Chinese Walnuts in Demand as Chilean Exports Decline

According to German media outlet Mundus Agri, Chinese walnuts are becoming increasingly sought after as Chilean exports decline. Suppliers in Yunnan province report that their walnuts are nearly sold out, while the demand for Xinjiang walnuts, which are especially favored by European buyers, continues to outpace supply.

Chile, currently the world’s third-largest producer of walnuts as well as the second-largest exporter, has seen a significant drop in exports, despite a more optimistic production outlook for the 2024/25 season. Industry association Chilenut attributes this decline to several factors, which have prompted international buyers to shift their focus to China.

Key Figures From Chile’s 2024/25 Season

• Walnut kernel shipments dropped by 14% compared with last year.
• In-shell walnut exports plummeted by 29%.
• In February 2025, the final month of the season, exports saw a dramatic drop: kernel exports fell by 60%, with only 327 metric tons shipped, while in-shell exports decreased by 71% to just 135 metric tons.

With respect to kernels, particularly steep export declines were observed for the Middle East and Africa as well as Asia and Oceania, with shipments down by 48% and 58%, respectively. Meanwhile, in-shell exports to Asia and Oceania fell by 29% and those to China dropped by 50%.

Despite a projected recovery in Chile’s walnut production to 168,200 metric tons this season — a 25% increase from last year’s dismal 134,576 metric tons — the market sentiment remains cautious. The International Nut and Dried Fruit Council forecasts that global walnut prices will stay high over the coming months, especially with the United States — the world’s second-largest walnut producer — facing a 27% decline in production that will further tighten supply.

International Recognition of Chinese Walnut Quality

With prices remaining high for walnut kernels in both Chile and the United States, China is becoming increasingly attractive to international buyers, particularly those in Europe. China’s walnut production remains steady at 1.55 million metric tons, a historical high, and recognition of the quality of Chinese walnuts continues to rise.

Key factors include:

• Xinjiang walnuts are highly favored by European buyers owing to their similarity to U.S. varieties, with demand exceeding supply this season.
• Yunnan walnuts are nearly sold out.
• Prices for Xinjiang walnuts remained stable in March.

As the harvest season draws to a close, buyers are advised to pay close attention to product specifications. Because kernel yield and nut color can differ from those at the beginning of the season, greater attention to quality control is necessary to avoid trade disputes.

Image: Pixabay

This article was based on a Chinese article. Read the original article.