Dried Fruit

Raisins: traders contradict INC estimates

July 8, 2020 10:32 AM, Der AUDITOR
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TEHRAN. Raisins account for a considerable share in Iran’s agricultural exports. Despite all the setbacks witnessed this year, market players are confident that overseas shipments will rise. The market is, however, confronted with quality issues and traders oppose the official production estimates of the International Nut and Dried Fruit Council.

Market estimates range higher in Iran

As recently issued statistics form the Ministry of Agriculture indicate Iran’s cultivates grapes on more 308,000 hectares and thereby has a 4.2% share of the global area under cultivation (7.4m ha). Annual grape production ranges at 3 million metric tonnes and the dominant grape varieties are white and black seedless, which account for 80-90% of production.

The INC estimates that this year’s global raisin production will exceed 1.3 million metric tonnes. Although market players in Iran agree with the INC that the country ranks third in terms of production after Turkey (300,000 mt) and the US (220,000 mt), they disagree with the INC that production will only rise by 6.7% to 160,000 metric tonnes. Market estimates within Iran rather range at 200,000 metric tonnes and exports are expected to rise to 150,000 metric tonnes in 2020/2021. At USD 164 million Iran’s raisin exports accounted for a large share in agricultural exports last year. Their optimism notwithstanding, however, traders also admit that the conditions in Iran are far from ideal. Yields are low and there are quality issues. Problem are that the traditional old-fashioned methods of cultivation, which predominate in Iran, curb efficiency and promote a low performance, high waste and high costs.

Low prices for the new crop

Exchange rate fluctuations have pushed prices down over the last two weeks. Sultanas and sundried raisins are trading EUR 0.09-0.10 per lower. The prices for green raisins are trading relatively firm. Golden sultanas, however, are the noted exception as good export demand has driven prices up by EUR 0.06 per kg. Cheap offers are currently being issued for new crop with type 9 sultanas trading at EUR 1.30 per kg DDP Germany.

 

Raisins, premium grade, Iran

Type

EUR/kg*

Sundried

1.47

Sultanas

1.31

Golden

2.06

Green

2.04

FOB Iran


*Please note that the prices indicated her apply to an order volume of 1 metric tonne. Prices may range lower for higher volumes.

 

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