Hazelnut Market Update February 2022 Week 5

As mentioned in last week's market update, even though the Turkish Lira has been doing well, there is still skepticism in the market, and it is not uncalled for. 

With living costs rising, there is pressure mounting on Erdoğan, especially since the currency crisis prompted the Turkish Lira to lose 44% of its value in a matter of months. There isn't any confidence in the market or his unorthodox monetary policies.

While farmgate prices have declined slightly, the export prices are relatively firm as the Lira is stable. Traders report that price gaps are closing, and the market is more homogeneous.

Exports have Increased Significantly

Surprisingly, even with the uncertainty, Turkey's hazelnut exports have done quite well in 2021. For one, it rose by 19%. Overseas shipments reached 334,370 MT, which is about US$2.26 billion, which is an increase of 16% from the 280,924 MT valued at US$1.94 billion in 2020.

In other news, Germany remains the most important export destination for Turkey. Italy and France are in second and third place. It is worth noting that Turkey shipped 158,464 MT in the first month of the season in September 2021, which made up nearly 50% in terms of the volume of the previous season's shipments. This naturally shows an increase of 34% in terms of value on the US$729 million generated between September and December 2020.

What Does the Harvest Look Like So Far?

Weather conditions in Turkey are quite normal ahead of the 2022 crop harvest. Of course, there's been quite a lot of snow in the past few weeks, and the chill prevented hazelnuts from entering the budding stage early.

It's still snowing in areas higher than 300 meters from sea level. There have been similar reports from Italy as well. We will continue to monitor the situation and let you know as soon as we have more news.