In W41 in the hazelnut landscape, the United States Department of Agriculture's (USDA) 2023/24 hazelnut production estimate for Turkey stands at 600 thousand tons, lower than previous projections. This drop is due to adverse dry weather during the critical nut development stage in late spring. Ferrero, a major hazelnut buyer, offered USD 2.86 per kilogram (TRY 80/kg) for the new crop, while the Turkish Grain Board set in-shell purchasing prices at higher rates, pausing further hazelnut sales until Dec-23. Consequently, Mintec Benchmark Prices for Turkish hazelnuts saw a 1% decrease in early Oct-23, following a previous market rally driven by supply concerns. The high prices have led to muted buying interest in the hazelnut market.
Furthermore, hazelnut producers in Türkiye are facing reduced production due to insufficient winter rain, excess spring rainfall, and phytosanitary issues caused by insects. The invasive brown marmorated stink bug (Halyomorpha halys) in Northern Europe has worsened the situation, affecting fruit quality and plant development. In addition to these challenges, the winter's lack of rain is depleting soil moisture reserves, causing further concerns.
Ferrero, which buys 30% of the world's hazelnuts, may experience product shortages, especially during the high-demand Christmas season. While Ferrero's supply is at risk, Chile is emerging as a key player in the hazelnut market. Chile's hazelnut production is increasing, and the country is becoming an important global producer. Despite the recent low temperatures in Chile, larger hazelnut harvests are expected in the upcoming season, although production primarily occurs between March and May, making it challenging to meet year-end holiday demand.
In addition, the brown skunk pest poses a significant threat to the Turkish hazelnut industry. It is estimated that the damage to hazelnuts may reach 25% in the Black Sea Region in 2023, affecting producers and the domestic economy. This pest can lead to fruit deformities, grain loss in corn and soybeans, and reduced hazelnut yield and quality. Urgent measures are needed to combat the brown skunk and prevent further damage to one of Turkey's essential export products. These measures include training producers, chemical and biological control methods, and public awareness campaigns.
The Chamber of Commerce of Alessandria, Italy, has announced reference prices for Piedmont hazelnuts. The price of Tonda and Gentile Trilobata hazelnuts stood at USD 8 per point (EUR 7.60/point), and Piedmont PGI hazelnuts at USD 8.21 at the return point (EUR 7.80). Hazelnut producers in the region expressed moderate satisfaction with these prices, given the challenges they faced in 2023, including drought, strong winds, and hail, which significantly reduced hazelnut yields in the province. It is forecasted that hazelnut prices will continue to rise, partially due to stable product quality and the focus on quality and territory in the Asti and Alessandria markets, which have been more rewarding than Cuneo.
Lastly, the Caucasnut Association, an organization of hazelnut growers in Western Georgia, achieved a significant milestone in 2023, with 306 members receiving a European Union-recognized organic group certificate. Operating with approximately 700 farmers who manage hazelnut plantations according to organic and fair-trade standards, this association has a production capacity of up to 1.3 thousand tons of shelled hazelnuts, including 563 tons that are organic certified for 2023.