The US-Israeli war against Iran has triggered a record increase in pistachio prices in the past six years, disrupting logistics chains in the Middle East. Due to fighting and damage to infrastructure, exports of nuts from Iran, which supply up to 30% of the world market, have become unstable. This is reported by the Financial Times.
The situation is complicated by the fact that demand for pistachios has increased rapidly due to the viral popularity of Dubai chocolate and pistachio cream products.
The conflict has exacerbated pre-existing problems, including the effects of a drought in Iran and sanctions restrictions. In March, prices for nuts reached USD 4.57 per 500 grams, the highest since 2018. Shipping companies are being forced to change routes, significantly delaying supplies to key hubs in the UAE and Turkey, through which Iranian products usually reach global consumers.
"The war has exacerbated existing restrictions, rather than creating new ones from scratch," said Expana analyst Nick Moss.
Traders say finding a full-fledged substitute for the Iranian nut is difficult because of its unique taste and high oil content, which is important for the confectionery industry. While buyers are trying to switch to US suppliers, US stocks are already almost exhausted.
"We are trying to replace Iranian pistachios with products from other countries, but there is a problem with the oil content, which significantly affects the taste," explained Borna Foods Director Behnam Heydaripour. The market is currently in a state of high uncertainty, and prices may continue to rise if the conflict drags on and access to Iranian products remains limited.
As Ukrainian News Agency earlier reported, last year it was reported that global demand for Dubai chocolate caused a shortage of pistachios and a jump in prices.
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