Hazelnuts are a delicious and versatile nut that are used in a variety of products, from confections to nut butters and baked goods.
But have you ever wondered how much hazelnuts sell for? The answer is not as straightforward as you might think.
The price of hazelnuts can vary depending on a number of factors, including the size of the nut, the location of production, and global market forces.
In this article, we’ll explore the different factors that affect the price of hazelnuts and give you a better understanding of what goes into determining their value.
So sit back, grab a handful of hazelnuts, and let’s dive in!
How Much Do Hazelnuts Sell For
The price of hazelnuts can vary depending on the market and location of production. In the United States, 99% of hazelnuts are grown in the Willamette Valley of Oregon. The approximate price range for US Hazelnut in 2023 is between US$ 4.04 and US$ 3.59 per kilogram or between US$ 1.83 and US$ 1.63 per pound(lb). The price in Euro is EUR 4.04 per kg.
Hazelnuts produced for grains will cost at least 90 cents per pound in Oregon this year, or 25 cents more than the minimum price of the shell crop. According to experts, uncertainties over the shipment of hazelnuts in shells to China, their main destination, have caused their initial minimum price to differ from that of the grain harvest, which faces a more stable market.
Global events and market forces, such as trade disputes, Turkish harvests, and problems with the Turkish currency, play an important role in the market price of Oregon hazelnuts. The Hazelnut Growers Bargaining Association (HGBA) contract has governed the hazelnut industry for many years, providing producers and processors with transparency and stability in the buying and selling of hazelnuts.
Factors That Affect The Price Of Hazelnuts
The price of hazelnuts is determined by a number of factors, including supply and demand, production costs, weather conditions, and global market forces. The primary factor that affects the price of hazelnuts is the balance between supply and demand. If there is a high demand for hazelnuts and the supply is low, the price of hazelnuts will increase. Conversely, if there is a surplus of hazelnuts and the demand is low, the price will decrease.
Production costs also play a significant role in determining the price of hazelnuts. The expenses involved in processing bulk hazelnuts and maintaining the equipment used to do so can impact the price of hazelnuts on a daily basis. If these costs increase for any reason, such as due to rising labor or energy costs, the price of hazelnuts will also increase accordingly.
Weather conditions can also have a significant impact on the price of hazelnuts. Hazelnut production can be affected by plant pests or difficulties such as periodic droughts, which can cause the market to vary and lead to significant swings in the price of hazelnuts.
Global market forces can also affect the price of hazelnuts. For example, trade disputes or problems with currency exchange rates in countries that produce or consume hazelnuts can impact the market and cause prices to fluctuate. The Turkish harvest is particularly important in this regard since Turkey is one of the world’s largest producers of hazelnuts.
The Impact Of Location On Hazelnut Prices
Location plays a significant role in determining the price of hazelnuts. In Italy, for instance, the profitability and economic risk of hazelnut production vary depending on the region. A study conducted over ten years using a large sample of individual farm data found that Campania and Lazio are generally the most profitable regions, while Sicily is the least profitable. The study also revealed that risk is quite high in all regions, with Campania facing the lowest risk level.
In Oregon’s Willamette Valley, where 99% of US hazelnuts are grown, farmers have been surprised by how stable and profitable hazelnuts have been over the past 15 years. The success of the Hazelnut Growers Bargaining Association (HGBA), a farmers’ bargaining cooperative, has been a key factor in this long-term stability. With nearly 300 members, the HGBA is the largest cooperative of any type in the Oregon hazelnut industry. It negotiates the terms and price under which member Oregon farmers sell their hazelnuts to independent processors.
The HGBA has created a market relationship that is unique in American agriculture. Oregon hazelnut processors have agreed to a very “grower-friendly” contract that allows for total transparency, a fixed gross margin per in-shell pound, and the ability to audit processors’ books. This structure allows farmers to get the “commodity price” for the hazelnut as a guaranteed minimum and then ensures that, in order to earn grower volume, Oregon hazelnut processors must compete each year to see which company can provide the biggest “profit share” for their growers.
The impact of location on hazelnut prices can also be seen in land prices. The rush to invest in hazelnut plantations in some areas has increased land prices, making it harder for small farmers to buy or rent land. This has led to calls for the conversion of hazelnut plantations to organic ones, but there is a lack of commitment from big companies to pay good prices for organic produce. Until sustainability is put before profit, it’s unlikely that this will happen.
Understanding The Global Market For Hazelnuts
The global market for hazelnuts is a complex and dynamic one, with various factors affecting the production, consumption, and pricing of hazelnuts. Turkey is the largest producer and consumer of hazelnuts in the world, accounting for approximately 66% of total volume. Italy and Azerbaijan are the second and third-largest producers and consumers, respectively.
In terms of exports, the United States is the largest supplier of hazelnuts worldwide, comprising 58% of global exports. Georgia and Spain are the second and third-largest exporters, respectively. On the other hand, Vietnam, Canada, and China are the leading importers of hazelnuts in the world, accounting for 67% of global imports in 2021.
The average export price for hazelnuts in 2021 was $4,095 per ton, with an increase of 4.2% against the previous year. The average import price for hazelnuts in 2021 was $4,053 per ton, with an increase of 4.6% against the previous year.
Market trends and opportunities vary by country, consumption, production, and price developments. The Hazelnut Market size was valued at US$ 9.26 Bn in 2021, and the total Hazelnut revenue is expected to grow at 8.7% through 2022 to 2029, reaching nearly US$ 18.05 Bn.
The global market for hazelnuts is highly competitive and subject to various risks and uncertainties such as climate change, pests and diseases, trade disputes, currency fluctuations, and changing consumer preferences. As such, manufacturers, distributors, importers, wholesalers, investors, consultants, and advisors need to stay informed about market developments and success factors affecting the market to make informed decisions on diversifying their business, boosting sales on overseas markets, increasing profit margins, making supply chains more sustainable, reducing production and supply chain costs, and preparing for global expansion.
Hazelnut Size And Its Effect On Pricing
Hazelnut size is an important factor that affects the pricing of hazelnuts. Larger hazelnuts tend to command higher prices than smaller ones. This is because larger nuts have more kernel, which is the edible part of the nut, and less shell. The kernel is what consumers are interested in, and larger kernels are more valuable as they provide more nutmeat per nut.
Additionally, larger hazelnuts are often preferred by food manufacturers as they are easier to process and have a more consistent size and shape. This makes them ideal for use in products such as chocolate and baked goods. As a result, larger hazelnuts often have a higher demand and can fetch a premium price.
However, it is worth noting that while larger hazelnuts may command a higher price per nut, smaller nuts can still be profitable for growers if they have a high yield per acre. This is because smaller nuts can have a higher shell-to-kernel ratio, meaning there is less waste during processing and more nutmeat per pound of nuts.
The Role Of Supply And Demand In Hazelnut Pricing
The pricing of hazelnuts is heavily influenced by the principles of supply and demand. The Pacific Northwest region, particularly the Willamette Valley of Oregon, is responsible for producing 99% of the hazelnuts grown in the United States. As such, any changes in supply and demand can have a significant impact on the market price of hazelnuts.
For instance, the global market for hazelnuts has been affected by trade disputes and issues with the Turkish currency. Turkey is a major producer and exporter of hazelnuts, and any fluctuations in their harvest or currency value can affect the global market. Additionally, increased acreage in Georgia and Azerbaijan may lead to potential future supplies, which could also affect prices.
On the demand side, the growing popularity of hazelnut products such as spreads, flour, ice cream, and alcohol-flavored drinks has increased demand for hazelnuts. This has led to innovation in the industry as people continue to experiment with the versatility of hazelnuts.
The Hazelnut Growers Bargaining Association (HGBA) contract provides stability and transparency in the buying and selling of hazelnuts. However, uncertainties over shipment to China, which is a major destination for hazelnuts in shells, have caused initial minimum prices to differ from that of the grain harvest.
Hazelnut Products And Their Influence On Market Prices
Hazelnuts are widely used in a variety of products, including food, beverage, oil, and cosmetics. One of the most influential products in the hazelnut market is chocolate. Hazelnuts are the most preferred nut in the chocolate industry, accounting for 90% of all hazelnut consumption. The increased usage of hazelnuts in chocolates is driving the market. Chocolate manufacturers are re-introducing their signature products with hazelnut-incorporated product lines, becoming an innovation in taste in the global confectionery market.
Hazelnut spreads, such as Nutella, have also gained popularity and are now available at most major grocery chains. The popularity of Nutella has led to an increased demand for hazelnuts from industries catering to the growing global consumer demand. Chocolatiers are also re-launching their products during festive seasons, with a fusion of traditional and western styles, generally with luxury nuts incorporated into chocolates, boosting the demand for hazelnuts.
Hazelnuts are not only used in sweet products but also in savory meals, which appeals to millennial consumers who enjoy experimenting with various chocolate flavors. Hazelnuts are a key ingredient at Ferrero and are used in many of its trademark products, including Nutella, Ferrero Rocher, and Kinder Bueno. In fact, 25% of the world’s supply of hazelnuts goes into making Ferrero products.
The influence of hazelnut products on market prices is significant. The demand for hazelnuts increases as more companies introduce new hazelnut-based products or re-launch existing ones. Global events and market forces also play a role in determining the price of hazelnuts. However, the Hazelnut Growers Bargaining Association (HGBA) contract provides stability to producers and processors in the buying and selling of hazelnuts. Despite fluctuations in market prices, hazelnut products continue to be popular and in demand, driving the growth of the hazelnut market.
