Nigeria’s groundnuts featured in the first World war way back in 1944. Here.
An answer engine’s report on the global economy. Here.
Required. Our groundnut agric and Industrial Revolution plan. Here … TBD.
June 6,is the 80th anniversary of D-Day when allied troops landed on the Normandy beaches with Nigerian go groundnuts in their packs. Sadly, President Tinubu is not among the world leaders in France receiving acclamation for our role in the victory
Ayo Akinfe
[1] I have been following these D-Day celebrations religiously and am moved to tears by the history being made here. There are only 23 British D-Day veterans left alive and the sad reality is that this will be the last such parade for them as the youngest among them is 98
[2] As the leaders of France, Canada, the UK, US and Ukraine gather in Normandy today to shake hands with these veterans and relive that unprecedented feat of 1944, I am saddened that Nigeria’s contribution to the allied victory is being airbrushed out of history
[3] These soldiers had to keep on the move, so there was no time to stop for proper meals. Thanks to Alhaji Alhassan Dantata, whenever the troops got hungry, all they had to do was reach into their packs and munch on their Nigerian peanuts (as onyibos call it). At the time many people thought it was the beginning of Nigeria’s integration into the global economy
[4] Nigeria’s biggest failure as a nation has been her over-reliance on crude oil for survival. Had we built on the success of 1944, who knows where our groundnut industry would be today. Maybe the sector would be generating $20bn in foreign exchange earnings, exporting table nuts, groundnut oil, groundnut meal, processing equipment, etc to the rest of the world
[5] I am pleased that in 1944, the British Foreign Office produced this poster acknowledging our contribution to the allied victory. I would have loved to see President Tinubu talk about it today in Normandy
[6] Unfortunately, Nigeria’s groundnut industry went into a steep decline following the death of Alhassan Dantata in 1955. This is a man who did not get one penny of government assistance. He bought groundnuts from farmers, stored them in pyramids and sold in to end users. Do you know that in 1940, the British refused him an export licence to sell directly on the international market, forcing all sales to go through the colonial authorities?
[7] Nigeria is the world’s third largest groundnut producer behind China and India today. We have an annual crop of about 3m tonnes but alas, the revenue we generate from it is still minuscule because we still sell raw nuts rather than process them and export finished products
[8] Today, the global edible nuts market is worth about $1.3trn. Nigeria is fortunate to be able to grow every single nut on earth including coconuts, cashews, macadamia nuts, shea nuts, groundnuts, pistachio nuts, etc. I am surprised that no state governor has taken the initiative to not only expand production dramatically but also woo processors to open crushing and processing plants
[9] One of the beauties of edible nuts is that they have a variety of end products, offering multiple revenue streams. You can for instance use the husk of groundnuts as a base for manufactured products
[10] Again, this is another area where it is the states that have to take charge. There is absolutely nothing the federal government can do here. I am looking for an agriculture commissioner in one state across northern Nigeria who will stand up and pledge to produce 2m tonnes of groundnuts during his watch. He should then vow to woo processors to produce finished goods with a pledge to match crude oil earnings before the end of his tenure
https://www.perplexity.ai/search/Give-me-an-PBj0GOjFRNWilStp1HCg0Q
@ola … Do the usual with the content of this, please.
As Europe remembers ‘D’ day, they should take the time out to remember and thank the silent contributions of nations like ours…
We hardly see groundnuts as food ourselves any more.
But it’s nature hasn’t changed.
Give me an analysis of the global groundnuts / peanuts economy. Market size, producer countries, consumer countries, major importers / exporters, byproducts, etc.
Answer
The global peanuts market is estimated to reach USD 90.42 billion in 2024 and grow at a CAGR of 2.60% to USD 102.81 billion by 2029. Peanuts are an important food crop used in various products like oil, flour, snacks, and peanut butter due to their high nutritional value.The leading peanut producer countries are China, India, Nigeria, the United States, Indonesia, Argentina, Senegal, and Brazil. China is the world’s largest producer, accounting for about two-fifths of global production, with Henan province being the largest producer. China and India are also the largest consumers and exporters, accounting for over 36% of global consumption.Major exporters include Argentina, India, the United States, and China. The Netherlands, Germany, and the United Kingdom offer the best opportunities for developing country exporters. Europe’s peanut market is expected to grow due to increasing popularity of plant-based protein over meat.Peanut byproducts like oil are used in pharmaceuticals and personal care. About half of China’s peanut supply is directly consumed, while the other half is crushed into oil and meal. India’s per capita peanut consumption reached 4.26 kg in 2020.In summary, the global peanut market is large and growing, led by China and India in production, consumption and exports. Opportunities exist for exporters to meet increasing global demand, especially in Europe, by improving quality and processing facilities.
what are the main challenges faced by peanut producers globally?
Answer
The main challenges faced by peanut producers globally include:
- Weather and Climate: Heat, drought, and extreme weather conditions like high winds and hailstones significantly impact peanut yields and quality.
- Water Availability: Declining water availability, especially in regions like West Texas, affects irrigation and overall crop management.
- Pests and Diseases: Pests and diseases like tomato spotted wilt virus, striga, and aflatoxin are major concerns for peanut farmers, leading to yield and quality issues.
- Market and Pricing: Fluctuating prices, oversupply, and low producer prices create economic challenges for farmers.
- Access to Credit and Inputs: High costs of credit and inputs, as well as limited access to improved seeds and technology, hinder production efficiency.
- Extension Services and Knowledge: Inadequate extension services and lack of knowledge on crop husbandry and management practices hinder productivity and quality.
- Market Access and Information: Limited market information, difficulty accessing credit for value addition, and inadequate support services create marketing challenges.
- Equipment and Labor: Aging equipment and labor-intensive practices like stripping and shelling increase production costs and create management challenges.
At aggregate level, is there an over supply or under supply of peanuts at any level of its value chain
Answer
The global peanut market is expected to reach USD 90.42 billion in 2024 and grow at a CAGR of 2.60% to reach USD 102.81 billion by 2029. The market size indicates a growing demand for peanuts, which suggests an under supply of peanuts at the aggregate level.
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what are the main factors contributing to the supply and demand imbalance in the peanut value chain
Answer
The main factors contributing to the supply and demand imbalance in the peanut value chain include:
- Cost of Credit and Inputs: High costs of credit and inputs, such as seeds, fertilizers, and pesticides, make it difficult for farmers to maintain production levels.
- Unattractive Prices: Low producer prices, which often rise near planting seasons, discourage farmers from producing peanuts, leading to supply shortages.
- Water Scarcity: Unreliable rainfall and droughts in major peanut-producing regions like the United States and Africa reduce yields and impact production.
- Pests and Diseases: Pests and diseases like aflatoxin, striga, and tomato spotted wilt virus affect peanut yields and quality, further reducing supply.
- Competition with Other Crops: Competition from other cash crops like maize and soybeans for land, labor, and resources reduces peanut production.
- Limited Extension Services and Knowledge: Inadequate extension services and lack of knowledge on crop husbandry and management practices hinder productivity and quality.
- Labor Intensity: Labor-intensive activities like stripping and shelling increase production costs and create management challenges.
- Seed Availability and Quality: Limited availability and poor quality of improved seeds hinder peanut production and productivity.
These factors contribute to an under supply of peanuts at various levels of the value chain, leading to fluctuations in prices and market dynamics.
what role does access to credit play in the peanut value chain
Answer
Access to credit plays a significant role in the peanut value chain. Credit access can significantly increase the ability of households with little or no income and savings to meet their production, social, and financial needs. In the context of the peanut value chain, access to credit can help farmers, small-scale processors, and traders by:
- Improving Farming Practices: Credit can enable farmers to invest in high-yielding varieties, good agricultural practices, and post-harvest handling techniques, leading to increased yields and quality.
- Enhancing Value Addition: Credit can support small-scale processors in investing in improved processing technologies and facilities, increasing their capacity and efficiency.
- Strengthening Market Linkages: Credit can facilitate the establishment of effective market linkages between farmers, traders, processors, and exporters, ensuring consistent supply of good quality produce and higher prices for farmers.
- Reducing Post-Harvest Losses: Credit can help farmers and processors invest in post-harvest handling and storage infrastructure, reducing losses and improving the overall quality of the produce.
- Increasing Profitability: Credit can enable farmers and processors to invest in productivity-enhancing technologies, leading to increased profitability and sustainability.
To achieve these benefits, financial institutions, microfinance organizations, and government programs can collaborate to develop tailored financial products, promote financial literacy, and provide technical assistance in financial management.
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what are the challenges peanut farmers face when accessing credit
Answer
Peanut farmers face several challenges when accessing credit, including:
- High Interest Rates: High interest rates on loans make it difficult for farmers to repay the debt, leading to financial burdens and reduced productivity.
- Limited Access to Formal Credit: Formal credit institutions often have strict lending criteria, making it difficult for small-scale farmers to access loans, especially those without collateral.
- Informal Credit Systems: Informal credit systems, such as bada kaka in Nigeria, may have high interest rates and exploitative terms, further exacerbating financial difficulties.
- Delayed Loan Approval: Long delays in loan approval can hinder farmers’ ability to invest in their crops, leading to reduced yields and lower incomes.
- Collateral Requirements: Formal credit institutions often require collateral, which small-scale farmers may not have, limiting their access to credit.
- Lack of Financial Literacy: Farmers may not have the necessary financial knowledge to manage loans effectively, leading to poor financial decisions and increased debt.
- Risk and Uncertainty: Agricultural production is inherently risky, and farmers may face crop failures, pests, and diseases, making it difficult to repay loans.
- Government Programs: Government programs aimed at providing loans and credits to farmers often face implementation challenges, such as financial, political, and managerial issues, limiting their effectiveness.
These challenges can significantly impact peanut farmers’ ability to access credit, leading to reduced productivity, lower incomes, and increased poverty.
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Are there specific government programs aimed at helping peanut farmers access credit
Answer
Yes, there are specific government programs aimed at helping peanut farmers access credit:
- The Agricultural Credit Guarantee Scheme Fund (ACGSF) in Nigeria provides guarantees on loans granted by banks to farmers, including peanut farmers, to encourage banks to lend to the agricultural sector.
- The U.S. Department of Agriculture’s Farm Service Agency (FSA) provides nonrecourse marketing assistance loans for peanut producers, which help stabilize the peanut industry and ensure the well-being of agriculture in the United States.
These loans allow producers to store their peanut production and pledge it as collateral instead of selling immediately after harvest, providing interim financing and helping them pay bills without having to sell at a time when prices tend to be lowest.While the search results do not provide details on other specific government credit programs for peanut farmers, it is likely that various countries have initiatives aimed at improving access to credit for this important agricultural sector.
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how do nonrecourse marketing assistance loans work for peanut farmers
Answer
Nonrecourse marketing assistance loans for peanut farmers provide interim financing on their production and facilitate the orderly distribution of loan-eligible peanuts throughout the year. Here’s how they work:
- Eligibility: Peanut farmers must produce and harvest peanuts that meet specific commodity eligibility requirements, including being in storable condition, merchantable for feed, food, or other uses, and not having been shelled or crushed.
- Loan Application: Producers can apply for nonrecourse marketing assistance loans (MALs) for farm-stored or warehouse-stored peanuts. Warehouse-stored loans are adjusted for premiums and discounts, if applicable.
- Loan Terms: MALs have a term of 9 months beginning on the first day of the crop year. The Secretary of Agriculture may not extend the term of the loan.
- Repayment: Producers can repay the loan at the loan rate established for peanuts, plus interest, or at a rate that minimizes potential loan forfeitures, stock accumulation, and storage costs.
- Collateral: The peanuts pledged as collateral serve as security for the loan. If a producer is unable to repay the loan, they can deliver the pledged peanuts to the Commodity Credit Corporation (CCC) as full payment for the loan at maturity.
- Marketing: The loan helps producers market their peanuts freely and competitively, both domestically and internationally.
- Loan Deficiency Payments: Producers who forgo obtaining a marketing assistance loan can receive loan deficiency payments (LDPs) if the loan rate exceeds the national posted repayment rate.
These nonrecourse marketing assistance loans and loan deficiency payments help stabilize America’s peanut industry and ensure the well-being of agriculture in the United States by providing interim financing, facilitating orderly distribution, and promoting competitive marketing.
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