The price in euros is 4.04 EUR per kg. However, at the end of the marketing season, farmers in the hazelnut industry can expect to receive a payment above the current two-level minimum of 90 cents per pound for grain varieties and 65 cents per pound for in-shell cultivars, said Ross of HGBA. Consequently, for those who now invest in hazelnut cultivation, it is important to pay attention, first of all, to the hazelnut markets of these countries, together with China, the United Arab Emirates and the existing large importers of these nuts. Hazelnuts produced for grains will reach at least 90 cents per pound in Oregon this year, or 25 cents more than the minimum price for in-shell harvesting.
In order to reduce risks, these international companies, as well as some European chocolate producers, have tried to diversify hazelnut sources over the past 10 years, which was the impetus for the rapid development of hazelnut production in Georgia, Azerbaijan, Serbia, Argentina, Chile, Australia, South Africa, Ukraine, Kazakhstan and Uzbekistan. With some major importers being driven out of business due to these issues, the logistics of exporting hazelnuts to China is unclear, said Larry George, president of George Packing Co. Consequently, in new hazel orchards, as a rule, the yield and quality of walnut kernels are higher, which means that there is an opportunity to receive more favorable prices for products. Last year, the minimum starting price for all hazelnut cultivars was 83 cents per pound, but field prices paid for grain varieties ultimately exceeded prices for in-shell varieties.
About a third of Turkish hazelnuts are purchased by the Italian Ferrero Group, which uses them mainly for the production of nut paste and chocolate with Nutella, as well as in other confectionery products. One of the many reasons hazelnuts are in high demand is Nutella, the famous chocolate spread that uses hazelnuts. Another 20% of Turkish hazelnuts are purchased by Olam Group, one of the largest processors and suppliers in the B2B sector (the presentation on the hazelnut market made by the Olam representative at the Georgia Nuts Conference can be seen here). The value of the Turkish currency has also fallen, making its hazelnuts more competitive in the world market, he said.
Such high demand can increase the price of hazelnuts, since they cover a large part of the supply of hazelnuts. It is also worth taking a closer look at the new sales markets, for example, China and the United Arab Emirates, which are actively increasing imports of hazelnut kernels, although the volumes of these imports remain negligible. The advantage of new plantations over old ones is the use of the latest intensive technologies for the cultivation of hazelnuts based on extensive experience of many years.