Post by Trade facilitator on Aug 25, 2019 15:00:29 GMT 1
Groundnuts are used for food and as an ingredient in confectionery products. Nigeria currently produces about two million MT of groundnut. Groundnut is the 13th most important food crop of the world. Groundnut seeds contain high quality edible oil (50%), easily digestible protein (25%) and carbohydrate (20%).
It is the world’s 4th most important source of edible oil and 3rd most important source of vegetable protein.
In Europe, about 650,000 tonnes of groundnuts are consumed each year. Most groundnuts find their way into Europe through imports. Imports continue to grow.
This study covers general information regarding the market for groundnuts in Europe which is of interest to producers in developing countries.
Thankfully, it is groundnut season.
Product Description
Groundnuts or peanuts, either in the pod or in the form of kernels, are obtained from varieties of the species Arachis hypogaea L. The name groundnut is derived from the fact that peanut pods develop under the ground, which is uncommon, as most nuts grow on trees.
Groundnuts are classified as both a grain legume and as an oil crop due to their high oil content. Although the botanical definition of groundnuts is legumes, groundnuts are usually referred to as nuts in trade and culinary classification.
Product specification for exporting groundnut to Europe
The basic quality requirements for groundnuts are the following:
Free of flavours, odours, living insects and mites;
Faximum moisture content of 10% for groundnuts in pod and 9% for groundnut kernels.
Maximum 2% of mouldy, rancid or decayed kernels;
Maximum 30% of broken/split kernels;
Less than 2% kernels with skin (regarding shelled and skinned peanuts);
Maximum 4% of total defects;
Should be non-GMO products.
Labelling
The type of groundnut, the name of the product and the crop year must be shown on the label, clearly stating either “groundnuts/peanuts” or “groundnuts/peanuts in-pod”.
Packaging labelling must list the following information:
Name of the product
Lot identification
Name and address of the manufacturer, packer, distributor or importer and
Storage instructions.
However, the lot identification as well as the name and address of the manufacturer, packer, distributor or importer may be replaced by an identification mark.
In the case of retail packaging, the product labelling must be in compliance with the European Union Regulation on food information to consumers. This regulation defines the nutrition labelling, origin labelling, allergen labelling and legibility (minimum font size for mandatory information) more clearly.
Packaging
There is no general rule for the export size of the packaging of groundnuts. The most frequent type of packaging for export is vacuum bags in cartons.
Sometimes, cans are also used as a packaging without labelling or they can be branded according to the buyers’ request. Retail packaging is very different, but it is not very often used in imports from the main exporting countries of origin.
European markets opportunities for exporters of groundnuts
The Netherlands, Germany and the United Kingdom offer opportunities for exporters of groundnuts from developing countries. Furthermore, large markets opportunities can be found on the growing markets of Central and Eastern Europe.
Imports of groundnuts continue to increase in these countries. The European market for groundnuts is expected to increase steadily. This increase is likely to be driven a rising demand for vegetable sources of protein instead of meat.
Any fluctuations in imports will continue to be influenced by the harvested crops rather than changes in demand. Imports from developing countries are showing an even higher increase, with an annual growth rate of 8%.
Conclusion
While there are many countries exporting groundnut to Europe, entrepreneurs here, are urged to actualise the potentials in exporting the product. The availability of the produce in the country can additionally provide a great advantage for suppliers to European markets.
Because of it numerous uses, groundnuts are in great demand in Europe and this opens an opportunity for interested investors to export the product.
The return on investment on the export of ground nuts is massive and estimated between 15%- 30%.
Contact The Thy Global Investment Ltd for more guidance on how to export groundnut successfully.
