(TBKTSG Online) - The price of nutrient-rich varieties from almonds to cashews is falling sharply due to the excess supply. The traffic blockade has caused the demand for dry nuts to plummet in the aviation, hotel, restaurant and pub industries.
Kim Peacock, president of GNS Foods Company in Arlington, Texas (USA) is stuck with a shipment of synthetic dried beans canceled by American Airlines. Photo: Star-telegram
According to data from the retail food consulting firm Mintec (UK), the impact of the Covid-19 outbreak as well as the bumper crops of almonds have reduced the price of almonds in the US market by about 40% this year, on lows not seen in the past decade. Meanwhile, from the beginning of the year until now, the prices of walnuts and cashew nuts in the US decreased by 18% and 10% respectively.
Raw cashew nut prices are falling to the lowest level in at least ten years in the midst of good harvest in Southeast Asia and Africa. Religious festivals and weddings in India canceled due to the Covid-19 epidemic also reduced demand for the dried seeds, which are commonly used in traditional curries in the country.
In Europe, demand for almonds, cashews, Brazilian nuts, and ingredients for on-the-go snacks, fell sharply as millions of employees were required to work from home.
During the early phase of the Covid-19 pandemic, the hoarding activity pushed up the demand for a number of dry beans but then quickly declined as the food service industry had to shut down to prevent the epidemic. According to Ashok Krishen, Director of the Edible Nuts Business at Olam International Agro-Commodity Trading (Singapore).
Many dry grain suppliers are stuck with warehouses filled with raw and processed seeds. "We're in a deadlock," said Kim Peacock, president of the GNS Foods dry grain business in Arlington, Texas, in the US.
American Airlines abruptly canceled an order to buy 1.35 million packages of dried synthetic nuts, including almonds, cashews, pistachios, and pecans from GNS Foods. Cancellation orders force GNS Foods to continue to store unprocessed nuts and sell processed nuts at a discount on its website and retail store. GNS Foods accepts to sell at lower than wholesale prices, excluding roasting, seasoning and packaging costs.
In addition to slowing demand due to the impact of the pandemic, US dry bean sales to China were also affected by Beijing's retaliation tariffs in its trade war with Washington.
Since the beginning of the year, sales of almonds, walnuts and pistachios from the United States to China have also decreased by 23 percent, 63 percent, and 38 percent, respectively, according to Dry Seed Broker J. Warner in Chicago (USA).
Record crops of almonds, walnuts and pistachios in the US, the world's top exporter of dried nuts, are also holding back prices. The US, which contributes 80% of the global almond production, is forecast to harvest 1.5 million tons of almonds in 2020, a record high ever, thanks to favorable weather.
According to Martin Rome, Director of Community Foods, an importer and distributor of dried beans in the UK, businesses supplying roasted salted beans have been badly hurt since UK pubs were ordered to close in March to control the disease. He said declining business conditions in the UK had a knock-on effect, causing shipments of dry beans to accumulate in warehouses from India to the Middle East.
However, traders believe that the sharp drop in the price of dried nuts will help restore global consumption.
Giles Hacking, director of dry grain brokerage company CG Hacking in London, said: "When demand for nutritious dried nuts recovers thanks to low selling prices, eventually, excess production will be consumed."
Aidan Wright, an analyst at Mintec, said: “The prices of some nuts are at an attractive level for businessmen and limited mobility residents who are looking for alternative sources of protein when they are interested. more interested in healthy eating ”.
According to Kinh Te Sai Gon, The Telegraph, the Financial Times
According to the General Department of Customs, in July 2020, the average export price of cashew nuts of Vietnam reached 5,805 USD / ton - the lowest level in many years, down 6% compared to June 2020 and down to 14.8% compared to July 2019. In the first seven months of 2020, the average export price of cashew nuts was US $ 6,489 / ton, down 13.1% over the same period in 2019.
The Import and Export Department (Ministry of Industry and Trade) said that due to the impact of the Covid-19 epidemic, the price of cashew nuts for export fell sharply, while the increasingly demanding export markets caused many cashew processing enterprises to meet. hard. China's demand for salt-roasted cashews has also slowed.
According to cafef
