Georgia’s Hazelnut Exports Gain Momentum as EU Demand Lifts Kernel Prices

Georgia’s hazelnut sector is entering late May 2026 with firm demand and rising export values, as EU buyers increasingly prefer higher‑value shelled kernels. Export prices are trending higher than a year ago, and Georgia continues to build a premium over mainstream Turkish origins. Georgia’s April export performance underlines this constructive tone: volumes to key EU processing hubs increased while export revenues surged, reflecting both improved quality and a shift toward kernels rather than in‑shell product. At the same time, Turkish kernel prices have stabilised after earlier corrections, providing a relatively firm floor for global hazelnut values. Weather in the wider Black Sea area is seasonally mild with no fresh crop shock reported, so short‑term market direction is being driven mainly by demand, quality differentials and origin spreads rather than immediate production concerns.

Prices & Spreads

Export data for April show Georgia shipping 1,100 tonnes of hazelnuts worth about USD 11 million, up 7% in volume but 45% in value year‑on‑year, underscoring a strong increase in achieved prices for kernels. The improving price level is closely linked to the rising share of shelled hazelnuts in the export mix, which naturally command higher unit values than in‑shell product.

Spot offers confirm this premium positioning. Turkish natural hazelnut kernels FOB Istanbul currently trade around EUR 8.10–8.50/kg for 11–13 mm and 13–15 mm sizes, while Georgian kernels held in EU warehouses are indicated closer to EUR 9.90–11.15/kg FCA for comparable size grades, depending on calibre and quality specifications. This spread reflects both quality perception and Georgia’s focus on processed kernel exports rather than bulk in‑shell shipments.

Supply & Demand

Between 1 August 2025 and 30 April 2026, Georgia exported around 11,200 tonnes of hazelnuts to EU member states, confirming the bloc’s central role as the main outlet. Italy, Spain, Germany, France and Greece dominate as buyers, reflecting strong demand from confectionery, chocolate and paste manufacturers that increasingly specify shelled kernels and consistent quality parameters.

Outside the EU, Georgia has also diversified its customer base, with notable shipments reported to Syria (about 1,300 tonnes), Russia (around 584 tonnes) and Armenia (about 520 tonnes) over the season to date. This broader destination mix offers some risk mitigation but EU processors clearly remain the price‑setting demand centre, and their continued interest in Georgian kernels has underpinned both price stability and export expansion.

Fundamentals & Weather

The sharp 45% year‑on‑year increase in April export earnings, against only a 7% rise in volume, highlights a tightening balance for high‑quality kernels from Georgia. Market participants report that better orchard management and processing standards have lifted average quality, enabling exporters to secure higher prices and close the gap with, or even exceed, competing origins on a kernel‑equivalent basis.

Weather conditions in the main Black Sea hazelnut regions (Turkey and western Georgia) are currently seasonally mild with no new frost damage reported in the second half of May. While episodes of severe convective weather earlier in the month drew attention, there have been no confirmed, large‑scale losses to the 2026/27 crop so far. As a result, short‑term fundamentals are being driven more by trade flows, inventory positioning and origin spreads than by immediate crop stress.

Short-Term Outlook & Trading View

In the near term, the combination of strong EU demand for shelled kernels and Georgia’s improved export performance argues for a broadly firm market tone into early June. However, the existing premium of Georgian kernels over Turkish origin, and slightly softer warehouse quotations within the EU, suggest that further sharp price gains may meet resistance unless new supply or quality issues emerge.

• EU industrial buyers: Consider gradually covering Q3–Q4 kernel needs on price dips, especially for Georgian origin where quality and traceability add value, but avoid aggressive forward coverage until there is more clarity on the 2026/27 crop.
• Georgian exporters: Maintain focus on shelled, higher‑value product and quality differentiation; current premiums over Turkish kernels appear sustainable as long as product specifications and reliability remain strong.
• Turkish and other origins: The current discount to Georgian kernels offers room to attract more value‑oriented buyers, especially in price‑sensitive markets outside the EU.

3‑Day Price Indication

• Turkey – Istanbul, FOB kernels: Prices in the EUR 8.10–8.50/kg range for standard sizes are expected to trade sideways, with a slight upward bias if EU spot demand picks up.
• Georgia – kernels in EU warehouses (FCA): Premium grades around EUR 9.90–11.15/kg are likely to remain broadly stable, with limited downside as long as EU buyers keep absorbing shelled product.
• EU spot market: Kernel replacement values are seen holding firm over the next three days, with only minor intra‑day adjustments driven by currency moves and short‑term liquidity.