Nuts

Brazil nuts: global production declines significantly

November 8, 2021 at 12:04 PM, Der AUDITOR
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REUS/SUCRE. The INC expects a global production decline of 17.5% for the Brazil nut season 2021/22. Only one of the most important producing countries can keep its volume at a stable level. This is also reflected in the prices.

2021 brought some relief

After Brazil nut production in 2020 was marked by severe difficulties such as production stops and lockdowns, and there was also weaker demand due to the pandemic, which resulted in declining export prices, producers were hoping for an improvement in 2021, according to the International Nut and Dried Fruit Council (INC) - and they were not disappointed. Although the prices for the new crop were initially at their lowest level in the last ten years when they arrived on the markets, they quickly recovered. As hoped, more players took part in the market, which drove demand up and prices back to a more sustainable level.

Brazil nuts, shelled

Size, origin

EUR/kg

Large, Peru

12.10

Midget, Peru

11.85

FCA Spain

Worldwide decline in production expected

The expected decline in yields for the 2021/22 season may also contribute to higher prices. According to the INC, a decline of almost 19% is expected in Bolivia, the most important producing country, and in Brazil the production volume of inshell Brazil nuts will drop by as much as 40%. Only Peru, which ranks second among the most important producing countries, is able to keep its crop volume stable at 15,000 mt. The INC's November estimates are thus in line with those of July.

Amazonia (Brazil) nut production, inshell basis, mt

Country

2020/21

2021/22

Diff.

Bolivia

66,600

54,000

-18.9%

Peru

15,000

15,000

0.0%

Brazil

7,500

4,500

-40.0%

Total

89,100

73,500

-17.5%

INC, November 2021

Collectors hope for an early start to the season

Due to the shortage of goods, traders are now stocking up on raw goods as a precaution so that collectors can be satisfied with the prices achieved. The shelling plants have currently closed their doors to carry out maintenance work and prepare everything for the new 2022/23 season. With the current high prices, collectors are hoping for an early start to harvesting, if the weather permits. Usually, collecting starts in November, December at the latest. When the factories can start processing depends on the amount that is collected. According to the INC, this is usually not before March. After initial inspections of the forests, market players currently reckon that the 2022/23 crop could be larger again.

Germany's imports decline

Germany's imports of shelled Brazil nuts fell by almost 6% year-on-year in the 2021/22 season. The decline was particularly large for imports of Brazilian goods, which fell by 58.8%. The most important supplier for Germany is still Bolivia, but here too shipments declined by 5.2%. Among the three most important German suppliers, only Peru managed to increase exports to Germany by 9.7%.

Shelled Brazil nut imports, Germany, in mt

Country

2019/20

2020/21

Diff.

Bolivia

7,855

7,449

-5.2%

Peru

267

293

9.7%

Brazil

240

99

-58.8%

Others

111

136

22.5%

Total

8,473

7,977

-5.9%

Federal Statistical Office of Germany / Sep-Aug

*08012200 Fresh or dried brazil nuts, shelled

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