The Iran war causes pistachio prices to rise to the highest level in 8 years
Global pistachio prices rose to their highest level in eight years, as the war in Iran disrupted global supply chains transporting fuel and biofertilizers.
Iran is the world’s second-largest producer of pistachios, which are an essential ingredient in Ice cream, chocolate and drinks, while the recent military conflict led to a shortage of supplies in the thirsty market, at a time when consumer demand is witnessing a noticeable increase.
And Pistachio consumption has increased globally since the spread of chocolate bars stuffed with pistachio “pistachio chocolate” on the TikTok and Instagram platforms in late 2023, which greatly enhanced demand in Europe, the Middle East and Asia, and prices rose by about 30% within two years from the end of 2023." target="_blank">FoodEither raising prices, adjusting recipes, or switching to using cheaper nuts.
Iran contributes about a fifth of global pistachio production and a third of its exports, according to the US Department of Agriculture, while the United States contributes about 40% of production and half of shipments. As pressure on supplies increased and trade was halted due to the war in Iran, pistachio prices reached $4.57 per pound in March, their highest level since May 2018.
While it is too early to assess whether the military attacks have damaged Iranian pistachio orchards, which are mainly located in the northeast of the country, logistics and shipping routes to trade centers in the United Arab Emirates and Turkey have been disrupted.
He said. Giana Ranjan Das, Head of Nuts and Legumes Division, Plc "CROWN POINT LIMITED"It is an American company specialized in supplying pistachios to food factories: "The war led to shipping companies canceling all new bookings as of March 2 for shipments destined for the Middle East"
He added that the conflict has also disrupted supply chains, including pistachio shipments to India, which imports about $9 billion worth of the edible nuts annually.
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