Bega Cheese bosses were back on the road in Queensland last week seeking farmer feedback on how to rev up the state’s peanut harvest tonnages, particularly in areas currently producing sugar cane.
The dairy processor, turned grocery goods manufacturer, should find plenty of recruits willing to add peanuts to their farming rotations, according to Bundaberg cane grower, Jason Loeskow, especially given the morbid state of sugar markets at present.
Bega’s Peanut Company of Australia (PCA) already sources about a third of its nuts from the Childers-Bunderberg area (about 7000 tonnes) and Mr Loeskow believed it wanted to double that figure as quickly as possible.
After buying a majority stake in the Australian peanut butter market last year, Bega wants to source all its ingredients domestically and look at exporting options.
Access to ample irrigation water makes Bundaberg more reliable as a consistent supplier of nuts than the industry’s traditional heartland further west at Kingaroy.
To keep people interested in growing more peanuts, it’s not rocket science – give growers some longer term price incentive.
- Jason Loeskow, Relmay Farms
Dryland peanuts have grown in the South Burnett Valley since the early 1900s, but irrigated crops are gaining ground in coastal districts, while peanuts and tree nuts are grown on North Queensland’s Atherton Tablelands, too.
Healthy crop rotation option
With sugar cane values at just $345 a tonne (about 12 cents a pound, compared with 20c to 30c/pound in recent decades), peanuts generate valued extra cash crop earnings for the Loeskow family’s 2000 hectare cane enterprise.
They also make a healthy contribution to cane crop soils.
Every five years cane blocks rotate to peanut plantings to break the disease/weed cycle and help soil nitrogen content and soil structure.
Mr Loeskow’s cane yields, south of Bundaberg, average up to 117t/ha thanks largely to rotations with peanuts for the past 25 years.
“If we didn’t rotate with peanut plantings our yields would be down around 70t/ha,” he said.
“I think Bega’s plan can only be a positive thing for this area.
“Although, to keep people interested in growing more peanuts, it’s not rocket science – they’ll have to give growers some longer term price incentive.”
Related reading: Peanut butter turf war
Last week he reminded Bega chief executive officer, Paul van Heerwaarden, and PCA bosses touring the district how payments to the area’s 40-plus peanut growers had barely averaged above $1000/t for 10 years.
Other choices, too
“With peanuts averaging 5t/ha, the price alone doesn’t make them all that inviting, especially when horticultural crops can be an alternative rotation option returning $2500/ha (before water costs),” he said.
Another looming threat to peanut production was the expanding area of Macadamia trees going into cane country.
The Loeskow’s Relmay Farms business already includes 100ha of Macadamias set to increase by another 100ha when more grafted rootstock is available in 2020.
“There’s quite an attraction to peanuts in the short term, especially with sugar returns barely making cane worth the effort, but if sugar prices don’t lift more country will go to Macadamias and other horticulture options,” Mr Loeskow said.
“It’s great to see Bega talking to growers and keen to work together – I’m very happy with their interest in us.
“But Bega/ PCA definitely needs to show peanut prices are lifting if they want to keep growers from moving into something else.
“At current cane prices there’s little incentive for family farming businesses to keep growing for the mills – not many will survive.”
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
