Hazelnut Market Update December 2021 Week 48

It has been forecasted that the hazelnut market will grow at a CAGR of 8.3% due to new awareness about the significant health benefits of its consumption.

Demand for Hazelnuts

Over the years, the demand for hazelnuts has increased significantly. The National Agricultural Statistics Service reported that 71,000 tonnes of hazelnuts worth $132 million were harvested last year in 2020.

Turkey is the world's largest producer of hazelnuts, accounting for over 70% of the total global production.

Last year alone, Turkey exported 106.8 thousand tonnes of hazelnuts for US$ 732.8 million. Compared to the same period of the 2019/20 season, when exports were 168.0 thousand tonnes and approximately US $ 1.1 billion, volume and value plummeted by 36.4 percent and 32.7 percent, respectively.

Turkey’s Market for Hazelnuts

Unfortunately, we don't have any good news to report this week. The events of the money market have led to a crisis in Turkey. Sudden exchange rate fluctuations have caused massive inflation, leaving the hazelnut market in complete uncertainty.

In the previous week, 13 to 15mm hazelnut kernels were being sold at 53 TL; even after the currency fluctuation, sellers agreed for 55 TL in the domestic market yesterday; however, since prices have changed today to 60 TL, it is extremely difficult to imagine if anyone will purchase hazelnuts right now.

Everyone can see that the market is risky right now. Many factories that want to protect their businesses have stopped giving prices for the export and domestic markets and have chosen to withdraw instead.

On the other hand, there are factories that don't want to withdraw and have to make a way above the current prices. Given the market conditions right now, it is best for buyers to suspend their demand unless it is urgent and wait for supply in a more reliable time in the future.