President highlighted the strain on peanut, pistachio, and olive producers, who face a 50% increase in input costs. Pistachios and olives have also seen significant price drops, adding challenges for producers trying to sustain agricultural operations.

United States

Texas Peanut Harvest Faces Challenges as Extreme Heat and Rising Costs Strain Growers, Prompting Calls for Farm Bill Support

In Texas, the peanut harvest season is underway, with growers in Terry County facing significant challenges. Texas, a diverse peanut-growing state, supports all four peanut varieties, aided by its semi-arid climate and sandy soil, which reduce the need for chemicals and facilitate harvesting. However, the season’s extreme heat and drought conditions have lowered yield expectations, adding financial strain. Despite a stable peanut market, farmers struggle to cover rising input costs, pushing many to question the viability of continued farming. Amid these difficulties, agricultural groups are urging Congress to pass a new farm bill to support struggling producers.

2. Weekly Pricing

Weekly Peanut Pricing Important Exporters (USD/kg)

Yearly Change in Peanut Pricing Important Exporters (W43 2023 to W43 2024)

India

In W43, India's peanut prices held steady at USD 0.64/kg, reflecting a 3.23% monthly increase from USD 0.58/kg, yet still down 18.99% year-on-year (YoY) from USD 0.79/kg. In response to declining prices, the Indian government approved a support price initiative, with the State of Karnataka setting the procurement price for peanuts at USD 80.66 per quintal (INR 6,783/q) to assist farmers. Karnataka has designated two central and four state agencies to manage procurement across eleven districts, aiming to stabilize peanut market prices and support farmers financially.

Brazil

In W43, Brazil's peanut prices declined to USD 3.18/kg, marking a 4.22% decrease both week-on-week (WoW) and month-on-month (MoM) from USD 3.32/kg. Amid reduced rainfall, producers are prioritizing planting peanuts and soybeans. This shift in focus may impact peanut supply levels, potentially stabilizing or even lowering prices in the coming weeks as planting priorities adjust and market conditions respond.

3. Actionable Recommendations

Expand and Strengthen Regional Processing Capacity

To enhance the sustainability and profitability of Türkiye’s peanut sector, stakeholders should prioritize investments in local processing facilities. Following the Turkish Ministry of Agriculture’s recent project in Şırnak, similar investments across key peanut-producing regions like Manavgat could alleviate pressures from fluctuating prices by reducing logistics costs and capturing added value locally. This strategy would also facilitate long-term market stability and supply chain resilience, ensuring producers benefit from proximity to processing infrastructure. Partnerships with local cooperatives could further optimize processing efficiency and increase the bargaining power of peanut farmers.

Adopt and Promote Cost-Effective Production Practices

Given the financial pressures on peanut producers in Türkiye and Texas due to falling prices and rising input costs, extension services should focus on training farmers in cost-reduction practices. Techniques like precision agriculture, optimized irrigation, and soil health management can reduce input reliance, enhancing economic viability. Governments and agricultural associations might consider subsidies or grants for precision equipment and irrigation systems, particularly in drought-prone regions, to support sustainable production and reduce future vulnerabilities to climatic shifts and input cost increases.

Implement Strategic Export Partnerships and Quality Control Assurance

Brazil should leverage the recent collaborative efforts in phytosanitary standards by establishing quality certification protocols for peanuts destined for international markets to enhance export competitiveness, especially in high-value markets like Russia. This could include certifications recognized by major importing countries, boosting consumer confidence, and differentiating Brazilian peanuts in global markets.

Sources: Tridge, SonDakika, Agri News, KCBD.