Developing countries continue to dominate the nut trade, but must work to overcome the obstacles of lowered world demand and stricter European food safety standards.

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Nuts are a good source of protein and energy.  They can be consumed whole, used in confectionary or in the case of groundnuts, pressed for oil and meal.  In developing countries they can be an important source of income for small-scale farmers. This overview addresses nuts that are more intensively produced and traded by developing countries, such as groundnuts (or peanuts), cashews and Brazil nuts.

Global exports of groundnuts average around $US 1 billion annually and represent only about six percent of world-wide production which takes place mainly in China, Indonesia, India, Nigeria and the US. About 70 percent of exports (in terms of value) originate in developing countries. Leading exporters of groundnuts are China, the US and Argentina.  Groundnuts are used in the confectionary industry, processed for oil or into peanut butter, sold as a seasoned snack or used in cuisine as an ingredient in ethnic dishes and sauces.  Senegal and other African countries have traditionally been major groundnut cake and oil producers and exporters. However, demand for these items has declined since the mid 1970’s, mainly due to competition from other oilseeds and vegetable oils. A shift to production for confectionary and industrial uses is proving difficult for many African countries due primarily to fundamental constraints to improved productivity and quality faced by the industry.  Though the volume is lower, cashew exports rival groundnuts in terms of value, around $US 1 billion annually with the majority originating in India, Vietnam and Brazil.  Brazil nuts do come from Brazil, but more are exported from Bolivia, and Peru is also an important player. 

Since Europe is the largest importer of all of these nuts, it is important to note that quality and safety standards have become increasingly strict in the EU during the last decade.   Most importantly, maximum levels of aflatoxin were harmonized across the EU in 1999.  Following this harmonization and the more diligent enforcement of these standards since 2002 through the Rapid Alert System for Feed and Food (RASFF), there has been a considerable increase in the number of nut product consignments from developing countries that have been intercepted. For most nuts, however, this has directly impacted only a small proportion of trade, as major suppliers have undertaken measures to better manage the risk of aflatoxin contamination along the supply chain. Those measures include increased testing, application of good agricultural practices, and the adoption of the HACCP principles.