On average, about 25% of South Africa’s crop is exported.
This is according to Gerhard Dreyer, owner of The New Nut Company near Setlagole in North West.
The operation processes peanuts from approximately 50 suppliers and also grows about 450ha of the crop on dryland. Gerhard started out as a supplier to the company, but acquired shares in 2005 before taking full ownership of the business in 2007.
Locally, The New Nut Company supplies peanuts to Tiger Brands and Simba, and under Gerhard’s leadership it started exporting to Rotterdam. Today 25% to 30% of the company’s peanut production is exported.
In addition to sourcing from local suppliers, the company also imports peanuts, mainly from Argentina.
“Only 15% to 20% of locally grown groundnuts are produced under irrigation. Most of those farmers who do irrigate produce both groundnuts and groundnut seed,” says Gerhard.
The reason for this, he explains, is the high cost of irrigation, and only farmers who earn a premium from selling seed can justify investing in irrigation.
