Lack of rain and high temperatures affect peanut production in the State of São Paulo

After a period of exponential growth in peanut cultivation, the 2023/2024 São Paulo harvest, which is nearing completion, is expected to have a lower yield compared to previous years. This is mainly due to the lack of rain in December last year, which directly affected crops in the main producing regions of the State.

The forecast for this year is to produce around 713,5 thousand tons. According to a report from the Institute of Agricultural Economics (IEA – Apta), a body linked to the Secretariat of Agriculture and Supply. In the 2022/2023 harvest, the state produced more than 736 thousand tons.

“For this harvest, preliminary estimates indicate a reduction in the volume produced, due to weather conditions marked by irregular rainfall and high temperatures. Furthermore, the development of production also impacts the quality of the grain and, therefore, the conditions for serving the external market”, highlighted IEA researcher, Renata Martins Sampaio.

“We are in full harvest, but the numbers indicate a drop in productivity of around 30% or more. The forecast for the next harvest is for us to repeat the planted area, which was 25 thousand hectares, supported by the low price of soybeans”, according to the producer and president of the Jaboticabal Rural Union, Sérgio Nakagi.

The city halls of Oeste Paulista, a region that includes the municipalities of Adamantina, Dracena, Presidente Prudente, Parapuã, Assis, Bauru, Jaú, Marília and Ourinhos, among others, issued an emergency decree due to the severe drought and high temperatures that occurred in the current harvest . The document points to around 70% reduction in production in the region and also the lack of conditions for export due to the lower quality of the product.

“The drought caused a lot of damage and unemployment for the sector. The financial loss was affected by the drop in exports due to the quality of the product, which was affected. With this drop, members are unable to pay their bills”, said the director of the Parapuã Agricultural Cooperative, Cooperativa Casul, Júlio Carlos de Arruda. 

The president of the Peanut Sector Chamber, José Rossato, estimates that the reduction in Gross Production Value (VBP) could reach 50%, around R$1,7 billion, and there is an emergency need to purchase inputs. “Agribusinesses, cereal producers and cooperatives, with a smaller volume of raw material available, have the additional challenge of fitting peanuts into the quality standards required to access the consumer, in the domestic and foreign markets”, highlighted the president.

To meet the essential demands of the sector, the governor of São Paulo, Tarcisio de Freitas, accompanied by the Secretary of Agriculture and Supply, Guilherme Piai, met, in April, at Palácio dos Bandeirantes, with representatives of the peanut production chain .

“We were very well received given the awareness of the delicate moment in the sector, as well as the petition presented, with proposals that can alleviate the current crisis in the production chain. We hope to build a plan to mitigate the impact on the productive sector in our state of SP”, highlighted the president of the Peanut Sector Chamber, José Rossato. 

Scenario of the Domestic and Foreign Peanut Market

It is worth highlighting that São Paulo is the largest national producer, responsible for 90% of the country's production and the main exporter of legumes. The main producing regions are, respectively, the municipalities of Tupã (13,6%), Marília (12,7%) and Jaboticabal (12,2%).

The product is mainly exported in the form of oil and peeled grains. The main destinations are concentrated in three countries that accounted for 61% of exports: Russia (28,31%), Algeria (23,59%) and the Netherlands (9,56%) for grain and China and Italy for Oil .

In the Chinese market, for example, peanut oil is considered a delicacy, due to its flavor, purity and nutritional properties. According to a study carried out by the IEA, in 2023, exports of shelled peanuts registered an increase and maintained the expansion scenario built in recent years. When compared to the year 2022, the results indicate an increase of 4,28% in exported volumes and 33,40% in values, accounting for 297 thousand tons exported, which totaled US$443 million for peanut grains.

“In the year 2023, São Paulo’s peanut production, when compared to the previous year, recorded an increase in planted area and production. The good harvest conditions allowed an increase in exports, especially grains, an important marketing channel for peanuts”, highlighted Renata Martins Sampaio.