Fri, October 10, 2008
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Iranian fears over nuts

2008-10-10 09:00:45 GMT2008-10-10 17:00:45 (Beijing Time) Reuters

Believe it or not, this is Iran's second export commodity after oil - the pistachio nut.

It's big business in the Islamic Republic - earning more than a billion U.S. dollars last year.

But not this year - unusually cold weather during the flowering season, coupled with a long-running drought, has crippled the pistachio harvest:

(SOUNDBITE) (English) PISTACHIO FARMER, REZA IRANI SAYING:

"In Kerman in particular there is a shortage of water, and the water levels are basically going down, and unfortunately for the last I would say 9 to 10 years, there has been very little rain."

Although the nut price has started to rise, a strong local currency has also hampered exports, and this farmer thinks it will be just as bad next year - raising fears that the United States might overtake Iran as the number one pistachio exporter:

(SOUNDBITE) (English) PISTACHIO NUT FARMER, BEHROUZ AGAH SAYING:

" For a time Europeans wanted to switch over to the American pistachio but for the past three years , you know the American, the amount of American pistachio that has been sent to Europe has been less and less although the price has dropped , you know Europeans are not just, you know they prefer the taste of Iranian pistachio."

Luckily for Iran, the high price of oil has brought bumper revenues in that sector.

But the country's increasing dependence on oil could leave it in trouble if the price goes back down - and nuts alone, however delicious, won't be enough to meet the country's needs.

Benet Allen, Reuters

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