W24: Hazelnut Update

In W24 in the hazelnut landscape, the Turkish hazelnut market is facing challenges as there is a significant amount of unsold stock. To regulate prices, the government agency TMO has started selling the stock, but exporters are dissatisfied with the prices offered. TMO will sell hazelnuts at prices ranging from USD 2.76-2.89/kg, which exporters consider high. This has led to a paralyzed market, compounded by the recent drop in the lira and overall high nut prices. Also, unusually warm winters in the Eastern Black Sea Region of Turkey have led to an increase in diseases and harmful insects affecting hazelnut crops. The "powdery mildew" disease, exacerbated by recent rainfall, is causing concern among farmers as it affects husks and leaves. Climate change is negatively impacting hazelnut yield and quality, resulting in economic losses. Farmers are urged to implement mechanical control measures and maintain proper air circulation in orchards to mitigate the disease's spread. The powdery mildew disease is expected to reduce this year's harvest by 10% to 15%. Lastly, Georgia's hazelnut exports have significantly declined, with production dropping from a record-high 46 thousand tons in 2021 to 33 thousand tons in 2022. This decrease can be attributed to heavy rains and the return of the brown stink bug. Nearly all stock hazelnuts have already been exported, leading processors to halt purchases due to limited quantities. Hazelnut export revenues for the current season (Aug 2022 to May 2023) amount to USD 86 million, a 25% decrease compared to the previous season. Lower production and price reductions have contributed to this decline. On a positive note, rejections at EU borders have decreased from 26 in the 2021/2022 season to 8 in the current season, indicating improved post-harvest handling despite ongoing rainfall.