- It is vital to the future of the peanut industry that new markets are continually developed and that established ones are expanded. Also, to be successful, growers must be aware of the dynamics of this complex market.
Should it matter to you, as a peanut producer, if China is rapidly building its middle class, if monsoon rains are hitting India, or if a major production area of Argentina is experiencing a late-season drought? It should.
Any doubt about the importance of world events to peanut markets should have been erased in 2012, when China bought 300,000 tons of peanut from the United States. The ripple effect of this one purchase had a profound impact on the U.S. market, and on plantings in subsequent years.
The peanut market is unique when compared with those of other U.S. commodities. There is no cash or spot market or futures exchange for peanuts, and market power is concentrated among peanut shellers who enter into private contracts with growers.
This leaves few alternatives to growers for marketing their peanuts. For this reason, it is vital to the future of the peanut industry that new markets are continually developed and that established ones are expanded. Also, to be successful, growers must be aware of the dynamics of this complex market. That’s why it’s just as important for you to know the weather forecast for major international peanut players like China, India and Argentina as it is to know your own.
To help in this endeavor, Southeast Farm Press will, for the next several weeks present the editorial series, Peanut Futures: Marketing for Profitability, sponsored by DuPont Crop Protection. This series of articles will examine recent developments in U.S. and international markets, beginning with an overview of current markets, along with planting predictions for 2014. We’ll also look at some of the exciting work being done by our commodity support groups, national and state organizations, and manufacturers to create new peanut products and to promote existing ones. These same groups are actively involved in positively representing the industry whenever issues arise, such as with peanut allergies.
This important series will continue through the first part of July, when we’ll announce the winners of this year’s Farm Press Peanut Profitability Awards, the most prestigious peanut producer awards program in the U.S.
This is the kind of information we here at Southeast Farm Press pride ourselves on producing – information that will make you a better grower and hopefully and ultimately add to your bottom line profits.