Nuts

Brazil nuts: market has growth potential

November 17, 2022 at 9:26 AM, Der AUDITOR
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SUCRE/LIMA. As awareness of healthy eating grows, experts at Chelmer Foods are positive about the future of the Brazil nut trade. Meanwhile, prices on the European spot market are declining.

Prices drop by 10-15%

The Brazil nut market has been quiet for a long time, but the experts at Chelmer Foods believe that the situation could recover in 2023. They also report that the coronavirus pandemic had a positive impact on nut consumption as buyers reordered their priorities and invested more money in healthy foods. In 2020 and 2021, retailers therefore saw an increase in purchases of nuts and nut products. However, when it comes to Brazil nuts, this led to growing concerns about a shortage of goods, especially at a time when there were repeated supply chain disruptions. Importers in North America and Europe therefore stocked up generously - today, according to Chelmer Foods, warehouses are overflowing.

While prices for most nuts have fallen noticeably in recent months, the decline for Brazil nuts has been less drastic. Here, price declines over the past year have been around 10-15%. Shelled Brazil nuts from Bolivia, medium are currently trading at EUR 6.85/kg FCA Spain.

Brazil nuts, shelled, medium

Origin

EUR/kg

Bolivia

6.85

Peru

6.85

FCA Spain

Importers are cheating

Chelmer Foods also reports that most importers are not willing to offer their goods at significantly lower prices than their purchase prices. Some of them therefore try to back out of contracts or delay necessary payments. Overall, experts expect little activity on the market in the coming months, but the longer-term outlook is better. As awareness of healthy eating grows, market players see considerable growth potential for the Brazil nut market. This is likely to be accompanied by an increased fight against rainforest deforestation.

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