An analysis of demand and price relationships between peanuts and cashew nuts in the United States, with emphasis on the salted nut trade

Abstract

This study concerns the competitive position of peanuts and cashews in the salted nut trade of the United States. The effect of the price support and production control program for peanuts is evaluated in regard to the demand and price relationships between salted peanuts and cashews. This research analyses demand and price relationships for salted peanuts and cashews, compiles the available information on the world cashew nut industry, which has not heretofore been readily available to the public, and summarizes relevant information about the United States nut trade in terms of supplies, consumption, and price of peanuts and tree nuts with emphasis on the salted nut trade.

The results of this research, in its present stage, do not suggest conclusively that salted peanut consumption is likely to be affected in a manner detrimental to the peanut industry, in the foreseeable future, by moderate price increases, or by competition from cashew nuts, as a result of the peanut price support and production control program. However, a substantial expansion of world cashew production has occurred in the recent past. Prospects for further expansion appear bright in view of the encouragement currently provided by India's plans for total economic growth. African production has also demonstrated capability of substantial expansion. Accordingly, a further increase in cashew imports by the United Stats might reasonably be expected.