Market report - 5 September 2005

The new harvest has brought a slight drop of prices in Iran and we expect the present prices have already reached their bottom. It is highly possible that the pistachio prices will not be falling down by the end of the year any more.

The pursuit of decreasing the alphatoxine level caused a little earlier pistachio harvest in Iran. It was mainly the farmers exporting pistachios to EU and the Green Corridor programme members who started the harvest earlier. For these reasons we are expecting the new pistachios to reach European market a bit earlier than in previous years. Nevertheless, the European prices remain at the same level.

The California pistachio prices have risen in the several last weeks. The main reason for the change is expected lower yield and increasing demand for pistachios. The prices might become friendlier with the new harvest arrival to the market.

At this point it is worth to say that some American companies have already realized that mixing the naturally opened pistachios with force opened ones is suitable mainly for the new EU members as the prices become more attractive. We had the opportunity to see that the final result of such combination is very good.

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