These numbers are just incredible, the increase of prices is just wild. Seems its happening, the rise of the fastest growing middle class in the world now has the opportunity to buy healthier foods and have access to better foods than they once had which means soaring prices on demand by hundreds of millions of people in China. This is only going to get worse, and its not just limited to nuts as China gets stronger and wealthier. Food inflation is already here and is going to get even worse as the worldwide population starts to eat better and live better. Last updated: July 5, 2011 3:18 pm Prices soar as China goes nuts for cashews By Emiko Terazono in London and Leslie Hook in Beijing Chinaâs buying of raw materials may be slowing, but an appetite for healthier living among the countryâs fast-growing middle class has stoked demand for nuts, sending prices of cashews and other snacks to record levels. âChinese nut consumption is growing so fast, prices have rocketed during the last 12 months,â says Giles Hacking, managing director of London based nut trader CG Hacking and chairman of the International Nut and Dried Fruit Foundation. Cashews, walnuts and pecans, for example, are at record highs, with cashew kernels trading at $4.55 a pound, up more than 60 per cent from a year ago. Walnuts in their shells have risen 43 per cent and pecan kernels are up 38 per cent. The Chinese have always enjoyed nuts as snacks but a growing awareness about their health benefits has contributed to the higher demand. Walnuts are considered to be good for the kidneys and the brain and recent news reports in China that pistachios prevent prostate cancer has triggered a rush for the nuts. Ma Wenfeng, an analyst with Beijing Orient Agribusiness, says: âAs Chinese people become richer and their living standards rise, they are consuming more diversified foods, including more nuts. Nuts are popular and have been attracting attention because they are rich in vitamin E, oils and proteins.â Chinese demand has started to affect food producers who use nuts in their products and will probably become more noticeable from the autumn, says Chuck Crain, who runs Crain Walnuts Shelling in California. In the case of walnuts, imports from California doubled from 42m pounds in 2009 to 98m last year. China, which used to be a net exporter, is now a net importer and producers have seen a near doubling in the price over the past three years. One well-known company has stopped promoting its walnut brownie mix, notes Mr Crain. With pecans, before 2007, âthe US shipped barely more than 1m pounds of pecans to China a yearâ, says Bruce Caris of Green Valley Pecan in Arizona. Then, in a year when the walnut crop was poor, the Chinese discovered pecans and account for more than 25 per cent of US exports. The rise of direct Chinese buying from growers has exacerbated price rises. But sharp price increases in one category of nuts will lead to Chinese importers and buyers switching to other types of nut, says Cheng Hung Kay of nut broker and processor CHK Trading in Hong Kong. Almonds, which are cheaper than most nuts, will probably take the place of cashews, for which prices have rocketed, he says. But on a per capita basis, Chinese consumption remains low compared with developed countries, so there is further room for growth, say nut exporters. âYou go to food festivals in China and a there are still a lot of people who donât even know what almonds are, so itâs encouraging,â says Warren Cohen, worldwide sales director of Californiaâs Blue Diamond Almonds China has become the biggest market for Californian almonds. Imports are up 30 per cent to date over last year, having risen 35 per cent the year before and 100 per cent the year before that. But prices have remained relatively stable due to strong growth in production and acreage increases.
This clearly proves the wrong of those blaming the rises in foodprices etc on speculators. Unless there are cashew or walnut ETF's I have missed ofcourse.
As I read ET, all I do is laugh my ass off. Half of you clowns post the obvious, bitch about conditions and yet you live in States that are imploading, cities that are bankrupt, local economies that are in a depression. Non of you nitwitz have picked up and moved to arena's that are far more stable, that have a better employment condition and more friendly in Taxation. Of course, I'm sure most of you have "Jobs" that you are one step away from loosing but yet you still accept the very condition you bitch about. And, as the conditions in this country continue to worsen, more idiots post the obvious. Of course, for all you liberal scum, please stay in NYC, CHICAGO, on the East Coast and the West Coast. You deserve to suffer. For all you Hard Line Republicans, you too deserve this Obamanation as you will not pull your heads outa your ass. For those of you, who love freedom, the constitution, and who believe in Capitalism, I strongly suggest moving to a state that is far more sound than most in this country. Leave your jobs, find new ones, sell your homes and pack it up. Flee as fast as you can from those areas that are imploading. However, 90% of you will act just like the frog, who sits in a pot and smiles , eating walnuts, as the tempeture is slowly turned up in order to despose of it.
As China and India emerge from 2nd class status this was bound to happen. There was an onion shortage a few months ago if I remember correctly. I have been watching the RoughRice futures on the CME for some time now and I am waiting for a few signals to happen. Thsi is a great example of an macro effect on an society wealth is created and goods are consumed. Why isn't there the same mentality here in the US. Oh yeah I forgot was all suposed to work out with the QE progam. I am still aiting to see labels on goods that read MADE IN AFRICA Akuma
Chocolate will once again be only for the wealthy royals Who needs that stuff anyway I'll eat barely bread
Noooo! Nut prices are increasing! I'll be damned if I have to pay more for my cashews! On a serious note, good point by Debaser regarding high food prices not due to speculators.
Chinese Yuan is appreciating against the USD almost everyday This makes nuts as well as crude oil which are priced in USD appear cheap in terms of Yuan. Plus the economy is growing wages are rising thus consumption is booming As long as Yuan strengthens, inflation in the US will be above normal.