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questions for uncle peanut business

Questions for Uncle's Peanut Processing Plant in Central Java

Production & Quality

  • What varieties does he process (Kelinci, Gajah, Tapir, Java Round)?
  • What's his current processing capacity in tons per month?
  • What quality grades does he produce (export quality <7% moisture, premium local, standard)?
  • What's his aflatoxin testing capability and current levels (Indonesia SNI requires <15 μg/kg)?
  • Does he have color sorting or gravity separation equipment?

Competition & Market Position

  • How is Chinese competition affecting prices (China exports at $1,400-1,560/ton)?
  • What's his cost per ton vs competitors?
  • Is he losing market share to imports from India ($1,476/ton) or Nigeria ($1,100-1,350/ton)?
  • What differentiates his products from cheaper imports?

Current Sales & Distribution

  • What percentage goes to domestic vs export markets?
  • Who are his main buyers (food processors, restaurants, retailers)?
  • What are his current selling prices per grade?
  • Does he supply PT Dua Kelinci or other major processors in Pati?

Export Readiness

  • Does he have APEDA certification or other export licenses?
  • Can he meet international standards (EU requires 2 μg/kg AFB1, US requires 20 ppb)?
  • What's his storage capacity and climate control capabilities?
  • Can he provide consistent supply volumes for export contracts?

Value-Added Opportunities

  • Does he produce peanut oil (45-48% oil content in Java peanuts)?
  • Can he process into specialty products (peanut butter, roasted snacks)?
  • Does he utilize shells for biochar or animal feed?
  • Can he develop high-oleic varieties (growing market demand)?

Financial & Operational

  • What are his operating margins?
  • How much working capital does he need for expansion?
  • What's preventing him from scaling up production?
  • Would he consider joint ventures or foreign investment?

Singapore Market Advantages

  • Can you leverage Singapore's position as regional trading hub?
  • What documentation/certifications would Singapore buyers require?
  • Can you help with trade finance through Singapore banks?
  • Would re-export through Singapore add value (like Netherlands does for EU)?

Key Context from Research

  • Central Java production: 91,234 tons (2017), down from 179,067 tons (2006)
  • Java peanuts are Spanish-type with 45-48% oil content
  • Chinese competition has 2.7x higher yields through technology
  • Global market worth $81-92 billion, growing to $100 billion by 2030
  • Indonesia imports 299,850 tons annually to meet domestic demand
  • High-oleic varieties command premium prices but only 5.4% of global production