Baklava business loses taste as pistachio shortage grows

Things could get worse unless the problem is cleared up, Turkish Baklava and Dessert Producers Association (BAKTAD) Chairman Mehmet Yıldırım says. According to Yıldırım, some “profiteers” are trying to engage in price gouging by purchasing huge amounts of pistachios from the market, and this places a heavy burden on producers who currently cannot find pistachios to buy. “The reasonable price for pistachios is TL 30 per kilo. It was TL 23 at the beginning of the season. However, the latest actions have increased the price to more than TL 55.”

Stating that they receive complaints from baklava producers, he noted: “Most companies say they are suffering from a drop in sales following the increase in prices. Creating a domino effect, this eventually led some companies to lay off workers.” The BAKTAD head said other producers even talk about closing down as they fail to pay rents and debts. Noting that the current problem poses a threat to the future of business, he said the situation will have repercussions on the market unless it is solved before this year’s Ramadan, the Muslim month of fasting, when baklava sales increase.

It will be hard for companies to land on their feet after this, ” Yıldırım stressed, recalling that producers, under normal circumstances, do not keep inventory.

A baklava dealer in İstanbul’s Yenibosna district said they had to increase prices by 10 percent following the ongoing pistachio crisis. “We had to reflect the increase in pistachio prices on the price of baklava. Now we are experiencing a decline in sales,” he complained. Another dealer sitting in front of his pastry shop in Ümraniye says he increased prices by TL 3 per kilo of baklava. We have been feeling the impact of this increase in pistachio prices for a few weeks. I don’t want to have to increase prices again,” he said.

“No, there is no change,” answers another baklava dealer when asked if prices were higher. If I were to reflect the pistachio price hike in my baklava, then I would be selling it for more than TL 40 per kilo, not TL 29, he added. “There are no pistachios in the market, and we are feeling the strain; nevertheless, we did not increase prices.” As he wraps another package, the dealer added that “every customer is asking if there is a hike in baklava prices nowadays. How can you expect me to increase prices?”

The BAKTAD chairman asserted that some traders have engaged in similar attempts in the past; however, this is the first time that the baklava business has experienced such a big problem. “This year’s weak harvest resulted in some traders gaining an unfair advantage from the situation. There was already a pistachio shortage in the market. Some traders purchased more pistachios than they had in past years, expecting to generate an increase in prices and then gain an unfair advantage from the situation.” Yıldırım stated that they were receiving complaints from members as to why the government has remained silent about dealers hoarding pistachios. “I have recently relayed the businesses’ concerns to the minister of agriculture, and he promised that the problem would be addressed shortly.”

“We believe the government should take responsibility and intervene in the situation. Some people are spreading rumors that, for instance, there would be an outright sale of 20 tons of pistachios to one trader. Even such whispering could cause speculation in the market.” Yıldırım said these traders announced that they would not sell pistachios to the market until it reaches TL 70 per kilo.

“We have the option to start importing pistachios from Iran and Afghanistan. The quality of their product is close to pistachios produced in Gaziantep [which is referred to as ‘Antep fıstığı’ in Turkish]. We could use product from these countries,” Yıldırım said, adding that this would be a last resort.

Underlining that some traders “play with certain products,” he said: “Today it’s pistachios; tomorrow some other food product. We have experienced similar problems in the past.” According to Yıldırım, there are some loopholes in laws regulating the market, and the government should watch the markets closely to head off any such attempt on any other product in the future.

Price speculation hampers baklava exports, too