The Turkish Ministry of Agriculture and Forestry has announced its hazelnut production forecast for 2022/23, pegging the size of the crop at 765,287 tonnes, an increase of 12% year-on-year (y-o-y). This follows orchard surveys conducted in the key growing regions of Turkey in the last week of June and the first week of July. Production in the Ordu province, the top hazelnut-producing province in Turkey, is forecast at approximately 240,600 tonnes, according to authorities in Ordu.
High altitude areas around Ordu experienced sub-zero conditions in the third week of March, with temperatures dropping to as low as minus 8 degrees Celsius. Following the frost event, authorities in Turkey announced that there would likely be significant damages to output in these areas. However, the crop production forecast released in July confirms that the overall impact of the March frost was minimal.
The Mintec Benchmark Prices for Turkish hazelnuts (11/13mm, Levant quality, FOB Turkey) have been flat recently, with the benchmark unchanged week-on-week and month-on month on 21st July at USD 560/100 kg. Prices have fallen by over 10% year-on-year, with the majority of the decline attributed to the weakening lira.
The Turkish lira was down 7.2% in the four weeks to 25th July, sustaining a slow decline towards 18 against the dollar (17.83 on 25th July). The lira continues to be pressured by the Turkish Central Bank’s easing monetary policy, while it is also being weighed down by the dollar’s strength.