Nº 08

Will US Peanuts Save the Day in 2024 Following a Devastating Crop in Argentina?

The occurrence of a bad crop every once in a while is not uncommon. In countries with significant agricultural production, the weather is constantly fluctuating, with factors such as flooding, droughts, wind, frost and other phenomena often impacting crop outcomes.

A variation of the crop in the plus or minus 10-15 per cent range is something that the market is generally prepared to handle. What is harder to bear, however, is a combination of unfortunate circumstances that lead to a 40 per cent decrease in production, as experienced by Argentina this year.

The list of factors that contributed to this distressing situation is quite extensive: a challenging start due to an unusually dry winter, inadequate rainfall during the first three months after seeding, a frost on February 18 (approximately 100 to 110 days from planting), further drought throughout the season, and two strong wind events that caused havoc in the fields where peanuts were cultivated.

This series of regrettable issues is indeed astonishing. It not only spells bad news for Argentinian producers, who are now facing significant losses, but also has severe implications for the overall market, considering that Argentina holds a market share of over 70 per cent in European imports of blanched and raw peanuts. Currently, the pipeline connecting the two sides of the Atlantic Ocean appears to be coping, as shipments from previous crops in Argentina, along with assistance from the United States, are managing to cover at least a portion of the shortfall in peanuts. The crucial question that remains, however, is what will happen in the first half of 2024. The stock situation in southern hemisphere countries is relatively clear, placing the responsibility on peanut-producing countries in the northern hemisphere, primarily the United States. Reports suggest that planting in the US has increased by approximately 10 per cent compared with the previous season, but the ultimate yield is contingent upon the events that unfold in the coming months. All eyes will be on the American weather, as a crop failure in the US is the last thing the market needs. Let us hope for the best.

In this edition of World Peanut Magazine , we dedicate significant space to a momentous event for the future of peanut production: the ten-year milestone of the Peanut Genome Initiative. This initiative involved the sequencing of the peanut plant genome, paving the way for the development of powerful breeding tools and transforming peanut cultivation in the process. We had the opportunity to interview Steve Brown, President of The Peanut Research Foundation, and Janila Pasupuleti, a lead scientist at India's ICRISAT, to gain insights into this groundbreaking accomplishment.

Furthermore, we delve into the International Peanut Forum held in Lisbon, an immensely successful event that brought together over 350 peanut professionals from around the world in April. We also continue our exploration of peanut processing by examining packaging standards and procedures. Finally, we discuss the utilization of mulching, a widely practiced technique in China for peanut cultivation.