Iran's 'Green Gold' Locked Down: Nuts Stuck, Prices Spike

A severe internet shutdown in Iran has created a significant disruption for the global pistachio market. Companies like Borna Foods, a supplier to UK retailers, are unable to contact their Iranian suppliers, leading to unpredictable and extreme price fluctuations for the nut, often referred to as 'green gold'.

Iran, the world's second-largest pistachio producer, is experiencing this supply shock as demand rises due to viral food trends and ongoing Middle East conflict. This situation has pushed pistachio prices to an eight-year high. For businesses relying on Iranian pistachios, particularly those valued for their high oil content, sourcing alternatives from the US is problematic due to differences in oil content.

Despite the challenges, major international food manufacturers and chocolatiers, including Lindt and Magnum, are not experiencing supply strains. They mitigate risks by securing nuts from producers in the US, Turkey, and Sicily through long-term contracts. This proactive approach ensures that popular pistachio-flavored products, such as ice cream, will remain available to consumers.

In separate news, European food companies have reported varied earnings. Danone saw continued demand for its high-protein yogurts, and Nestlé experienced robust coffee sales, seemingly unaffected by the broader economic climate. However, UK retailers like Sainsbury's and Tesco have issued warnings regarding potential sales shortfalls, with industry forecasts predicting food inflation to rise by at least 9% by Christmas.