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04/2022 ISSUE NUMBER / 04 JULY 2022

ARGENTINA PEANUT CHAMBER

World Peanut Magazine

index _ How to Survive in the Middle of the Peanut Sandwich? / 02

_ Market Trends

_ A Huge New Market for Brazilian Peanuts / 06

. A deal between China and the Latin American country may create significant trade opportunities

_ 2022 International Peanut Forum Hailed as a Great Success / 12 . The Theme of the event was: From Inspiration to Innovation

_ The Nut and Dried Fruit Trade Association / 18 . Leads the Way for the UK Market

_ Peanut Market Data

_ Charts & Tables / 21

_ Industrial Processing

_ The Shelling Process: the Heart of the Peanut Industry / 24 _ Tomra Food Publishes new E-Book / 30

to Help Processors and Packers Turn Data from Sorting Machines into Greater Profitability

_ Peanuts as a Superfood _ The Oil Challenge / 32

. The nutritional features of peanut oil . Fatty Acid Composition is key to oil uses

_ Laws and Regulations

_ Sustainable Agriculture: Implementing a New Standard in

Argentina‌ / 38 . An interview with Leah Blechschmidt, Americas Manager at SAI Platform

_ Science and Technology _ When Sustainability Is Good for Business / 42 . Linking peanut yields and biodiversity conservation

Nº 04 How to Survive in the Middle of the Peanut Sandwich? The Covid emergency was expected to end in 2022; however, the “Zero Covid Chinese policy” continued affecting shipping operations and therefore damaged vessel rotations, with negative consequences all over the world. The Russia-Ukraine war was expected to last just a few weeks, but those predictions proved wrong and we continue to see war activities. These cause significant disruptions to shipments to Russian ports while reaching the Ukrainian ones is simply impossible. Both situations continue to affect freight prices and what at the beginning seemed to be a west-east issue is slowly becoming a north-east one, with sea-freight prices from Argentina and Brazil to any northern destination increasing again until the end of the year. The high cost of energy and food, combined with a general increase of most price levels, has led many countries to confront inflation rates that were unimaginable just a few months ago. In Argentina, we are used to living with double-digit yearly inflation, but in Europe and the USA, today´s price peaks are creating a general concern among consumers that, no doubt, will have an impact on consumption habits. What will happen with peanut consumption? Difficult to know. On the positive side, peanuts are on the low-price end of snacks

and were not seriously affected by the general situation in the same way as potato chips, for example, which were highly affected by the increasing oil prices. Nevertheless, the consensus is that volume and price are more linked than ever before, meaning that a higher price will definitely impact sales. At the other end of the industry, in farming, we are seeing soybean, corn, sunflower and cotton prices at very high levels, while peanuts continue to be rather flat. This situation has posed a huge pressure on farmers’ decisions about the choices for the next planting season. Nobody has doubts that peanut acreage will go down in every producing country; the question is by how much. In the middle, shellers and manufacturers have to survive this difficult year by discussing how to share the losses produced by the pressure of rising production costs and the risk of increasing prices for consumers.

Hence the big question: how to survive in the middle of the peanut sandwich? Relationships will be subject to stress, but we must remember that 2022 will pass, and all of us in the peanut world will continue producing, shelling, manufacturing and selling our beloved peanut products. In this issue of World Peanut Magazine, we take an additional look at Brazil and its new trade agreement with China, which includes peanuts. Of course, we celebrate the International Peanut Forum, held in Budapest at the end of April, the first after the Covid emergency. While in the UK, two entities joined forces to create the Nut and Dried Fruit Trade Association. As far as farming is concerned, an interesting article shows how fostering biodiversity may have significant beneficial effects on yield. The focus on sustainability continues in an interview with the Americas manager for the SAI Platform, discussing the implementation of an important standard in Argentina. We continue our series on industrial processing with a look at the shelling operation, while Tomra Food presents its newly released eBook on the profitable use of data from sorting machines. Finally, we dedicate the nutritional area of the magazine to peanut oil and its properties.

_ Market Trends

This section of the wpm deals with the dynamics of the demand and supply of peanuts in the international markets. We will try to keep track of the changes in peanut consumption in the main areas of the world, the factors that can affect production, and the price shifts of the various peanut products.

_ Industrial Processing

This area of the magazine focuses on shellers as well as companies transforming peanuts into consumer products. We will focus on current industry standards, quality issues, new technologies and the different industrial solutions adopted by producing countries. A special section will be dedicated to new products and tools for peanut processing developed by the best manufacturers.

_ Science and Technology

The activities of the universities and other research institutes engaged in scientific research on peanuts are of paramount importance for the future of the business. We will follow the main discoveries, from the latest issues concerning peanut genetics to the development of projects on pathogens or the impact of peanut consumption on human health. The consequences of scientific research on the future of the industry are hard to overstate, so we will be putting them in perspective in order to try to understand where the sector is heading in the long term.

_ Laws and Regulations

The Laws and Regulations section of World Peanut Magazine analyses the impact of new legislation and regulations affecting the production and trade of peanuts. The main issues treated in this section are governmental measures directly affecting international trade (such as the introduction of tariffs or quotas), health safety issues (such as the establishment of Maximum Residue Limits for certain substances) but also legislation impacting distribution, packaging and sales.

_ Peanut as a Superfood

This section offers peanut professionals news and insights into the world of peanut consumption and all its aspects. Typical news is related to findings concerning the nutritional values of peanuts, the impact of peanut consumption on human health, and the development of peanut-based food.

_ Peanut Farming

The primary production is where the peanut business starts, of course, so we will have a dedicated section for all events, activities, techniques and equipment related to growing peanuts in different parts of the world. The general idea is to bring farming in the producing countries closer to all peanut professionals so that they can have a better grasp of the business from a grower’s perspective and maybe on what the future of peanut farming may look like.

— Section — MARKET TRENDS

A Huge New Market for Brazilian Peanuts A deal between China and the Latin American country may create significant trade opportunities.

As an article on ChinaDaily.com (t.ly/u1Y-) states, “China and Brazil recently agreed to new protocols that allow the Latin American giant to export large shipments of corn and peanuts to China, as announced at the sixth meeting of the China-Brazil Highlevel Coordination and Cooperation Committee on May 23. Negotiations also will start this month on expanding trade in other commodities. ‘Brazil and China are complementary economies, and proof of this is the need that China has at this moment for corn. Brazil is a partner that can meet China's needs,’ said Henrique Reis, international relations manager in Sao Paulo for the China Trade Center Group. In a joint news statement, Brazil's Ministry of Agriculture, Livestock and Supply and the Ministry of Foreign Affairs said that the ‘compromises reached demonstrate the dynamism of the bilateral relationship in agriculture’ and the potential for increased trade between the two countries… However,” the article continued, “Brazilian producers still need to create confidence in the stability of supply and the prospects for a long-term trade relationship with Chinese buyers.”

— Section — MARKET TRENDS

Considering the size of the Chinese peanut market and its trend in recent years (the pressure of internal demand caused a shift of China from a net peanut exporter to a net importer) the recent agreement can constitute a significant opportunity for Brazilian shellers.

We talked about this and other issues with Luiz Antonio Vizeu, President of the Camara Setorial do Amendoim, the Brazilian Peanut Chamber.

As we have seen in the last issue of our magazine, the war in Ukraine created huge problems for Brazil’s trade. How did the situation evolve? Can you sell to Russia now? Well, we obviously had problems with the peanuts in transit when the war started at the end of February, eventually we were able to deliver those lots to Russia or other markets, but that is all behind us. Now we must sell the new crop. The problem is not only the war, but transportation: it is so expensive that it is impossible, the cost cannot be justified for the value of a container load of peanuts.

How much are exporters paying for sea freight to Russia? The current cost is in the usd 11,000-12,000 range per 40-foot container. It is impossible… Before the war the price was around 4,500. Now almost three times as much.

In Ukraine, which accounted for about 10 percent of Brazilian exports, it is impossible to deliver at this time? Correct, right now it is impossible.

The big news is, of course, China and the trade agreement with Brazil Yes, an agreement was reached between the two governments to export peanuts in kernels, while we already had a protocol for exporting peanut oil. So now we are waiting for the definition of several details and various regulations. In China things are a bit slow because of the pandemic, but we are waiting for the Ministry of Agriculture for an actual date.

Most countries are subject to a 15 percent duty on HPS and Blanched peanuts, those in the HS code 1202.4200 We are waiting to see the details in the coming weeks.

What about Europe as a market for the new Brazilian crop? I think exports to the EU countries will be the same as last year. Europe is very regular… does not change much year to year. And still, I think the big problem is the sea freight and its cost.

There is the high price of soybeans, corn, and wheat. It is a tough competition for peanuts in Argentina, for example. The same is happening here. The truth is the world is going through a moment of reorganization of the supply chain, everything is complicated, and we will have to wait and see how the markets settle.

What about the internal market? We do not really have exact figures about internal consumption. We estimate the size of the domestic market by subtracting from the overall production the other uses (exports, seeds, etc.). The internal market is significant, however, but consumption increases slowly. Right now is a good time to consume peanuts in Brazil because of the June festivals, where the custom is to eat lots of typical products, especially peanuts, because of the price.

In Argentina we have seen an increase in peanut butter consumption in the last few years Yes, and also in Brazil. But, again, it takes a long time to change consumption patterns

— Section — MARKET TRENDS

What about peanut oil? It used to be big a few decades ago, but then it became very expensive as compared to soybean oil or other oils. It is very hard to compete.

A significant problem is the cost of soil lease… All over the world we are seeing inflation and the lease of lots keeps increasing, but we will see… in June and July we start closing deals on leases and we will see what happens, but I believe they will go down somewhat because during this season some people paid very high fees thinking of old prices, such as 90 reais per bag (of 25 kg.)

In Argentina, the planted area this year has been a little smaller than the previous year, and many think that the planting will be smaller still in 2022 because of prices… Probably a reduction will take place in Brazil as well. Last year we had a peak, but in 2022 I think many can reduce the planting. Particularly people who planted peanuts last year for the first time, I think there are good chances they will not repeat. We still do not know the total production amount of 2022; we will probably have around 800,000 tons.

hailed as a great success! From Inspiration to Innovation The 2022 International Peanut Forum (IPF) was held at the prestigious Corinthia Hotel in Budapest, Hungary during April 27-29. Over 240 delegates from 33 countries around the world joined together for the first in-person global peanut conference since 2018.

Peanut professionals from the farming, shelling, exporting, dealing, manufacturing and allied service segments were able to discuss key topics impacting our industry.

This year’s IPF opened with a welcome reception sponsored by Hungarian snack manufacturer Gilan Trading. Attendees enjoyed samples of their Kalifa-branded products while they finally met up again with fellow delegates and exhibitors and tasted the delights of Hungarian hospitality. The Corinthia Hotel setting provided ample opportunity for people to meet together between conference sessions and the overall atmosphere at the event was one of joy at being able to meet with contacts old and new and get back to business. The conference theme for this year’s forum was “From Inspiration to Innovation” and included four sessions spread over two days. During conference session I, where the focus was on the latest research on the health benefits of peanuts and related key drivers of consumption, Dr Samara Sterling of The Peanut Institute delivered an excellent presentation on recent research into the impact of peanut and peanut butter on cognitive function and stress reduction in young healthy adults. Kaavya Raveendran, of Innova Market Insights, then explained

registrations by country. Number of delegates.

▪ 1 to 10 | ▪ 11 to 20 | ▪ 21 to 30 | ▪ 31 to 40 | ▫ Not represented

where peanuts fit into the top trends that Innova has identified within the food and beverage sector, such as “shared-planet”, “plant-based foods” and “amplified experiences”. In session II, we heard how the conflict in Russia/Ukraine is impacting global food supply and the likely implications for the peanut markets, while entrepreneur Joe Taylor told us about what inspired the creation of his new range of Air Nuts with which he aims to shake up and grow the snack category in the uk. Friday’s sessions focused on managing delivery & logistics risks and explored sustainability drivers and supply forecasts. Jon Beech, of Extra-LS, looked at the risks faced in the supply chain when product can’t get delivered. A quick online poll of the audience showed that the majority of attendees didn’t know where the risk lay. AnneMarie DeLorenzo of Mars Wrigley led the panel discussion “Who’s in the Driver’s Seat on Sustainbility?”, with industry experts Yann Quemeneur (Intersnack Procurement), Amanda Wright (Zertus uk), Edoardo Fracanzani (Camara Argentina del Mani) and Eric Coronel (American Peanut Council) exploring what sustainability means to different parts of the supply chain. Key take-aways from the session were: reducing carbon footprint is a core principle; the importance of traceability and transparency; and consumers are increasingly looking to purchase products that are more sustainable.

The final session of this year’s forum was the popular peanut supply panel session, with Ryan Lepicier of the National Peanut Board moderating the discussion. Representatives from Argentina, Brazil, China, India, Nicaragua and the USA started the session by providing brief updates on the latest news from their countries. Diego Yabes, Vice-President of the Camara Argentina del Mani, reported that frost has lowered production forecasts for 2022 and that global events continue to cause uncertainty. A slightly improved forecast for plantings and production was given by Robson Fonseca, of Coplana, for Brazil, but he acknowledged that the Russian/Ukraine conflict would impact their exports to those markets and new outlets were being investigated. Charlie Jia, of Qingdao Foodlink Co, China, reported that oil crushing remains a core component of that market, with oil use accounting for over 60 percent of demand in China. China will remain a key importer but levels are likely to fall this year. High freight rates in 2020 had impacted export numbers from China. Nilesh Vira, of IOPEPC (India Oilseeds and Produce Export Promotion Council) reported that Indian scientists are making advances with a new high-oleic peanut variety and that the Indian government has initiated plans to improve processing facilities for export peanuts to world-class levels. Joaquin Zavala, of Comasa, hopes that planting in Nicaragua will be close to 2021 levels but higher input costs may impact farming decisions. He reported that the peanuts they produce are of high enough quality to meet EU requirements and the needs of other discerning markets. With no domestic market to speak of, all production from Nicaragua is exported. Bob Parker, of the National Peanut Board, told delegates that the 2021 US peanut crop was the best he has seen in his 45 years in the peanut industry and was of an exceptional quality, which bodes well for exports. Looking at the 2022 crop, USDA estimates a slight fall in area for peanut plantings. During the question-and-answer session the supply panel looked at planting intentions, the regulatory environment, the impact of rising input costs and other challenges impacting the production and supply of peanuts. While it was clear that there are many challenges to be faced, there are key positives for the peanut industry in this time of food insecurity, with peanuts being a stable, reasonably priced, high protein food; scientists producing higher yielding seeds and moves to boost consumption around the world. A great session to round off the conference program.

— Section — MARKET TRENDS

This year we are inviting non-attendees to register to watch the video recordings of these sessions, so if you weren’t able to be there in person and would like to catch up on the sessions, please register at https://cvent.me/3POZQ9 A usd 100 registration fee will be payable and you will then be able to watch all of the video recordings at your convenience.

The conference presentations and links to video recordings have already been shared with attendees. Please contact Louise McKerchar if you need assistance accessing them lmckerchar@peanutsusa.org.uk

The IPF app allowed delegates to see who had registered to attend the event, to organize meeting times with one another in advance, and to keep up to date with the schedule, as well as accessing local information and documents for the event. There were plenty of opportunities to network over the course of the forum between sessions, over lunch and in the afternoons, and with all coffee breaks and receptions being held in the exhibition center, there was ample time to visit exhibitors to discuss their products and services. It was clear from the number of meetings taking place across the event and throughout the hotel that everyone was happy to be back at the IPF and meeting in person again.

With ESA’s SNACKEX event now having moved to “even” years, the decision has been made to move future IPFs to “odd” years so that we don’t overlap, meaning that the next IPF will now take place NEXT YEAR in 2023! Mark next April on your calendars and the American Peanut Council will confirm the destination and dates as soon as possible. If you missed this year’s IPF, be sure to carve out the time for next year’s event! APC would like to thank all of the sponsors for making the event possible: TOMRA, Agrocrops, Birdsong Peanuts, Golden Peanut and Tree Nuts, Premium Peanut, Andalucia Nuts, Camara Argentina del Mani, JLA, Gilan Trading, Innova, Mintec and Mintel.

— Section — MARKET TRENDS

The Nut And Dried Fruit Trade Association leads the way for the UK Market

In October 2020 in the UK, The Nut Association and the National Dried Fruit Trade Association formally joined together to form The Nut and Dried Fruit Trade Association (NDFTA). Here they give us an insight into their work.

The association’s mission is to encourage, promote and protect the interests of its members, to build a networking forum and to serve as the voice for their members in matters impacting their business. The association represents companies or individuals involved in the uk nut, peanut and dried fruit industries, whether based in the uk or conducting business in the market. It aims to keep members up to date on proposed legislation changes through direct communication with government and also through membership of other UK and European food associations. ndfta offers contract services and provides a well-respected arbitration service in the event of a dispute arising between contracted parties, which is a quicker and cheaper option that legal proceedings. The strategy and activities of ndfta are managed by its elected board of directors, with a secretariat responsible for the day-today running of the sssociation. There are a number of sub-committees, including a technical committee represented by member companies, undertaking work across a range of areas of importance to their members. The past couple of years have been more challenging than normal for people and companies across the world. In times when many have felt isolated due to the pandemic, regular communication with members has been a vital task for the association. In-person meetings were replaced with on-screen conference calls and past educational visits morphed into webinars to keep everyone up to speed, particularly with all the issues surrounding the uk’s departure from the European Union.

— Section — MARKET TRENDS

The association was especially pleased to be able to welcome members back to an in-person networking lunch at the prestigious Queen’s Club in London in September 2021, shortly before the ndfta's first birthday! Over 80 members joined together for networking drinks and lunch and everyone very much enjoyed the opportunity to finally be able to meet up again with peers and colleagues in person. This year we were once again able to hold our Annual General Meeting (agm) at the Queen’s Club on 20 May and over 100 members and guests attended. Attendees were updated on the work of the association, committees and working groups during its second year in operation and approved the budget for the current year. The agm was followed by networking drinks and then a lunch which was much enjoyed by those present. We look forward to more educational trips and networking events later in the year. ndfta Chair, Mrs Ellie Osman of Minerva Global Limited, says:

“We want to support the nut and dried fruit industry to thrive in this exciting era when retailers and consumers are becoming more aware of their health benefits and are looking for innovative ways to incorporate them into their diets. If your company is trading in or with the uk, please consider joining ndfta to strengthen the voice of the peanut, nut and dried fruit sectors.” Find out more or sign up to join at www.ndfta.co.uk

charts & tables peanut exports of brazil - kernels (mt)

eu 27 imports, tm (prepared - hs 2008.11)

— Section —

PEANUT MARKET DATA

eu 27 imports, tm (shelled - hs 1202.42)

china future prices (settle value - rbm)

peanut exports of argentina - kernels (mt)

Source: Mintec Benchmark Prices

mintec benchmark prices for peanuts delivered to rotterdam. Courtesy of Mintec Global

— Section —

INDUSTRIAL PROCESSING

25 In the previous issue of WPM we described the farmer stock cleaning process, a mandatory step prior to shelling. Before entering into what can be considered the most important part of peanut processing, it is important to highlight some concepts, or conditions, of the farmer stock as they will define the productivity and efficiency of the processing plant. The goal of the shelling process is to get the peanut kernels that are inside the shells without damaging or splitting them. Any method or equipment available in the market will be influenced by the following conditions: _ FARMER STOCK CLEANING The less foreign material we have in the farmer stock before shelling, the better the performance of the process will be. It is important to remember that one piece of foreign material entering the shelling might be broken into pieces, thus multiplying the problems downstream. _ UNIFORM SIZE OF THE PEANUT SHELLS It is always advisable to enter the shelling process with uniform shell sizes. This condition will maximize shelling capacity and minimize split production. _ KERNEL MOISTURE The lower the moisture, the higher the fragility, hence a higher split production. _ SHELL/KERNEL RATIO This relation will determine the potential productivity of the process. There is a density difference between the shells (150 kg/m3) and the kernels (600 kg/m3); therefore, when the percentage of kernels vs shells increases, the output of the process will also increase (more kilos per hour). We are now ready to start the shelling process.

Types of equipment and methods — The most common method used for shelling in the market is that of tearing the peanut shells to open them and release the kernels inside. The combination of a rotation movement of the shaft with blades (shelling bars), inside a stationary perforated cylinder that allows the kernels to pass through (shelling crates), is the basis of every currently available technology. These sets of shelling bars and crates are commonly known as shelling cylinders. They have different capacities and regulations to adapt them to the conditions of the farmer stock we want to shell. The shelling crates are generally built with flat bars welded over the cylinder structure, where the distance between each bar defines the size of the crate. They are interchangeable and easy to remove, a situation that allows the operator to choose the proper crate size, based on the size of kernels to be shelled. Most of the models have a connection to an aspiration system that separates the shells from the kernels as they are being released from the process.

Shelling process settings — The variable that has the highest impact on the whole process is the selection of the proper shelling crate. If the crate is smaller than needed, the process will shell less and produce more splits. On the contrary, if the crate is bigger than needed, the smaller shells will pass through the crate without being opened. As the quality of the farmer stock may change during the day, it is important to monitor the process and change the crate size as needed in order to keep the productivity and efficiency of the shelling process. Another regulation that may be appropriate is moving the shelling bars closer or further away. The correct setting of this variable is very important to control how aggressive the process is to the peanuts.

Maintenance tips for a proper shelling

—

The shelling crates must be clean, sound and sharp when the model allows it. — The shelling crates must keep the cylindric shape without deformations. — The shelling bars’ distance to the crates must be periodically checked to keep it correctly set. — The shelling bars should also be checked for excessive wearing, and eventually replaced. — It is important to avoid any metal item reaching the shelling cylinder, as they can cause a breakage of the crates or the shelling bars (see WPM issue 3).

— Section —

INDUSTRIAL PROCESSING

History and tips from the origins… — Lewis Carter from LMC USA gives us some important insights The pictures of peanut shelling machines are from the pre-World War II era. My grandfather started in Donalsonville in March 1941. Not very good timing as all materials were put into the war effort. He managed to survive by making wooden products of all types. The installed machine is a 2-cylinder unit. Notice the sizing trommel on the right. The machine on the lorry is the forerunner design of the machine we build today. The major difference is in the shelling cylinder. The shelling concave (grate) was a rolled perforated sheet while the shelling bars were made with angle iron. While the concaves were good, they had to be replaced often because of wear. Today’s concaves and shelling bars use the same basic principles. When shelling, the goals are to have a very clean product and to keep the shelling cylinder full. Getting the peanuts into and out of the cylinder quickly not only increases capacity, it also reduces splits. Today’s LMC-designed concave has a much more open area and its instantly recognizable hardened, rippled sheller does this well. When shelling it is best to have multiple stages. Correctly sized shelling concaves will yield 80 percent shelled peanuts. A higher percentage will cause more damage, as will a lower percentage. In commercial shelling plants, LMC uses 4 stages at 80 percent shelling. Number 5 stage is used to harvest oil crushing sizes and a goal of 100 percent shelling is desired. LMC utilises a specially compounded steel in its shelling concaves and uses special quality controls to ensure the concaves are sized properly and meet LMC’s exacting standards. The shelling bars meet the same quality tests.

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PEANUTS AS A SUPERFOOD

The Oil Challenge The nutritional features of peanut oil

Peanut oil is widely considered an excellent oil, especially for frying. But what makes it different from other vegetable oils found in stores and kitchens all over the world? We decided to take a closer look at the differences between the nutritional profile of peanut oil and other oils, particularly soybean oil, one of the most consumed oils in the US and elsewhere because of its value.

First of all we have to clarify that not all peanut oils are created equal… the composition depends on the peanut variety and especially if we are considering a regular peanut or a high-holeic one (see table on page 35). Having said that, we will use mostly USDA data (FoodData Central (usda.gov)) referring to regular peanut oil. Both oils are rich in unsaturated fatty acids. As such, they are considered to have a positive effect in preventing heart and cardiovascular diseases as they may help reduce the levels of LDL cholesterol and tryglicerides in the blood. In addition, these fatty acids, according to several studies, may help control the levels of sugar in the blood for people affected by diabetes. A significant difference is in the content of Vitamin E (15.2 mg in peanut oil versus 12.2 in soybean oil). Vitamin E consists of a group of compound solubles in fats, that have several positive effects on our body, starting from their anti-oxidant effect as they protect the body from the negative effects of free radicals (which may cause harm to cells under certain conditions). Just a tablespoon of peanut oil accounts for more that 10 percent of the daily recommended intake of Votamin E. In addition, Vitamin E keeps the immune system at its best, protecting the body from potentially harmful bacteria and viruses. Another significant difference is the type of unsaturated fatty acids in the two oils: the ones in peanut oil are largely monounsaturated, while soybean oil has a much bigger share of polyunsaturated fatty acids. The latter ones are more subject to rapid oxidation, which makes the soybeans oil deteriorate faster. On the contrary the monounsaturated fatty acid of peanut oil makes it more stable and capable of reaching higher temperatures while still maintaining its integrity (see the article by Prof. Dunford on next page). This is what makes it a great oil for deep frying.

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PEANUTS AS A SUPERFOOD

Fatty acid composition 34 is key to oil uses

Prof. Nurhan Turgut Dunford, Oklahoma State University

Peanut oil fatty acid composition may vary de¬pending on maturity, genotype and growth location. Typical fatty acid distribution for regular and high-oleic peanut oil is shown in the table. Fatty acid composition of oil is the main criteria for choosing an oil for a given application. Regular peanut oil has higher saturated fatty acid content than many other commodity oils such as canola and soybean oil. That is one of the reasons peanut oil is good for high temperature applications such as frying. Al¬though unsaturated fatty acids are better for health, highly unsaturated oils are less stable and prone to oxidation. The rates of oxidation of unsaturated fatty acids increase with increasing unsaturation. For example, if it is assumed that the oxidation rate of a saturated fatty acid is 1, relative oxidation rates of unsaturated fatty acids with the same number of carbon atoms but 1, 2 and 3 unsaturated bonds on the molecule would increase 10, 100 and 200 times respectively. Hence, a high concentration of monounsaturated fatty acids, such as oleic acid (one unsaturated bond on the molecule), is preferred in oils to be used for food applications, specifically for applications requiring cooking and longtime high temperature exposure such as frying. The fatty acid composition of many oil seeds has been modified to meet requirements of various applications, i.e. cooking/frying oil, industrial ap¬plications, dietary supplements, etc. New cultivars of peanuts with modified fatty acid composition have also been released. Oleic acid concentra¬tion in traditional or regular peanut oils range from approximately 41 to 67 percent, whereas in high-oleic peanut oils, this fatty acid content is close to 80 percent (Table 1). A primary functional benefit of high-oleic oils is an extended shelf life. Oleic acid enrichment in peanuts has been achieved through classical breeding techniques. The research carried out at the Oklahoma State University Robert M. Kerr Food and Agricultural Products Center on high-oleic peanut varieties developed for the southern US states including Oklahoma indicated conventional genetic selection for high-oleic concentration did not cause any significant unintentional change in peanut nutritional composition.

The physical properties of peanut oil determine its functionality in food formulations. For example, peanut oil solidifies from -1 to 3 degrees Celsius, hence, it is not good as a salad oil. The iodine value (IV) is a measure of the unsaturation level of the oil. The IV of regular peanut oil is within the range re¬ported for other vegetable oils. Density and viscos¬ity are fundamental physical parameters that are important for various process engineering design calculations common in the edible oil industry. Vis¬cosity is the relative thickness or resistance of the oil to flow. Both density and viscosity of the refined peanut oil fall within the range reported for those of other vegetable oils.

Fatty Acid Composition of Peanut Oil Courtesy of Oklahoma State University FATTY ACID

REGULAR

HIGH-OLEIC

Capric (10:0)

Lauric (12:0)

0 - 0.1

Myristic (14:0)

0 - 0.1

Palmitic (16:0)

8.3 - 14.0

7.0

0 - 0.2

Stearic (18:0)

1.9 - 4.4

3.0

Arachidic (20:0)

1.1 - 1.7

1.0

Behenic (22:0)

2.1 - 4.4

4.0

Lignoceric (24:0)

1.1 - 2.2

2.0

36.4 - 67.1

76.0

0.7 - 1.7

2.0

0 - 0.3

14.0 - 43.0

4.0

Alpha Linoleic (18:3n3)

0 - 0.1

Nervonic (24:1)

0 - 0.3

Total Saturated

14.6 - 26.9

17.0

Total MUFA

37.1 - 69.3

78.0

Total PUFA

14.0 - 43.1

4.0

Palmitoleic (16:1)

Oleic (18:1) Gadoleic (20:1) Erucic (22:1) Linoleic (18:0n-6)

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PEANUTS AS A SUPERFOOD

High-oleic peanut oils are reported to have both lower densities and

higher viscosities than those for regular peanut oils. The viscosity differences were most apparent at cooler temperatures. The main components of unsaponifiable fraction of oils are tocopherols and phytosterols. Peroxide value is a measure of the oil quality and the amount of primary oxidation products (OSU Fact Sheet FAPC-197 Edible Oil Quality). Good quality oils would have very low peroxide value. The smoke point is the temperature at which oil produces a continuous stream of smoke during heating. This parameter is very important for evalu¬ating suitability of an oil for frying applications. In general, regulations specify 200 degrees Celsius as the minimum for frying oils. The smoke point of peanut oil is about 230 degrees Celsius, which is higher than the required 200 degrees Celsius. Peanut allergies are due to specific proteins. In general, refined oils do not contain detectable amounts of proteins. However, depending on the degree of processing and handling, minor amounts of proteins might end up in oil.

Properties that make peanut oil a good frying oil _ High smoke point is one of the main reasons peanut oil is preferred as frying oil. High temperature frying allows food to cook quickly resulting in a crispy coating with very little oil absorption. _ Although crude peanut oil has a nutty aroma, refined oil is odorless. Hence, it does not interfere with the flavor of the formulated foods. _ Off-flavor and odor development are quite low during frying with peanut oil. _ Due to its relatively higher saturated fatty acid content, peanut oil is more stable than many other regular vegetable oils, such as regular soybean oil. Hence, peanut oil is better at withstanding high heat exposure, minimizing the formation of harmful oxidation products.

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LAWS AND REGULATIONS

Sustainable Agriculture:

Implementing a New Standard in Argentina

An interview with Leah Blechschmidt, Americas Manager at SAI Platform

A few months ago, many peanut companies in Argentina started the implementation of the Farming Sustainability Assessment standard by the SAI Organization. We asked Leah Blechschmidt a few questions on this subject.

LEAH BLECHSCHMIDT Leah’s current role within SAI Platform is to lead strategy and activities across the Americas, including Brazil. Leah ensures that SAI Platform tools and initiatives are locally relevant, and that work in the Americas is aligned with the wider SAI Platform delivery.

// What is the Sustainable Agriculture Initiative Platform? The SAI Platform is a membership organization for the food and beverage industry with about 160 members from different areas: farming, packaging, retailers, and so on. The central idea of our organization is to provide an opportunity for pre-competitive collaboration for our members. It was founded by Nestle, Danone and Unilever in 2002, so we are celebrating our twentieth birthday. Those organizations could see the writing on the wall that sustainability, especially farming sustainability, is a field where everyone is going in her/his own direction, so it can get complicated and confusing. We basically asked the question: how can we make it simple for everyone involved? // What can you tell me about the specific project that is being implemented in Argentina? We thought that there was a need for a standard that could be useful for the peanut industry, and there was an opportunity for SAI Platform to come in and fill that need. Argentina presented a unique and interesting opportunity, and, of course, it was of very high interest to many of our members. Also, the way that the peanut industry is structured in Argentina, with a relatively small number of vertically integrated companies, facilitated the opportunity to act quickly for the implementation of the FSA, which is the standard that the members agreed they wanted to implement. With that, we were able to contact the Argentina Peanut Chamber and work from there.

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LAWS AND REGULATIONS

// The implementation of the project started at the end of last year… Yes, that is when we started talking to the companies involved,

trying to understand the landscape… so we have been working for just under a year now. // And what do you think of this first stage of the implementation? Is everything going smoothly? It is actually going better than we expected, which is always nice… I think there are two big things that we were able to do. One is the implementation aspect: we were engaging with nine suppliers, one of which had been already independently verified, and the issue was mainly to install communication mechanisms. Two, all the companies involved are well organized, and they have the right people, so what they may have been lacking was merely familiarity with the system; we were able to work with the local consultants and easily walk the companies through the roadmap. The results are fantastic so far. We had the expectation of verifying two out of eight suppliers by this time and the other six either in the second half of 2022, or in 2023, but the suppliers came on board so enthusiastically that we have four verifications done already, another two scheduled, and we are aiming to proceed with the other two within this calendar year. So the implementation is going really well, and also the results: most companies are coming out at the silver level, which is the middle tier for the FSA and it coincides with where the bar is in terms of sustainability expectations, so now we feel that the Argentina peanut industry can say that, from the international standard of sustainability perspective, they are really competitive. It has been really great! The connection with the Argentina Peanut Chamber, and the presence at the International Peanut Forum… it was important, and now we are seeing peanut producers from other regions very interested in the project. // What percentage of the peanut production sector is participating in the program? About over 80 percent we calculate. And we estimate that we verified over 150,000 hectares. // Are you involved in any other project worldwide as far as peanuts are concerned? We did receive interest from the US and Brazil. We have not moved forward yet, but I think that in the incoming months we will be able to go deeper into those conversations. However, while our members are interested in other regions, they also care very much about carrying the initiative to the next level in Argentina. Once we put the project in place, we are looking at the next step in Argentina. Some of the things we are considering are carbon footprints and climate change…

The issue is how can we take the industry a step further and demonstrate the impact. // I guess it makes sense to consider this as work in progress. In Europe, they are developing the Farm to Fork strategy, which includes the introduction of progressive regulations… Yes, this is something that is always on our radar, we want to make sure that we are aligned with the Farm to Fork strategy and generally the European legislation. // What are the parameters, the issues that are considered when the FSA is implemented? There are ten different topics that we focus on. Of course, a central theme is environmental sustainability, but, in our case, we take a holistic approach; we want to make sure that the social and economic sides of the business are in place as well. So, there are questions such as: Do you have a nutrient management plan? Do you minimize the use of fertilizers? But then we also ask questions like: Do you have a business strategy? Have you considered the risk you are facing if you are monocropping? Labor conditions, for example, are a significant part of the assessment, especially in those cases in which there are migrant workers coming in. We think it is important that the standards applied are recognized at the international level, so we apply ILO conventions on key issues affecting labor. In the case of Argentina, the companies involved had such good standards that they got a silver score, meaning that they not only comply with those international standards, but exceed them. // Anything more you would like to point out? Even though the push is coming, to some extent, from our members, we are working to make it worthwhile for the suppliers. It is really not a top-down approach.

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PEANUT FARMING

When Sustainability Is Good for Business Linking peanut yields and biodiversity

By Leonardo Galeto National Council of Scientific and Technological Research argentina

Peanut is an important crop worldwide and particularly in Córdoba, Argentina. Peanut yields are around 2 tons/ ha worldwide, with increasing levels in the last decade in Córdoba (around 3 tons/ha). Agriculture provides opportunities to support biodiversity through alternative agricultural practices, for instance introducing some changes and enhancing sustainability. Practices linked to ecological intensification agriculture (i.e., crop rotations and diversification, farm-level diversification, reduced use of agrochemical, etc.) may reduce the negative impacts on biodiversity through the reduction of external inputs and maintaining or enhancing ecosystem functions that regulate and support the production of many crops. Comparing agricultural practices and peanut yields, data gathered from private companies in Córdoba over the last five years showed an annual 5 percent increase in those stands managed with sustainable practices compared to those under conventional methods (5 tons/ ha vs 3.5 tons/ha, respectively; this difference accounts for 40 percent higher yields). The main changes introduced in the last ten years in those stands with sustainable practices that could explain such an increase in productivity are regular and controlled crop rotations, reduced use of agrochemicals, increased areas with semi-natural habitats for biodiversity and soil care with evergreen diversity of sowed species during the year. In particular, peanut stands with sustainable practices seem to capture the benefits of biodiversity within the

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PEANUT FARMING

soils because root biomass was double during recent years mostly due to the diversity of crop service (for example, Vicia, rye, Brassica, etc.) sowed during the cold season. Higher biodiversity above and belowground is related to increased activity of insects and microorganisms, a higher rate of nutrient recycling and an increase of both root exudates, and water infiltration. Overall, the structure and the physical, chemical and biological conditions of the soils are improved with sustainable practices transforming exhausted soils into a virtuous system where peanut obtains the greatest benefits.

1 Moreover, conventional agriculture usually impacts negatively on pollinator diversity and affects the pollination service of many crops worldwide. Pollinators and pollination services are components of biodiversity that could be enhanced by introducing sustainable agricultural practices. Although peanut presents flowers that self-pollinate and therefore can produce fruit without the intervention of pollinators, there are no available studies measuring the effect on production in terms of quantity or quality of the seeds (size, quantity and quality of the oils produced) when flowers are isolated from pollinators. Experiments were developed in six stands for two years with a high oleic peanut variety (Granoleico). Cages (four per stand) covered with voile were placed on peanut plants before flowering and kept covered 1. Next to each cage, control plots (plants exposed to pollinators) were delimited. Open flowers from caged and open plants were collected to evaluate pollination effects by counting the

number of pollen grains deposited on stigmas 2 . At the end of the crop cycle, all the caged and open (control) plants were collected to obtain the response variables on the quantity and quality of the seeds produced. Results showed that plants exposed to pollinators had double the number of pollen grains deposited on their stigmas (Fig. 2) compared to flowers of caged plants (4-6 to 2-3 pollen grains per stigma, respectively).

2

3

Moreover, plants exposed to pollinators showed higher yields in quantity and/or quality (number of grains, weight of fruits and grains, amount of oleic acid) compared to caged (isolated) plants (> 20 to 35 percent increase according to the response variable). One of the main conclusions of the experiences with more sustainable practices indicates that peanut flowers can produce fruits and seeds in the absence of pollinators, but if they are present in the landscape, peanut productivity is increased in quantity and quality. This could be explained by the movement of pollen between flowers that pollinators could be responsible for. The higher the amount of pollen deposited on the stigma, the higher the chances for better pollen grains (larger size, greater quantity, and quality of nutrients) fertilizing ovules. The other remarkable conclusion indicates that the better the sustainable practices, the higher the quality and quantity of peanut yields. The stands with ecological intensification practices produced higher yields above the average for those

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PEANUT FARMING

Peanut yields comparing caged (C) and open (O) plants to pollinators in 6 stands 3

Peanut yields between caged (C) and open (O) plants to pollinators 3

with conventional practices. These overall results show the importance of sustainable management in peanut stands to improve yields. The possibility of preserving biodiversity in the agro-ecosystem through maintaining semi-natural habitats (for example, biodiversity refuges such as fence lines, relict of forests, corners of the stands, etc.) increases the presence of beneficial insects for crops showing the importance of linking biodiversity, sustainable management and crop yields.

This issue of the World Peanut Magazine has been completed thanks to the efforts of: Luiz Antonio Vizeu

Nurhan Turgut Dunford

Brazil

USA

Camara Setorial do Amendoim

Oklahoma State University

Nuria Martí, Alarcon & Harris PR and Tomra Foods

Lewis Carter USA

LMC

Argentina

Spain

Leonardo Galeto Louise McKerchar

Argentina

National Council of Scientific and Technological Research

American Peanut Council

José Torre Gabriela Alcorta Soledad Bossio Javier Martinetto Nicolás Cantoro Edoardo Fracanzani Sebastián Della Giustina

Leah Blechschmidt

Martin Frigerio

Canada

Argentina

SAI Platform

Argentina Peanut Foundation

cam (Argentina Peanut Chamber)

Graphic Design and illustrations. ese-estudio.com.ar Typography. Journalist by Sergio Rodriguez / Cantarell by Dave Crossland / Work Sans by Wei Huang / Noto Sans / Picture pag. 42. Dartmouth Electron Microscope Facility, Dartmouth College - Source and public domain notice at Dartmouth Electron Microscope Facility

Cámara Argentina del Maní 20 de Septiembre 855 “A”. (X5809AJI) General Cabrera · Córdoba, Argentina Tel +54 358 4933118 cam@camaradelmani.org.ar www.camaradelmani.org.ar

World Peanut Magazine 04. 2022