Feb 2, 2024Report: hazelnut market increasing
The value of hazelnuts is on the upswing, according to a report by Chelmer Foods, an England-based importer and distributor of dried fruits.
“The hazelnut market has witnessed a rising trend in the new year, with a noteworthy shift in the price on inshell hazelnuts,” according to the report. “Within span of less than a month, the price has surged from 90 lira to 112.50 lira. The domestic market continues to grapple with unease, primarily due to lower-than-expected crop yields.”
As of late January, one lira is worth $30.35.
“The discernable impact of the 49% increase in the minimum wage is evident, leading to a substantial rise in labour costs surpassing those of previous periods. Despite the current official inflation rate reaching 64.77% in Turkey, the currency exhibits relative stability. Notable exchange rate fluctuations are not anticipated until the upcoming election scheduled for 31st March.
“In tandem with these market dynamics, it is noteworthy that the central bank has implemented a policy interest rate of 2.5%, bringing it to the current level of 45%. This adjustment reflects the central bank’s response to prevailing economic conditions.
“Market dynamics remain characterized by ongoing volatility resulting in price fluctuations. Consequently, as of today, the market has returned to elevated price levels.”
According to the USDA, Turkey is the world’s largest producer and exporter of hazelnuts, representing 70% of world production and around 75% of world exports.
Production in MY 2023/24 was forecast lower year-over-year at 600,000 MT. Europe is the biggest buyer of Turkish hazelnuts, with Italy’s Ferraro Hazelnut Company, the owner of the Nutella brand, the largest single buyer of Turkish hazelnuts
Although hazelnuts are grown in more than 48 provinces around Turkey, production is primarily concentrated along Turkey’s Black Sea coast, typically within 19 miles of the coast.
“Hazelnuts require relatively little effort to cultivate and input requirements are low. However, with better maintenance, the yield efficiency of Turkish hazelnut orchards could easily be improved,” the USDA reported.
Established in 1992 by chairman Roger Weaire, Braintree, Essex, England-based Chelmer Foods sources dried fruit, nuts, seeds and pulses from more than 20 countries and supplies to industries related to cereal manufacturers, bakeries, snack food packers/processors and foodservice suppliers.
The USDA does not maintain reports on hazelnuts production, supply and distribution .
Chelmer Foods cited Ronly Gida, a hazelnut processing plant, in the report.
Read the report here.
