INTERNATIONAL MARKET

• The main peanut producing countries are China and India. Both Asian countries concentrate over 60% of the 35 million tons produced in the 2004/05 campaign.
• With a cultivated area of 212,000 hectares, the Argentine production totaled 410,000 tons during the same campaign, placing our country among the first ten world producers. Almost all the Argentine peanut production is located in the province of Cordoba. There are small cultivated areas in Corrientes, Formosa, Santa Fe, Salta and San Luis.
• In 2004, the national export of peanut totaled 70,000 tons, at 54 million Dollars. The average FOB price was US$ 764/ton.
• The main shipping destinations were The Netherlands (61%), Canada (13%) and the United Kingdom (5%).
• The marketing of confectionery type peanut is growing in importance in the world, and our country has a leading position as regards exports.
• The peanut marketing possibility is mainly affected by the weather conditions at the harvest. The lots meeting cleaning, size and sanity requirements are used in confectionery and in the manufacturing of peanut paste. The rest of the production is sent to grinding to obtain peanut oil, an oil that is almost unknown to the local consumer but with an interesting demand in international markets.

OIL FOR INTERNATIONAL DESTINATION

• Article 531 of the Argentine Food Code calls Peanut oil to such obtained from seeds of different varieties of Arachis hyppogea L. The product has a characteristic pale yellow colour, aroma and taste that differentiate it from other oils. In consumer countries, principally China, India and Nigeria, is mainly used as cooking and frying oil.
• The world production of peanut oil is estimated in 5.7 million tons. China and India are the main manufacturers. Due to the production volume, it takes the fifth place after soy, palm, colza and sunflower oils.
• In Argentina, the consumption of peanut oil has little importance, therefore the production is almost totally for export.
• During 2004, 102,000 tons of peanut were grinded (35% of the national production), obtaining 42,000 tons of oil.

• Over 41,000 tons were industrializad In the first quarter of 2005, thus obtaining 17,500 tons of oil and 22,300 of pellets. The grinding was six times higher than such of the same period in the previous year.
• The volume of elaborated oil at national level shows an erratic tendency due to the variability of the raw material availability, as it is a transformation link of production surpluses and shipments to be used in confectionery. The average quantity produced at present is similar to such of the past four decades.
• The oleaginous flour derived from extraction presents a high content of vegetable proteins of excellent quality. This flour is traditionally sold as pellets for animal feeding. It can also be applied to the obtention of thickening agents used in soups, baby-food, elaborated food and meat-based products.
• In our country, the companies devoted to peanut grinding are located in the areas next to the production centres, mainly in the province of Cordoba. Some of these plants also grind soy and sunflower. The proportion of each oleaginous is variable and depends on the availability of raw material as well as on the market price.

EXPORTS

• According to the international market figures registered in 2003, the traded volume is 250,000 tons, at about 260 million Dollars. The low volume sold is basically due to the fact that the oil is mainly consumed in the producing countries.
• Notice that Argentina is one of the main exporting countries, together with Senegal. The main demanding block is the European Union.
• In 2004, Argentine exports of peanut oil were over 40,000 tons, at 41 million Dollars. The average FOB price was US$ 1,025/ton.
• In the first quarter of 2005, shipments reached 14,000 tons at 14 million Dollars. As compared to the same period in 2004, this was seven times higher.
• All the peanut oil production is for export and is shipped as gross oil in bula. The main exporting companies are AGD and Bunge.
• Most shipments are made at the port of Rosario and in San Lorenzo/San Martin, to a lesser extent. The Netherlands and USA are the main destinations, representing over 90% of the exported total.
• In the past years, the price of peanut oil showed a variable behaviour similar to the rest of vegetable oils. In the three-year period of 1998/2000, its value decreased from US$1,000 to almost 600/ton. Later, the price recovered until 2004 when it reached values higher than US$ 1,000/ton. The fluctuation is closely related to the offer of other substitute vegetable oils.
• Therefore, notice the importance of peanut cultivation for Cordoba regional economy. Furthermore, the peanut oil production has a relevant importance, particularly at international level.

BIBLIOGRAPHY

Dirección de Mercados, SAGPyA. A&G. Publicación de ASAGA. CIARA. Oil World, ISTA. USDA. FAO INDEC. Cámara Argentina del Maní. Cámara Cordobesa de Aceites Vegetales. J. J. Hinrichsen S.A.

CHAMBERS

Cámara de la Industria Aceitera de la República Argentina - http://www.ciara.com.ar - ciaracec@ciaracec.com.ar