In 2014, hazelnuts were at record prices in the US. Eight years later, it’s not such a good time for hazelnut growers. Oregon is expected to produce a record amount of hazelnuts this year. However, that won’t mean record incomes; farmers will be lucky to break even.
The Hazelnut Grower’s Bargaining Association negotiates the guaranteed price farmers in Oregon will receive. In a memo to farmers just before the harvest, it said the minimum price per pound is 40 cents to 53 cents, depending on variety. It is the lowest price since the early 2000s, and about half what they got a year ago and about a quarter of the high of $1.70 in 2014.
Oregon produces about 99% of the hazelnuts grown in the United States, but only 6% of the worldwide supply. The state’s hazelnut harvest was worth $132 million in 2020. That was the 10th highest value in dollars among agricultural commodities produced in Oregon, according to the USDA’s National Agriculture Statistics Service.
There is no easy explanation for why Oregon hazelnuts have fallen so far in price. In 2014, a major frost in Turkey – which produces 62% of the world’s hazelnuts – decimated that country’s production, and the market in China boomed with about 90% of Oregon's nuts sent there.
Turkey’s economy is now in shambles: Its foreign trade deficit is estimated at $8 billion per month, according to the Middle East Institute. That means hazelnuts and other products that are exported from that country are much cheaper than products that come from the United States.
Those in the industry say the prices of hazelnuts will go up again. But it’s rare to find a farmer who sounds optimistic. With the sinking prices, some farmers are contemplating planting another crop. There are so many young orchards – hazelnut trees cost about $2,000 per acre to plant – and many of them haven’t produced anything yet.
Source: eu.statesmanjournal.com