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Oilseed & nut

Groundnut: what can it become?

Groundnuts can be dried, shelled, graded and turned into roasted nuts, peanut butter, oil and cake, provided aflatoxin is controlled.

  1. Raw groundnut
  2. Processing
  3. Value-added products
  4. Packaging
  5. Markets
  6. Customers

Groundnut value depends first on safety: if pods or kernels are harvested damaged, dried slowly or stored damp, moulds can produce aflatoxin and the crop loses its value or becomes unsafe. Careful drying, sorting out damaged and shrivelled nuts, and dry, ventilated storage protect quality. Once nuts are clean and sound, they can be roasted, ground into butter or pressed for oil, and the leftover cake is a further product.

What can groundnut become?

Shelled and graded groundnuts

Clean, sorted kernels ready for sale or further processing.

Processing
Dry the pods well, shell them by hand or with a machine, then sort out damaged, discoloured, shrivelled and foreign material before bagging.
Equipment
  • Drying platform or racks
  • Hand or mechanical sheller
  • Winnowing tray or fan
  • Sorting table
  • Weighing scale and sacks
Packaging
Clean, breathable sacks such as gunny bags; if plastic bags are used, they need holes for air or must be sealed in a dry state. Never package nuts that are still damp.
Storage
Cool, dry, well-roofed and clean store, with sacks raised on planks or pallets, not on the ground.
Customer types
  • Roasters and peanut butter makers
  • Oil pressers
  • Market traders
  • Food and confectionery makers
Distribution
Sold to processors and market traders directly or through collection points and wholesalers.
Possible business models
  • Buy, shell, grade and resell
  • Shelling service for farmers
  • Farmer group selling graded lots together

Roasted nuts

Roasted, often salted groundnuts eaten as a snack.

Processing
Start with sound, sorted kernels. Roast with heat, often with salt, until colour and flavour develop, then cool and remove skins by brushing or winnowing if required.
Equipment
  • Roasting pan or rotating roaster
  • Heat source
  • Cooling tray
  • Winnower or sieve for skins
  • Sealing equipment
Packaging
Clean, dry, sealed bags or jars with clear labels; protect from moisture and air so nuts stay crisp.
Storage
Cool, dry place in closed containers; avoid damp, which can allow mould to grow.
Customer types
  • Street and market consumers
  • Shops and kiosks
  • Schools
  • Bars and event caterers
Distribution
Sold through street vendors, shops and kiosks, or in small packs through retailers.
Possible business models
  • Small roasting enterprise
  • Supply packs to vendors and shops
  • Buy, roast and resell

Peanut butter

Ground roasted groundnuts, spread on bread or used in cooking.

Processing
Roast clean, sorted nuts, remove skins, cool, then grind in a mill. Salt may be added, and stabilisers or antioxidants are sometimes used to slow oil separation and rancidity.
Equipment
  • Roaster
  • Winnower or skin-removing equipment
  • Adjustable plate mill or grinder
  • Mixing container
  • Jar filling and sealing tools
Packaging
Clean glass or food-safe plastic jars with tight lids and clear labels.
Storage
Cool, dry place away from heat and light, because the oil can turn rancid; keep jars sealed.
Customer types
  • Households
  • Supermarkets and shops
  • Bakeries and restaurants
  • Schools and nutrition programmes
Distribution
Sold through shops and supermarkets, markets and direct sales.
Possible business models
  • Own small butter-making unit
  • Contract grinding for others
  • Supply to local shops and caterers

Groundnut oil

Cooking oil pressed from groundnut kernels.

Processing
Shell and clean the kernels, then press them in a manual or powered screw press; one option is to let the oil rest and strain it before bottling.
Equipment
  • Sheller
  • Cleaning and winnowing equipment
  • Manual or powered screw press (expeller)
  • Strainers or filters
  • Containers for oil
Packaging
Clean, dry, food-safe bottles or containers with tight lids and clear labels.
Storage
Cool, dark place in sealed containers. Kernels for pressing must be dry and sound because aflatoxin risk starts in the nuts.
Customer types
  • Households
  • Food vendors and restaurants
  • Shops and market traders
  • Soap and cosmetics makers
Distribution
Sold in bottles or containers directly to households and vendors, through shops, or to bulk buyers.
Possible business models
  • Own pressing unit
  • Contract pressing for farmers
  • Buy kernels, press and sell oil and cake

Groundnut cake

Solid residue left after oil pressing, used mainly as animal feed and sometimes as food.

Processing
Collect the cake from the press and sell it as animal feed material, or for other uses where suitable. Only cake from sound, aflatoxin-controlled kernels should be used.
Equipment
  • Screw press (cake outlet)
  • Drying tray
  • Sacks and weighing scale
Packaging
Clean, breathable sacks kept dry and clearly labelled.
Storage
Dry, ventilated place off the floor and away from pests. Keep dry because cake can mould. Do not use or sell cake from toxin-contaminated nuts.
Customer types
  • Livestock and poultry farmers
  • Feed mixers
  • Fish farmers
  • Food processors (where suitable)
Distribution
Sold from the press site to farmers and feed mixers, or through feed shops.
Possible business models
  • By-product income for an oil press
  • Collect from several presses and resell
  • Sell to feed mixers or livestock keepers

The customers, routes to market, business models and many practical tips on this page are suggestions, not findings. Know something better? Suggest an improvement →

Business opportunities around groundnut

Sources and further reading

The handling, processing and storage information on this page draws on the sources below. The lists of customers, distribution routes and business models are practical suggestions, not findings from these sources. Links open in a new tab.

Examples describe possibilities, not guaranteed results. Prices, demand and rules vary by country and season — verify locally.