Ömer Faruk Doğan, who founded the Hazelnut Promotion Group together with the Istanbul and Black Sea Hazelnut and Products Exporters’ Associations and was the first president, made an assessment on the price and export of hazelnuts to the AA correspondent.
Stating that instead of a stable hazelnut price in Turkey, with the understanding of “higher price to the producer every year”, Doğan stated that the unit price, which was 3.5 dollars per kilogram on average, reached 6.5 dollars in the last 20 years. He said that it provoked a great deal of struggle for countries such as China, Argentina, Chile and Colombia to take place in this market. Doğan stated that all these efforts were made in order to get a share from the world hazelnut market and income.
Stating that 75-80 percent of the product is used in the chocolate industry and related sectors, in the hazelnut consumption that has increased from 800 thousand tons to 1 million 200 thousand tons annually in the world with the efforts of the Hazelnut Promotion Group, Doğan stated that these figures are the result of the product being eaten freshly roasted. He said it was below the level he deserved.
Doğan stated that an annual average of 800 thousand tons of shelled hazelnuts is produced in Turkey and the consumption is not at the expected level.
“We should increase hazelnut consumption to 30-40 percent in the country”
Pointing out that even 25-30 percent of the hazelnuts produced in the country cannot be consumed in the domestic market, Doğan said:
“Because we do not consume enough hazelnuts ourselves in Turkey, we cannot be successful in creating the market and stability as we deserve. We are still the largest producer and supplier in the world, but it cannot be said that we can determine our export prices directly according to our own domestic market balances. Unfortunately, there is no demand elasticity in hazelnuts. For this reason, the price depends on some other factors beyond the supply and demand balance.The hazelnut price mostly depends on the needs of the chocolate industry in Europe, the hazelnut brokers, the majority of which are located in Germany, the Netherlands and England, that is, the intermediary companies with capital opportunities, according to their cyclical conditions. “The main issue is to increase consumption. As long as our domestic consumption level is not increased to 30-40 percent, our power to dominate the market of our own product in Turkey will decrease.”
Stating that the hazelnut trade is done with cash, Doğan said that there are usually early sales in the hazelnut market due to the essential cash needs of the producers.
Doğan said, “The high price of hazelnuts is in favor of the Italian producer rather than the producer in Turkey. This makes the consumption of Italian hazelnuts, which are both of lower quality and higher in aflatoxin (hazelnut mushroom waste) ratio, a priority. It forces the exporter during the season.” said.
Stating that until the domestic consumption in the country is raised to a certain level, the state will have to announce the price of support for hazelnuts through some institutions, Doğan said:
“I think that by increasing hazelnut consumption, the chain will be broken and this process will save our country from being a precautionary hazelnut supply store. For this reason, we have to increase the consumption of hazelnut with all our efforts and prevent this pressure from the West. The unit price level to be put forward in direct proportion to our production amount, other It should not be brought to a level that will provoke potential producer countries. The point where all these elements, and especially the interest groups in the sector that make a living from the Western hazelnut trade, is the hazelnut support purchase price to be announced by Turkey. While the fact that this is too low will make the producer suffer, its artificially high will be in favor of rival hazelnut producers. and Italy as soon as possible by giving the hazelnuts to the European chocolate industry, will push Turkey to the position of a warehouse country.
“The announced purchase price is very suitable for the beginning of the season”
Doğan stated that the purchase price of 27 liras announced for Giresun quality hazelnuts is very suitable for the beginning of the season and said:
“Our producers should never panic. As in 2000, when the big harvest was experienced, every segment should embrace hazelnuts and not leave them to the discretion of outside buyers. This season, Turkey will be able to harvest 815 thousand tons of hazelnuts, according to the estimation of Black Sea Hazelnut Exporters’ Associations. World consumption is at the level of 1 million 200 thousand tons on average. According to the data of the International Dry Fruits Council, our biggest rival Italy is entering the season with 5 thousand tons of hazelnut stock, while our country is expected to enter the season with a stock of 95 thousand-100 thousand tons. It will be effective and will be able to provide a record export income of over 3 billion dollars this season.”
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