Hazelnuts: exporters exasperated over new cut
Mundus Agri: Demand for hazelnuts is still depressingly low in Turkey, but the SIAL has surprised some suppliers. Although inflation soared above 80% in September, the central bank has once again cut interest rates.
A faint glimmer of hope
The SIAL in Paris has been a pleasant surprise for some suppliers. Although the trade fair confirmed that demand is far from recovery, some European buyers are certainly showing interest. Most are, however, highly skeptical about purchasing and prefer to wait.
Exports are also slow to pick up this season. Turkey has exported 39,725 mt of hazelnuts worth USD 218 billion so far, which is 23% down in terms of volume on the 51,606 mt exported in the same period last year. Last week, the country shipped 7,824 mt worth USD 44 million overseas. Demand has, in other words, slumped, although average export prices for the season range 20% lower than last year . Suppliers reckon that demand will peak in the first quarter of 2023 rather than in the fourth quarter of 2022, as the energy crisis will stifle demand in Europe in winter.
The high number of male flower,
The third quarter is also when the first estimates on the new crop start to circulate. Growers state that the shrubs are doing well and that the number of male flowers exceeds expectations. Developments, however, depend on pollination, which takes place in December and January. Traders, in addition, report that Ferrero is not very active at the moment, whereas the TMO is purchasing at full speed.
Although the market situation has remained unchanged, the central bank’s decision to bring the critical one-week purchase rate down from 12% to 10.5% on Thursday will undoubtedly impact the Turkish lira. The move, however, comes as no surprise as the decision is in line with President Recep Tayyip Erdoğan’s unorthodox economic policy of bringing down interest rates, despite inflation exceeding 80%. Turkey’s hyperinflation will render the situation even more difficult for exporters.