Fri. Jun 24th, 2022
peanut butter

Peanut Butter production business is perfect for major groundnut producing countries. Top producers of groundnut are China, United States of America, Nigeria, India, Burma, Sudan and Senegal.

Peanut butter production is achieved through shelling, dry-roasting of skin to remove nut then grinding. The food paste is made from cleaning of peanut, grading, blanching roasting and crushing.

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Uses of peanut butter

The peanut butter consistency determines the type from creamy peanut butter, crunchy or chocolate peanut butter. It is used in sandwiches, bakery products, and candy products.

Other uses are for confectionery products like cookies, candy bars, cakes and chocolates. Snack products are dry-roasted peanuts, boiled peanuts or salted peanuts.

  • Sandwiches
  • Bakery products
  • Candy products
  • Peanut soup
  • Cookies
  • Candy bars
  • Cakes
  • Chocolates
  • Dry-roasted peanuts
  • Boiled peanuts
  • Salted peanuts
Peanut Butter Production Business

Types of peanut butter products

There are three types of products based on the manufacturing process. Peanut butter products are chunchy peanut butter, chocolate peanut nutter and creamy peanut butter.

  • Chunchy peanut butter
  • Chocolate peanut butter
  • Creamy peanut butter


Byproducts of peanut butter manufacturer is used in livestock farming. Byproducts are immature nuts, peanut pops, stems perfect for livestock feed.

  1. Immature nuts
  2. Peanut pops
  3. Stems
  4. Livestock feed

Raw materials

A few raw ingredients are added to the preparation of peanut butter. Primary raw material is groundnut or peanut, corn syrup. Others are antioxidants, lecithin, hydrogenated fat dextrose and salt.


  • Groundnut/peanut
  • Corn syrup/honey
  • Antioxidants
  • Lecithin
  • Hydrogenated fat
  • Dextrose
  • Salt

Peanut butter production project

Project at a glance includes land or site development, buildings and transportation, plant machineries, office equipment. Expenses are technical fees, franchise, pre-operative expenditure, contingencies, working capital.

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There are many indigenously fabricated machinery for peanut butter production. Machinery are harvesting machinery, shelling, processing, and cooling. Others are dry roasting, blancher, grinder and packaging equipment.

  • Harvesting machinery
  • Shelling
  • Processing
  • Cooling
  • Dry roasting
  • Blancher
  • Grinder
  • Packaging equipment


Funding includes share premium, reserves, and surplus or cash subsidies. Others are internal cash accruals, long/short term loans, borrowing from friends or family. Debentures, bonds unsecured loans and deposits.

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Fixed assets

Invest in knowledge acquisition in the manufacturing process. Fixed assets are provision of contingencies, pre-operative and preliminary expenses. Other fixed assets are fixtures and furniture.


Overhead requirements per month or per annum depends on a few factors. They include utility bills like power, fuel and water expenses. Others are sales, distribution, royalties, and other charges.


Hire qualified machine operators, accountant, store manager, factory manager receptionist, and driver.


 Raw ingredients in peanut butter is dry-roasted peanuts and salt. Others include corn syrup, honey, dextrose, yeast, ascorbic acid. Nutritional value in peanut butter is moisture, carbohydrate, protein and fat.

Raw materials in peanut butterPercentage
Dry-roasted peanuts95%
Hydrogenated vegetable oil0.125%
Honey/corn syrup2 – 4%
Nutritional valuePercentage

Manufacturing process of peanut butter

Manufacturing process of peanut butter starts from planting, harvesting through manual or mechanical means. It is delivered to warehouse then sorted and cleaned. Empty shells, dust particles, vines, stones, leaves are removed.

Next stage is de-shelling which consists of removal of peanut hull. Same sized peanuts are then passed through serial rollers where they are cracked goes through blowers, destoner. Thumbing or blowing is deployed to remove foreign objects and remainder nuts are graded. Grading involves size, color, broken, defective or broken skin nuts.

Manufacturing process

Peanut is first dry roasted in revolving oven at 800 degrees Fahrenheit, then heated to 320 degrees Fahrenheit for 1 hour. The continuous method ensure uniformity in roasting or cooling method. Another method deployed by manufacturers is the batch method.

After heating in oven/heat applied they go through cooling and blanching. Nuts skin is removed while heat blanching then water blanching then dried for 6 hours 120 degrees Fahrenheit air blast.

Finally the peanuts goes through grinding, salt added into chunky or fine smooth texture. Other ingredients fed through the system is hydrogenated oil stabilizer and containerized with seal cap.

It is then packaged in jars capped labeled and stored. Throughout the entire process it is important to maintain quality control measures.


The product is very desirable and popular worldwide. Sell the product in supermarkets, malls, grocery stores, food vendors, restaurants, hotels. Brand the product include logo, manufacturing date, best before, expiring date. To compete favorably apply appropriate pricing and good marketing strategy.

how to make peanut butter

By Femi

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