Hazelnut Production, Export, and Global Market Analysis in Georgia

1. Introduction: The Significance of Hazelnut Production in Georgia and Global Market Overview
Hazelnut production in Georgia plays an important role in the country’s economy. Over the years, it has ranked among the leading exported agricultural products. Hazelnuts are a significant source of income for families involved in agriculture, especially in the Samegrelo-Zemo Svaneti region, which accounts for more than half of the hazelnuts produced in the country. The economic wellbeing of this region largely depends on the stability and development of the hazelnut sector.
In the global hazelnut market, Turkey is the undisputed leader, accounting for 71.0% of world production in 2023. Turkey’s dominant position has a significant impact on global prices and supply. Other major producing countries include Italy, the USA, and Azerbaijan. The production volumes and export strategies of these countries create a competitive environment in the global market.
Global demand for hazelnuts is characterized by a growing trend, driven by increased interest in healthy eating and the steady demand of the confectionery industry. European countries use the majority of hazelnuts for chocolate production. Demand for hazelnut paste is also increasing, particularly due to the popularization of plant-based diets and its versatile use in confectionery products.

2. Current Volume and Trends of Hazelnut Production in Georgia
In 2023, about 13.1 million kilograms of shelled hazelnuts were produced in Georgia (Galt & Taggart forecast). In the same year, the Hazelnut Producers Association expected a harvest of 50–55 thousand tons of in-shell hazelnuts. If productivity improves, Galt & Taggart forecasts that by 2030, hazelnut production in the country could reach 25.2 million kilograms.
Hazelnut production in Georgia has been quite volatile in recent years. Before 2018, the decline in production was mainly linked to the brown marmorated stink bug, while the reduction in 2022–2023 reflected unfavorable weather conditions, including increased rainfall. According to data from the PMC Research Center, hazelnut production in 2022 decreased by 27.4% due to unfavorable meteorological conditions. Despite this, the average annual growth rate of hazelnut production between 2016–2022 stood at 7.1%, indicating the sector’s recovery potential.
Hazelnut yield in Georgia is relatively low and stands at 0.62 tons/hectare (in-shell). This figure significantly lags behind Turkey (1.03 tons/hectare), Azerbaijan (1.40 tons/hectare), and the global average (1.13 tons/hectare). If Georgia increases its yield to the global average, it has the potential to double hazelnut production.

3. Georgia’s Key Hazelnut Export Markets and Export Volume Dynamics
Georgia’s main hazelnut export markets are EU countries, including Italy, Germany, Spain, the Czech Republic, Poland, Lithuania, France, Bulgaria, Greece, Latvia, Estonia, and Belgium. Apart from the EU, other significant export markets include Russia and Armenia.
Export volume dynamics in 2024 show an upward trend. From January to September, the value of hazelnuts exported from Georgia increased by 11%, reaching USD 53.2 million. Notably, between August 1 and September 30, the value of exports from the current year’s harvest was 35% higher compared to the same period of the previous year, totaling USD 19.6 million. Based on 11-month data from 2024, Georgia exported 15,000 tons of hazelnuts worth USD 90 million, whereas during the same period in 2023, exports amounted to 16,751 tons worth USD 79 million. This indicates an increase in export value against a slight decrease in volume, which may be linked to a rise in export prices.
Exports are dominated by shelled hazelnuts (hazelnut kernels), which account for 89% of exported hazelnuts in 2024. The export price of shelled hazelnuts is approximately 130% higher than the price of unsorted hazelnuts. The increase in exports of processed hazelnuts points to an improvement in product quality and additional economic benefits such as job creation and income growth.

4. Comparison of Hazelnut Production Indicators in Georgia and Leading Global Producers (Turkey, Italy)
Turkey is the largest hazelnut producer in the world, accounting for 71.0% of global production in 2023. In the 2022/2023 season, Turkey supplied a total of 467,800 metric tons of hazelnuts, while in the 2023/2024 season, it is forecasted to deliver 512,500 metric tons — a 9.6% increase over the previous year. In 2021, Turkey produced 684,000 tons of hazelnuts, representing 64% of global production. Hazelnut yield in Turkey is 1.03 tons/hectare (in-shell), significantly exceeding Georgia’s figure.
Italy is also a significant hazelnut producer. In 2021, Italy produced 84.7 thousand tons of hazelnuts, and in 2022, this increased to 98.7 thousand tons. However, between 2019–2021, Italy experienced a declining trend in hazelnut yield (-7.3%). By 2026, Italy’s hazelnut production is forecasted to reach 105,390 metric tons.

The following table compares key production indicators for Georgia, Turkey, and Italy (2021 data):

5. Global Demand for Hazelnuts, Especially in Confectionery and Hazelnut Paste Production
The confectionery industry is one of the key drivers of global hazelnut demand. European countries consume the majority of hazelnuts specifically for chocolate production. The growth of the global hazelnut market is largely driven by the rising demand for confectionery products. Demand is increasing especially for premium and refined food products, including hazelnut chocolate spreads.
In recent years, demand for hazelnut paste has increased significantly. The growing interest in plant-based diets drives the use of hazelnut paste in vegan and dairy-alternative products. Hazelnut paste is also gaining popularity in Europe and North America, where it is used in confectionery for unique flavor combinations.
Global demand is also influenced by the health benefits of hazelnuts. Hazelnuts are rich in healthy fats, proteins, vitamins, and antioxidants, increasing their appeal as a health food. Moreover, rising interest in sustainable and organic production also affects consumer choices when purchasing hazelnut products.

6. Trends in Global Hazelnut Prices and Determining Factors
In recent years, global hazelnut prices have shown an upward trend, primarily due to increased demand from the food industry and limited supply in key production regions. In 2021, hazelnut prices reached an all-time high. In Georgia, hazelnut prices fell by 11.3% in 2022, possibly due to local factors. By 2024, the average export price of Georgian hazelnuts increased by 17%, reaching $6.01/kg.
The main factors influencing global hazelnut price changes include the volume of Turkey’s harvest and inflation levels in that country. Weather conditions and climate change also significantly impact yield and prices. Pests and diseases, such as the brown marmorated stink bug, cause crop losses and drive up prices. Global economic trends and currency exchange rate fluctuations also affect international hazelnut prices. Supply and demand dynamics remain the most important factor in determining prices. Additionally, stock levels and the procurement strategies of major buyers influence short-term price changes.

7. Government Programs and Initiatives Supporting Hazelnut Production in Georgia
The Government of Georgia actively supports the hazelnut production sector through various programs and initiatives. One of the main programs is the “Hazelnut Production Support Program,” aimed at stimulating primary hazelnut production for orchard owners in Georgia. The program subsidizes the cost of goods needed for hazelnut cultivation and care.
Farmers who own or manage hazelnut orchards of 0.2 to 3 hectares receive state support of 500 GEL per hectare for purchasing agrochemicals and pesticides. The budget for the program in 2024 is 20 million GEL. One of the prerequisites for participation is the registration of hazelnut orchards in the cadastre. The program is coordinated by the Ministry of Environmental Protection and Agriculture of Georgia.
Additionally, a “Preferential Agro Credit” program is available to hazelnut producers. The government also implements a national program to combat the brown marmorated stink bug. The Rural Development Agency actively participates in the implementation of these programs.

8. Assessment of Georgia’s Hazelnut Export Potential and Competitiveness in the Global Market
Georgia has substantial hazelnut export potential. If productivity improves, the country could double its production and consequently increase export volumes. The growth in processed hazelnut exports also contributes to increasing export value. Access to the EU market is a significant advantage for export growth.
Nevertheless, Georgia’s competitiveness is affected by its lower yield per hectare compared to Turkey and other leading producers, limiting its ability to compete on price. Quality improvement, especially in the post-harvest stage, is necessary to enhance competitiveness in the global market. Government support programs help farmers and improve production quality. Georgia’s geographic location and transport connections to European markets can also be considered a potential advantage. The rising trend in global hazelnut prices further increases the profitability of Georgian hazelnut exports.

9. Conclusions on Hazelnut Production, Export, and Global Market Trends in Georgia
The current volume of hazelnut production in Georgia is quite variable and depends on agro-climatic conditions and pest infestations. Hazelnut yield in the country is relatively low, posing a significant challenge to the development of the sector. Nevertheless, government programs provide some support to producers.
The main export destination for Georgian hazelnuts is the European Union. Recently, export value has shown a growth trend, although volume may slightly fluctuate. Shelled hazelnut exports play a significant role in increasing export revenue.
Turkey remains the dominant player in the global market. Global demand for hazelnuts continues to grow, particularly in the confectionery and hazelnut paste industries. Hazelnut prices in the global market are volatile and depend on various factors, including Turkey’s harvest, weather conditions, and global economic trends.

Recommendations for the Further Development of Georgia’s Hazelnut Sector:

• Introduce modern technologies and agronomic practices to increase productivity.
• Strengthen quality control during the post-harvest stage, including drying and storage optimization.
• Explore opportunities to diversify export markets, including accessing new ones.
• Support the development of processing enterprises to increase added value and export revenue.
• Regularly assess the effectiveness of government support programs and seek ways to improve them.

Here is the fully translated Works Cited section in English, keeping the structure and source titles as close to the original as possible:

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