skyrocketing costs of pistachios trigger calls for regulation among baklava producers in Turkey
In a surprising turn of events, the price of shelled pistachios for traditional Turkish delicacies like baklava has tripled in the past year, reaching an eye-watering TL 2,350 ($56.90) per kilogram. This steep increase, according to Mehmet Yıldırım, President of the Baklava and Dessert Producers Association (BAKTAD), is not due to natural factors such as frost or drought, but rather the result of stockpiling, black-market trading, and opportunistic price hikes by traders.
Last year, Turkey achieved a record-breaking pistachio yield, enough to meet national demand for three years. Yet, despite this abundance, at least half of the production from last year's harvest remains stored in warehouses. The monthly price increase alone has been a staggering 38%.
The rise in prices affects not just baklava producers but also all food sectors using pistachios, including Turkish delight, halva, chocolate, and ice cream producers. BAKTAD's concerns highlight the pressure this situation has put on both producers and consumers.
The Ministries of Trade and Agriculture and Forestry have taken decisive action to address the issue. One of their measures is the import permit for pistachios from the U.S., Iran, and Syria, a move Yıldırım deems 'timely and effective.' This import exemption aims to prevent traders from artificially inflating prices and stabilize the market.
Farmers, however, are not benefiting from the current high prices of shelled pistachios. They cannot store pistachios long-term, which limits their potential profits. Registering pistachio production is proposed as a solution to prevent future price manipulation. If the Ministry of Agriculture supports the product instead of just the land, all pistachio production will be recorded, allowing better planning and price control.
BAKTAD has pledged that once pistachio prices stabilize, baklava producers will pass on reductions to customers. The Turkish government's commitment to importing pistachios from the U.S., Iran, and Syria is seen as a crucial step in this direction.
Interestingly, pistachios currently cost up to $60 per kilogram in Turkey, while in Iran they are priced at a mere $17.50. This stark contrast underscores the need for immediate action to address the price crisis in Turkey.
As the situation unfolds, it is clear that the real winners in this current situation are black-market traders holding stock from last year's harvest. The Turkish government and the relevant industries are working diligently to address this issue and ensure a fair market for all stakeholders in the pistachio industry.
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