Brazil nut prices slide on weaker consumer demand

March 7, 2023

1 mins read

The Mintec Benchmark Prices for Brazil nuts (mediums; FOB Chile) fell 17% in the twelve weeks to 2nd March 2023, to $2.70/lb. On an annual basis, the benchmark plummeted by just over 30%. The market continues its steady descent to more ‘normal’ levels after prices surged in Autumn 2021 to $6.50/lb, following adverse dry weather in Bolivia, the main producing country, and a subsequent delay to the harvest.

Price are being weighed down by tepid global demand amid the high inflation and consumer shift away from non-essentials to staple and more affordable foods, a trend that is evident across the whole nut and dried fruit category. However, more expensive items, such as Brazil nuts or macadamias, have been hit harder.

“Demand is weak. Buyers are hesitant to buy forward and there hasn’t been much market activity, despite the harvest being in the full swing,” a UK-based trader told Mintec in February.

“There hasn’t been rush to cover during February and March as there would normally be at this time of the year,” another trader said and continued, “processors are unsure whether to buy large volumes from collectors in case the demand is not there.”

Brazil nuts are wild harvested in the Amazon rainforest from December through March. Some market players expect this year’s output in Bolivia to contract year-on-year, owing to weak global demand.

“Processors aren't filling factories and there could be a downturn in availability this year,” a European trader said.

Jara Zicha
Jara Zicha

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