Why is South Africa’s groundnut industry in a precarious position?
Due to drought and a lack of new cultivars, the country¡¯s groundnut industry is in a precarious position. North West producer Lourens de Kock and Adri Botha, chairperson of the South African Groundnut Forum, spoke to Annelie Coleman about what needs to be done to turn the tide.
Can South Africa’s groundnut industry regain its position in the export market?
If South Africa¡¯s groundnut producers can regain their position in the export market, with the constant supply of the high quality product they used to produce, the industry can experience a revival. One can ask what the future for the industry entails in the absence of a turnaround strategy.
What is the value of groundnuts in South Africa?
In South Africa, groundnuts are produced mainly for local consumption as peanuts and for the manufacturing of peanut butter, with some volume allocated towards niche export markets. The value of the industry is estimated to be around R2,5 billion.
Will South Africa become a net importer of groundnuts?
South Africa¡¯s groundnut industry will then likely enter a new phase where some of the large firms cease their operations and South Africa will become a net importer of groundnuts, which implies that local prices will break away from export parity and trade significantly higher at import parity levels.