Hazelnuts, market report 10.02.2023

Mundus Agri. The current issue for the hazelnut market is low demand. Despite this, prices saw a sudden increase in Turkey in December 2022, as a result of limited supply of raw nuts and strong exports, with companies such as Mondelez and Ferrero purchasing more than anticipated.

Exports in December 2022 reached 41,751 metric tons (in-shell basis) worth GBP 244 million, with a slight decrease in both volume and value compared to the previous year. However, exports in January 2023 decreased significantly to 20,387 mt worth GBP 127 million, a drop of over 30% from the previous year. The high prices,  made it challenging for suppliers to offer attractive prices.

The Turkish Hazelnut Marketing Office's decision to sell part of its stocks impacted the market situation, leading to a decrease in prices. The TMO announced the sale of 20,000 mt of in-shells from the 2021 crop and 8,000 mt from the 2022 crop.

The main concerns for exporters currently include the recent earthquake in Turkey and Syria, the prospects of the new crop, and exchange rates. The unseasonably warm winter is causing worries for the upcoming crop, while rising costs and stable exchange rates are presenting difficulties for exporters. Some are even calling for a separate exchange rate for exports to remain competitive internationally. The Turkish lira has slightly gained value against the pound sterling and the euro this week.