EastFruit analysts draw attention to an interesting fact – three countries that were previously part of the USSR are in the top 10 of world exporters of fresh cherries. Uzbekistan, Azerbaijan and Moldova together export more than 90 thousand tons of cherries.

However, there are subtle aspects. Representatives of fruit trade believe that a significant part of cherries supplied from Azerbaijan are actually grown in Iran. In addition, it is likely that not all exported cherries from the above countries are correctly taken into account in export statistics, as we wrote about in the article “Ghost fruit or how much cherries Russia actually imports“.

However, in terms of revenue from the exports of cherries, Uzbekistan, Azerbaijan and Moldova are not doing as well as in terms of volumes. Only Uzbekistan is among the top ten world leaders, although its position is much lower than in the export ranking in terms of volume. However, the cultivation and exports of cherries is still a very profitable business as their prices are relatively high. Cherries are sold on average several times more expensive than peaches, apricots and other stone fruits, and at the same time, according to EastFruit, their global prices continue to grow, while prices for apricots have been falling for several years in a row.

It is no coincidence that cherries are so popular as an export fruit. Andriy Yarmak, an economist at the Investments Centre of the Food and Agriculture Organization of the United Nations (FAO), explains this phenomenon by combining several factors at once: “Cherries are very convenient for fruit consumers compared to many others. In addition, the countries of the Southern Hemisphere can export them for the New Year holidays, which means it becomes a symbol of the holiday and wealth for countries where cherries do not ripen at this time, first of all, in the rich countries of the Northern Hemisphere. Also, cherries are massively available for the Chinese New Year, where they are bought hugely. The most important is that the majority of consumers like the taste of cherries.”

Despite the global trade in cherries growing faster than the trade in stone fruits, Uzbekistan faces serious problems with their exports. Growing competition from Iran and a lack of progress in quality leads to the need to reduce prices for Uzbek cherries. Even this season, when a significant part of cherries in Uzbekistan was lost due to frosts, the prices may be significantly lower than last year. Prices are already lower than a year earlier, and many exporters complain about a very sluggish demand from Russian fruit importers.

You can learn about vegetables, fruits and nuts that can bring the greatest income to Central Asian producers from leading industry experts during the online conference “Fruits, Nuts and Vegetables of Central Asia” on June 8, 2021. For participation you should register here. A similar event for Ukraine, Moldova, Georgia, Belarus, Armenia and Azerbaijan will take place on June 9, and you can register for it via this link.

Сообщение Cherry phenomenon – three post-Soviet countries in the top ten of world exporters появились сначала на EastFruit.

Georgia’s last hazelnut season was successful both in terms of yields and quality. Production recovered from brown stinkbug invasion and reached 33 tnd tons – highest production level in recent five years. Farmers are now getting ready for the next season which starts in August-September 2021 – the activity in orchards’ care is said to be unprecedented. Looks like Georgian hazelnut growers will start to focus more on quality, as it does pay off.

Source: Geostat

*preliminary data; official data for prices is not published yet

After a downward trend, caused by stinkbug invasion, Georgian hazelnut production is seeing growth again, and the rate is rather high – around 8 thsd tons per year beginning from 2017. As a result of recovery, hazelnut harvest in 2020 has almost doubled in quantity compared to the lowest point in 2018.

Prices are also getting better. Comparing to the same period of 2019 (we refrain from comparing to unusual pandemic 2020 year), price of the hazelnuts, in-shell, is 12% higher. Prices went up from $2.2/kg to $2.46/kg and for shelled – by +2% – from $5.78 to $5.88 in 2021.

Representative of Georgian Hazelnut Growers Association Merab Chitanava mentioned in his interview with Agrogaremo TV, that the last harvest was good, yet further increase is underway. Mr. Chitanava highlights very active preparations for the next season – „we have a very good platform, farmers are very active, we had an unprecedented activity in fertilizer use”. Such situation gives the association hopes of a very good harvest in 2021.

Even better Georgian hazelnut harvest in 2021 will very likely result in a new record high quantity. Other than farmers’ increased attention to orchards’ management, major factor will be young trees entering production.

Since 2016, Georgia has planted at least 5,000ha of hazelnut orchards. Given standard Georgian yields, these new supplies will provide an additional 7.5 to 13 tnd tons per year and most of these plantations will start producing hazelnuts in 2021. Thus, Georgia’s 2021 harvest has high chances of being the highest in the recent seven years in terms of quantity and in terms of quality too.

The demand for quality is driven by the fact that one could triple the revenue selling higher quality nut. Thus, farmers are now actively investing in hazelnut quality. EastFruit estimated that if Georgia does not invest in quality of hazelnuts, it risks losing around US $80mn in revenues for the nut business, and we are happy to finally see the change in the approach to nut growing business.

As for the prices for the next season, expectations are mixed. EastFruit estimates that more than 90% of Georgia’s 2020’s harvest has been exported. Therefore, Georgia’s prices are very closely tied to global markets where competition is rising.

Hazelnut production is growing worldwide and according to the International Nut Council, is expected to reach 1 306 900 MT (in-shell) in 2021/22 from 1 183 000 MT last season, mainly due to expected crop increase in Turkey, Chile, Georgia, Azerbaijan, Iran, China, and Spain. Competition is rising with the other tree nuts as well. Even Turkey, a major producer and exporter of hazelnuts, with usually had more than 60% share in the global production, saw a decline in exports in 2020. Annual reduction in Turkish hazelnut exports by volumes was 12.1% and in USD value – 4.1%.

 Black Sea Hazelnut and Products Exporters Association explains Turkey’s export reduction by the following factors:

• Rival countries sell hazelnuts at a lower price;
• Confectionary industry in Europe turned to almonds, as almond became affordable due to large increase in supplies and much lower prices, while hazelnut prices went up;
• Some companies, which buy hazelnuts and sell tree nut mixes as a snacks, started to use fewer hazelnuts and more other, more affordable nuts.

Despite the concerns of rising global competition, the move by Georgian hazelnut growers to focus on harvest quality is the right one. It is true that there may be significant downwards pressure on prices in the future, but the payout Georgian farmers will get, will be much better than the prices they would get without focusing on quality.

Another idea for Georgia would to develop hazelnut processing further and to add value to products made from hazelnut. “There are opportunities in confectionary industry. Georgian traditional churchkhela fully complies with the concept of a healthy product and with certain efforts it can become fashionable and in demand all over the world.” – comments Andriy Yarmak, Economist of the FAO Investment Centre. “In Europe, the USA and other countries, there is now a growing trend for healthy eating, and supermarket chains are looking for more and more nutritious healthy products. It is necessary to properly register it at the international level as a product with a protected geographic indication (GI) and to promote it well” – comments expert.

What trends will determine the development of the market for vegetables, fruits, berries and nuts in the season 2021/2022, and what will be their impact on the fruit and vegetable business – market players will be able to get answers to these and other questions during the online conference “Fruits, Nuts and Vegetables of the Eastern Europe ”, which will take place on June 9, 2021.

During the conference, its participants will learn about the opportunities EastFruit platform provides for tracking trade and price changes in the market, as well as methods of establishing business contacts during the absence of exhibitions, trade missions, conferences, with focusing on an overview of typical mistakes of representatives of the produce business.

Participation in the conference is free of charge, but subject to mandatory registration. Please note that the conference will be conducted in Russian language. We are happy to invite producers and exporters from Eastern Europe to register for the online conference. Link for the registration is available here.

Сообщение Georgia to increase hazelnut production and improve quality amidst rising global competition появились сначала на EastFruit.