My 88 year old father, Terry, who has taken an interest in the
machinations of the Brazil nut market all his professional life, has
never seen this situation before, so this is at least a one in 65
crop year occurrence, maybe unique, perhaps caused by mankind
On a humanitarian basis, lets spare a thought for the Brazil
industry workers who live in places like Riberalta, Bolivia and rely
completely on the money earned from working in the business. Because
there is only less than half a crop, there is increasingly little to
do and unemployment is burgeoning. This will cause extreme poverty
and social unrest if action is not taken very soon.
On a business level, prices for the tiny amounts that have become
available have moved upwards sharply to levels considered impossible
in the past. If you can find Whole Brazils, they will be in excess
of Sterling 14.5 per kilo ex store. Brokens: 12.50.
This crop disaster has been brought about by severe drought in
the rain forest. Firstly there are fewer nuts on the trees, secondly
the nuts that were there did not develop normally and thirdly the
stem on the ripe nuts did not rot and they did not fall to the
As an example: One of our favourite exporters who has five large
warehouses for raw material, usually full at this time of year,
currently has only one. He will be ceasing his operations for 2017
crop at the end of this month. He has employed many jungle
specialists to scour previously untamed areas for raw material but
they have all returned empty handed.
It is normal practice for shellers to sell half of their expected
annual production on a forward basis in order to raise funds to pay
the collectors for the raw material, however it is now apparent that
the pre sold volumes will be difficult to achieve. This means that
additional offers on an ongoing basis will be either non-existent or
The good news is that the drought has broken and 2018 crop should
be normal and very early. High prices will encourage plenty of
collection and prices will fall precipitously at some stage. When?
Impossible to say.
We do have a very small amount of stock at very high prices. If
you are interested, or if you have any questions, please contact us