Unofficial forecast of Ministry of Agriculture is 705,000 tons for 2017 crop hazelnuts (inshell) but it is still not announced officially. Exporters Union also announced their forecast as 761.066 tons. Together with the 100,000 tons carry over, it is expected that total availability will be more or less 850,000 tons.
On 17 August 2017, Ministry of Agriculture announced that they will start buying 2017 crop hazelnut via TMO by next week. TMO will pay 10 TL/kg (2.84 USD) for Levant quality and 10.50 TL/kg (2.98 USD) for Giresun quality inshell hazelnuts.
Ferrero, major buyer of hazelnuts in Turkey also announced their buying price as 9.25 TL (2.63 USD) for inshell hazelnuts.
Expectation of farmers were of course higher (around 12.00 TL) and governments buying price is only 0.75 TL higher than what Ferrero is paying. Farmers estimate their production size before crop and register quantities to government’s system. If TMO decide to buy only registered quantities (like previous years), then farmers will need to sell surplus quantity to factories, which may cause market to go down around 8.00 TL / kg.
But if TMO decides to buy from farmers without any restrictions, then their pricing policy may work. In that case, TMO may have to buy 300,000 – 400,000 MT from farmers which will cause a serious financial burden for government. As we still don’t know about TMO’s buying policy (only price), we will have more idea once we hear from them.
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