Bega Foods says its move to pay farmers less for their peanuts will help more shoppers choose Australian-grown, but finding them on the shelves could be harder than you think.
Domestic supply is still recovering from years of drought and as growers reconsider planting this season, there is no sign consumers will pay less at the shops.
In a statement a week after growers went public with their concerns about pricing, Bega Foods executive general manager Adam McNamara reiterated contract prices to growers had risen more than 18 per cent since 2018.
Consumers who had embraced Bega as an Australian-owned processor reacted angrily to the move, but Mr McNamara said local demand outweighed supply.
"At present, approximately two thirds of the peanuts that are consumed in Australia are imported," he said.
"Bega's vision is to grow the local industry and supply more Australian peanuts to more customers."
Mr McNamara said the reduction in contract pricing was to make Australian peanuts more competitive relative to imported peanuts.
He said that would enable "more Australian peanuts to be sold to more people" and reduce "the reliance on imported peanuts".
Neither Bega Foods nor the major retailers would confirm whether price reductions would be passed on to consumers.
Bega Foods is one of only two major suppliers of Australian-grown peanuts, the other being Crumptons in Kingaroy in Southern Queensland.
'We'd close the door'
Independent retailer Rob Patch, who runs the Peanut Van in Kingaroy and Childers, said there was a risk consumers would be turned off peanuts altogether if low-quality imports dominated supply.
"If you get someone that buys an imported peanut and it's not quite as good as what they thought, they'll think twice about buying peanuts again," he said.
"I'm worried they're not up to our standard … because the overseas ones don't get the sunlight hours, they're not quite as mature, they're not quite as good.
"We refuse to use imported peanuts — we'd close the doors before we use imported peanuts, but we can't source Australian peanuts."
Mr Patch said "horrendous" drought conditions had made growing difficult, but this year conditions had improved.
"Mother Nature has been so cruel in the last six or seven years," he said.
"With the Peanut Van, we haven't been able to source as many peanuts as we want.
"For the first time in probably five or six years we've got enough peanuts to get us through."
Prices holding industry back
While growing conditions were challenging, Mr Patch said low prices were preventing the industry from expanding.
"I talk to a lot a lot of growers, both irrigated and dry land," he said.
"They say all they've got to do is offer us another $100 a tonne and we'll grow more.
"To compete with other crops [like corn or soybeans] there has to be a bit extra paid to the farmers.
"It's the price that is holding everything back."
Mr Patch urged consumers to seek out the locally grown peanuts.
"I refuse to eat anything else but Australian peanuts because they're the best," he said.
"Once the Australian public tastes Australian peanuts compared to the imported stuff, they'll believe the same too."
Local preferred, supermarkets say
Coles and Woolworths confirmed they sold Australian-grown and imported peanuts.
A Woolworths spokesman said the range was constantly under review.
"Our range is based on customer demand and product availability and it's important to get the right mix to offer customers value and reduce food waste from unsold products," he said.
"We're constantly reviewing our range in line with supply and customer demand and are already in conversation with local suppliers growers."
A spokeswoman from Coles said the company stocked a range of Australian-grown peanuts.
"Our preference is always to source locally grown produce first," she said.
"Where this is not possible, due to weather affecting crops or limited crop availability, we source some peanuts from overseas to ensure customers can buy peanuts year-round."
An Aldi spokesperson said the business sourced all its pecans, almonds and macadamia nuts locally, with the majority of its nut products roasted, seasoned and packed by its Australian supply partners.
"Currently we have not been able to source peanuts from Australia that meet our supply requirements across our 580 stores," the spokesperson said.
"We will continue discussions with Australian growers and remain open to sustainable domestic partners in this space."
