Hazelnuts: shocked by demand

Mundus Agri. Exporters returning from the Gulfood 2023 exhibition are shocked by the turn demand has taken. They have, in addition, received some unexpected support, yet there is a big “but” attached to this.

Run on nuts

This year’s Gulfood in Dubai was absolutely packed and demand certainly was the issue for hazelnuts. Although demand for nuts and dried fruit was good, suppliers from Turkey visiting the exhibition reported that nearly everyone complained. The trouble is that Turkish hazelnuts are more expensive than almonds or cashews and cannot compete with the prices offered in Azerbaijan and Georgia. Suppliers from Turkey were shocked by the general run on raw, roasted, and diced hazelnuts, whereas their customers were, if at all, interested in spreads rather than kernels.

Nothing to do with reality

Another shock is the widening gap between developments in the international and domestic markets. While export demand is lacking for Turkish hazelnuts, sellers use any excuse to raise their prices immediately. Total inshell exports for the current season, in fact, slumped by more than 20% to 174,900 mt worth USD 1.02 billion on 26 February as compared with the 218,800 mt worth USD 1.32 billion shipped overseas in the same period last year. Weekly exports ranged at 5,872 mt worth USD 37,458 as of 26 February. The crackers have, in addition, started to process the hazelnuts they purchased from the TMO.

The prices for Levant quality in shells increased last week due to an uptick in demand from Iran due to Nowruz, the Persian New Year which starts on 20 March. The slight decline in the euro against the Turkish lira also prompted some suppliers to raise their export prices a bit, whereas others demanded cheaper rates. Exporters also feel tricked by the government. The issue is that they are permitted to use an exchange rate that exceeds the daily exchange rate by 2% but only on the condition that they convert 100% of the amount invoiced into lira.