"Pistachio Hits 8-Year High Due to War... 'Ice Cream Flavor May Weaken'"

Iran is the World's Second Largest Pistachio Producer
Supply Disruptions Drive Prices Up 30% in Two Years

As the war in Iran shakes the global energy supply chain, the price of pistachios—a widely used nut in the confectionery industry—has soared to its highest level in eight years. Iran is the world’s second-largest pistachio producer, accounting for one-third of global exports.

Chocolate ice cream and pistachio ice cream. Pixabay

On April 12 (local time), Bloomberg News, citing data from the European market analysis firm Expona Market, reported that pistachio prices reached $4.57 per pound (about 6,800 won) last month. This marks a 6.3% increase from the end of last year ($4.30) and is the highest level since May 2018. Pistachio prices have risen by about 30% over the past two years.

Pistachios are consumed not only in their raw form but are also widely used as ingredients in ice cream, chocolate products, and beverages. Notably, they are a key ingredient in Dubai chocolate and 'Dubai Chewy Cookies' (Dujjonku), both of which have become very popular in Korea.

Nick Moss, a nut analyst at Expona Market, explained in an interview with Bloomberg, "Iran’s pistachio trade was already constrained due to poor crop yields and the aftermath of crackdowns on protests this January, making export coordination difficult and tightening supply. The current war has further worsened the situation, causing a sharp drop in the volume available for the global market." He added, "The Middle East is both a major production area and a logistics hub for pistachios, so turmoil in this region inevitably leads to sensitive price reactions."

Pistachio. Pixabay

Logistics disruptions are also negatively affecting supply and demand. Ghana Ranjan Das, Head of Business at Crown Point, a U.S. specialty nut supplier, stated, "Due to the war, shipping companies have completely canceled new bookings to the Middle East since the 2nd of last month," and added, "This has also disrupted the supply chain to India, which imports about $9 billion worth of nuts annually."

Expona reports that shipping routes to key logistics hubs such as the United Arab Emirates (UAE) and Türkiye have been blocked. However, it has not been confirmed whether pistachio farms concentrated in northeastern Iran have suffered direct damage.

If this supply shortage continues, food companies are likely to raise the prices of pistachio-containing products, reduce their pistachio content, or use cheaper alternatives. Das noted, "It is common in the industry to substitute nuts due to pricing issues, but it will not be easy to replace pistachios, which are a key ingredient, with something else," and added, "This summer, it may become difficult to find pistachio-flavored ice cream, or the flavor may become much weaker."

This content was produced with the assistance of AI translation services.