""

Voluntary Report - public distribution

**Date:** 12/23/2003

**GAIN Report Number:** CH3134

CH3134

**China, Peoples Republic of**

**Oilseeds and Products**

**China\'s Peanut Sector**

**2003**

**Approved by:**

![](media/image1.wmf)Maurice W. House

U.S. Embassy, Beijing

**Prepared by:**

Jim Butterworth & Wu Xingping

**Report Highlights:**

China\'s peanut sector continues to be characterized by a very large
number of small producers. Given the small plots and ample rural labor,
production is highly labor intensive, with virtually no mechanization.
Despite these limitations, China is the world's largest producer of
peanuts, producing more than twice as much as the second largest
producer -- India. Producers have few options for marketing their crop
except to sell at the prevailing price at harvest time. Over half the
peanuts grown in China are crushed for oil and approximately 8 percent
are exported.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Beijing \[CH1\]

\[CH\]

# Production

*Overview:* China is the world's largest producer of peanuts. Moreover,
its production has been increasing in recent years. According to China's
National Statistics Bureau (NSB), domestic peanut production hit 14.81
million metric tons (MMT) in 2002, as compared with 14.44 MMT and 14.42
MMT in 2000 and 2001, respectively (See Table 1). The official
production estimate for 2003 has not been officially announced yet.
Unofficial sources, however, have estimated 2003 production to be about
15.5 MMT. Production would have been even higher was it not for the
excessive moisture in the primary growing regions. Production is
concentrated in the east-central provinces of Shandong, Henan, Hebei,
Jiangsu and Anhui, all of which usually have soil and water conditions
favorable for growing peanuts, notwithstanding 2003. Shandong has been
China's largest producing province, with its neighboring province of
Henan being a close second.

Limited availability of arable land and a large rural population limits
large-scale peanut cultivation; subsistent farming continues to be the
norm. Even in leading producing provinces, peanuts compete with other
crops, such as cotton, corn, and vegetables, for planted area. The
average area planted to peanuts ranges from 0.1 to 0.5 ha. The prices
farmers received for competing crops in the preceding year drives their
planting decisions. Given the ample supply of cheap labor, most
harvesting and shelling still is done by hand. Furthermore, hand
harvesting generally results in less damage and loss. In the leading
producing provinces, harvesting coincides with the dry season so farmers
can sun dry their peanuts. However, large traders/processors, who need
to handle relatively large quantities, rely upon industrial driers.
Farmers shell most of the peanuts by hand. There are a few small,
specialized shellers that use Chinese-made equipment.

Despite the limitations noted above, many Chinese insiders strongly
believe in the post WTO accession era, peanuts could be one of the few,
if not the only, bulk agricultural commodity for which China enjoys a
comparative advantage, based on the following reasons: 1) China has
large areas that are suitable for growing peanuts; 2) yields also are
relatively high; and, 3) peanut production and processing is labor
intensive and China has an ample supply of very low cost labor. This
keeps Chinese peanut prices lower as compared with other producers.

*Planted Area:* Regarding planted area, the latest NSB statistics show
it has remained at approximately 4.9 million hectares for the period
2000-2002. Unofficial sources have forecast 2003 planted area to
increase to approximately 5.39 million hectares, up by 10 percent as
compared with the previous year (See Table 2.) High cotton prices,
however, may limit significant increases in the area planted to peanuts.
The estimated planted area in Shandong increased by 3.6 percent to 0.98
million hectares.

*Yields:* Yields in Shandong continue to be high, except in 2002, when a
serious drought substantially reduced yields. In general, the yield in
major producing provinces remains high and stable. In 2003, the
unusually wet fall in the Yellow River reach delayed peanut maturation
and harvesting, therefore, yield is expected to be below average. The
provinces of Shandong, Henan and Anhui were particularly hard hit by
excessive moisture.

As long as domestic edible oils consumption continues to grow and export
demand remains strong, planted area is likely to remain stable. Although
profitability increased recently, the potential for production expansion
is limited because total arable land is limited and competition with
other crops like cotton and grain crops is strong. In addition, other
crops, such as cotton and soybeans, had good prices in 2003.
Nevertheless, new varieties and improved cultivation practices will
contribute to higher yields and production in the future and are already
credited for the average yield on 25,000 hectares in some of Shandong's
peanut producing counties exceeding 5000 kg/ha.

*Quality:* In most years, the quality of Chinese peanuts is generally
good. In MY99/00, however, aflatoxin was a serious problem. Excessive
moisture during the harvest caused aflatoxin levels to rise. About that
same time, the European Union (EU) adopted a stricter aflatoxin
standard. Between February and December 2002, the EU imposed strict
inspection measures and began surveying China's peanut producing regions
and began stricter import inspection criteria for Chinese peanuts. In
the past three years, however, China has implemented measures to control
the problem. Farmers were taught how to reduce the risk of aflatoxin in
harvesting, processing, and storage, and more rigid testing was done
before peanuts were purchased. Also, large exporters began using more
reliable testing equipment. The quantity exported is only about 8
percent of total production so exporters can choose the highest quality
peanuts for export. In August 2002 China's Ministry of Health published
a working draft of a standard for aflatoxin (B1) that limits levels to
20 ug/kg for peanuts and peanut products. This regulation, however, has
not entered into force as of this writing. FAS/Beijing published a
translation of this proposed regulation as GAIN report CH3022.

Depending on the price trend at harvest time, each producer
traditionally stores small quantities of peanuts on the farm, while
traders and processors rely upon medium-sized storage facilities. The
largest peanut crusher Shandong province, for example, stated that he
purchases shelled peanuts containing less than 10 percent moisture
between September and December. He stores them in an un-refrigerated
facility for less than 20 days before moving them out to be processed.
Cooling systems, however, are used when large quantities are stored for
long periods. Purchasing standards for peanuts used for manufacturing
food products, for both domestic consumption and export, are stricter in
terms of moisture content and aflatoxin testing.

# 

# 

# Policy

The Government of China does not control or intervene in peanut
production or marketing. It does not provide subsidies, either direct or
indirect.

As an indication of the government's lack of involvement in the peanut
industry, China's Ministry of Agriculture (MOA) did not even mention
peanuts in its May 2003 report in which it outlined its strategic
development plan for major crops. Based on this, it seems unlikely that
the government will intervene in the peanut industry anytime in the near
future.

# Processing and Marketing

Peanut processing is not as highly mechanized and marketing not as
highly developed in China as in the United States. Preliminary
processing, such as shelling, often is done in households or simple
processing facilities that use domestic machinery and hand labor. In
general, exporters and crushers purchase shelled peanuts, not in shell,
from farmers or small traders.

Some households barter some of their peanuts for edible oil from local
mills. Farmers are free to sell their products in the local market.
Larger traders and crushers, however, sometimes sign purchasing
contracts with farmers to ensure a stable supply. As the total quantity
sold by each household is small, in most cases farmers are expected to
deliver the goods to the traders'/crushers' local purchasing agents. The
consolidated quantity will be transported to storage facilities.

Market promotion activities are limited. Promotion teams led by the
China's National Chamber of Commerce for Native Products, a
quasi-governmental industry group, attend some trade fairs abroad. Local
agricultural fairs are becoming more popular and are attracting peanut
dealers as well.

# Peanut Product Manufacturing

*Overview:* Over half of the domestic production is used for crushing,
and one-third for domestic food use, 8-10 percent for export and the
rest for seeds and other purposes. The processing sector is
characterized by many small enterprises that are equipped with
traditional Chinese machinery and technology. Big names and brands are
not common within the sector. Peanut's relative share in all oilseeds
has been declining primarily due to the sharp increase in the supplies
of soybeans and rapeseed. Regarding domestic food use, peanuts are eaten
as snacks or as appetizers in homes and restaurants; they are not
regarded as a main staple food.

*Peanut Oil:* Traditionally, the northern areas of China, such as
Beijing, Tianjin, and Shandong, consume the most peanut oil. That
preference, however, may be waning. The latest market trends show
refined soybean oil and rape oil are widely accepted by consumers in
both Northern and Southern China, primarily because soybean oil and rape
oil are about 15-20 percent cheaper than peanut oil. Peanut oil also is
used in blended and salad oils in addition to being sold as pure peanut
oil.

Peanut oil production fell slightly from the 2.28 MMT in 2000 to 2.22
MMT in 2002. MOA expects that peanut oil production will only increase
moderately as compared with the forecast sharp rise in soybean and
rapeseed oil production. Most crushing is done in small-scale mills
located in the peanut producing regions. Recently, however, some larger
players have emerged, particularly in the eastern provinces.
Shandong-based Luhua Vegetable Oil Co., for example, has an annual
crushing capacity of 500,000 MMT. The actual utilization is forecast at
400,000 MT in 2003. Its product, which is labeled "Luhua Peanut Oil," is
a very popular brand throughout China's northern and eastern regions.
The technology used by the large crushers is a mix of domestic and
imported equipment. In Luhua Co., a newly developed technology called 5S
Physical Pressing Technology was employed, which was said to be able to
retain the natural color, odor, and taste of peanut oil that many
Chinese prefer for cooking. Other notable crushers include Jiali Oil in
Qingdao and COFCO's Fulingmen Oil in Shanghai. Foreign investment
entered into the sector in the 1990's, mostly from Singapore, Malaysia,
Hong Kong, and Taiwan.

*Other Processed Products:* Other processed products for both domestic
and international markets consist of roasted peanuts, oil fried peanuts,
and salted roasted in-shell peanuts. Many of the roasted and oil fried
peanuts produced in Shandong and Hebei are exported to Japan and other
East Asia countries, while small quantities of salted roasted in-shell
peanuts from Guangdong, Sichuan, Fujian and Hubei are exported to
Southeast Asian countries such as Malaysia, Singapore, the Philippines,
Hong Kong, and Thailand. As discussed in the Trade section below, most
Chinese peanuts are exported as raw shelled peanuts

According to industry sources, some investors have shown interest in
developing high protein peanuts to alleviate the protein deficiency in
Chinese diet. Products made of flour mixed with peanut protein have
found acceptance in Zhengzhou, Henan. Peanut milk also is available in
some cities.

# Trade

*Exports:* Exports of all peanut and related peanut products (excluding
oil) totaled \$564 million during MY02/03. They accounted for 8.4
percent of total production on an in shell basis during the same period.
Shelled peanuts accounted for over half of that total both in terms of
quantity and value (See Tables 4 & 7). The total quantity of shelled
peanut exports has grown 29 percent during the past three marketing
years (MY00/01 -- MY02/03). Russia and the Netherlands were the top two
destinations (See Tables 5 & 8). (Note: It is likely that the peanuts
exported to the Netherlands get transshipped through Rotterdam to other
European countries.) The quantity of exports to Russia has increased 61
percent while it has decreased 38 percent to the Netherlands during the
same period. Exports to Algeria and Ukraine increased sharply during the
same period. Roast peanuts were the second most important category of
exports. In MY02/03, they accounted for 21 percent of the total quantity
of peanut products and 22 percent of the value. Japan and South Korea
were the top two destinations (See Tables 6 & 9) while the United States
ranked a distant third.

The port of Qingdao (Shandong province) handled more peanut exports than
any other port \-- accounting for 81 percent of all peanut exports. It
is likely, however, that some of these peanuts originated from other
provinces. See Table 11.

*Imports:* As shown in Table 12, peanut imports are insignificant --
never more than US\$340,000 over the past three marketing years. Very
minor amounts come from Indonesia. Some industry sources expressed some
interest in foreign peanuts, but that interest has yet to lead to any
imports. Crushers will only consider importing peanuts if domestic oil
prices remain strong, domestic stocks become scarce, and the crushing
margin is positive.

# Price Information

The price of peanuts used to be driven by exports. Recently, however,
because of strong domestic demand for vegetable oil and oilseed meals,
the price of peanuts is becoming more integrated with and driven by the
prices of other oilseeds. The simultaneous price fluctuation with
soybean and rapeseed in Fall 2003 indicates this trend may continue in
the long run. The domestic oilseeds supply deficit is expanding yearly.
Also, exports generally account for 8-10 percent of total production.
Domestic peanut prices have risen sharply since early 2002 when the
price for shelled peanuts sank to US\$338/MT. Prices for shelled peanuts
for oil fluctuated between US\$520-530/MT in the first six months of
2003 and have risen to over US\$700/MT currently. Likewise, peanut oil
prices went up from US\$1000 in January 2003 to US\$1130/MT in June
2003, and continued to rise to between US\$1225 and US\$1450/MT since
this October up to now. These prices rose along with the overall price
surge of grain and oilseed products in China's domestic market.
Currently, prices for both peanut and peanut oil remain stable and high
and, according to industry sources, are not expected to drop before the
end of Chinese New Year (the third week of January.)

As Table 10 shows, export prices fluctuations have been modest over the
past three years. The average export price in MY02/03 for shelled
peanuts rebounded to US\$0.61/kg from the low price of US\$0.51/kg in
MY01/02. The price for peanut products has fallen gradually in past
years. The price of oil fried peanuts exported to Japan dropped to
US\$1200/MT in 2002, down by 25 percent as compared with the price in
1993. Some industry sources complained that some traders sold peanuts at
very low prices in 2002 just to gain market share. The export price war
is likely to continue as more traders compete for the new markets and
benefit from reduced tariffs in existing markets resulting from China's
entry into the WTO.

**Table 1 - China's Peanut Production 2000 - 2003**

**(1,000 MT)**

+-------------+-------------+-------------+-------------+-------------+
| *           | **2000**    | **2001**    | **2002**    | **2003**    |
| *Province** |             |             |             |             |
|             |             |             |             | **(         |
|             |             |             |             | forecast)** |
+-------------+-------------+-------------+-------------+-------------+
| National    | 14436.6     | 14415.7     | 14817.6     | 15500       |
| Total       |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Shandong    | 3501        | 3690        | 3339        | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Henan       | 3359        | 2950        | 3362        | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hebei       | 1326        | 1442        | 1405        | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangdong   | 777         | 797         | 752         | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Anhui       | 1112        | 1040        | 1130        | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Sichuan     | 543         | 458         | 554         | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Liaoning    | 256         | 421         | 518         | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangxi     | 496         | 488         | 481         | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Jiangsu     | 797         | 841         | 837         | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hubei       | 657         | 640         | 723         | NA          |
+-------------+-------------+-------------+-------------+-------------+

**Table 2 - China's Peanut Planted Area between 2000 to 2003 (Ha)**

+-------------+-------------+-------------+-------------+-------------+
| Province    | 2000        | 2001        | 2002        | 2003        |
|             |             |             |             |             |
|             |             |             |             | (forecast)  |
+-------------+-------------+-------------+-------------+-------------+
| National    | 4,855,000   | 4,991,300   | 4,902,600   | 5,390,000   |
| Total       |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Shandong    | 923,500     | 971,500     | 952,500     | 1,000,000   |
+-------------+-------------+-------------+-------------+-------------+
| Henan       | 984,800     | 956,000     | 944,800     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hebei       | 463,300     | 495,400     | 479,800     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangdong   | 331,100     | 341,100     | 315,000     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Anhui       | 334,000     | 300,600     | 284,600     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Sichuan     | 239,600     | 257,600     | 264,200     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Liaoning    | 142,800     | 184,100     | 243,700     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangxi     | 240,600     | 240,400     | 233,500     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Jiangsu     | 227,900     | 230,200     | 223,600     | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hubei       | 193,400     | 210,100     | 206,000     | NA          |
+-------------+-------------+-------------+-------------+-------------+

**Table 3 - China's Peanut Yield 2000 - 2003 (kg/ha)**

+-------------+-------------+-------------+-------------+-------------+
| Province    | **2000**    | **2001**    | **2002**    | **2003**    |
|             |             |             |             |             |
|             |             |             |             | **(         |
|             |             |             |             | forecast)** |
+-------------+-------------+-------------+-------------+-------------+
| National    | 2973.3      | 2888.2      | 3011.3      | 2875.0      |
| Average     |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Shandong    | 3791.6      | 3799.1      | 3505.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Henan       | 3410.6      | 3086.7      | 3558.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hebei       | 2861.6      | 2917.6      | 2927.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangdong   | 2346.3      | 2337.8      | 2387.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Anhui       | 3328.1      | 3458.2      | 3969.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Sichuan     | 2265.9      | 1778.6      | 1098.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Liaoning    | 1794.0      | 2283.7      | 2048.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Guangxi     | 2059.3      | 2029.3      | 2060.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Jiangsu     | 3499.1      | 3652.9      | 3743.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+
| Hubei       | 3397.1      | 3046.1      | 3507.0      | NA          |
+-------------+-------------+-------------+-------------+-------------+

**Table 4 - China's Exports of Peanuts and Select Peanut Products**

**Quantity (MT)**

+---------+--------------------+----------+-----------+----------------+
| **HS#** | **Product**        | **Oct    | **Oct     | **Oct 02-Sep   |
|         |                    | 00-Sep   | 01-Sep    | 03**           |
|         |                    | 01**     | 02**      |                |
+---------+--------------------+----------+-----------+----------------+
| 1       | Peanuts            | 374,001  | 388,686   | 483,616        |
| 2022000 | (ground-nuts),     |          |           |                |
|         | raw, shelled,      |          |           |                |
|         | broken or not      |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 2       | Roasted            | 121,953  | 141,257   | 180,934        |
| 0081120 | ground-nuts        |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 2       | Other prepared     | 63,518   | 81,002    | 81,128         |
| 0081190 | ground-nuts, not   |          |           |                |
|         | elsewhere          |          |           |                |
|         | specified          |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 1       | Ground-nuts in     | 76,633   | 90,661    | 98,067         |
| 2021090 | shell, excl. seed, |          |           |                |
|         | not cooked         |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 2       | Ground-nut         | 9,775    | 11,399    | 11,824         |
| 0081130 | (peanut) butter    |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 2       | Ground-nut         | 1,433    | 1,715     | 1,941          |
| 0081110 | kernels, prepared, |          |           |                |
|         | in airtight        |          |           |                |
|         | containers         |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| 1       | Seeds              | 140      | 170       | 46             |
| 2021010 |                    |          |           |                |
+---------+--------------------+----------+-----------+----------------+
| # To    |                    | **6      | **        | **857,557**    |
| tal Gro |                    | 47,452** | 714,891** |                |
| und-Nut |                    |          |           |                |
| s and P |                    |          |           |                |
| roducts |                    |          |           |                |
+---------+--------------------+----------+-----------+----------------+

Source: China Customs

**Table 5 - China's Exports of Shelled Peanuts**

**(HS#1202.20) Quantity (MT)**

  ---------- --------------------- ------------- --------------- ---------------
  **Rank**   **Destination**       **10/00 --    **10/01 --      **10/02 --
                                   9/01**        9/02**          9/03**

  0          \--World\--           374,001       388,686         483,616

  1          Russia                43,722        64,411          71,121

  2          Netherlands           88,744        54,284          54,624

  3          Philippines           32,476        42,855          50,053

  4          Algeria               2,706         31,449          37,606

  5          Indonesia             10,077        16,435          36,534

  6          Japan                 26,589        26,593          29,300

  7          United Kingdom        25,728        15,864          26,213

  8          Ukraine               10,878        15,693          25,780

  9          Malaysia              9,050         6,187           16,425

  10         United Arab Emirates  11,259        11,521          14,285
  ---------- --------------------- ------------- --------------- ---------------

Source: China Customs

**Table 6 - China's Exports of Roast Ground Nuts**

**(HS# 2008.11.20) Quantity (MT)**

  ---------- -------------------- ------------- --------------- ---------------
  **Rank**   **Destination**      **10/00 --    **10/01 --      **10/02 --
                                  9/01**        9/02**          9/03**

  0          \--World\--          121,953       141,257         180,934

  1          Japan                28,064        25,304          22,584

  2          Korea, South         20,940        25,590          21,784

  3          United States        7,853         7,014           11,944

  4          Indonesia            4,405         4,493           10,882

  5          Russia               7,180         8,448           9,086

  6          Spain                6,755         6,291           8,272

  7          Philippines          5,388         6,465           8,199

  8          Poland               262           2,173           7,339

  9          Malaysia             2,257         3,967           6,572

  10         Greece               5,989         6,358           5,864
  ---------- -------------------- ------------- --------------- ---------------

Source: China Customs

**Table 7 - China's Exports of Peanuts and Select Peanut Products**

**Value (Millions US\$)**

  ------------- ------------------------------ -------------- -------------- --------------
  **HS**        **Description**                **Oct 00-Sep   **Oct 01-Sep   **Oct 02-Sep
                                               01**           02**           03**

  12022000      Peanuts (ground-nuts), raw,    \$209.33       \$198.00       \$295.06
                shelled, broken or not                                       

  20081120      Roasted ground-nuts            \$93.89        \$95.67        \$129.87

  20081190      Other prepared ground-nuts,    \$60.49        \$66.75        \$71.81
                not elsewhere specified.                                     

  12021090      Ground-nuts in shell, excl.    \$36.51        \$40.31        \$50.37
                seed, not cooked                                             

  20081130      Ground-nut butter              \$11.41        \$13.17        \$14.71

  20081110      Ground-nut kernels, prepared,  \$1.52         \$1.82         \$2.00
                in airtight containers                                       

  12021010      Seeds                          \$0.07         \$0.07         \$0.02

  **Total                                      **\$413.21**   **\$415.79**   **\$563.85**
  Ground-Nuts                                                                
  and                                                                        
  Products**                                                                 
  ------------- ------------------------------ -------------- -------------- --------------

Source: China Customs

**Table 8 - Peanuts (Ground nuts), Raw, Shelled, Broken or Not**

**(HS# 1202.20.00) Value (Million US\$)**

  ---------- -------------------- -------------- -------------- --------------
  **Rank**   **Destination**      **10/00 --     **10/01 --     **10/02 --
                                  9/01**         9/02**         9/03**

  0          \--World\--          \$209.3        \$198.0        \$295.1

  1          Russia               \$20.1         \$31.3         \$43.7

  2          Netherlands          \$54.0         \$28.4         \$34.7

  3          Philippines          \$16.3         \$20.2         \$29.2

  4          Japan                \$22.4         \$21.6         \$24.2

  5          Algeria              \$1.4          \$16.4         \$23.4

  6          Indonesia            \$4.3          \$7.0          \$18.9

  7          United Kingdom       \$14.2         \$7.9          \$15.8

  8          Ukraine              \$5.1          \$7.3          \$15.6

  9          United Arab Emirates \$6.2          \$5.7          \$8.4

  10         Malaysia             \$2.9          \$2.6          \$8.2
  ---------- -------------------- -------------- -------------- --------------

Source: China Customs

**Table 9 - Roasted Ground-Nuts (HS#2008.1120)**

**Value (Million US\$)**

  ---------- --------------------- -------------- -------------- --------------
  **Rank**   **Destination**       **10/00 --     **10/01 --     **10/02 --
                                   9/01**         9/02**         9/03**

  0          \--World\--           93.9           95.7           129.9

  1          Japan                 28.7           23.8           20.9

  2          Korea, South          13.4           14.8           12.9

  3          United States         6.3            5.0            8.9

  4          Indonesia             3.0            2.6            7.1

  5          Russia                4.9            5.3            6.8

  6          Spain                 4.5            3.9            6.1

  7          Philippines           3.2            3.5            5.3

  8          Poland                0.2            1.2            4.9

  9          Malaysia              1.8            2.7            4.6

  10         Greece                3.8            3.6            3.8
  ---------- --------------------- -------------- -------------- --------------

Source: China Customs

**Table 10 - China's Peanut & Peanut Product Export Prices (US\$/kg)**

  ---------- ------------------------- --------- ------- --------- ------- --------- -------
  **HS# **   **Product **              **Oct     **-**   **Oct     **-**   **Oct     **-**
                                       00-Sep            01-Sep            02-Sep    
                                       01**              02**              03**      

  12021010   Seeds                     0.47      /KG     0.40      /KG     0.51      /KG

  12021090   Ground-nuts in shell,     0.48      /KG     0.44      /KG     0.51      /KG
             excl. seed, not cooked                                                  

  12022000   Peanuts (ground-nuts),    0.56      /KG     0.51      /KG     0.61      /KG
             raw, shelled, broken or                                                 
             not                                                                     

  20081110   Ground-nut kernels,       1.06      /KG     1.06      /KG     1.03      /KG
             prepared, in airtight                                                   
             containers                                                              

  20081120   Roasted ground-nuts       0.77      /KG     0.68      /KG     0.72      /KG

  20081130   Ground-nut butter         1.17      /KG     1.16      /KG     1.24      /KG

  20081190   Other prepared            0.95      /KG     0.82      /KG     0.89      /KG
             ground-nuts, not                                                        
             elsewhere specified                                                     
  ---------- ------------------------- --------- ------- --------- ------- --------- -------

Source: China Customs

**Table 11 -- China's \*Peanut Exports by Port (MT)**

  ---------- ------------- ---------------- ---------------- -----------------
  **Rank**   **Port**      **10/00 --       **10/01 --       **10/02 -- 9/03**
                           9/01**           9/02**           

             -All Ports-   450,774          479,518          581,730

  1          Qingdao       332,372          369,278          472,738

  2          Tianjin       43,371           36,831           36,912

  3          Dalian        30,083           22,239           22,403

  4          Manzhouli     15,360           20,344           15,325

  5          Harbin        703              2,266            10,246
  ---------- ------------- ---------------- ---------------- -----------------

Source: China Customs

\*Limited to peanuts (HS# 1202 -- in shell, shelled, and seeds);
excludes peanut products (HS# 2002.11).

**Table 12 - China's Peanut Imports (US\$ million)**

  ---------- ------------- -------------- ------------------ -----------------
  **Rank**   **Country**   **Oct 00-Sep   **Oct 01-Sep 02**  **Oct 02-Sep 03**
                           01**                              

  0          \--World\--   0.117717       0.340291           0.150599

  1          Indonesia     0.111661       0.078121           0.080318

  2          Vietnam       0              0.250332           0.043786

  3          Malaysia      0              0                  0.025542

  4          United States 0.000997       0.000303           0.000501

  5          Japan         0              0                  0.000452
  ---------- ------------- -------------- ------------------ -----------------