Chinese Walnuts Strengthen Their Position in the Global Market

According to German media outlet Mundus Agri, Chinese walnuts are gaining popularity amid declining exports from Chile. Suppliers in Yunnan province report that their stocks are nearly sold out, while demand for Xinjiang walnuts — especially favored by European buyers — continues to outpace supply.

Chilean Export Slowdown

Chile, the world’s third-largest walnut producer and second-largest exporter, is experiencing a significant decline in exports. Despite a more optimistic harvest outlook for the 2024/25 season, the Chilenut industry association notes that international buyers are increasingly turning to Chinese suppliers.

Key figures (2024/25 season):

• Kernel exports dropped by 14% year-over-year.
• In-shell walnut exports fell by 29%.
• In February 2025:
  • Kernel shipments fell by 60% (327 metric tons).
  • In-shell shipments decreased by 71% (135 metric tons).
• Kernel exports to the Middle East, Africa, Asia, and Oceania dropped by 48–58%.
• In-shell exports to Asia and Oceania fell by 29%, and by 50% to China.

Despite a projected production recovery in Chile to 168,200 metric tons (a 25% increase over last year), the market remains cautious. Meanwhile, the United States — the world’s second-largest walnut producer — is facing a 27% production drop, further tightening global supply.

Stable Production in China

China maintains a strong position with a steady walnut harvest of 1.55 million metric tons — an all-time high. As prices remain high in Chile and the U.S., Chinese walnuts are becoming increasingly attractive to global buyers, particularly in Europe.

Key advantages:

• Xinjiang walnuts are similar to U.S. varieties and are in high demand across the EU.
• Yunnan walnut stocks are nearly depleted.
• Xinjiang walnut prices remained stable in March.

Recommendations for buyers

As the harvest season draws to a close, it is important to pay attention to product specifications. Variations in kernel yield and shell color require increased quality control to avoid potential trade disputes.

This article was written based on the article Produce Report. Read the original article