SUMMARY OF PROJECT FINDINGS
Following the conclusion of Year 4 of the Northland Peanut Trials, Northland Inc commissioned Scarlatti to assess the economic viability of establishing a peanut industry in Northland from the perspective of potential customers, growers, and processors.
Each season of the Northland Peanut Trials presented both unique challenges and significant learnings around the potential of establishing a peanut industry in Northland. The report identifies that while significant challenges exist, there are opportunities around the establishment of a peanut industry in Northland, especially when considering value-added approaches.
The report findings are summarised below with a focus on these opportunities and the full report is available for download below this summary.
Potential for a Premium Local Product
A Northland peanut industry could create a unique, high-value product with strong local and national appeal. New Zealand-grown peanuts could command a premium price, especially if marketed as a sustainable, locally-produced alternative to imports.
Value-Added Opportunities
Vertical integration and product development could significantly improve the economic viability of a peanut industry in Northland:
- Branded Retail Products: Developing branded, retail-ready peanut products could capture more value along the supply chain.
- Specialty Varieties: Focus on growing specialty peanut varieties for niche markets could command higher prices.
- Peanut Oil Production: Extracting and marketing high-quality peanut oil as a gourmet product.
- Sustainable Packaging: Using innovative, eco-friendly packaging to differentiate the product.
Environmental and Social Benefits
Establishing a peanut industry could bring positive environmental and social impacts:
- Crop Rotation Benefits: Peanuts can improve soil health as part of crop rotations.
- Local Employment: Creating new jobs in agriculture and processing.
- Reduced Food Miles: Locally-grown peanuts would have a lower carbon footprint than imports.
Innovation Opportunities
The challenges identified present opportunities for innovation:
- Minimal processing for an inshell product
- Processing Technology: Developing more efficient small-scale processing methods could make local production more viable.
- Agronomic Research: Further research could improve yields and reduce production costs.
- Collaborative Models: Exploring cooperative structures or shared equipment models could reduce individual farmer costs.
Gradual Scale-Up Approach
Starting small and scaling up gradually could allow for learning and adaptation:
- 10 Hectare Scale: This could serve as a proof of concept, focusing on high-value snack products.
- 100 Hectare Scale: At this level, partnerships with established brands like Pic's could be explored.
- 1,000 Hectare Scale: This could potentially support a full-scale processing facility and diverse product range.
Where to from Here?
Continued Crop Trials: The Foundation for Arable Research (FAR) is set to conduct crop trials in Northland, with support from Northland Inc. These trials will include four crops, peanuts being one of them.
Expanded Partnerships: Three landowners, including two existing peanut trial partners, have been secured to participate in these new trials.
Development: Negotiations with a peanut producer have led to a commercial arrangement for purchasing crops from the growers. This marks a significant step towards industry establishment.
Industry Evolution: These developments signify the next phase in establishing a peanut industry in Northland. Growers will receive ongoing expertise and support while having the potential for financial returns, creating a more sustainable model for peanut cultivation in the region.
Long-Term Vision
While immediate economic challenges exist, a long-term vision for a sustainable, locally-produced peanut industry could align with broader trends towards food security and local production. With continued research, innovation, and strategic partnerships, the potential for a viable Northland peanut industry remains a possibility for the future.