From Peanut By-Products to Profit: Industrial Uses of Peanut Cake, Hulls, and Oil

While peanut kernels capture attention as the primary commodity, the agroindustry recognizes significant value in peanut by-products. Peanut cake, hulls, and oil represent substantial profit opportunities for integrated operations. Understanding these secondary markets enables a sophisticated peanut exporter from India to maximize resource utilization and build comprehensive value chains. This guide explores industrial and feed applications of peanut by-products, revealing hidden value streams often overlooked by conventional exporters.

Global Peanut By-Product Markets

Peanut Oil:

• Global market: 6-7 million metric tons annually
• Price range: $800-1,200 per metric ton (food-grade); $400-700 (industrial)
• Applications: Cooking oil, cosmetics, pharmaceuticals, industrial lubricants

Peanut Cake (Meal):

• Global market: 5-6 million metric tons annually
• Price range: $250-400 per metric ton
• Applications: Animal feed (primary), fertilizer, industrial applications

Peanut Hulls (Shells):

• Global market: 2-3 million metric tons annually
• Price range: $50-150 per metric ton
• Applications: Animal bedding, biofuel, soil amendments, activated carbon

Peanut Oil: From Extraction to Application

Oil Extraction Methods:

Cold-Pressed Oil:

• Lower yield but premium quality
• Retains nutritional compounds
• Suitable for food-grade applications
• Commands $1,000-1,200/MT

Solvent-Extracted Oil:

• Higher yield (45-50% of kernel weight)
• Further processing required for food-grade
• Industrial applications more cost-effective
• Commands $400-700/MT

Food-Grade Applications:

1. Cooking and Culinary

• High smoke point (450°F/232°C) ideal for frying
• Preferred in Asian cuisine
• Premium positioning in specialty markets

2. Food Manufacturing

• Ingredient in confectionery
• Baking and snack production
• Margarine and shortening production

Industrial Applications:

1. Cosmetics and Personal Care

• Skin moisturizers and lotions
• Hair care products
• Soap manufacturing

2. Pharmaceuticals

•  Base for medicines and supplements
• Omega-6 fatty acid source
• Anti-inflammatory formulations

3. Industrial Lubricants

• Biodegradable, sustainable alternative to mineral oil
• Metalworking fluid base
• Machinery lubrication

4. Biofuel and Renewable Energy

• Biodiesel production feedstock
• Emerging market with regulatory support
• Environmental sustainability driver

A sophisticated peanut exporter from India can partner with oil extraction facilities to capture additional margin in the value chain.

Peanut Cake: High-Protein Feed Solution

Composition and Nutrition:

• Protein content: 40-50% (after oil extraction)
• Fat content: 8-12%
• Fiber: 5-10%
• Nutritional value comparable to soybean meal

Animal Feed Applications:

1. Poultry (Chickens, Layers)

• Cost-effective protein source
• Improves egg quality and production
• Digestibility superior to some alternatives

2. Cattle and Dairy

• High-protein supplement for beef cattle
• Supports milk production in dairy operations
• Palatability and digestibility advantages

3. Swine Production

• Quality protein for growing and finishing pigs
• Feed conversion efficiency
• Cost advantages vs. traditional protein sources

4. Aquaculture

• Fish farming (tilapia, catfish, shrimp)
• Sustainable protein alternative
• Improving omega-3/omega-6 ratio in farmed fish

5. Pet Food

•   Dog and cat food formulation
• Digestible protein source
• Functional ingredient benefits

Non-Feed Applications:

1. Fertilizer and Soil Amendment

• Nitrogen content (3-5%) suitable for plant nutrition
• Organic matter improves soil structure
• Sustainable agriculture market growing

2. Bioenergy

• Biomass for power generation
• Emerging market in energy-focused regions

Peanut Hulls: Diversified Industrial Value

Currently Dominant Use: Animal Bedding

Characteristics:

• Absorbent and dust-free properties
• Comfortable for livestock
• Biodegradable and sustainable
• Price stability supports consistent supply

Emerging and High-Value Applications:

1. Activated Carbon Production

• Peanut shell-based activated carbon for:
• Water filtration
• Air purification
• Industrial odor control
• Price premium: 500-1,000% over raw hull price

2. Biofuel Production

• Combustible material for biomass energy
• Regulatory support in renewable energy policies
• Co-firing with coal in power plants

3. Composting and Soil Amendment

• Organic matter addition to degraded soils
• Carbon source in compost systems
• Sustainable agriculture applications

4. Building Materials

•    Emerging market for peanut shell-based composite materials
•    Research ongoing for construction applications

5. Industrial Absorbent

• Oil spill cleanup
• Industrial facility use
• Environmental remediation

Integrated Value Chain Strategy

For a comprehensive peanut exporter from India, capturing by-product value requires:

1. Strategic Partnerships

   – Oil extraction facilities

   – Animal feed manufacturers

   – Industrial processors

2. Infrastructure Investment

   – Processing capabilities for value-addition

   – Quality control systems

   – Logistics for multiple product lines

3. Market Development

   – Identifying buyers for each by-product stream

   – Long-term contracts for volume consistency

   – Marketing to emerging applications

Conclusion

Peanut by-products represent substantial untapped profit potential for exporters willing to look beyond primary kernel sales. A peanut exporter from India that develops capabilities in oil extraction, animal feed production, and industrial applications can build diversified revenue streams and maximize agricultural resource utilization. The future belongs to integrated operations capturing value across the entire supply chain.

At Somnath Agri Impex, we’re exploring partnerships to develop comprehensive peanut by-product operations, recognizing the economic and sustainability benefits of holistic resource utilization.