JAKARTA - The price of pistachios has soared to an eight-year high. This surge occurred amid the war in Iran which put pressure on supplies, while global demand is actually rising.
A report by The Straits Times on Monday, April 13, citing Bloomberg data, said that pistachio prices reached US$4.57 per pound in March - the highest since May 2018.
Iran is the world's second largest producer of pistachios. The nuts are widely used, from snacks to ice cream ingredients, chocolate, and drinks. When supplies from the country are disrupted, the impact is immediately felt on the global market.
The disruption actually occurred before the war. Expana Markets analyst Nick Moss said Iran's pistachio trade has long been depressed by sanctions and geopolitical tensions. The 2025 harvest is also smaller than expected. In addition, communication disruptions in January had hampered export coordination.
The war that broke out in late February exacerbated the situation. Supplies are getting thinner. Distribution to the global market is also hampered.
On the other hand, demand has actually increased. The "Dubai" chocolate trend containing pistachios that has gone viral on social media since the end of 2023 has boosted consumption in Europe, the Middle East, and Asia.
A number of major manufacturers are expanding the use of pistachios. Haagen-Dazs and Tache added them to ice cream and plant-based milk products, while Starbucks popularized pistachio-flavored coffee. In the past two years, the price of pistachios in the United States has increased by about 30 percent.
Still according to The Straits Times report citing Bloomberg, US Department of Agriculture data shows Iran accounts for about 20 percent of world production and a third of global exports. Meanwhile, the United States controls about 40 percent of production and almost half of global supplies.
Disruption also occurred on the shipping line. Gyana Ranjan Das of Crown Point said shipping companies stopped new orders for shipments to the Middle East since March 2. The impact is widespread, including to India which imports beans of around US$9 billion per year.
So far, there is no certainty whether the military attack has damaged pistachio orchards in Iran, most of which are in the northeast. However, the logistics route to trading centers such as the United Arab Emirates and Turkey has reportedly been disrupted.
This condition encourages food manufacturers to adjust their strategies, ranging from raising prices to changing the composition of ingredients. However, replacing pistachios is not always easy, especially if it is the main ingredient.
"It could be that this year's summer ice cream tastes lighter, or even no pistachionya," said Das.
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