Cheap nuts from the US threaten Spanish walnut industry

Spanish walnut growers, affiliated with the Nueces de España industry association, are not pleased  that US walnuts have not been included in the list of goods subject to additional import duties of 25%. Spanish walnut growers believe that this tariff could have saved them from the unfair competition with American walnut suppliers at the EU market and in Spain.

According to Spanish sources, US suppliers have cut walnut prices by 30% since the start of the 2020/21 season. As a result, walnuts of small and medium calibres delivered to Spain from the US cost €2.25-2.30 per kg, while the minimum production costs for Spanish walnut growers reach €2.50 per kg.

The increase in the supply of cheap walnuts from the US may be the reason why walnuts’ prices in Moldova did not rise above $2 per kg, despite a decrease in production in 2020. Simultaneously, relatively affordable prices for walnuts stimulate its consumption globally, as EastFruit reported in the yearly nut market review. 

According to a United States Department of Agriculture (USDA) report, walnut sales from the United States to the EU-28 reached $3.1 billion in 2019, up from $2.8 billion in 2018. Thus, the EU is becoming an increasingly important destination for American exports of nuts.

he increase in US walnuts’ supply to the EU market was possible partly due to the protracted trade war that Washington is waging with China. Therefore, the US is paying more and more attention to the nuts’ supply to the EU, a scarce region for walnuts.

 

Photo source: Dreamstime.com

Source: Fresh Plaza

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