Hazelnuts: Expanding Orchards, Cleaner Floors and Firm Kernel Prices

Hazelnut demand remains firm, with prices for Turkish and Georgian kernels broadly steady to slightly higher, while investment in orchard mechanization accelerates in Italy and Eastern Europe. A shift away from herbicides is reinforcing the role of mechanical mulching as a key cost and yield driver just ahead of harvest. Growers in Italy’s main hazelnut regions are expanding professionally managed orchards and focusing on clean orchard floors to maximise collection efficiency. The growing interest in advanced multi-purpose mulchers reflects both regulatory and private-standard pressure to reduce herbicide use and the need to keep operating speeds high in dense plantings. In parallel, supportive summer weather in the Black Sea and positive crop expectations in Piedmont underpin a generally balanced but tight global supply picture.

Prices

FOB Izmir prices for organic Turkish hazelnut kernels are broadly stable to slightly firmer in late July. Blanched roasted organic kernels are around EUR 22.7/kg, with 11–13 mm and 13–15 mm organic kernels near EUR 19.4/kg and EUR 18.3/kg respectively, only marginally above mid-July levels.

Conventional Turkish natural kernels ex-Istanbul trade around EUR 7.6–8.2/kg FOB for 11–13 mm and 13–15 mm sizes, while roasted diced and meal hover at roughly EUR 6.0–6.9/kg, indicating a sideways market after earlier corrections. Georgian kernels offered FCA Warsaw hold a premium, near EUR 9.2–10.8/kg depending on size, reflecting tighter regional supply and strong demand for non-Turkish origins.

Supply & Demand

Hazelnut cultivation in Italy continues to expand, with professionally managed orchards gaining ground across Piedmont and other regions. The need for efficient under-canopy weed and residue management has grown as many producers reduce synthetic herbicides and comply with specifications that fully ban herbicide use.

In this context, demand is rising for multi-purpose mulchers equipped with side-mounted mini-mulchers that can cleanly shred grass, weeds and pruning residues beneath tree canopies. Field tests in Cherasco showed strong interest from growers and technicians in equipment capable of leaving a flat, clean orchard floor, which is crucial for maximizing the efficiency of hazelnut collection machinery and reducing harvest losses.

Globally, Turkey remains the key supplier and recent assessments continue to point to structurally tight stocks into 2025/26 despite some recovery outside Turkey. Improved irrigation practices and ongoing investment in orchards in newer origins (e.g. Chile, USA, China) support incremental supply growth, but not enough to fully loosen the market, leaving kernel prices sensitive to weather shocks in the Black Sea.

Fundamentals & Orchard Technology

The featured Italian multi-purpose mulcher combines a main unit with a side-mounted mini-mulcher able to follow the tree line. A rear roller with self-levelling adapts to uneven terrain, while a hydraulic arm moves the mini-mulcher around trees and a steel-cable lever allows manual emergency retraction.

This configuration enables relatively high working speeds even in densely planted orchards, while limiting trunk damage and coping with stones or irregular ground. By producing a uniformly clean surface, the system directly supports higher effective yields at harvest, as collection machines can operate faster with fewer blockages and lower losses of downed nuts in tall grass or coarse residue.

The technology shift also interacts with sustainability and cost: reduced herbicide use lowers chemical input costs and aligns with retailer specifications, but raises labour and machinery needs. Growers adopting high-performance mulchers can partially offset this by covering more hectares per hour and consolidating weed control and pruning-residue management into a single pass, which over time can support margins even in a firm-price environment.

Weather & Crop Outlook

In Italy’s Piedmont hazelnut belt, late-July weather is characterised by hot days, with maximum temperatures in the upper 20s to mid-30s °C and warm nights, occasionally pushing heat-stress thresholds for trees on lighter soils. Local forecasts point to continued heat with scattered thunderstorms, which may refresh orchards but also pose a localized risk of wind damage where storms are severe.

Across Turkey’s Black Sea region, recent reports indicate generally favourable conditions for the 2026 crop, with adequate moisture and no widespread extreme events reported in the last few days. Combined with relatively tight starting stocks, this supports expectations for a reasonably good harvest but not a surplus situation, maintaining a risk premium in kernel prices as the market awaits more precise crop sizing in August.

Trading Outlook (next 2–4 weeks)

• Shellers & exporters: Use current stable price window to secure forward cover on quality orchard-run material, especially where mechanical floor preparation promises cleaner, more uniform lots at harvest.
• Industrial buyers: Consider scaling in coverage for Q4 2026–Q1 2027 on Turkish and Georgian kernels, as structurally tight fundamentals and hot-weather risks argue against expecting a deep post-harvest price dip.
• Growers: Prioritise mechanical mulching before harvest to ensure flat, debris-free orchard floors; this may effectively increase saleable yield and offset high labour and machinery costs in a firm market.

3-day directional view (EUR-based)

• Turkish kernels FOB (conventional & organic): Sideways to mildly firmer; weather and crop news watched closely, limited downside.
• Georgian kernels FCA Eastern Europe: Firm bias; premiums likely to persist given constrained non-Turkish supply.
• EU spot (roasted/diced, organic lines): Stable; processors well covered short term, but little appetite to discount ahead of clearer new-crop picture.