More Records Await Chilean Hazelnuts After Successful 2022/23 MY

Chile’s hazelnut industry has gone from strength to strength, emulating the success of the walnut industry. Over the last decade, production increased nearly tenfold to 54,000 mt (in-shell) in 2022. 2023 is set to be another record year in terms of production and exports as more young hazelnut trees come into production.

New Plantings and Production

Chilean hazelnut production has seen a significant increase in recent years, with the area under cultivation expanding from 5,722 hectares in 2020 to 36,393 hectares in 2022. The majority of hazelnuts are grown in the Central and South-Central regions of Chile, with Maule being the main production hub.

Hazelnut farmers in Chile are adopting an expansion cycle of three years, where they wait for the trees to come into commercial production before expanding the cultivation areas. In 2022 alone, a whopping 11,937 hectares were added to the existing hazelnut cultivation areas, representing a 49% increase from the previous year. This expansion is forecast to continue, with the area under hazelnuts expected to reach 45,000 hectares by 2025 and possibly 60,000 hectares by 2030.

There is a correlation in production to new areas planted, with a delay of 1-2 years. Some hazelnut trees can bear small quantities of nuts as soon as the first year after being planted, this largely depends on the variety of hazelnut, grafting techniques, and the size of the saplings at planting. However, it takes hazelnut trees between 3-4 years to become commercially viable and up to 7 years to bear mature yields.

According to the Chilean Hazelnut Committee, the 2022/23 production year could yield up to 65,000 metric tons of in-shell hazelnuts, which will be harvested and sold in the 2023/24 season. With domestic consumption estimated at around 2,000 metric tons annually, up to 25,000 metric tons will be available for export.

Source: ODEPA, INC, Chilean Hazelnut Committee

Exports and Target Markets

Chile had a successful marketing campaign in the 2022/23 MY, exporting the total available amount of hazelnuts at 20,517 mt on a kernel basis, leaving almost no ending stocks as the 2023 harvest began. This success contrasts with other hazelnut-producing countries, which are struggling with large inventories. While Italy remains the primary destination for Chilean hazelnuts, Chile is increasingly gaining market share in Latin America, displacing Turkey. Brazil s a lucrative market for Chilean exporters. In 2022, Brazil imported 6,194 mt of hazelnut kernels, of which 78% came from Turkey and 20% from Chile. However, there is growing competition from the US, whose hazelnut production is rapidly expanding. In the 2023/24 campaign, Chile plans to continue targeting the Latin American market, especially Brazil, to increase its market share at Turkey's expense. Chile's counter-season production also allows it to supply hazelnuts when the Northern Hemisphere is out of season.

Source: ITC Trade Map