KOMNUT LTD SUDAN
This project is a Joint Venture between Green Valley from Egypt (established in 2003, 146 employees, 20 farmers) and Krikab Foods from Sudan.
Green Valley is the largest producer and exporter of peanuts in Egypt, producing over 10.000 tons of peanuts. Its main activity is growing peanuts for export of crude peanuts. The group has a plant and also a subsidiary for sorting and another for packing for export as well as for local companies to manufacture. Green valley has been working with farmers since 2005. They currently work with 20 farmers in Egypt.
Krikab Foods is involved in the production & sales of all types of Confectionery, jams and general food items. The customers are mainly Sudanese consumers in all regions of the Sudanese Market.
Our project is entirely new to the local market in Sudan, with no processing being currently done at the moment. However the local market is very familiar with the raw product. We are in the process of establishing a facility which will: purchase peanuts from out growers/farmers, de-shell and sort the peanuts in size, test on aflatoxins, blanch and pack for export or the local market. The level of aflatoxin* has to remain under < 4ppb in order to be able to export to EU and other countries.
The level of aflatoxins is the largest barrier that has to be overcome. The European and American markets have very strict aflatoxin regulations. To achieve the needed requirements regarding aflatoxin levels, is currently the most important hurdle to take. In Sudan, no aflatoxin testing is taking place nor being implemented by anyone. The peanuts that are (off and on exported to other countries – e.g. Green Valley – are being tested in the country that imports them (in the case of Green Valley, in Egypt). This results in a large loss of product as they have to discard the peanuts which are testing positive on aflatoxins. So, testing the peanuts in Sudan on aflatoxins before they are exported will create the possibility to start participating again in the global peanut market; this pilot project will re-vitalize and catalyse the entire peanut sector in the country. PSI from the Dutch government is supporting this project with a part grant.
Impact: 170 direct jobs + 200 farmers increase income and knowhow. Cumulative value of the produced peanuts by farmers is € 6,9 million during the pilot project.
Short history Peanut industry Sudan
Peanut farming started in the mid 1950’s in western Sudan in the Kordofan region and later on the Darfur region. It flourished in the mid-1950s up to 1980’s with the introduction of Aljazeera agriculture project, new Halfa and Rahad projects which all had peanut agriculture within them. With all these projects contributing around 2.000.000 MT of peanuts annually, the export market flourished up to 1978. This is when aflatoxins discovery was introduced to the world. This was one of the major blows to the export industry and most of the last remaining regions of demand was in Eastern Europe. However, production was still good locally with oil and local consumption using at least half of the countries production. This continued until 1984 where an unprecedented draught hit Sudan causing production to be hit severely. Ever since then no investment has been made in developing the hybrid which was the same used in the 1950s and 1960s and no advanced agriculture systems were introduced such as pivot irrigation. Many of the projects like the Aljazeera project also came to a standstill. In addition to the war that has plagued the Darfur region; all these factors contributed to the downfall of peanuts in Sudan.