U.S. hazelnut production grows despite global pressures and market shifts

In 2023, the U.S. hazelnut industry saw production surge by over 21% compared to the previous year, fueled by steady growth in bearing acreage and yields.

According to USDA’s latest data, increased acreage -— up 12% from 2022 — combined with a 9% bump in yields to drive overall production growth, underscoring the industry’s resilience amid rising global demand and shifting market conditions.

The USDA’s 2023 report, released in September, showed that the U.S. boosted hazelnut export volumes by 48% from the previous year for shelled products. This increase in export demand comes at a time when leading hazelnut-producing countries, including Turkey, Azerbaijan, Georgia and Chile, experienced a dip in exports — declines ranged from 3% to 23% across the board.

Turkey’s 3% export drop, equivalent to 6,000 tons, represented a shift, as Turkey accounts for over 70% of global production. Concurrently, Turkey’s government-supported purchase price for hazelnuts has been a contributing factor in raising global prices, which has made U.S. exports more attractive in international markets, according to the report.

In addition to export growth, domestic prices for U.S. hazelnuts increased by approximately 4%, reaching an average of $1,350 per ton in 2023, up from $1,300 in 2022. This uptick indicates rising demand and aligns with global price trends.

However, USDA reported that inflation-adjusted hazelnut prices have declined over the past decade, partly due to expanding supply chains and changes in international trade dynamics.

Despite the rise in shelled hazelnut exports, in-shell exports from the U.S. have fallen by roughly 35% since the 2020-21 marketing year, moving from 24,000 tons down to 15,700 tons in 2023-24.

The report noted the shift appears to have been influenced by evolving demand patterns as foreign markets increasingly seek shelled products, which are more versatile and require less processing upon arrival. Shelled hazelnut exports have quadrupled since 2020-21, reaching 16,200 tons in 2023/24.

Overall, the report has indicated the U.S. hazelnut industry remains strong, supported by expanding acreage, improved yields and a robust export market, particularly for shelled products.