China Production
China Production
China Production
Gang Yao
2004
Peanut Production and Utilization
in the People’s Republic of China
Gang Yao
2004
Acknowledgements
This report is based on fieldwork conducted in Laixi, Shandong province, China during
the summer of 1998. Shandong Peanut Research Institute, Laixi, offered us a great deal of
information on China peanut production and we are deeply grateful for their help. Our deepest
gratitude is given to Mr. Dong Wrbo, Ms. Xue Huiqing, and Mr. Wan Shupo and all their
colleagues of this institute. We also acknowledge the support and guidance of Dr. Robert
Rhoades and Dr. Virginia Nazarea, principal investigators of the “World Geography of the
Peanut” project based in the Department of Anthropology. Mr. Govinda Basnet in the
Department of Anthropology edited the manuscript. Fieldwork and write-up for this project was
funded by a National Science Foundation Ethnographic Research Training Grant (grant no
1021RR104131) and the Peanut Collaborative Research Support Program (grant no LAG -4048-
G-00-60-13-00) of the USAID.
World Geography of the Peanut is a project of the Peanut CRSP, University of Georgia.
This publication was made possible through support provided by the U.S. Agency for
International Development, under the term of Grant No. LAG-G-00-96-0013-00. The
opinions expressed herein are those of the authors and do not necessarily reflect the
views of the USAID, University of Georgia, the Board of Regents, and the Peanut CRSP.
i
Summary
Peanut is an important oilseed crop in Chinese agricultural system. Over the decades,
peanut has remained top ranked oilseed crop. Its cultivation history in the country can be traced
to ancient times. However, the large increase in peanut production has been recorded since
1980s. Currently, China is the largest peanut producing country in the world accounting for
about two-fifths of the world production. In terms of area it ranks second only to India
accounting for one-fifth of the total world acreage. Although peanut is grown in different parts of
the country, Shandong is the major peanut producing area accounting for about 23 percent of
area and 35 % of production of the entire nation.
The tremendous increase in peanut production was made possible by adoption of
technologies that combined development of improved varieties and improved packages of
cultivation practices. Among other improved cultivation practices, polythene mulching has
greatly contributed towards boosting peanut production. Chinese government’s policy of
encouraging individual farmers through a program called ‘Household Responsibility System’
provided incentives to the farmers leading to increased production. This report presents a brief
overview of production history and distribution, agro-ecological zones, utilization and marketing
aspects of peanut in China.
ii
Table of Contents
Acknowledgements i
Summary ii
Table of contents iii
1. Introduction 1
1.1 Peanut in China 1
1.2 History 1
1.3 Peanut production in China in an international context 2
2. Agro-ecological Zones 4
2.1 Region I: North large peanut region 4
2.2 Region II: South spring and autumn peanut region 5
2.3 Region III: Yangtze spring and summer peanut region 6
2.4 Region IV: Yungui plateau peanut region 6
2.5 Region V: Northeast early peanut region 7
2.6 Region VI: Loess peanut region 7
2.7 Region VII: Northwest inland peanut region 7
4. Production technology 15
4.1 Crop rotation 15
4.2 Cultivation 16
4.3 Polythene mulching 16
List of tables
Table 1: Sub-regions of north large peanut region 5
Table 2: Geography and climate of peanut production region 8
Table 3: Cropping systems in peanut region 8
iii
Table 4: Growth of peanut cultivation in China 9
Table 5: Major oilseed crops production in China in three decades 10
Table 6: Peanut area and production in different provinces of China in 1995 12
Table 7: Peanut products export growth in China
List of figures
Figure 1: World peanut production in 2003 2
Figure 2: World peanut cultivation area 3
Figure 3: Trend of growth in peanut production 11
List of Maps
Map1: Agro-ecological zones of peanut production 4
Map 2: Peanut production in different provinces of China 13
Map 3: Area under peanut cultivation in different provinces of China 13
Map 4: Peanut yield in different provinces of China 14
iv
1. Introduction
1. 1 Peanut in China
Peanut is an important industrial and oilseed crop in China. It is grown both for domestic
market and for exports. While peanut is grown mainly for oil production and export in high-
income provinces it is grown primarily as food crop in other provinces. Popular not only as a
source of protein and vegetable oil, peanut is also valued for the food and medicine industry.
Over 5 million ha area is under peanut cultivation in China which accounts for about 19% of the
world’s area under peanut (FAO 2003). In the year 2003 total peanut production in China has
reached to 15 million tons, that constitutes 42% of the total world production.
China has a long history of peanut cultivation. Peanut has become one of the most
important oilseed crops and its production has consistently increased since 1980s. This report on
China’s peanut food system offers a general overview of many aspects of this important crop.
As a contribution to the “Peanut in Food Systems” series of the World Geography of the Peanut
Project, this report examines the history of introduction, agroecological zones and production
trends, production practices and technologies, marketing, utilization, and production constraints.
This report also discusses the regional distribution of peanut production and constraints that limit
the peanut production.
1.2 History
Peanut, which has a long cultivation history in China, was apparently introduced into the
country in different places at different times. Early accounts record the cultivation of peanut in
China since 1368 (Shuren et al 1995). Chanshu County Magazine (1503) reports “peanut
planted in March, as not a long branched, not underground, boiled and delicious.” Another
document reports that the Virginia type (var. vulgaris) was introduced by American missionaries
in the middle of the 19th century via Shanghai to Shandong peninsula. The Virginia type then
gradually spread to several other provinces of the country.
Recent archeological works in China provide evidences of the presence of peanut seeds
during the Neolithic period sites in Zhejiang and Jiangxi (around 4000 b.p.). Based on these
evidences, some scholars argue that the peanut is indigenous to China and, therefore, not all
varieties were introduced from overseas. Other experts argue that that these evidences are not
1
conclusive enough to suggest that the peanut was domesticated in China. Unfortunately, no
written documents predating the Ming Dynasty (15th century, A.D.) mentioning peanut
cultivation in China have been discovered. The modern peanut is known to be of South
American origin, having spread around the world after Columbus’ discovery of the Americas.
Debate regarding the Chinese origin of the peanut continues.
In the Chinese language over a dozen local names are used for peanut. Some examples
are Changshengguo (long-life nut), Luohuasheng (falling flower-born nut), Didou (underground
nut), Xiangdou (fragrant nut), Wuhuaguo (flowerless nut), and Qianshuizi (thousand-year-old-
fruit).
Sudan Other
3% 21%
USA
5%
China
Nigeria 42%
7%
India
20%
2
World Peanut Area by Country
2003
Other
27%
India
Indonesia
31%
2%
Senegal
3%
Sudan
Nigeria
7% China
11%
19%
3
2. Agro-ecological Zones
Peanut is widely cultivated in China from the frigid north (50°N) to the humid south
(18°N), from east (132°E) to west (76°W). Average temperatures across the peanut producing
areas range from -5° to 25°C. The major peanut agriculture zones are: I – North Large Peanut
(Virginia Type) Region; II – South Spring and Autumn Peanut Region; III – Yangtze Spring and
Summer Peanut Region; IV – Loess Peanut Region; and VII – Northwest Inland Peanut Region.
These zones are shown on Map 1. Each agro-ecological zone is briefly described below.
4
Shandong is the largest peanut producing province. The major types of soil are arenaceous soil
eroded from granite or shale and alluvial sands in the Yellow River watershed. In this region,
the average elevation ranges from 50 to 200 msl. With the exception of a few hilly areas in
Shandong and Liadong Peninsulas, the region is largely alluvial plain. The mean daily
temperature ranges between 11 to 14 oC; the frost-free period lasts 180 to 230 days per year.
Annual rainfall is about 450 – 900 mm, most of which falls in the northeast part and occurs
during July and August.
Generally one crop per year or three crops per two years are grown in the region. Peanut
is usually intercropped with corn, bean, and sweet potato. Mostly large seeded varieties of
Virginia type are grown in this region, which are used for oil extraction and export. Depending
on elevation, soil, and cropping systems, this region can be divided into three sub-regions:
Yellow River alluvial plain, Liadong and Shandong Peninsula, and Huaibei plain. The
differences between the sub-regions are shown in Table 1.
5
almost the whole year is frost-free, and the sunlight coefficient is about 40 to 50%. Peanut can
be planted year round in the South. Generally, two crops per year are grown in this region.
However, there are also instances of growing three crops per year or five crops every two years.
Peanut is often rotated with rice and other crops. The period of rotation and selection of the
crops in rotation are decided based on soil characteristics and the availability of suitable crop
varieties. Generally, small seeded varieties, which are mostly used as food and for oil extraction,
are grown in the region.
6
However, now three crops are grown every two years, and in some areas two crops are grown
each year. Peanut is rotated with corn, tobacco, and sugar cane. Pearl peanuts, multi-nuts, and
some other small and medium size peanuts are typical in this area.
7
Table 2: Geography and climate of peanut production regions
Region Latitude Longitude Altitude Mean Frost-free Precipitation Sunlight
(msl) temp period (mm) coefficient
(oC) (days) (%)
North large 32-42 oN east of 107oE 50-200 11-14 180-230 450-900 55-60
peanut
South spring 18-26oN 107-122oE 50 20-25 310 1500-2000 40-50
and autumn
peanut
Yangtze spring 26-34oN East to 120oE 50-300 15-19 240-330 800-1800 30-45
and summer
peanut
Yungui plateau 29oN East to 500-2000 15-20 230-330 900-1400 30-40
peanut 109.5oE
Northeast early 40-50oN East to 1170E 100-200 2-7 130-160 450-700 50
peanut
Loess peanut 32-42oN 100-113oE 1000-2000 7-10 150-200 300-550 60
Northwest North to West to 100oE 1000-2500 3.5-14 170-240 50-280 60-70
inland peanut 36oN
8
3. Growth of Peanut Cultivation in China
9
1974 1,889,414 1,279 2,416,939
1975 1,939,100 1,218 2,361,470
1976 1,897,807 1,034 1,961,864
1977 1,738,413 1,182 2,055,056
1978 1,823,673 1,354 2,469,184
1979 2,126,520 1,367 2,907,881
1980 2,389,974 1,542 3,686,127
1981 2,520,853 1,550 3,907,713
1982 2,464,645 1,623 3,998,832
1983 2,244,668 1,788 4,013,196
1984 2,470,705 1,984 4,901,993
1985 3,370,935 2,003 6,752,662
1986 3,302,164 1,805 5,959,150
1987 3,086,489 2,036 6,282,700
1988 3,022,638 1,911 5,776,119
1989 2,980,270 1,821 5,426,510
1990 2,941,453 2,187 6,433,465
1991 2,919,892 2,187 6,386,816
1992 3,012,861 2,001 6,028,579
1993 3,411,035 2,491 8,496,462
1994 3,810,900 2,562 9,762,783
1995 3,848,164 2,684 10,327,225
1996 3,649,504 2,800 10,218,944
1997 3,755,300 2,592 9,732,185
1998 4,069,900 2,937 11,954,325
1999 4,294,500 2,959 12,706,157
2000 4,884,910 2,972 14,515,755
2001 5,016,421 2,885 14,471,835
2002 5,025,171 2,986 15,006,087
2003 5,125,400 2,981 15,277,455
Source : FAO
Peanut has remained an important oilseed crop in China. Importance of peanut in Chinese
oil production sector can be inferred by comparing peanut production with other oilseed crops.
Table 5 shows that in all the decades peanut ranked the first followed by rape, sunflower, and
sesame.
Table 5: Major oilseed crops production in China in three decades
Crop 1970-1979 1980-1989 1990-1995
Production % of Production % of Production % of
(K ton) oilseeds (K ton) oilseeds (K ton) oilseeds
Peanut 2225 49.7 4988 40.2 7827 42.9
Rape 1464 32.7 4917 39.6 7709 42.3
Sunflower 310 6.9 1333 10.7 1359 7.6
Sesame 274 6.1 451 3.6 519 2.8
Source: SPRI material at Oil Crops Institute Conference in 1995
10
Peanut Production Trend
China
3200
2800
2400
2000
1600
1200
800
400
0
1961 1966 1971 1976 1981 1986 1991 1996 2001
Year
Harvest Area (x 10,000 Ha) Yield (Kg/Ha) Production (x 10,000 Mt)
11
Table 6: Peanut area and production in different provinces of China in 1995
Province Area under peanut Yield (kg/ha) Total production
(x 1000 ha) (ton)
Beijing 11.17 2,883 32,200
Tianjin 7.86 2,539 19,954
Hebei 371.70 254 946,841
Shanxi 26.20 1,855 48,611
Inner Mongolia 0.30 1,987 596
Liaoning 94.49 1,723 162,764
Jilin 21.4 2,164 46,319
Heilongjiang 2.35 1,431 3,363
Shanghai 1.00 2,780 2,780
Jiangsu 148.70 3,257 484,275
Zhejiang 10.20 2,306 23,517
Anhui 181.50 2,356 427,600
Fujian 97.70 2,185 243,449
Jiangxi 130.30 2,322 302,510
Shandong 849.90 3,635 3,089,500
Henan 767.30 3,045 2,336,502
Hubei 91.90 2,969 272,809
Hunan 120.91 1,662 200,941
Guangdong 333.07 2,101 399,781
Guangxi 208.40 1,880 391,733
Hainan 45.60 1,593 72,623
Sichuan 183.40 1,629 298,695
Guizhou 33.70 1,500 50,552
Yunnan 36.30 1,193 43,307
Tibet 29
Source: Peanut Technology, SPRI 1997
Maps 2,3, and 4 show the pattern of total production, acreage, and yield in different
provinces. It is clear from these maps that Shandong and Henan provinces are the leading peanut
producing provinces in China. Different provinces have witnessed a differing trend of peanut
production. Provinces, with the long history of peanut cultivation, have added little area to
peanut cultivation. However, in some regions there is increase in the area under peanut
cultivation. Although there is a fluctuation in peanut production in a particular region from year
to year, mostly due to climatic factors, there is an overall trend of increase in peanut production.
12
Map 2: Peanut production in different provinces of China (source: Peanut Technology 1997)
Map 3: Area under peanut cultivation in different provinces (Source: Peanut Technology 1997)
13
Map 4: Peanut yield in different provinces of China
14
4. Production Technology
Research in two areas, namely on i) varietal technology, and ii) improved packages of
cultivation practices have been instrumental for tremendous increase in peanut production. The
improved production technology includes deep tillage, balanced fertilizer, close planting, and
polythene mulching etc. This section presents the production technology adopted for peanut
cultivation in China.
15
4.2 Cultivation
Different regions, characterized by different agricultural situations, adopt different
cultivation strategies. For instance, crop rotation in the North involves growing peanut with
wheat, whereas in the South peanut is rotated with rice. Intensity of land use, soil management,
pest and disease control all vary from region to region. In hilly areas, people build terraces,
follow deep plowing to minimize or prevent soil erosion and improve land quality. In sandy and
windy areas, farmers use wooded areas as windbreaks. These steps help solidify sand, protect
soil, and increase peanut production. Although intensive land use has been historically an
important aspect of Chinese agriculture, achieving optimal crop densities and the selection of
appropriate techniques has remained a problem.
16
Although polythene film of 0.004 to 0.014 mm thickness can be used, a thickness of 0.007 mm
is optimum and more economical.. The thinner (less than 0.005 mm) film does not well maintain
the soil temperature and moisture and does not stop late set pegs from penetrating the soil. A film
of light transmittance of more than 70 percent is optimum.
17
5. Utilization and Marketing
18
5.2 Peanut processing
Simple processing of peanut by farmers includes shelling and drying after harvest. The
shelled nuts fetch a better price than the un-shelled ones. Fresh nut is used for both food
processing and industrial applications. Industrial processing, such as compression, detachment,
and saturation turn peanut into different products (e.g. peanut butter, peanut oil, or composite
protein product). A range of high quality products with export potential are produced. A soy
sauce made from peanut has been developed which is indistinguishable from the soy-based
product.
Approximately half of the peanut produced is used for extracting oil. The technologies
used for extracting oil include compression, saturation, and hydrolyzation. These various
methods have both advantages and disadvantages, for example, compression can process a large
amount of peanut at a time, but significant sediment is left which cannot be used as food. Peanut
jam (also known as peanut butter America) is one of the major peanut products produced mostly
in Shandong province. Peanut candy (a kind of peanut brittle), a popular product in China, is
made by stirring cooked peanut and syrup together and then cooling the mixture. Many rural
families in China make peanut candy on holidays as a special snack.
19
increased. Over the years, use of peanut as food has declined and its use as industrial products
and for export has increased. Utilization is now directed toward higher value uses, such as
industrial processing, animal feed, and processed food products in more developed regions of the
country, rather than simple consumption. The marketing structure has changed as a result of
government withdrawal from former procurement and marketing functions. Many enterprises
and traders have been competing with government agencies which earlier enjoyed the monopoly
in procuring farm products. These new marketing channels allow multiple entries into the
market.
In the case of suburban production, where the peanuts are sold for fresh consumption,
farmers may market peanut themselves, individually, or collectively, if they have access to
transportation, such as a bicycle, tricycle, or small tractor-drawn cart. They may also sell their
products to traders who have these or more sophisticated transportation means. The retail prices
farmers charge for fresh nuts is usually about 20% less than that charged by traders, and the
wholesale cost to traders is usually about 20% less than the retail price charged by farmers.
Besides the growth in peanut export, there is also change in the proportion of the product being
exported. Earlier, peanut oil used to be the second most important export goods after raw peanut,
but now processed products are becoming the major export items.
20
6. Major Constraints for Production and Use
21
6.2 Constraints for utilization and trade
Peanut utilization in China is moving from predominantly oil production to various
processed food items. New peanut products are frequently introduced to the markets and are
being accepted by more and more consumers. Unfortunately, little attention has been paid to
research on food processing in China. Processing equipment and technologies are antiquated.
Many by-products from processing are often not properly utilized.
In recent decades, China’s peanut trade abroad has dramatically increased and the
products have changed from raw materials to processed products. However, several problems
continue to plague the management of peanut export. The government limits the amount of
peanut export by regulating the permit for peanut exports. However, because of insufficient
monitoring, the actual export quantity often surpasses the permit levels. For example, in 1994 the
export permit for peanut was 0.4 million tons, but the actual export reached 0.48 million tons. In
addition, such lax controls can allow inferior product to be exported, which may result in
returned shipments. In the period 1993-1994, one food exporter in Shandong lost 30 million
yuan RMB as a result of returning goods. Another limitation to export trade is that China’s
processed peanut products are not as competitive as the same products from other
technologically advanced countries.
22
mechanization has created new serious environmental problems drawing the attention of Chinese
agricultural policy makers.
Improved marketing: Improvement in peanut processing and marketing would help boost
the peanut production in the country.
To sum up, despite these constraints China has been consistently making progress in
peanut production.
23
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