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Pistachios: extensive frost damages

April 21, 2020 11:46 AM, Der AUDITOR
Pistachio orchard, Baluchestan, Iran @Iran Pistachio Association
Pistachio orchard, Baluchestan, Iran @Iran Pistachio Association
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TEHRAN/SACRAMENTO. Frost, rain and hailstorms have hit the pistachio orchards in Iran hard in mid-April. Floods have also occurred over the last few days. As first estimates show that the damage is extensive in the main producing provinces, the exact extend still needs to be assessed.

Total damage recorded in some orchards

A sudden decrease in temperature prompted a 20-90% damage in the Ahmad Aghaei and Kale Ghucci pistachio orchards in the Kerman province at the beginning of March. Floods have caused additional damage over the last few days. Frost, cold temperatures and hail are said to have caused damages 10%-100% in the pistachio orchards in Kooshab City in the Khorasan Razavi province. Heavy rains have also impeded pollination for Fandhogi pistachios in Bardeskan City in Khorasan Razavi with estimates stating that around 10% of the crop will be lost. Frost is, in addition, estimated to have damaged 40%-80% in the Bardeskan City and 20% on the Yazd province. The Ministry of Agriculture is trying to implement modern technology to limit the impact of climate change.

Prices range higher

The damages coupled with exchange rate fluctuations have driven up prices over the last two weeks. Fandoghi pistachios are trading around 4.6% higher. By contrast, the spread of the coronavirus and transportation problems have reduced export demand.

Pistachios, Iran

Type

EUR/kg

Ahmad Aghaei, 22-24

7.04

Ahmad Aghaei, 24-26

6.74

Akbari, 20-22

7.18

Akbari, 22-24

6.91

Kale Ghuchi, 22-24

6.98

Kale Ghucci, 24-26

6.77

Fandoghi, 30-32

6.17

Fandoghi, 32-34

5.97

FOB Iran


Iran’s uptick in prices has so far not impacted the EU spot market. Akbari pistachios, 22-24, are, for instance, trading at EUR 7.70 per kg FCA Valencia. US extra N1 pistachios can be had for EUR 8.97 per kg FCA Valencia. Meanwhile, US exports have slumped.

Pistachios, EU

Type

EUR/kg

Extra N1, 21-25, US, 25kg bags

8.97

Grade 1, whole kernels, Iran

14.11

Ahmad Aghaie, 28-30, Iran

6.37

Akbari, 22-24, Iran

7.70

FCA Valencia

 

Drastic decline in US exports

The US shipped das little as 13463.51 metric tonnes of pistachios overseas in March, which is down 27% on March 2019. Total US shipments range at 110,430.22 metric tonnes this season so far, which is a decline of nearly 28% on last year. Domestic shipments have, by contrast, nominally risen by 3.5% to 56,581 metric tonnes. As a total of 167,011 metric tonnes have been shipped this season so far, the Administrative Council for Pistachios estimates that the remaining marketable inventory ranges at 156,498.77 metric tonnes.

Overseas shipments have most notably declined in Africa and the Middle East and in Asia. At 17.4% the decline in shipments to the Europe is more moderate. Although China remains the leading export destination, shipments have declined by 26.7% to 30,423.52 metric tonnes. US shipments to Hong Kong have even fallen by 45.6% to 15,582.99 metric tonnes. By contrast, shipments to Germany have risen by 10% to 16,127.65 metric tonnes, meaning that the country now is the second most important export destination for the US.

US pistachio exports in mt

Destination

2018/2019*

2019/2020*

Diff.

North/Central America

6,584.53

6,755.80

2.6%

South America

644.84

615.16

-4.6%

Europe

43,936.92

36,311.05

-17.4%

Asia

80,902.70

53,066.52

-34.4%

Middle East/Africa

18,963.63

12,177.95

-36.1%

Australia/Oceania

1,674.84

1,563.74

-6.6%

Total

152,689.32

110,430.22

-27.7%

Administrative Committee for Pistachios Inventory Shipment Reports, *Sept-Mar

 

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