U.S. peanut industry leaders view China as a huge potential market for U.S. peanuts and see real opportunity to sell U.S. branded products directly to Chinese consumers.
In the spring, representatives of the U.S. peanut industry travelled to China on a trade mission where they toured the Chinese peanut industry and sought opportunities to export U.S. peanuts to the world’s most populous country.
“One thing we heard loud and clear is Chinese consumers have very low expectations of peanut products. They expect rancid and stale peanuts,” said Bob Parker, president and CEO of the National Peanut Board during the 2015 Southern Peanut Growers Conference at Callaway Gardens in Pine Mountain, Ga. July 25.
Parker said Chinese peanut quality is low due to handling issues, low oleic ratios and limited shelf life.
China is the world’s largest peanut producing country with an output of 12 million to 14 million tons There are 20 million peanut farmers in China compared to 7,500 in the United States. Internally, 65 percent of Chinese peanuts are consumed as oil with 35 percent consumed as edible, Parker said.
However, peanut production is not keeping up with demand in China due to land issues and labor costs, Parker said.
The biggest challenge is import duties on raw peanuts are very high at 30 percent. Two years ago when China bought U.S. peanuts, they were moved through the “gray market” in Vietnam to avoid paying import duties, Parker explained.
Koehler told the conference that China has the potential to possibly import up to 500,000 tons of peanuts in the next two years. There is good potential for U.S. branded products for Chinese consumers who want high quality U.S. goods, he added.
