China’s peanut production was estimated to add 6% last year over the previous year, reaching a level of 13.8 million MT. Due to slow growth of domestic demand and falling exports, peanut price has kept going south since last year’s harvest. The current shelled peanut price is below the same period of last year by 50%. The peanut price slump has affected farmers’ income, dampening their initiatives in the crop.
On the other hand, the government’s increased subsidy for grain production has given farmers a great impetus.
Shandong’s planting intention survey shows a peanut acreage of 800,000 ha. this year, a drop of 1.7% from last year. BOABC predicts that the nation’s peanut acreage may shrink 4% this year to a level of 4 million ha.
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