With an annual global output of 43.74 million tonnes valued at $53.58bn (2016), Nigeria is the first largest producer of Peanut in Sub Saharan Africa, and the 3rd in the world.
2016 estimate puts Nigeria’s production at 3.03mn tonnes valued at $3.71bn. With China, EU as world’s top consumers, the market is set to witness a boom with the ever increase in demand for basic and local uses such as refined oil, Cosmetic uses, peanut butter, peanut cake, boiled, roasted, oil, groundnut cake (Kulikuli), groundnut soup (China, India, Nigeria, U.S are top peanut producer). Most times it is also used in place of Egusi to make a soup called “groundnut soup”, especially when dried and grounded.
Source: FAOSTAT FDC Think Tank
Industry experts put Nigeria’s Potential Output at 6mn tonnes even though output slid 13% in 2016.
In Nigeria, the major producing states are Kano, Kaduna, Taraba, Bauchi, Borno, Adamawa. Groundnut which is sometimes called Peanut has a botanical name of Arachis hypogaea, it is one of the major crops grown in Nigeria especially in the northern part either for its nut, oil or its stem.
The industry is faced with challenges mainly infrastructure and as such farmers lose about 45% of total output to poor storage.
UACN & Flour Mills are one of the many Listed FMCG users of peanuts in Nigeria.
As at February 11th, average power output was 3,597MWh/hour (Down 138MWh/h) while Total gas constraint was 1,754MWh/h; line constraints: 175; grid constraints were 1,278MW, water management constraint was 145MW.
The attached slides address these and other issues in the domestic and global commodities market.