Turkey's hazelnut production is increasing rapidly but exports have failed to keep up with this rise, creating an imbalance that has resulted in excess supply, according to a survey by the Hazelnut Promotion Group.

The number of hazelnut plantations has risen 57 percent in the eastern Black Sea region over the past 47 years and 788 percent in the western Black Sea region, according to a Thursday statement released by the group, which was founded by Turkey's Undersecretariat for Foreign Trade.

Over the term, production in the western Black Sea region has surged 828 percent. However, despite the increased rate of plantation, growers have not yet been able to attain the desired efficiency, thereby negatively affecting Turkey's competitive power in foreign markets, the group said. 

"Despite the law released in 1983 that limits hazelnut plantation areas, people plant hazelnuts even in forested areas. Half of the plantations began following that date."

According to the statement, the number of hazelnut plantations particularly surged in the second half of 1990s. There were 500,000 hectares of plantations in 1995, 540,000 hectares in 2000, 584,000 in 2005 and 691,000 hectares in 2008. Today, the areas under cultivation account for 725,000 hectares.

Despite high production and the large number of plantations, Turkey has a low yield per hectare. The country has an average yield of 1,000 kilograms per hectare on average, trailing Italy at 1,550 kilograms and the United States at 2,250 kilograms.

Hazelnut production has risen accordingly, reaching 850,000 tons in the years with good yield, the Hazelnut Promotion Group said. Because the world's hazelnut consumption has not climbed at a similar pace, the excess supply in Turkey has created a growing problem, the statement read.

Regarding the negative impacts hazelnut prices create on exports, the group said, "Despite Turkey's weight reaching 80 percent in the world's hazelnut production and exports, it is gradually losing its competitive power in external markets."

Referring to chocolate and sweet producers' shift of interest to almonds with the impact of the instability in hazelnut prices, the group said, "It is not possible to increase market the share of hazelnuts at a price of $7 when almonds are sold for $4."

Source: Hurriyet