New Consumption Record For Second Consecutive Year

Besting the old mark by 3%, Americans consumed 7.9 pounds in 2021.

For the second year in a row, America’s peanut farmers can celebrate an unprecedented level of per capita peanut consumption. Based on U.S. Department of Agriculture and U.S. Census data, per capita consumption rose to 7.9 pounds in 2021. This tops the previous record of 7.6 pounds in 2020 and reflects a 3% increase.

“People may be surprised to learn that peanut consumption was at an all-time high during the pandemic, but after more thought, it makes sense,” says Bob Parker National Peanut Board president and CEO. “We would never wish for business growth under these circumstances; however, we take pride that peanuts have helped people meet their nutritional, convenience, financial and even emotional needs during stressful and hectic times.”

The record-breaking increase is a testament to the peanuts’ ability to meet the needs of consumers. This achievement is possible because of the continued collaboration and efforts across the peanut industry. Farmers, buying points, shellers and manufacturers strive to supply quality products to consumers and many industry organizations work together to contribute to these accomplishments. This dedication and hard work are reflected in the recent gains.

Promoting The Most Popular Nut

Driving awareness of peanuts and consumption through consumer marketing is a priority of the National Peanut Board. For the past several years, NPB focused on reaching millennials, who have the greatest impact on peanut consumption. However, the 2021 campaign, Grow It Yourself, invited Generation Z to the table by introducing them to the world of growing your own food.

Over the past year, NPB tapped into what millennials and Gen Z love. The first activation allowed for consumers to receive a greeting card with a real peanut in it that they could grow themselves. For those who wanted a little less commitment, consumers were able to adopt their own virtual peanut plant on TikTok. Targeting a younger demographic, TikTok users were able to get a taste of what it feels like to plant, nurture and grow peanuts virtually.

“Part of the board’s objective is to increase consumption of peanuts through promotions,” says Andy Bell, Georgia peanut farmer and 2021 NPB chairman. “That can be a challenge when peanuts are already the most popular and preferred nut. But through creative promotions, exports and new products, things are good in the peanut industry, and we keep reaching new heights.”

Boosting Early Introduction

Although only 1% to 2% of the population is estimated to have a peanut allergy, NPB continues to invest in finding solutions. Since 2001, NPB has allocated more than $35 million to food allergy research, education and outreach. At the end of 2020, the USDA and the department of Health and Human Services released Dietary Guidelines for Americans, which for the first time included a section on infants and young children.

The guidelines recommend that introducing peanut foods as early as four to six months helps prevent potential peanut allergies. NPB continues to advocate for awareness and adherence to the guidelines with pediatricians and other influential health professionals, including support of the American Academy of Pediatrics continuing education course on early introduction of peanut foods.

“Peanut consumption at an all-time high, brands creating new associations for the consumer, manufacturers developing interesting and innovative new products and momentum on early introduction from the new dietary guidelines will all help drive the incremental sales needed to continue growing peanut consumption,” says Ryan Lepicier, NPB senior vice president and chief marketing officer.

“While these factors are all different, they point back to why so many of us fell in love with peanuts and peanut butter again over the past 18 months. They meet some of our most basic nutritional needs and remind us that something as delicious as a PB&J can provide the comfort we need to get through challenging times.”

For more information about the board, visit www.nationalpeanutboard.org. For more information about the early introduction of peanut foods to prevent peanut allergy, visit www.preventpeanutallergies.org. PG

Georgia peanut farmer and NPB chairman Andy Bell says it can be a challenge to promote peanuts – already the most popular nut.

JOY CROSBY GEORGIA PEANUT COMMISSION

MarketWatch

Shipping Crisis Affecting Agriculture Exports, Peanuts Included

J. Tyron Spearman

Contributing Editor, e Peanut Grower

Peanut markets have improved this year, and the potential prospects for a profit are also positive. However, Mother Nature had other ideas and kept chipping away at maximum production.

The weather interruptions limited general trading, and eventually buyers held up to see crop size and quality.

The increased sheller competition has helped boost prices for farmers along with higher prices for other farm crops such as cotton and corn. Premiums are being offered at harvest in hopes they’ll be able to retain the grower next season against the competition.

A U.S. seller says that “we don’t have any quality concerns at this stage, and with the lack of interest we are seeing from China, I think the volume of supply available domestically will be ample this season.”

Demand from China for farmer-stock has been nonexistent for some time with reports that they have enough supply for crushing from both imported and domestic material. Sustained high prices in China are related to freight costs rather than availability of raw material. So far, ocean rates from the Southeast have not changed as much as Argentina and Brazil are now experiencing, not to speak of Asia.

Shipping Woes

This past season was a tight market on inshells, Virginia extra-large kernels and Spanish-type peanuts. Demand for these grades is expected to continue to keep the market tight and at a higher price level. Raw runners will be competitive with Argentine or Brazilian origin but not so much on blanched peanuts.

The cost to ship a container has increased between 300% and 500% in the past two years. U.S. producers are losing from 10%-40% of their export value to these added costs, and an informal survey suggests that the inability to export is leading to a loss of 22% of their sales for U.S. agriculture.

Since early 2021, agricultural exporters have been facing unprecedented challenges in securing shipping container space on ocean vessels while contending with an accumulation of exorbitant detention and demurrage fees. Officials expect the shipping problem to continue.

USDA Estimates

U.S. peanut production is forecast to be 3.174 million tons, a 3.5% increase. Harvested acres are now estimated at 1.533 million acres, down 5.1% from last year. The average yield is forecast to be 4,141 pounds per acre, a 9.1% increase over last year.

Market demand or disappearance totals 3.199 million tons, a 1% decrease from last year as carryforward may be used. Domestic food usage is forecast to be up 3%. Exports are expected to decrease by 1.2% to 700,000 tons. Crushing for oil, seed and residual dropped 12%. Ending stocks will be 1.02 million tons, down from last month’s 1.135 million tons.

The PLC Payment

The Price Loss Coverage payments are made when the market year average is below the reference price. Payments are made after Oct. 1, based on the previous year’s prices. The market year average is based on the average price paid to farmers for August 2020 to July 2021. The market year average last year was 21 cents per pound or $420 per ton.

The effective reference price for peanut is 26.75 cents per pound or $535 per ton. The higher of the loan rate (17.75 cents per pound or $355 per ton) or market price average ($420 per ton) is deducted from the reference price for $535 per ton and that becomes the PLC payment of $115 per ton. This payment is applied to 85% of the peanut farm base. The Farm Service Agency will verify and make the payments.

LEADING MARKETING INDICATORS (Oct. 12, 2021)

2021 Production Est. (+3.5%) ..............................................3,174,000 tons

2021 Planted Acreage (-5.1%) ........................................1,533,000 acres

2021 Average Yield per acre (+9.1%) ................................. 4,141 lbs/A

2020 Market Loan ................................................................2,425,355 tons

2020 Remaining In Loan ...................................................... 103,000 tons

2020-2021 Domestic Use (12Mo.) ...........................................Up + 3.4 %

2020-2021 Exports (11 Mo.) ..................................................... Down -12%

NATIONAL POSTED PRICE (per ton) Runners - $424.89; Spanish - $413.05; Valencia and Virginias - $427.70

MarketWatch

Domestic Market

For manufacturers, the market continues at approximately 53 cents for splits, 54 to 55 cents for mediums and 56 cents for jumbo runners, much higher for large-kernel Virginias and for Spanish if you can find anything.

Stocks and Processing is reporting peanut usage down 5.3% with peanut butter showing a major decline of 9.6% during the month. Analysts had estimated that usage would decline after the pandemic and people returned to work. The category posted an increase of 2.7% for peanut butter last year and a market growth of 3.4% for edible peanuts.

Other factors impacting the downward numbers domestically include labor shortages and COVID. Logistical supply chain issues such as difficulty getting stabilizer and other ingredients have also been reported.

Export Market

The United States is in the middle of an unprecedent maritime transportation crisis as a consequence of COVID-19 and the management of the U.S. economy. The world is trying to adapt to this new situation with no short-term answers. Officials expect a major impact on U.S. peanut exports. A good quality crop with no aflatoxin would encourage return customers but would shipping be available?

Canada and Mexico are strong markets with an increase in purchases of 20% on raw-shelled peanuts in July. Even peanut butter showed strong markets. Since a ship isn’t needed for these markets, trucks and trains give the United States the advantage. All things considered, a 12% drop in total exports for the year is not too bad during the pandemic. PG