W21: Hazelnut Update

In W21 in the hazelnut landscape, the State Statistics Committee of Azerbaijan reported that 7.30K tons of peeled hazelnuts were exported in Q1 2023, an increase of 7.8% compared to the same period in 2022. However, the revenue decreased by 6.2% amounting to USD 37.23M. The main exporters were Russia, Germany, and Italy. During January-March 2023, Azerbaijan exported 3.49K tons of hazelnuts to Russia, with export revenues reaching USD 16.69M. On the other hand, in Chile, European hazelnuts, cherries, lemons, and avocados have high demand among investors and private clients. The agricultural sector in Region VII is identified as a prime area for the development of hazelnuts and cherry trees, benefiting from favorable water availability and potential for bank financing. The Biobío and Ñuble regions show significant growth in hazelnut production. Hazelnut cultivation offers advantages such as mechanization and adaptability to different soil types. The prices of land for fruit cultivation have maintained a surplus value, while the demand for water rights, and underground resources ensuring irrigation security, has notably increased. Chilean exported nuts reached sales of 23.26K tons with a revenue of USD 98.58M (FOB) from January to April 2023, an increase of 204% in volume and 136% in value. The main product exported was shelled hazelnuts, which registered sales of 5.9K tons and USD 44M (FOB), representing 45% of the total shipments of nuts. The main destinations were Italy (64%), Poland (17%), and Canada (14%). Lastly, the price of hazelnut kernels in China has increased significantly from USD 7.79/kg (RMB 55/kg) to USD 9.63/kg (RMB 68/kg) since the end of 2022 due to increased sourcing costs from Turkey. In W21, the selling price remains stable at USD 9.21/kg (RMB 65/kg), but demand is low as expected, and end users are not willing to build stock at this price. Some experts in the industry predict that prices will decrease in the coming months.