W30: Hazelnut Update

In W30 in the hazelnut landscape, the hazelnut market in Türkiye is experiencing decreasing prices in USD terms due to a weakening domestic currency. Buyers and importers are mainly covered for the remainder of 2023 and showed interest in new crop purchases. As the August harvest season approaches, prices for old-crop hazelnuts have significantly decreased, leading to potential buying opportunities. However, large carry-over stocks in Türkiye and an expected large global crop in 2023 may put downward pressure on prices in the future. The hazelnut industry is closely monitoring the situation and market dynamics as the new harvest season approaches.

The hazelnut production in Georgia for the 2023 season faces challenges, but farmers are optimistic about quality and quantity improvements compared to 2022. Sales of newly harvested hazelnuts in green husks have commenced in the domestic market, but exporters are yet to purchase. August is crucial for massive harvesting. Dry weather during this period will be essential for obtaining higher-quality hazelnuts with fewer aflatoxin issues, which affected the previous season's crop due to prolonged rains during picking. The government's support program to encourage orchard spraying may have a slight positive effect on hazelnut quality, but doubts remain as many recipients used the subsidy for other agricultural products. Small-scale producers remain unmotivated due to low prices and pessimistic expectations. However, the state's anti-Brown Marmorated Stink Bug (BMSB) campaign is expected to reduce quality problems due to stink bugs. The current market offers mostly unripe hazelnuts with high moisture content, which is not suitable for large buyers. Processing companies anticipate lower prices due to Türkiye’s unsold stocks and expectations of a good harvest, coupled with the devaluation of the Turkish Lira. Georgia’s hazelnut industry representatives foresee a challenging season due to the global market crisis. They are hoping for stabilized prices and better quality, although significant improvements are not expected. Lastly, a series of fires in Nefza, Beja Governorate, Tunisia, have caused considerable damages, including hazelnut groves in Zawraa. The fires also affected large forested areas in the region. The authorities worked to contain the fires and prevent further damage to the affected localities.