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Fewer exports from Argentina mean higher market prices

Shelf prices of own label salted peanuts are rocketing amid a crunch on Argentinian peanut exports to Europe.

Month on month, an 11% increase can be seen across the UK’s leading grocers, The Grocer’s KVI tracker reveals [Assosia 5 w/e 4 January 2024].

The fastest rise is for Morrisons Salted Peanuts 450g, which has soared 63.5% from £1.59 to £2.60. Sainsbury’s Salted Peanuts 550g is up 9.8% from £2 to £2.20.

While comparable lines in Aldi, Lidl and Waitrose have not experienced month-on-month rises, they have seen year-on-year increases. Waitrose Essential Large Peanuts, for instance, has got 9.5% pricier, from £2.10 to £2.30 [Assosia 52 w/e 4 January 2024]. Aldi Snackrite Salted Peanuts 400g and Lidl Alesto Roasted & Salted Peanuts 400g, have each risen 8% from £1.25 to £1.35.

Overall, shelf prices of own label salted peanuts are up an average of 16.3% across the grocers.

Morrisons explained its price change was due to promotional activity ending after Christmas.

A Sainsbury’s spokeswoman said: “While prices can go up and down for a range of reasons, we’re committed to offering our customers great choice and value when they shop with us.”

A spokeswoman for Waitrose said: “While no retailer is immune to inflation, over the last year we’ve worked hard with our suppliers to keep our prices competitive, while providing customers with value for money when they shop with us.”

The Grocer has approached the other retailers for comment.

A reduction in the volume of exports from Argentina was the “main driver pushing up prices in the European peanut markets”, Aidan Wright, Mintec senior commodity analyst & methodology lead, told The Grocer.

“A combination of drought during the growing season and lower plantings, due to higher growing costs, led to a significant decrease in production,” he added.

As a result, Mintec Benchmark Prices for Argentinian peanuts delivered into Rotterdam had risen 32% year on year and were “the highest they have been since June 2012”.