EastFruit observes the current situation in Turkish and Georgian hazelnut markets.
Hazelnut prices established by Turkish Grain Board (TMO) still seem too high for Turkish stakeholders. TMO, which buys and sells hazelnuts on the Turkish market in order to support it, had aimed to sell 23,000 tons of hazelnuts but the sales are not going well.
According to Mundus-Agri, buyers are not interested in purchases with the current prices. TMO wants to sell hazelnuts above TRY68.00/kg ($2.60 on 12-07-2023), which is received as an “unhealthy” price to support exports. The news portal expands on the issue that the Turkish exporters think TRY63.00-65.00/kg ($2.41-$2.49, 12-07-2023) would have been a better price. It is also noted that these hazelnuts were bought for TRY58/kg ($2.22, 12-07-2023).
Read also: Turkey to start selling governmental stocks of hazelnuts – exporters are not exactly happy
The current standstill on the Turkish market has benefited the Georgian market to some extent. According to the official statistics by the Ministry of Finance of Georgia, in May and June 2023, Georgia exported 625 tons of hazelnut kernels for $5.45/kg (FOB). This price is 11% higher than in the same months last year. The last time EastFruit got a report on local exporters buying the hazelnut from producers, was in May, when Georgian farmers got about $5.05/kg for kernel. After that, very low amounts of hazelnut were left with the farmers, and the surveyed local buyers stopped purchases.
The situation in Turkey may have helped now, but it may make things difficult for the upcoming harvest. Stocks put negative pressure on global prices. Currency devaluation of Turkish Lira is not a good thing either. Since the beginning of June, Lira has fallen by 20%.
By our estimate, it is very likely that Georgia has now exported almost all of the stocked hazelnuts. Harvest in Georgia is reported to begin earlier than usual, at the end of July. Georgian Hazelnut Growers’ Association expects production volume to rise above 50 thousand tons (in-shell) in the new season.
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