The International Nut and Dried Fruit Council (INC) has recently published production estimates for the 2020/21 season, pegging Turkey’s hazelnut production at 620,000 tonnes, a decline of 22% (170,000 tonnes) compared to the previous year.
Prior to the INC publishing their forecast, the Statistical Office of Turkey projected the hazelnut output at 600,000 tonnes, while some unofficial estimates put the size of this year’s crop in Turkey as low as 550,000 tonnes, owing to unfavourable weather conditions.
The production in the neighboring Georgia is forecast by the INC and the Georgian Hazelnut Growers Association at 50,000 tonnes, an increase of 32% y-o-y. The hazelnut sector in Georgia has been undergoing rapid development and the association is targeting an output of 120,000 tonnes within the next four years.
Meanwhile, Turkey exported 294,300 tonnes of hazelnuts between 1st September 2019 and 31st May 2020, up 27% y-o-y, indicating solid demand for its hazelnuts amid higher production last year.
The Mintec price of Turkish hazelnuts cfr UK has declined by 3% m-o-m, but is up 4% y-o-y, at USD 7.80 per kg as of mid- June. In lira terms, the price has increased by 22% y-o-y. The combination of solid export demand and lower production is expected to provide the market with bullish sentiment heading into the second half of 2020.
