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Abstract

The elimination of the quota program in 2002 reduced the barrier to entry into the peanut shelling industry. Peanut producers have expressed interest in integrating up to peanut shelling and marketing their own peanuts to peanut manufacturers. The peanut shelling and manufacturing sectors are concentrated, with little information available related to shelling costs and manufacturer purchasing characteristics for peanuts. A peanut buyer survey was conducted to gauge the willingness of buyers to purchase peanuts from a new player in the market and to identify what characteristics are important to buyers. The results indicate buyers are satisfied with current suppliers. However, buyers use more than one supplier and are open to new suppliers in the market.

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