February 2013

APC Newslet ter

INTERNATIONAL NEWS

Peanut Exports up for 2012

PEANUT BUTTER FOR THE HUNGRY

“Roundtable Update” Scheduled for March 22

DOMESTIC NEWS AND UPDATES

Totebag Task Force Update

eTDE Update

THE PEANUT FOUNDATION

An Update from TPF

Important Industry Research Websites

GUEST COLUMNIST

Changing Peanut Markets: Sid Levy, President, SGL INTL

APC WELCOMES NEW MEMBERS

The Krema Products Company

Roka Bioscience

AgFirst Farm Credit Bank

PEANUT NUTRITION

Nutrition News You Can Use—Nuts help lower diabetes risks during pregnancy

“Roundtable Update” Scheduled for March 22

Last year, just prior to the Peanut Proud Festival in Blakely, Georgia, the folks at Peanut Proud organized a roundtable discussion to deter-mine how best to undertake hu-manitarian activities as an indus-try. It’s been almost a year since the group convened, and time for an update. Please plan to attend a “Roundtable Update” March 22, 2013 from 12:00 (noon)-3:00 p.m. at the first Methodist Church of Blakely. The meeting will start with lunch, and be followed by a few

short presentations to update the industry on the progress of our humanitarian project. The Church is located at 397 College Street, Blakely, GA 39823. The event will again be just prior to the Peanut Proud Festival, which will be held March 23, 2013. An invitation was sent to everyone who attended the roundtable last year plus a few others, but please feel free to at-tend; the update will be interesting to more than the original group and open to everyone. We want to

encourage as many people as possi-ble to participate in these initia-tives. Please RSVP however, so we can make certain there are enough chairs (and food!) for everyone. The agenda will include updates from efforts to build a more formal in-dustry initiative, updates on Peanut Proud peanut butter for food banks, and more. Hope to see you there! Send RSVP’s to sgrun-enfelder@peanutsusa.com

Year End statistics for 2012 indicate another record year for peanut exports. In spite of very few ex-ports at the beginning of the year, overall exports for peanuts and peanut products were up signifi-cantly in the last half of 2012, re-sulting in year-end increases. For the time period of January 1 to De-cember 31, total peanut exports (total kernels, in-shells, peanut but-ter and processed peanuts) were up 11.89% by volume and 29.91% by value. Total export value, at $469,588,436 is an industry record. The previous record value was re-corded in 2011 ($361,482,510). Our four largest export markets: Canada, Mexico, the European Un-ion and Japan remained the top four in 2012. Value was up for all four, and volume was larger in 2012 than in 2011 for the EU; a significant improvement. In 2011, the U.S.

shipped 58,058 tons. In 2012, the U.S. shipped 71,192 MT, an increase of 18% to the European Union. Some other notable changes in 2013 were exports to Colombia, which increased from 53 metric tons in 2011 to 614 metric tons

shipped in 2012. A group of industry representatives visited Colombia in late 2012 and expect more sales in the coming months. Also, exports to South Africa were up 83%. This increase is from a small base – but growing. Exports to China are ex-pected to increase in 2013, and some of this increased activity is reflected in the 2012 statistics.

Sales to Vietnam, which are likely transhipped into China, were up from 56 metric tons in 2011 to 981 in 2012. Sales to India were also nearly double what they were a year ago, and though these num-bers are small, indications are that world market dynamics are chang-

ing. Countries such as China, Vietnam, India, and even South Africa to some extent have been competitors for U.S. peanuts in various markets around the world. The fact that these countries are now importing U.S. peanuts indicates some significant changes in the world’s peanut supply.

Peanut exports were also up by more than 10 percent to Russia, the United Arab Emirates, Saudi Arabia, the Philippines and Singapore. In all, U.S. Peanuts and products were shipped to more than 120 coun-tries.

Peanut Exports up for 2012

PEANUT BUTTER FOR THE HUNGRY

February 2013 Page 2 APC Newslet ter

APC Calendar of Events MARCH 2013 12 - 13 Industry Spring Conference Albany, GA MARCH 2013 13 - 15 TPF/eTDE/Totebag Taskforce Meetings Atlanta, GA MAY 2013 21 - 23 INC Barcelona Barcelona, Spain JUNE 2013 11 - 13 Snackex 2013 Gothenburg, Sweden JUNE 2013 22 - 25 17th Annual USA Peanut Congress Amelia Island, FL

Join APC on Facebook!

Visit APC on Facebook to get updates, photos, and news

on our activities immediately.

Follow APC on Twitter

Follow APC for our latest peanut industry tweets.

The APC Totebag Task force will meet on March 15th. The meeting will be held at the Hotel Indigo near the Atlanta Airport (details below) from 8:00-10:00 AM. Dis-cussions will include the tests that have been conducted by the Na-tional Peanut Lab on top fabric breathability, the new ID number sequences that are being added to the bag tag and the barcode that should be placed below the ID. Since it is possible that some final decisions could be made on these changes, it is important that all task force members be present. The testing of a stickier barcode tag is still underway and the samples

will be discussed at the meeting as well. Once everyone has approved the new tags, then the plastic pouch can be eliminated from the totebags. This will also make the new tag, stuck directly on the bag, more visible and easier to use with barcode scanners. Data is being analyzed on top fabric breathability by Chris Butts at the Dawson lab in an effort to deter-mine what standard should be established for the top fabric. This change is expected to eliminate the last few mold issues. Other steps to improve moisture removal dur-ing transit will also be discussed.

Hotel Indigo 1776 Harvard Avenue College Park, GA 30337 Hotel: (404) 767-8881 Reservations: (866) 208-3280 (ref: American Peanut Council)www.hotelindigo.com

Totebag Task Force Update

The APC eTDE Taskforce will meet on March 15th at the Hotel Indigo in College Park, GA near the At-lanta Airport (details below). The meeting will be held from 10:00 am-12:00 pm. It will be followed at 1:00 pm by a WebEx training ses-sion on the new eDoc website where the Annex document can be completed electronically and up-loaded to the eTDE system. Shell-ing plant personnel responsible for completing the Annex document should either plan to dial in to the WebEx session or attend the train-ing session. We have a lot of new companies and countries joining eTDE in 2013 and this training is meant to address any questions you may have on the system. The eTDE system interface with the TRACES electronic document sys-

tem for Europe has been approved. It will be tested in April/May on dairy documents and then on the peanut Annex document. Upon completion, eTDE will become the EU requested interface for all docu-ments from USDA. Contact work has begun with Can-ada on utilizing eTDE with their eManifest system which is cur-rently receiving electronic docu-ments for entry into Canada. This electronic format will be required beginning May 2013 for carrier documents. Over the next 2 years, the Canadian Border Service Agency will be phasing in require-ments for all importer documents to be electronic. The US Customs and Border Protection agency is working to make this a require-ment from imports into the US as well. China is now receiving all meat and poultry health certificates elec-tronically through the eTDE system and the Chinese port inspection services are working with USDA to increase this to all US commodities

arriving in China. Many documents are being falsified in China and this is an effort by the Chinese govern-ment to stop this practice. US shellers exporting to Canada, Europe, or China are encouraged to get signed up on eTDE. Please con-tact Steve Calhoun (calhoste@bellsouth.net) for infor-mation on signing up. Many industry members feel that all domestic and international mar-kets will be embracing this technol-ogy over the next few years and that the industry will find ways to make the system more efficient and reduce costs as well. Work by USDA has begun on adding Mexico, Russia, Japan, and India to the active list. Hotel Indigo 1776 Harvard Avenue College Park, GA 30337 Hotel: (404) 767-8881 Reservations: (866) 208-3280 (ref: American Peanut Council) www.hotelindigo.com

eTDE Update

DOMESTIC NEWS AND UPDATES

February 2013 Page 3 APC Newslet ter

An Update from The Peanut Foundation

Have something you want to include in next month’s APC Newsletter?

Contact Cindy Stickles at cstickles@peanutsusa.com

The Peanut Foundation Board met in Washington on December 5th. The primary focus of the meeting was a review of the Peanut Ge-nomics Project. The meeting was well attended by Board members and industry representatives from all segments. The Peanut Foundation has begun its final genomic fund raising effort with letters going out November 20th to members of the manufac-turer segment of the industry and allied members on January 7th. With the previous commitments from shellers and growers totaling $4,000,000 we have 2/3rd of our $6,000,000 goal. The Board at its meeting expressed thanks to all who had already committed and encouraged the rest of the industry to join in supporting this important Peanut Genomic Initiative. Genomics research proposals for 2013 were received in December 2012 and a review panel of repre-sentatives of each of the industry segments plus 5 non-peanut ge-nomic/genetic researchers met on December 19 to rank the submitted proposals. These rankings were based on technical merit, adher-ence to the Genomic Strategic Plan (www.peanutbioscience.com),

capability of the submitting re-searcher, and institutional facilities. The Peanut Foundation Board plans met by conference call on Decem-ber 20th to assign a budget to the selected projects and make the final decisions on approved pro-jects. Selected proposals will be announced as funds are available in February. Preliminary sequencing data has been received by the Technical group of the International Peanut Genomic Consortium and discus-sions are ongoing about how to proceed to make the data more usable. The second phase of se-quencing and assembly will pro-ceed following the Technical group’s recommendations and further clarification of the current data by BGI. BGI has sequenced a tetraploid, and two diploids, as well as a segregated population devel-oped by Baozhu Guo (USDA-Tifton). This is a huge amount of data and assembling the genomes of all these plants sequenced is the next critical step in producing a usable reference peanut genome. Final dates are now set for the 7th International Peanut Genomics meeting in Zhengzhou, China. It will be held on June 17-19, 2013. Attendance is expected to be around 100 participants from over 11 countries. This meeting will be used to review the progress glob-ally on this project and to update

our progress versus the strategic plan and make necessary revisions to the plan. The Peanut Foundation will hold its research and Board meetings on Thursday, March 14th. The meeting will be held in the Hotel Indigo near the Atlanta Airport (details below). The morning will be devoted to reviewing the projects funded for 2012. Afternoon meetings will include a review of proposals sub-mitted for funding in 2013 by the Technical Review Committee and by the Peanut Foundation Board members. A meeting to discuss the next steps on sequencing and as-sembly will be held also on March 13 at 7:00 PM. Hotel Indigo 1776 Harvard Avenue College Park, GA 30337 Hotel: (404) 767-8881 Reservations: (866) 208-3280 (ref: American Peanut Council) www.hotelindigo.com The Foundation is also looking for nominees for the 2013 Peanut Research and Education Award. The Nomination form can be found here. Deadline for sub-mission will be March 4, 2013. The selected individual will receive a trip to the USA Peanut Congress in Amelia Island, Florida, and a check for $1,000. This award is co-sponsored by the Foundation and Bayer CropScience.

THE PEANUT FOUNDATION

Information on peanut genomics http://www.peanut.bioscience.com

Peanut Research Data Base http://www.apps.caes.uga.edu/peanuts/

Peanut Allergy Research http://www.allerg.qc.ca/peanutallergy.htm#proteins

Important Industry Research Websites

Join TPF on Facebook!

Visit The Peanut Founda-tionon Facebook to get

updates and news immediately.

Join PGC on Facebook!

Visit Peanut Genomics Consortium on Facebook to get updates and news

immediately.

APC Newslet ter February 2013

Page 4

APC WELCOMES NEW MEMBERS

AgFirst Farm Credit Bank is part of the nationwide Farm Credit System and the largest financial institution headquartered in South Carolina. With reported

assets of more than $28 billion, AgFirst provides funding and financial services to 19 Agricultural Credit Associations in 15 eastern states and Puerto Rico. These associations operate as Farm Credit and Ag Credit member-owned cooperatives, and provide real estate and production financing to 80,000 farmers, agribusinesses and rural homeowners.

AgFirst Farm Credit Bank

The ‘Natural Choice’ in Peanut Butter Featur-ing Krema and Crazy Richard’s Natural Pea-nut Butters

Established in Columbus, Ohio in 1898, the Krema Products Company (Krema) is the old-est peanut butter company in the country where our number one objective continues to be producing the world’s finest 100% natural peanut butter. Our recipe has remained the same for over 100 years – just the finest U.S. peanuts roasted to perfection and ground just the way we did in the old days. No added salt, sugar, hydrogenated or palm oil, no trans fats and totally gluten free. Today from our Dub-lin, Ohio headquarters, our Krema Natural Peanut Butter brand is distributed throughout the Midwest to the West Coast in over 5,000 fine grocery stores and has been in various

other media outlets such as Cooking Light Magazine and is consistently recommended by physicians as a heart healthy food. In 1991 Krema acquired the Philadelphia based Crazy Richard’s Natural Peanut Butter brand (Crazy Richard’s) and consolidated pro-duction and distribution in Ohio. Today Crazy Richard’s is sold in over 4,000 grocery stores in the Mid Atlantic and East regions. Crazy Rich-ard’s has been featured on the Today Show and in such magazines as Prevention Maga-zine and Men’s Health. The Krema Products Company remains family owned and oper-ated. R. Craig Sonksen, President and Owner, has managed the business since 1988.

For additional information, please visit our website www.kremaproducts.com or www.crazyrichards.com.

R. Craig Sonksen, President Ph: 614-889-4824 Fax: 614-889-0805 P.O. Box 715 45 N. High St. Dublin, OH 43017

The Krema Products Company

Roka Bioscience

Roka Bioscience, a leader in molecular technology develop-ment, is focused on advancing testing methods for the food safety industry. Our highly accurate, rapid molecular as-

says and instrument systems have been developed to help food manufacturers mitigate risks and protect their brands while realizing new levels of productivity and efficiency.

GUEST COLUMNIST: Sid Levy, President, SGL INTL

Changing Peanut Markets

Interesting times in the peanut business. A record crop in the USA with resulting low prices and a drought in India last year have brought the Chinese buyer to the USA peanut market for the first time. India provides large quantities of peanuts to China for crush and the last 4 months USA shellers have been selling large quantities to China to replace Indian volume. USA peanuts have traded to Far East ports for levels starting at 1200US$/MT up to 1325$. These prices represent the lowest peanut prices in the World today and vast quantities have been sold. I suspect re-cord volumes of exports will be recorded from the USA this year.

Some USA manufacturers were caught think-ing with the largest USA crop on record, prices would continue to fall through the Summer and hesitated to buy. We have now discov-ered that USA sheller capacity has become a new factor in our market as the Chinese have sucked out the volume available until Summer months and current crop availability is scarce. Prices have moved up in the USA from the mid-40-cent range fob to the high 40's/low 50's. Chinese demand for USA edible material to crush continues but nothing is currently avail-able with sheller capacity strained to the max. Additionally, new crop contracting between shellers and farmers should begin any day.

With competing crops of corn, cotton and soybeans at attractive prices on a net return basis to the farmer, many feel USA peanut plantings will be down 20-30%. The Argentine planted crop is beginning to show signs of stress due to dry weather, especially in the Southern part of the belt. Argentina had ex-pected a record crop but dry weather to-date and moisture for the balance of the season will dictate volumes and has created some uncertainty for the EU buyer. Interesting times indeed; as soon as we think we have all the answers, our peanut market always suprises us. Stay prepared.

February 2013

Page 5 APC Newslet ter

So-called gestational diabe-tes” (GDM) is a risk to some women (up to 10%) during the later stages of

pregnancy. For reasons that seem to be linked to hormonal changes during pregnancy itself, their insu-lin receptor systems start to fail and blood sugar levels get out of control. This creates risks to both mother and developing baby. The latest study funded by the US National Institutes of Health (NIH) shows the importance of the right diet before and during pregnancy in reducing the risks of developing this type of diabetes. Nuts score very highly in this. (1) After adjusting for other fac-tors, the researchers concluded that compared with higher animal protein intakes, especially red

meat, “higher intake of vegetable protein, specifically nuts, was as-sociated with a significantly lower risk.” The advice to women who may be at risk is to start substitut-ing foods like peanuts and peanut butter before pregnancy for ani-mal protein sources in their di-ets. This will give them the bene-fits of vegetable protein, unsatu-rated fats and a host of other nu-trients such as fibre and magne-sium. These are all known to im-prove insulin sensitivity and re-duce type 2 diabetes risks. The study population for this re-search was the large Nurses Health Study II cohort, from which 15,294 women completed food diaries. They had a total of 21,457 singleton pregnancies, including 870 in which a first-time diagnosis of GDM was made. As they were American health professionals, peanuts and peanut butter would be the most commonly consumed nut in their diets, so one can rea-son that the majority of the bene-ficial effect found is a “peanut

effect”. As a practical and affordable die-tary change, this is a very attrac-tive one to make both in personal and public health terms. As the researchers concluded “our find-ings suggest that among women of reproductive age, substitution of vegetable protein for animal protein, as well as substitution of some healthy protein sources (eg, nuts, legumes, poultry, and fish) for red meat may potentially lower GDM risk." They found that switching just 5% of energy from animal protein to vegetable pro-tein such as peanuts would result in a 51% lower GDM risk. That’s prevention well worth having at a very small price. 1. Bao W et al. “Pre-pregnancy dietary protein intake, major die-tary protein sources, and the risk of gestational diabetes mellitus: a prospective cohort study” Diabe-tes Care online pre-publication, 1 February 2013.

Nutrition News You Can Use - Nuts help lower diabetes risks during pregnancy Dr. Andrew Craig, APC Health Consultant, London

PEANUT NUTRITION

Calendar Year 1012EU Rapid Alerts and Border

Rejections

http://www.peanutsusa.com//PDF-Library/Newsletter-Docs/EU-Rapid-Alerts-

CY-2012.pdf

“The advice to women who may be at risk is to start substituting foods like peanuts and peanut butter before pregnancy for animal protein sources in their diets.”