The Brazil nut market has been quiet for the past couple of months, but we expect to see a market rebound in 2023.
The pandemic had a favorable impact on the consumption of nuts. Consumers shifted their priorities to spend more money on healthy food options. Between 2020 and 2021, retailers saw increased nuts and nut-related products. The concern of running out of things became more acute when awareness of disruptions in supply chains grew. This resulted in individuals choosing to purchase more significant quantities at once. Importers had the same concern. Importers continued issuing POs throughout out the better half of 2022. But then the orders stopped coming. Today warehouses in North America and Europe are overstocked.
In the last few months, most nuts have seen a dramatic decrease in prices shipped from their origin. The reduction of prices in Brazil nuts has been less pronounced. In the last 6 months, the price of conventional medium-midgets has decreased between 10% to 15%.
Most importers are not ready to offer at significantly lower prices than the levels at which they initially purchased. Sadly, importers are trying to get out of contracts, raise unfounded claims or delay supplier payment. Food manufacturers are noticing the large gap between the prices of imported nuts and nuts offered from the origin. This gap is pushing some food manufacturers to become importers.
We expect to see little activity in Brazil nuts for the next few months. Nevertheless, the long-term outlook is promising. The market is expected to be driven by rising interest in healthy lifestyles and greater well-being. In the long term, manufacturers of nut products will continue to see an expansion and a bright future for plant-based products. Furthermore, the Brazil nuts market has considerable growth potential. Awareness of Brazil nuts as the single most direct investment to fight deforestation will grow.