Market Prospects for Groundnut in West Africa COMMON FUND ...

As the oil content of the seed varies between 38-47% for confectionary
and 47-55% for the oilseed varieties, the yield of oil is roughly equal to the
yield of groundnut cake or meal. Quality standards for oilseed groundnut are
much lower than those for edible groundnut, and groundnut meal may be
chemically de-toxified of aflatoxin residues by a simple industrial process
(Kettlewell 2003). While groundnut oil prices have remained fairly level over
the past 25 years, groundnut meal prices have steadily declined, largely in
response to competition from soya (Freeman et al. 1999). During 1999-2000,
30% of world groundnut oil originated from Africa (of which 14% was from
Senegal), as did 40% of world groundnut cake, of which 15% originated from
Senegal (Ntare et al. 2003).
The protein content of groundnut ranges between 24-35% to that of the
meal 40-50% (Rehm and Espig 1991). Alongside industrial production of
groundnut oil in Niger, Senegal and Nigeria, household or artisanal extraction
remains an important economic activity, particularly for rural women. After
oil is extracted, the groundnut meal is used formulating animal feeds. It may
also processed into human foods, such as kulikuli made from groundnut paste
(by-product of traditional extraction) by women in Niger and Nigeria. This is
both for household consumption as well as for sale.
Edible groundnuts may be blanched by immersion in water. Most edible
groundnuts are roasted and some are processed further. For example, the
snack industry adds additional coatings, which requires a particularly
consistent size and shape, and extra processes are needed to make peanut
butter, which is also traded (and regulated) as a commodity. About 25% of the
groundnut consumed on the world market is roasted, salted and eaten as a
snack and more than half the groundnut consumed in the US is in the form of
peanut butter (Onwueme and Sina 1991). On the international market, poor
quality groundnut is used in the manufacture of animal feed and birdfood. In
groundnut-producing countries, green groundnut (arachide vert), fresh
groundnut (arachide frais) and groundnut seed are also traded.
Groundnut is commonly exported in 50 kg sacks, in minimum shipments
of 18 to 22 MT (a container load of in-shell and shelled groundnut,
respectively). Buyers usually require a general phytosanitary health
certification from a reputable laboratory, and possibly further certification
that the product has been fumigated with an insecticide such as aluminium
phosphide. This requirement has been identified as a major constraint to the
development of an international trade in organic groundnut, for which the
profit margins have not yet become compelling (Kettlewell 2003).
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