A recent report from RaboResearch highlights several challenges impacting the global walnut market. The industry is slowing down due to challenges like drought, strict water regulations, high costs, logistics issues, competition, and weak demand, which have pushed prices down. To cope, growers are reducing acreage, especially in less competitive and water-scarce areas, and focusing on producing better-quality walnuts to balance supply and demand.
Key producers like China, the U.S., Chile, and the European Union (EU), which contribute to most of the world’s walnuts, are seeing slower growth. While China’s production will continue to outpace consumption, making it a major exporter, Chile and China will reduce exports. At the same time, expectations are for the U.S. to maintain its share of the global walnut market.
The main consumers of walnuts are China, the EU, the U.S., and Turkey, while demand is growing fast in the UAE and India. Top importers include the EU, Turkey, the UAE, Kyrgyzstan, and India. Despite the industry’s challenges, there is optimism about future profitability through efficiency and quality improvements.
Listen to the report below.
Brian German
Ag News Director / AgNet West