Introduction

The peanut or groundnut is a legume native to South America, where it has been domesticated since prehistoric times. European traders have later helped to spread the plant over the whole world. Peanuts are a valuable source of protein, fat, energy, and minerals. They provide cash income to many poor farmers in developing countries, especially in Sub-Sahara Africa and Asia. China is now the biggest peanut producer. This country produces 40 percent of all peanuts. The total international trade in peanuts is only 5 percent of the total production; the rest is used for domestic use.

Production chain

The peanut grows under the ground and that is why it is also called a groundnut. After the peanuts are dried, they are crushed for oil extraction, roasted, or grounded to make, for instance, peanut butter. Commercial manufacture and consumption of peanut butter is largely an American art. The European Union (EU) is the single largest groundnut market, accounting for 43 percent of world imports.

Problems

In countries like Senegal and Gambia, peanut cultivation is an extremely important means for poverty alleviation. The falling market price of peanuts means that households have less money to meet basic needs. In Senegal, where 75 percent of the rural households depend on peanuts, rural poverty has been spreading because of this decline in prices brought by the availability of alternative vegetable oils. The global peanut market has been distorted for years by government intervention in the United States, the only large peanut producing country from the northern hemisphere. Industry subsidies give the U.S. along with other peanut subsidizing countries such as China and India a competitive advantage over other exporting countries. The consequence is that they impose a decrease in welfare and agriculture income in smaller peanut producing and exporting countries, mainly in Africa.

Priority issues

In the peanut sector, Fairfood International has identified the following priority issues:

Priority issues	Production stage
Insufficient Income and Income insecurity	Production
Corruption	Whole chain
Market Distorting subsidies	Outside the chain
Unfair Import Tariffs and quotas	Outside the chain

*Brand Owners are required to cover a minimum number of two out of four of the priority issues.

Solutions

The guide below shows certification schemes whose standards indicate a match with some or all of Fairfood's priority issues for this sector. To learn more about any of the schemes, click on their logo.

Fairtrade	EU Organic Labels	Naturland	Rainforest Alliance
Production	Production	Production	Production

Did you know...

The peanut is also called oilnut, groundnut or monkey nut
The Netherlands are not a peanut producing country, however about 16% of the global trade of peanuts passes the port of Rotterdam

Most important export countries

China
India
Argentina
United States of America
Netherlands

Most important production countries

China
India
Nigeria
United States of America
Indonesia