Nuts

Pistachios: suppliers race against time

June 29, 2020 1:15 PM, Der AUDITOR
Play report as audio

TEHRAN. Iran’s pistachio exports have witnessed a sharp recovery in May. The export performance is, nevertheless, lagging far behind this this season so far. Market players are growing increasingly concerned as suppliers race against time.

Warehouse inventories exceed 91,000 metric tonnes

Exports in May in fact reached 9,209 metric tonnes, which is a 59% rise over May 2019 (5,794 mt) and a rise of 58% over May 2018 (5,818 mt). According to official customs statistics Iran has shipped 96,946 metric tonnes of pistachios overseas between October 2019 and May 2020, an increase of a stunning 232% over the 29,220 metric tonnes shipped in the same period one year ago. However, it should be noted that 2018/2019 was an “off-year” in the biennial production cycle, meaning that the comparison to 2017/2018 is more representative.

In this respect it should be noted that this season’s exports range 18.5% lower than in the same period two years ago when exports stood at 118,856 metric tonnes. The decline is mainly attributed to the limited supply of pistachios at the beginning of the crop year, the difficulties in financial transaction resulting from the sanction and Covid-19, which has slowed down exports in recent months. Problem is that an estimated 40% production, 91,400 metric tonnes, remained in the warehouses in May. Market players are highly concerned over these inventories and hope that exports will continue to pick up to the Far East, India and the Commonwealth of Independent States. over the next few months, boosted by attractive prices and the gradual transitions of the market after being hit by the coronavirus.

Time is running short

Time is, however, running short as the INC is reckoning with a record US production of 544,000 metric tonnes in the new season and production in Turkey is also expected to surge by 333% to 325,000 metric tonnes. By contrast, production in Iran is set to decline by 17.1% to 170,000 metric tonnes as 2020/2021 is an “off-year” in terms of production. Prices are indeed more competitive in Iran than in the US at present. Buyers are profiting from the devaluation of the rial, which has prompted prices to decline by EUR 0.29-0.34 per kg FOB, depending on variety. Prices in the domestic market have, however, remained firm.

Pistachios, Iran

Type

EUR/kg*

Ahmad Aghaei, 22-24

6.46

Ahmad Aghaei, 24-26

6.22

Akbari, 20-22

6.78

Akbari, 22-24

6.53

Kale Ghuchi, 22-24

6.34

Kale Ghucci, 24-26

6.15

Fandoghi, 30-32

5.72

Fandoghi, 32-34

5.53

FOB Iran

*Please note that these prices apply to an order volume of 1 metric tonnes. Prices for larger volumes may range lower and are subject to negotiation.

View more information

View related articles

Go to the News Overview
Nuts
Aug 10, 2022
HANOI. The original plan of the Vietnamese cashew industry was to export cashews worth USD 3.8 billion in 2022. However, various difficulties mean that this export target is now to be revised downwards.
Nuts
Aug 10, 2022
KERMAN. After frost and drought, Iranian pistachio farmers are now struggling with the effects of heavy rains, which may have caused significant damage. Irrigation is also at risk as a result.
Nuts
Aug 2, 2022
ORDU. President Recep Tayyip Erdoğan’s announcement of the Turkish Grain Board’s (TMO) purchasing price for new crop hazelnuts caused a bit of confusion on Saturday. Although the state-run organisation clarified prices on Monday, traders do not think that the market will buy into them. Rumour has it that Ferrero has swiftly responded.
Nuts
Aug 1, 2022
NEW DELHI/ATLANTA. Farmers are switching to more attractive alternatives such as cotton or soy in India and in the United States. China's peanut production will only rise nominally in 2022/2023 and US suppliers are having a hard time competing with India.