Nuts

Brazil nuts: high starting prices in 2022

March 29, 2022 at 12:29 PM, Der AUDITOR
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REUS/SUCRE. The negotiations between the Brazil nut collectors' unions and the processing factories could be settled quickly this time, as both were satisfied with the starting prices. These are clearly above those of 2021.

Rains were delayed

The 2022 Brazil nut season has started and experts from the International Nut and Dried Fruit Council (INC) report that both collectors and processors are in a particular hurry this time as 2021 production ended earlier than usual. Concern had initially arisen in November because the expected rains had not taken place; however, after some delay, they had arrived and brought respite from the intense heat, allowing the collection process to proceed smoothly. The usual negotiations between the collectors' unions and the factories were short this time, as the starting price was 50% above that of 2021, with which both sides were satisfied. High demand from financially strong factories is also providing support for the high farmgate prices.

Prices on the European spot market, meanwhile, have risen slightly in recent weeks to EUR 10.20-10.60/kg FCA Spain for shelled Brazil nuts from Bolivia.

Shelled Brazil nuts, Bolivia

Size

EUR/kg

Large

10.60

Medium

10.20

FCA Spain

Global crop records decline

So far, the crop outlook looks satisfactory. Although both Bolivia and Brazil expect crop declines, Peru will be able to maintain last year's level, according to current INC estimates. Overall, the global crop is forecast to decline by 17.5% this year, reaching a level of 73,500 mt. Exporters expect exports to return to normal levels. Last year, very low starting prices led to massive price increases during the season, which may have deterred some buyers. In addition, there are still transport difficulties due to a lack of both workers and containers, which also affects work in the factories. At the beginning of the year, the important trade route from Bolivia via Chile was particularly affected because new tests for truck drivers were introduced here, which took up a lot of time.

Brazil nut production, inshell, in 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%

Gesamt

89,100

73,500

-17.5%

INC, March 2022

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