Irregular rains in Brazil have impacted peanut plantations, yet the country is poised to maintain its position as a leading exporter of peanut oil in 2024. Despite projected declines in productivity, market experts hold positive expectations for the 2023/24 harvest.
According to data from the National Supply Company (Conab), the current harvest anticipates a 15% increase in planted area alongside a 2% rise in production. Climate variations largely account for the disparity between planting and production percentages. Additionally, the introduction of more resilient cultivars signals potential growth in the market, albeit modest.
Rodrigo Chitarelli, CEO of CRAS Brasil, an oil export company, believes that Brazilian dominance could be further solidified with incentives for increased peanut cultivation, even during off-seasons. Chitarelli notes that the Chinese market, which accounts for 80% of Brazilian peanut oil purchases, has exhibited heightened demand. He anticipates selling the entire volume produced in 2023, reflecting a robust market.
Chitarelli also underscores the company's proactive stance towards market opportunities, having recently doubled its factory's capacity to 400 tons per day.
Despite ranking as the 12th largest global peanut producer in 2023, Brazil leads in peanut oil exports, selling 86 thousand tons, according to the United States Department of Agriculture (USDA).
Earlier this month, the company convened approximately 250 industry stakeholders, including producers, researchers, processors, investors, and professionals, in Itaju (SP) to discuss the dynamics of the 2023/24 harvest and unveil new research findings.
Comments