The harsh reality of the current market situation for peanuts was brought home during the Saturday Trade and Market Update panel at the 2019 SPGC.
With average peanut prices at their lowest in modern history, uncertainty in the export market, and disaster aid slow to come, it’s not a super situation. “Domestic demand is flat at best…export demand is uncertain primarily because of China and the tariffs…the best way to restore supply demand balance in the peanut market is to create additional demand for U.S. peanuts,” said peanut broker George Lovatt of Lovatt & Rushing.
George Lovatt, Lovatt & Rushing
Dr. Stanley Fletcher, Professor of Policy, Center for Rural Prosperity and Innovation at Abraham Baldwin Agriculture College provided a look at Peanut Trade – Past, Present, Future.
He says the industry needs to take a hard look at what can be done to increase demand. “We’ve got to start thinking differently about how we do our exports,” said Fletcher, who believes trade will impact the peanut program and will impact the next farm bill.
Dr. Stanley Fletcher, ABAC Center for Rural Prosperity & Innovation