The war in the Middle East is having a significant impact on the exports of certain specialty crops from California, especially nuts. Pistachios, walnuts, and almonds are some of the state's key agricultural export commodities and increasingly make their way over to the Middle East. "The main markets for our pistachio nuts are the EU, Southeast Asia, and the Middle East," says Joe Wodyka, VP of Sales and Marketing at Nichols Farms.
The Middle East makes up a significant piece of the company's business with the UAE and Saudi Arabia being the main buyers in the region. Access to these key markets has been disrupted and currently, pistachios can't be shipped to the region. There is a lot of uncertainty around cargo that was already on the water at the time the war started. "Products are on board of vessels at this time, and we don't have a perspective on when and where they will land," commented Wodyka. In case vessels are rerouted, shippers will have to find new buyers for their products.
© Nichols Farms
Shipping companies are working on restoring access to the region. "We are working closely with global carriers and our customers to find solutions to keep cargo moving," said Michael Aldwell, EVP Sea Logistics at Kuehne+Nagel Group. "These solutions include finding alternative gateways such as corridors with truck into the Persian Gulf markets, such as cross border trucking between Sohar or Salalah Port, Oman. Together with customers and local authorities, we are prioritising moving perishable cargo and healthcare into the Middle East."
Even if port access is restored, exporters will be faced with significantly higher costs. Shipping companies have increased rates to cover increased fuel prices and heightened risks.
"All in all, caution and uncertainty best the describe the situation for California pistachio growers," concluded Wodyka.
For more information:
Joe Wodyka
Nichols Farms
Tel: +1 559-584-6811
[email protected]
www.nicholsfarms.com
