United States is worried over increasing competition in the global peanut trade, as its global share of exports is taken away mainly by India.
The U.S. Department of Agriculture (USDA) said in a report that while U.S. exports to Canada have remained constant, shipments to other markets have fallen 5,000 tons to near 32,000 tons.
“The result has been a decline in the U.S. global export share from 35 to 32 percent (all trade) and 44 to 37 percent (excluding cross-border trade with Canada) since mid-2015,” the USDA said in its latest World Agriculture Supply and Demand Estimate (WASDE) report.
While the combined export share of the four major peanut exporting countries, Argentina, China, India and the United States, has remained nearly constant at 60 percent, the U.S. share has fallen, the report said.
“Much of this is being taken by India, with gains likely in the value end of the market, while more modest gains are attributed to other exporters,” it added.
The United States is hoping that a larger crop this year will help it win back some lost market share. However, competition is expected to remain strong, particularly in price-sensitive markets.
The report said the U.S. was also facing increasing competition in global peanut butter trade, of which it is the largest exporter.
For the year ending September 30, 2017, the United States. exported nearly 46,000 tons of peanut butter representing nearly one-third of global trade. This equates to about 90,000 tons of U.S. peanuts or approximately 13 percent of total U.S. exports (peanuts + peanut equivalent in peanut butter).
Canada remains the largest market for U.S. peanut butter, accounting for over one-third of exports, and the largest source of imported peanut butter.