Once a leading pomegranate exporter, with 150 hectares and an annual production of 7,500 tonnes, Farmerz had to abandon this fruit and turn to a sure bet for many Iranian exporters: pistachios. Morteza Khanouki, the company's marketing and sales director, provides insights into this decision: "This change is driven by the challenges associated with exporting Iranian fresh produce, which are well-known and related to the economic and financial sanctions imposed on the country. Switching from pomegranates to pistachios offers specific structural and economic advantages."
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The sanctions imposed on Iran by the United Nations, the United States, and the European Union compel Iranian exporters to resort to complex and risky, albeit legal, logistical and financial arrangements in order to access international markets and, above all, receive their payments. The exporter adds, "Re-exporting remains the only way to access many markets. This entails extended transit times, which is not ideal for perishable goods. We sought a versatile, high-quality, and high-value product that could endure long journeys without compromising on quality, ideally one that is well-branded as authentic Iranian. Pistachios are therefore our champion."
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Three countries dominate global pistachio production, accounting for 70 to 80% of the global supply: Iran, Turkey, and the United States. According to Khanouki, Iranian pistachios hold a prominent position in the market. He argues: "Iran's specific strengths, namely its unique portfolio of varieties, high quality and taste, cost competitiveness, and geographical and climatic advantages, enable it to remain a leading supplier despite geopolitical tensions. Unique varieties such as Akbari, Ahmad Aghaei, Fandoghi, and Kalleh Ghouchi are found in Iran, with Akbari being particularly premium. Our traditional production and processing methods give Iranian pistachios exceptional quality characteristics: sun-drying allows for a higher oil content and superior flavor compared to mechanically dried nuts. Additionally, Iranian pistachios are competitively priced due to their lower production costs, offering importers higher margins. Furthermore, Iran's unique climate and minerals-rich soil in Kerman Province give pistachios a unique character that cannot be replicated elsewhere."
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According to Khanouki, these advantages make Iranian pistachios a highly sought-after product on international markets, even in the Western hemisphere, in a context of international sanctions. The cites last year as an example of commercial performance: "In 2024, Iranian pistachio sales were led by Asian markets, with a 40% year-on-year increase in exports to China, India, and the United Arab Emirates. The European Union's imports increased, with Germany leading in terms of import volumes. Russia and Kazakhstan absorbed the majority of Iran's in-shell exports, demonstrating robust seasonal demand. Chinese demand subsequently slowed down after building up stocks at the start of the season, and demand from the Middle East weakened due to market saturation. What is particularly interesting is that a third of export volumes transited through re-export hubs such as the United Arab Emirates and Turkey to reach Western markets, hence the importance of this product."
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Unlike fresh produce, for instance, pomegranates, the value of Iranian pistachios also lies in their use in re-export. "In Western markets, pistachios offer particular commercial advantages over fresh fruit and vegetables. Their extended shelf life allows for storage and versatile transport, and reduces logistical headaches. While pistachios are less sensitive to sanctions than perishable fruits, their processing into kernels adds value and increases margins. Furthermore, unlike fresh fruits, pistachios can be processed in re-export countries such as the United Arab Emirates and Turkey without compromising their quality. Iranian pistachios also benefit from a recognized international brand, which protects them from shocks," Khanouki continues.
Pistachio trade provides Iranian exporters with much-needed flexibility and room for manoeuvre, enabling them to import and market other products. In the words of Khanouki, "Pistachios can be regarded as a 'cryptocurrency' and not just an agricultural crop. Their economic and strategic importance lies in their use as a medium of exchange for goods or foreign currencies, even in the event of sanctions. Furthermore, pistachios are resilient to sanctions, as they can be kept fresh during long transit periods while seeking appropriate re-export channels. Market reach and profitability are also improved through value-added processing, better packaging, and a robust export infrastructure."
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Farmerz converted its entire pomegranate acreage to pistachios despite their historic presence in the industry and Iran's status as the second-largest producer of pomegranates. The company was also in a more favorable position compared to other growers in the country, being able to export the majority of its production, according to Khanouki. "The figures are self-explanatory and clearly demonstrate the impact of the sanctions. In 2022, Iranian pomegranate exports totaled only $8.6 million, compared to $1.7 billion for pistachio exports in 2024. It is always a difficult decision to abandon a historic crop. However, pistachio cultivation is a long-standing tradition in our family, for over 50 years in the Kerman province, the pistachio stronghold of Iran."
For more information:
Morteza Khanouki
Farmerz
Tel: +989131995808
E-mail: [email protected]
www.farmerz.ir/en/home