Hazelnuts: exports fail to revive

November 14, 2022 at 11:30 AM , Der AUDITOR
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ORDU. Although domestic demand for hazelnuts has finally revived in Turkey, the situation in the export market is still quite devastating. Trouble is that buyers in Europe have tightened their purse strings prior to Christmas as high costs and inflation are forcing businesses and consumers to curb spending.

Inflation curbs exports

Alarm bells are ringing over inflation throughout the EU and the Harmonised Index of Consumer Prices issued by the European Central Bank (ECB) to monitor consumer price inflation shows sharp increases. While overall consumer prices ranged 9.9% higher in the euro area in September as compared with last year, consumer prices for food and beverages have surged by 13.8%. This is not only prompting governments to act in providing active financial support but also highlights the dynamics Europe’s hazelnut industry is confronted with. Issue is not only that high energy costs have rendered processing much more expensive, but retailers also report that consumers have switched to cheaper alternatives, which renders it extremely difficult to assess demand in advance. Businesses are, therefore, not buying the usual volumes required before Christmas and the sharp decline in Turkey’s hazelnut exports vividly illustrates this.

Turkey, in fact, only shipped 63,912 mt of hazelnuts worth USD 356 million overseas between 01 September and 06 November. Exports thereby still lag 20% down on the 79,225 mt shipped overseas in the same period last year. In terms of value exports even range 31% lower than the USD 518 million generated last year. With Christmas, however, approaching suppliers shipped all required volumes by 15 December as traders reckon. With New Year is also not far off domestic demand has revived. This coupled with the TMO’s aggressive buying has prompted prices within Turkey to rise to TRY 92.00/kg for natural kernels size 13-15 mm and 14-16 mm.

Exports not in line with domestic prices

Export prices have, however remained unaffected by this as the euro has gained in value against the Turkish lira and the US dollar in recent days. Some suppliers in Turkey have even reduced their prices for prompt shipments to Europe. Issue is that sufficient supplies are available this season. The revised production estimates from Italy due to drought have also failed to stir panic. While the International Nut and Dried Fruit Council (INC) anticipated production in Italy to range at 100,000 mt in October, recent figures suggest that production will rather range at 80,000-87,000 mt here. This is, however, still 60%-74% up on last year’s production of 50,000 mt.

Hazelnuts, Turkey, 2022 crop

Size

EUR/kg

USD/kg

Natural, 11-13 mm

5.50

5.69

Organic, natural, 11-13 mm

5.85

6.05

Natural, 13-15 mm

5.20

5.38

Organic, 13-15 mm

5.85

6.05

Diced, 2-4 mm

6.10

6.31

Organic, diced, 2-4 mm

7.10

7.35

Meal, 0-2 mm

5.55

5.74

Paste, premium

5.30

5.48

DAP Central Europe

 

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