Chapters 8.34

8.34-Peanut value addition

Delia Gregory, University of Guelph, Canada

Suggested citation for this chapter.

Gregory,D. (2022) Peanut value addition,In Farmpedia, The Encyclopedia for Small Scale Farmers. Editor, M.N. Raizada, University of Guelph, Canada. http://www.farmpedia.org

Brief background of crop

The peanut is a nutrient dense legume crop widely grown in the tropics and subtropics that presents a great opportunity for smallholder farmers to increase their income through value addition (Ansari, Prakash, Punitha, & Baishya, 2017). Millions of hectares of land across Asia, Africa, and Latin America are used to grow peanuts, with farmers in India, Nigeria, Sudan, and Senegal being major cultivators. Peanuts play an important role as a source of protein and income for smallholder farmers globally (Nautiyal, 2002). However, this crop is highly susceptible to aflatoxin contamination, exacerbated by poor storage techniques often present in subsistence farming communities (Ansari et al., 2017). Diseased or not, the low-value agricultural product is often sold as is, fetching low raw commodity prices especially if contaminated (Ansari et al., 2017). A common post-harvest practice is to allow the nuts to dry (in-shell) under the sun until the water content is between 6-8% which is determined by a rattling sound when peanuts are shaken (Kiryowa et al., n.d.). From this point, raw peanuts can be properly stored or further value-addition methods can be explored.

Value addition ideas

Snack grade peanuts

Arguably the simplest way to add value to peanuts is to sell dehulled snack grade peanuts. Hand shelling is a labour intensive, but effective method to dehull peanuts. However, a small manually-operated pod opener can be used to speed up the process and free up labour for other tasks (Ansari et al., 2017). Kernels then need to be cleaned and roasted to enhance flavor (Ochieng, 2010). Dry roasting peanuts can be done on trays in an oven or in a small rotary roaster (Climate Technology Centre & Network, n.d.). To sell snack peanuts, roasted nuts can then be enhanced with a coating (in flour for crunch) or flavoured to suit palettes of local consumers, thereby increasing demand (Fellows & Hilmi, 2011). Moreover, marketing using labels and branding can have powerful effects on consumers, and help to maintain product quality during storage (Nautiyal, 2002). Knowing this, value may further be increased by packaging peanuts, but this requires both polyethylene bags and bag sealing machinery (Fellows & Hilmi, 2011). These roasted and packaged nuts can be sold in local markets or even grocery stores (Ochieng, 2010). The type of processing can double the value of peanuts, from selling at below 1 USD to over 2.50 USD per kilogram, according to current prices (https://www.indiamart.com). Alternatively, these roasted snack grade peanuts can be added to meals, ranging from Nigerian peanut Stew, to Filipino kare-kare peanut stew, to Thai peanut satay sauce (Nautiyal, 2002).

Peanut butter

One of the most popular and profitable ways to add value to peanuts is to make peanut butter (Ochieng, 2010). Producing peanut butter can add 5 times the value per kilogram of peanuts, compared to the unprocessed commodity (https://www.indiamart.com). Dried nuts are shelled and cleaned, then roasted, processed, and packaged in clean jars (Climate Technology Centre & Network, n.d.). After having been roasted, peanut skins are dry and can easily be removed through winnowing. Peanuts are then put into a mill to grind the nuts into a buttery paste (Climate Technology Centre & Network, n.d.). Settings on milling machines can be adjusted for a desired peanut butter texture (e.g. crunchy, smooth, etc.), depending on local preferences (Intermediate Technology Development Group Ltd., 2002). Multiple varieties might also be sold to diversify the range of products (Climate Technology Centre & Network, n.d.). Sometimes stabilizers, salt, or sugar can be added to increase the shelf life or demand (Dhanesh & Kochhar, 2015). It is also important for peanut butter to be well packaged. Containers should be cleaned and then cooled butter poured in, while being careful to avoid air pockets which can lead to rancidity as the oil oxidizes (Intermediate Technology Development Group Ltd., 2002). The whole process requires training and various pieces of equipment, offering a great opportunity for a community cooperative. This peanut butter can also be used to make easy snack foods that might be sold on road-side stands, like peanut punch made from blending peanut butter with milk, sugar, ice, and spices (Fellows & Hilmi, 2011). One major issue in peanut butter production is high levels of aflatoxin contamination, as “unattractive” kernels are often used since they are otherwise unwanted (Mupunga, Lebelo, Mngqawa, Rheeder, & Katerere, 2014). This must be avoided as it is dangerous to the health of farmers and their families, as well as consumers who might purchase these peanut butter products (Nautiyal, 2002).

Peanut oil

Peanuts grown in developing countries are mainly used to produce peanut oil (Wang, Liu, Wang, Guo, & Wang, 2016). This edible oil is very popular as a cooking oil for its high nutritional value and aromatics (Potts & Machell, 1995). So long as high heat is applied, it is also a good opportunity to use otherwise rejected kernels, like those affected by low levels of aflatoxins, because the oil within the nut is pressed out, leaving the diseased peanut meal behind (Shephard, 2017). If healthy peanuts are pressed, the leftover peanut meal can then be added to meals (Zhao, Chen, & Du, 2011). First nuts are milled, heated, and mixed with water to improve conditions of oil to separate and flow out (Potts & Machell, 1995). Production of peanut oil requires a press to extract oil. A low-cost option would be a simple manual screw press, as it is relatively easy to build with a mechanized screw (Climate Technology Centre & Network, n.d.). There are also several machines with such designs on the market, if that is preferred to constructing one (Climate Technology Centre & Network, n.d.). Oil should then be clarified by letting it stand for 48-72 hours, and solid particles filtered out. Finally, oil is heated to remove remaining water that might otherwise cause rancidity (Potts & Machell, 1995). Packaged appropriately so as to maintain quality, it can be sold in local markets, very likely with high success (Ochieng, 2010). The economic benefit of peanut oil production is a tripling in value per kilogram of peanuts, from below 1 USD to 2.80 USD (https://www.indiamart.com). Additionally, any of new equipment built or purchased for peanut oil production can be used to process other oilseed crops, such as soybeans or sesame (Dhanesh & Kochhar, 2015).

Critical analysis

Peanuts have incredible potential to increase the incomes of smallholder farmers, however there are some concerns associated with value addition that must be considered. Firstly, equipment is needed to produce all peanut products, which would require labour, training, investment in low-cost capital, and knowledge of or access to machinery maintenance. Other important aspects include ease of distribution and transportation, and relevant demand in local markets. These factors are not guaranteed in all areas of the world. There are also health and safety concerns with the adoption of new and unfamiliar technology. Moreover, several pieces of machinery require electricity networks to be present, which may not be reliable in rural areas (Mottaleb, Krupnik, & Erenstein, 2016). Additionally, the quality of peanut products can only match the quality of peanuts used in production. Aflatoxins are an ever-present issue for small-holder farmers due to knowledge and understanding of the contamination not being widespread. This results in toxin consumption levels far beyond the recommended World Health Organization limits (Masters, Ghosh, Daniels, & Sarpong, 2013). Efforts to reduce possible aflatoxin contamination are key to high-quality peanut products. Potential solutions may be found in community cooperatives, which are a growing phenomenon that have yielded great results in peanut value addition, while at the same time reducing the individual financial burden and stress that accompanies managing a small business (Climate Technology Centre & Network, n.d.). There is a strong need for education and support for subsistence farmers so that they understand the benefits that can be realized by post-harvest value addition.

Helpful links to get started

Hands-on guides:

- This ‘Practical Action Plan’ provides step-by-step instructions, links to equipment suppliers, and useful contacts: https://www.ctc-n.org/sites/www.ctc-n.org/files/resources/peanut_processing.pdf

- This journal contains an article (p. 3-5) on peanut butter processing with a detailed list of instructions, as well as a table of solutions to common problems: https://practicalaction.org/docs/agroprocessing/food_chain_30.pdf

- This book contains a step-by-step guide to small-scale oil extraction: https://developmentbookshop.com/the-manual-screw-press-for-small-scale-oil-extraction-pb

Direct links to equipment and suppliers:

- Hand-operated decorticator (no gas or electricity needed): http://agritech.tnau.ac.in/agricultural_engineering/agriengg_groundnut.html

- Roasting drum design (no gas or electricity needed): https://answers.practicalaction.org/our-resources/item/peanut-roaster

- Rotary roaster (gas powered): https://www.alibaba.com/product-detail/rotary-drum-nut-roaster_60325819330.html?spm=a2700.7724838.2017115.11.72045553OrMu5c

- Peanut butter milling machine (gas powered): https://www.alibaba.com/product-detail/Small-peanut-butter-making-machine-South_60844967278.html?spm=a2700.7724838.2017115.45.38536266pytkFJ&s=p

- Polythene bag sealer (electric): https://www.alibaba.com/product-detail/SF-600-Manual-Standup-Plastic-Bag_60715868319.html?spm=a2700.7724857.normalList.62.7cb062d6ZPAEQM

- Label applicator for both bags and jars (electric): https://www.alibaba.com/product-detail/Top-Quality-portable-label-applicator-vacuum_60626771525.html?spm=a2700.galleryofferlist.normalList.127.652327517ptyg0

Peanut recipe ideas:

- Nigerian peanut stew: https://www.youtube.com/watch?v=ugfX--tqES0

- Filipino kare-kare: https://www.youtube.com/watch?v=wc7u4jRTRO4

- Thai peanut satay sauce: https://www.youtube.com/watch?v=R_w_zCqOIjE

- Peanut punch: https://www.youtube.com/watch?v=1iD7Z-9Tp0A

References

1. Ansari, M. A., Prakash, N., Punitha, P., & Baishya, L. K. (2015). Post harvest management and a. value addition of groundnut. Lamphelpat, Imphal: ICAR Research Complex for NEH Region. doi: 10.13140/RG.2.2.22053.91365

2. Climate Technology Centre & Network. (n.d.). Peanut Processing. Practical Action. Retrieved a. from https://www.ctc-n.org/sites/www.ctc-n.org/files/resources/peanut_processing.pdf

3. Dhanesh, B. & Kochhar, A. (2015). Peanut Processing and It’s Potential Food Applications. a. International Journal of Science and Research, 4(6), 2701-2706. Retrieved from b. https://www.ijsr.net/archive/v4i6/SUB156042.pdf

4. Fellows, P. & Hilmi, M. (2011). Selling street and snack foods. Rome: Rural Infrastructure and a. Agro-Industries Division, Food and Agriculture Organization. Retrieved from b. http://www.fao.org/docrep/015/i2474e/i2474e00.pdf

5. Intermediate Technology Development Group Ltd. (2002). Small-scale peanut butter processing a. in Tanzania – The experience of women processors. Food Chain: The International Journal of Small-scale Food Processing, (30), 3-5. Retrieved from https://practicalaction.org/docs/agroprocessing/food_chain_30.pdf

6. Kiryowa, M., Andrews, A., Awori, E., Oballim, G., Okori, F., & Okello, D. K. (n.d.). a. Groundnuts Postharvesting Handling: Harvesting and drying. Abi Zonal Agricultural Research and Development Institute and NARO National Semi-Arid Resources Research Institute (NaSARRI) Serere. Retrieved from http://www.nasarri.go.ug/factsheets/Harvest%20and%20drying.pdf

7. Masters, W., Ghosh, S., Daniels, J., & Sarpong, D. (2013). Comprehensive Assessment of the a. Peanut Value Chain for Nutrition Improvement in Ghana. Retrieved from http://sites.tufts.edu/willmasters/files/2013/11/TuftsReportForGAIN_PeanutValueChainInGhana_PublicVersion_Sept2013.pdf

8. Mottaleb, K. A., Krupnik, T. J., & Erenstein, O. (2016). Factors associated with small-scale a. agricultural machinery adoption in Bangladesh: Census findings. Journal of Rural Studies, 46(2016), 155-168. https://doi.org/10.1016/j.jrurstud.2016.06.012

9. Mupunga, I., Lebelo, S., Mngqawa, P., Rheeder, J., & Katerere, D. (2014). Journal of Food a. Protection, 77(10), 1814-1818. Retrieved from doi: 10.4315/0362-028X.JFP-14-129

10. Nautiyal, P. C. (2002). Groundnut: Post-harvest Operations. Food and Agriculture Organization. a. Retrieved from http://www.fao.org/fileadmin/user_upload/inpho/docs/Post_Harvest_Compendium_-_Groundnut.pdf

11. Ochieng, O. G. (2010). Effect of Value Addition on Price: A Hedonic Analysis of Peanut in a. Retail Supermarkets in Nairobi, Kenya. (Unpublished master’s thesis). Egerton b. University, Njoro, Kenya. Retrieved from c. https://ageconsearch.umn.edu/bitstream/134495/2/Otieno%20Thesis.pdf

12. Potts, K. H. & Machell, K. (1995). The Manual Screw Press for small-scale oil extraction. a. London, U.K.: Intermediate Technology Publications. Find this book at: b. https://developmentbookshop.com/the-manual-screw-press-for-small-scale-oil-extraction-pb

13. Shephard, G. (2017). Aflatoxins in peanut oil: food safety concerns. World Mycotoxin Journal, a. 11(1), 149-158. Retrieved from https://www.wageningenacademic.com/doi/abs/10.3920/WMJ2017.2279

14. Wang, Q., Liu, L., Wang, L., Guo, Y., Wang, J. (2016). Peanut Processing Technology and a. Product Development. Beijing, China: China Science Publishing & Media Ltd. Find this book at: https://www.sciencedirect.com/book/9780128095959/peanuts-processing-technology-and-product-development

15. Zhao, X., Chen, J., & Du, F. (2011). Potential use of peanut by-products in food processing: a a. review. Journal of Food Science and Technology, 49(5), 521-529. Retrieved from b. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3550843/