W36: Hazelnut Update

In W36 in the hazelnut landscape, influenced by factors such as the COVID-19 pandemic and the Russia-Ukraine war, the global hazelnut market was valued at USD 452.3 million in 2022. It is forecasted to grow to USD 720.9 million by 2028, with a compound annual growth rate (CAGR) of 8.1% during the forecast period from 2022 to 2028.

The global hazelnut market faces uncertainties due to lower-than-expected production in Turkey. Farmers are dissatisfied with prices, quantity, and quality. Quality concerns, coupled with lower yields, are leading to expectations of rising raw material prices. Harvesting in higher altitudes has also commenced, with feedback on those regions expected soon. Market participants are monitoring the hazelnut market leader's purchase bid, forecasted to be around USD 2.97 per kilogram (TKY 80/kg). The Turkish Grain Board (TMO) has already received significant interest, but not in the Giresun region, where free market prices are close to the TMO's bid. The bid will provide insight into how the market leaders view the overall market situation.

Furthermore, in the 2022/2023 hazelnut export season, Turkey exported 299.46 thousand tons of hazelnuts, generating a foreign exchange inflow of USD 1.798 billion, a 12% decrease in hazelnut exports compared to the previous season, with a 9% decrease in foreign exchange earnings. The European countries, which are the traditional export markets, accounted for the largest share of hazelnut exports to 122 countries.

Trabzon, a province in Turkey, alone contributed 34% of the total hazelnut export amount, with 101.85 thousand tons of hazelnuts exported and USD 615.6 million in foreign currency inflow. Although there was an 11% decrease in the amount of hazelnuts exported from Trabzon during the season, the export value increased by 1%. Italy, Germany, Poland, France, and Brazil were the leading countries where Trabzon exported hazelnuts.

The decrease in hazelnut exports was attributed to global inflationary pressures, particularly in European markets, resulting in reduced demand. Additionally, buyer behaviors, such as turning to lower-priced substitute products and reduced stocking, affected prices and export quantities. In addition, stakeholders emphasized the importance of controlling hazelnut prices to maintain stability, with producers encouraged to adopt a gradual selling approach and focus on quality production through support policies and mechanization in suitable hazelnut-producing areas to boost both quality and exports.

Lastly, Chile's Office of Agrarian Studies and Policies (Odepa) reported the country's fruit exports from Jan-23 to Jul-23 amounted 2.26 million tons of fruit worth USD 5.41 million (FOB), a 6.9% decrease in volume but a 7.3% increase in value compared to the previous year. Fresh fruit accounted for 76.4% of the value of processed fruit (juices, oils, preserves, etc.) for 16.3%, and dried fruits (hazelnuts, almonds, walnuts, etc.) accounted for 7.3%. Nuts experienced growth, with walnuts in shells and shelled hazelnuts being noteworthy products in value and destinations like India, Turkey, Italy, Germany, and Canada.