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Groundnuts
Mini-
Februarie 2015
20
Volatile times yield opportunity
I
n the modern era of agricultural com-
modities, producers, processors and
end-users find themselves in an ever
challenging market environment. It
is characterised by volatile prices due to
changing weather patterns, competing
crops and the globalisation of trade.
Increasing competition between origins and
a strong consolidation trend in many indus-
tries, especially the South African peanut
industry, are direct effects of this develop-
ment. Volatile foreign exchange rates that
cannot be anticipated add to this complex
picture and make it challenging to run sus-
tainable business models in the long term.
Furthermore, the recent financial crisis
certainly did not help to ease the financing
needs of the industry.
More than ever, commodity markets are
also dependent on macro-economic fac-
tors in China, the USA and Europe, as well
as the shift of demand patterns in emerg-
ing economies. Producers, processors and
end-users have to fulfil growing customer
requirements concerning food safety as
well as social and environmental standards,
including the respective internationally rec-
ognised certifications.
Although this list of challenging factors is
far from complete and there is certainly rea-
son for caution, this volatile business envi-
ronment offers plenty of excellent business
opportunities for companies to generate
long-term growth and profitable partner-
ships. This is valid not only for large multi-
nationals or market leaders, but also for
smaller and medium-sized players.
As an international expert in nuts and dried
fruits, the Swiss-based LBNUTS AG, to-
gether with its German sister companies,
has been involved in the South African
peanuts industry since the early 1960s. The
company business dates back to 1889 via
its German sister company, Lorenz Snack-
World Group, a leading producer of branded
snacks in Europe.
It was the first company to introduce dough-
coated peanuts into the European snack
market using the South African Spanish
type peanut due to its hand-picked selected
(HPS) quality and round shape that made
it ideal for coating applications. After the
end of the Oilseed Control Board, the re-
structuring of the industry and drought af-
fected crops for several years, resulting in
decreasing product availability for export.
In response, LBNUTS differentiated its sup-
ply base by adding other Spanish peanut
origins, such as India and the USA. However,
unlike other buyers that completely turned
away from the South African peanut origin,
the company was convinced of the quality
of the South African Spanish type peanut
and further intensified contacts with its
South African peanut suppliers leading to
mutual beneficial relationships for many
years now.
LBNUTS annually imports several thousand
tons of HPS Spanish type peanuts into the
European and North African markets. The
company has roasting facilities in Germa-
ny and Egypt and representative offices in
Cape Town (South Africa), Geneva (Switzer-
land) and Cairo (Egypt).
LBNUTS AG has a strong belief that the only
way for producers, processors and end-
users to prevail in today’s volatile markets
is to grow closer together in developing
mutually beneficial, transparent and long-
term agreements. It is important to grow a
common understanding on each side for the
need of the producer/processor on the one
hand and the customer requirements on
the world markets on the other. This sets
the base to develop supply chains with sus-
tainable long-term competitive advantages
instead of on and off opportunistic busi-
ness. LBNUTS adds value for its suppliers
by providing a continuous and long-term
market for their high quality products.
The company supports its suppliers in
bringing farming and processing facilities
to the highest possible quality and food
safety standards to enable the develop-
ment of sustainable, traceable and socially
responsible business practices. In addi-
tion, the company is offering access to its
global logistics and technological exper-
tise network and provides several financing
services for its agricultural partners.
LBNUTS invites interested peanuts produc-
ers and processors to partner with us to
achieve your goals and visions. This charac-
terises the company’s core competencies:
From origin, nut expertise, partnering.
Product information
STEPHAN HOCHSTEIN,
director: Procurement, LBNUTS AG
LBNUTS AG was the first company to introduce dough-coated peanuts into the European snack
market using the South African Spanish type peanut due to its hand-picked selected quality and
round shape that made it ideal for coating applications.