PEANUT MARKETING NEWS – December 11, 2020 – Tyron Spearman, Editor (166)

IMPACT UNCLEAR ON EU 25% DUTY ON PEANUTS - The EU imposed a 25% duty on U.S. peanuts, both inshells and
kernels. Blanched peanuts, exported under chapter 20 of U.S. Harmonized codes, are also included as they are classified as
kernels upon entering the EU. The duty became effective November 10 but excludes peanuts loaded and shipped prior to that
date. A 25% duty on U.S. peanut butter has been in effect since June 20, 2018.
In the 5 years prior to 2019/20, U.S. exports to the EU accounted for roughly 27 percent of total peanut exports, about
equal to the export share to Mexico and Canada and worth around $160 million. Total value shipped in the 12-months ending
July 2020, corresponding to the U.S. peanut marketing year, declined significantly to $80 million. Total peanut volume in
2019/20 declined to roughly half the level of the previous year at 82,000 tons inshell basis with total export share falling to 11
percent.
The decline in U.S. exports in 2019/20 was in response to large supplies and aggressive pricing of Argentine kernels
which impacted export volumes from all markets. Sales of inshell peanuts from the U.S. which do not compete with Argentina
were unaffected and near the 2018/19 level. Peanut butter exports were down 80 percent in value and 84 percent in volume from
2017/18 prior to imposition of higher duties late in the marketing year. It should be noted that EU peanut butter imports from
Canada jumped nearly ninefold to 5.4 million tons. As these are mostly manufactured from U.S. peanuts, the net reduction in
U.S. exports of peanut butter produced using U.S. peanuts is considerably smaller at just over one-third.
The effect of EU duties on U.S. peanut exports is unclear with kernel exports already down more than half from
historic levels last year. However, even amid continued strong competition from Argentina, the total U.S. export forecast is
only slightly lower from 2019/20. A 25% duty will reduce the competitiveness of U.S. peanuts in the EU. However, much will
depend on the willingness of buyers and sellers to absorb the added costs.
Global peanut supplies remain somewhat tight, particularly for high value peanuts where U.S. peanuts are most
competitive and the ability to absorb higher costs is greater. Given that 2019/20 U.S. peanut export volume was near record
levels in part on strong sales of inshell peanuts to China, further declines in exports to the EU will have less impact on export
totals than demand from China in the coming year.
PARNELL RE-ELECTED TO ALABAMA FARMERS’ FEDERATION - President Jimmy Parnell has been reelected to a
fifth two-year term during the Alabama Farmers Federation’s 99 th annual meeting in Montgomery.
Parnell, a fifth-generation farmer from Stanton in Chilton County, is a partner in his family’s cattle and timber business.
He thanked the voting delegates representing all 67 counties who unanimously reinstated him. Parnell ran unopposed and also
serves as Alfa Insurance president. “I am excited about the opportunity to lead this organization into its 100 th year,” Parnell said.
“Throughout history, farmers have faced obstacles, and the past year brought special challenges. Despite those, farmers
continued to feed and clothe America and the world. Our organization faced its challenges head on and continued to work for
farmers every day. As we chart a course for the next century of this organization, we are still led by men and women who are
dedicated to serving farmers and promoting the economic, social and educational interests of Alabamians.
PEANUTS SOLVE A LOT OF PROBLEMS – (Presented during the APC Meeting Thursday)
The Peanut Institute is sharing recent research that shows eating two ounces of lightly salted peanuts daily for 12 weeks
may help reverse a medical condition known as metabolic syndrome. According to a study conducted by researchers from the
Harvard T.H. Chan School of Public Health and published in the current online issue of the American Journal of Clinical
Nutrition, those who ate peanuts had a two times higher likelihood of reversing their metabolic syndrome than those in a control
group
The study is a first-of-its-kind to look at the effects of peanut consumption on a medical classification that,
according to the American Heart Association, affects approximately 23 percent of adults.
Metabolic syndrome is a cluster of conditions that increases the risk of cardiovascular disease, diabetes, stroke and
diseases related to fatty buildups in artery walls. Those with metabolic syndrome are five times more likely to develop type 2
diabetes and two times more likely to develop cardiovascular disease within 10 years as someone without it. Some of the
characteristics of metabolic syndrome include high blood pressure, high blood sugar, abdominal obesity and abnormal
cholesterol or triglyceride levels.
The 12-week dietary intervention study was conducted October 2017 through January 2018 with 224 participants who
either had metabolic syndrome or were at risk for it. The research was led by Dr. Xiaoran Liu, Dr. Vasanti Malik and several
colleagues from Harvard University and Shanghai Institute of Nutrition and Health.
PEANUT COMMISSION – The Georgia Peanut Commission Board of Directors will meet next Thursday, December 17 at their
offices in Tifton, GA at 9 AM.
BUYING POINT FOR SALE – The peanut buying point in Southeast Georgia (Statesboro) is still for sale. For information on
the equipment (25 acres) and other information, call 912-536-3716.