Introduction

Groundnuts (peanuts) are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products.

The oil made from them can be used for cooking and they can be used to make peanut butter. Oil extracted from the groundnut can also be used as raw material for manufacturing of soap; massage oil for polio patients; body, shaving and hair creams; and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations.

The oil cake which is by-product of oil extraction process is used to make glue for wood; animal feed; fertilisers and antibiotics.

Sources: The Groundnut Market Value Chain Profile at www.dalrrd.gov.za. 

International business environment

 

China, India, Nigeria, the US and Sudan are the top global producers of groundnuts (Statista, 2023).

 

Further reference:

 

South Africa: imports and exports

  • In the 2021/22 marketing year South Africa imported 23 949 tons and exported 6 831 tons (SAGIS, 2023). Most imports came from Brazil (45%) and Argentina (32%). Other noticeable imports came from Zambia (13%), China (6%) and Namibia (3%) (SAGIS, 2023).
  • Exports went to Mozambique (35%), Japan (31%), Belgium (20%) and the Netherlands (10%) (SAGIS, 2023).
  • 3 674 tons of peanut butter and 1 309 tons of roasted groundnuts were imported (SAGIS, 2023).
    240 tons of peanut butter and paste were exported (SAGIS, 2023).
  • Phytosanitary requirements and quality standards must be adhered to and a Perishable Products Export Control Board (PPECB) certificate must also be obtained for groundnuts to be exported.

 

The Southern African Grain Laboratory

Local business environment

In South Africa groundnuts are traded for the following markets: direct edible market (43%) and peanut butter (56%), and a small percentage is crushed. South Africa used around 67 073 tons of groundnuts in the 2021/22 marketing year (SAGIS, 2023).

Groundnut production has been on the decline since the mid-1980s. Reasons include higher labour costs (this is a labour intensive crop) and slow seed-breeding developments. The Bureau for Food and Agricultural Policy (BFAP) has suggested that in terms of cultivar development, this country has been left behind by a number of major groundnut exporting countries.

Groundnuts are mainly produced in the north-western regions of South Africa, namely the western and north-western Free State, North West, Limpopo and Northern Cape provinces (DALRRD, 2023). Groundnuts are also produced in Mpumalanga and KwaZulu-Natal but production is lower in these provinces.

The domestic price is more or less on a par with the international price and is not influenced much by the size of the local crop.

The relative prices of other grain products, the exchange rate, availability of seed, availability and landed cost of imported crude oil, as well as plantings of other field crops mainly determine market prospects for the oilseed industry (which includes groundnuts). Oilseeds have an indirect impact on industries in which balanced feeds constitute a major input cost. The animal feed chain tends to link oilseeds with the costs of dairy products, beef, mutton, pork, broiler chickens and eggs.

The groundnut marketing season in South Africa commences on 1 March and ends on 28 February the following year.

Further reference:

Commercial farmer points of interest

Aspects of Critical Importance concerning Groundnut Production

  • Groundnuts should not be planted more than once in three years on the same land.
  • Soil moisture is critical. Do not plant in dry soil. Ground which has built up soil moisture will diminish risks.
  • Weed control is important: weeds hamper the cultivation process and use up valuable soil moisture.
  • Quality seed is a priority. After treating the seed, plant slowly and shallowly (30mm – 50mm)
  • Avoid planting in cold soil.
  • Remember that most cultivars require 150 days to yield a respectable crop: do not plant too late.
  • 18 kg Nitrogen (N) per hectare for dryland growing and 50kg N/ha for irrigation are recommended if your soil needs nitrogen.
  • Calcium is important for the formation of the pods. Areas where the calcium content is lower than 300 mg/kg, must be fertilised with calcium.
  • When fertilising, do not place fertiliser in the pod zone. Administer fertiliser widely or place it under the kernel.
  • Given the high value of groundnut hay and the potential drop in kernel quality and yield, leaf spot should be thoroughly treated. Under irrigation conditions, attention should be paid regularly to this.
Source: www.suidwes.co.za [now defunct] and Dr Jan Dreyer

 

Consult a piece “written by a retired farmer”, GROUNDNUTS – tips and tricks to remember during the growing season on the Grain SA website.

For the newcomer

Find the grower notes mentioned under the “Websites and publications” heading on this page.

  • Groundnuts are rich in protein and can be eaten raw, cooked or roasted.
  • Some types are cultivated under drier conditions, while others are irrigated.
  • Groundnuts are more drought-resistant than maize and can be grown for home consumption or as a cash crop. They work well as a rotational crop and should be planted on the same soil once every four years.

You can market groundnuts in shelled or unshelled form, either on formal or informal markets. Formal markets need larger quantities.

 

 

Role players

Companies

Note: Click to expand the headings below. To get a free listing on our website like the ones below, visit here for more information or place your order here. Disclaimer: The role player listings are not vetted by this website.

Training, Consulting & Research Service Providers
Oil and Protein Seeds Development Trust www.opot.co.za The Oil and Protein Seed Development Trust provides funding for research on sunflowers, soybeans, canola and groundnuts that is in the interest of producers, processors and consumers.
ARC-Grain Crops (GC) www.arc.agric.za A short course on groundnut production can be given on demand.
Community, NGO and NPO Service Providers
Oil and Protein Seeds Development Trust www.opot.co.za The Oil and Protein Seed Development Trust provides funding for research on sunflowers, soybeans, canola and groundnuts that is in the interest of producers, processors and consumers.
South African Grain Information Service (SAGIS) www.sagis.org.za Statistics (e.g. crop estimates, export/import etc) may be found on the website. Also available here are Groundnut Forum presentations.

Further reference:

Training and research

  • The Agricultural Colleges do short course training on groundnut production and groundnut processing. Madzivhandila College, for example, offers a course in peanut butter making. Find contact details on the “Agricultural education and training” page.

Companies

  • For a full list of seed suppliers, visit http://sansor.org
  • For a complete list of members of the SA Groundnut Forum, contact Mr G Keun at telephone number 011 234 3400.

 

Websites and publications

Visit the websites and references mentioned earlier on this page like www.sagis.org.za.

  • Publication available from ARC-Grain Crops: (i) Production of groundnuts (“Groundnuts always tops”) (ii) Produksie van Grondbone (“Grondbone – altyd ‘n wenner”) (iii) Groundnut production: a concise guide (iv) Groundnut diseases and pests / Grondboonsiektes en -plae. Visit www.arc.agric.za  or call 018 299 6100.
  • CD Roms from the ARC-PHP (Plant Health and Protection include: (i) Crop Pests, Vol. 4: Field Crops and Pastures Pastures  (ii) Medically Important Spiders And Scorpions Of Southern Africa. Write to booksales [at] arc.agric.za or infopri [at] arc.agric.za.
  • Call 012 842 4017 or send an email to stoltze [at] arc.agric.za for the following publications, available from the ARC Agricultural Engineering: (i) Agro-processing of Olives and Legumes (green peas, green beans, cowpeas, lentils, olives, peanuts, mushrooms) (ii) The manufacturing of peanut butter.
  • Find the latest annual Groundnut Market Value Chain Profile from the Department of Agriculture, Land Reform and Rural Development (DALRRD) at the “old website” at www.dalrrd.gov.za (on the Directorate Marketing web pages). There are also grower notes under the options “Infopak” – see Groundnuts, Cultivation of groundnuts – and “Brochures”, the Production guidelines: Groundnuts.
  • Food Safety Requirements for the local and international marketing of groundnuts is obtainable from the SA Groundnut Forum. Call 011 234 3400/1.
  • Consult the AgriSETA Learner Guide Primary Agriculture “Harvesting agricultural crops”.
  • The SADC Secretariat and German Development Corporation‘s Profiling of the Regional Agro-Processing Value Chains in the SADC Region (March 2019) includes a look at groundnuts.

 

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