Cracking the Australian

Hazelnut Market

Trevor Ranford

THE HAZELNUT CYCLE

HAZELNUT GROWERS OF AUSTRALIA INC

Bioclimatology model for hazelnut industry expansion

http://www.dpi.nsw.gov.au/agriculture/horticulture/nuts/industry-expansion/hazelnut

GLOBAL MARKET

“Compared to other nuts and dry fruits, the global market for hazelnut is still at a nascent stage and will surge steadily in the years to come.”

GLOBAL MARKET

"Hazelnut Market: Global Industry Analysis and Forecast, 2016-2026"

– present value - US$ 7,200 Million

– Predicted growth of 5.9%

By the end of 2026– US$ 12,730.6 Million

– nearly one-third of global revenue will be by sales of raw hazelnuts.

– processed hazelnut products will witness a considerably higher consumption - valued at US$ 7,400 Million.

GLOBAL MARKET

Manufacturers of food products will represent more than 80% of global hazelnut revenue

- protein shakes, bars or confectionary items.

Demand for hazelnut will also gain traction among beverage producers, revenue will rise at an impressive 6.4%.

By the end of 2026, more than US$ 1,000 Million of hazelnuts will be sold to pharmaceutical companies and manufacturers of cosmetic products.

Cracking the Australian Hazelnut Market

AUSTRALIAN HAZELNUTS

“Locally grown nuts receive a price premium and are sought after by restaurant chefs, patisseries and

confectioners because of the fresh taste of the local product compared to

imported kernel.”

AUSTRALIAN PRODUCTION

• Grown everywhere except Queensland and Northern Territory

– Central Tablelands and Slopes of NSW

– Riverina of NSW

– North Eastern and Central Victoria

– Manjimup region of Western Australia

– Adelaide Hills

– Northern Tasmania

AUSTRALIAN PRODUCTION– Import ~ 3,000 tonne per year (Turkey mostly)– Produce 170 tonne kernel (up 46%)– Farm gate value $1.7 million (up 87 %)– ~ 200 hectare of planting – some yet to come into production– Total Australian trees planted - ~ 1.1 million.– Agri Australis’ (Ferrero) investment –

• one million hazelnut trees on 2,000 hectares

• brings additional opportunities to the agribusiness sector and the local community.

AUSTRALIAN PRODUCTION

0500

100015002000250030003500

2004 2012 2013 2014 2015 2020

Tonn

es

Years

Australia hazelnutsImported nuts

AUSTRALIAN PRODUCTIONEstimated Hazelnut Production (HGA/ANIC 2016)

2011 2016 2021 2025

Area Planted, ha 140 1,370 2,220 2,760

Production, tonnes 75 170 2,553 3,174

Farm Gate Value $m $0.4 $1.70 $22.50 $31.70

Domestic Consumptiontonnes

4,049 4,925 5,994 7,012

Cracking the Australian Hazelnut Market

Hazelnut is a ‘classic’ not a trend

“We feel like hazelnut is a classic flavour already. It’s not a trend anymore.”

MARKET OPPORTUNITIES

• Direct to public• Artisanal chocolate makers• Artisanal patisseries• Restaurants• Distillers• Gelato

NEW PRODUCTS

Hazelnut oil

NEW PRODUCTS

Cracking the Australian Hazelnut Market

ISSUES/CHALLENGES

Funding• Establishment of Voluntary Contribution system

• Emergency Plant Pest Levy

New Pests and Diseases• Stink Bugs

• Hazelnut Mite – January 2016

PESTS AND DISEASES

• 1st bullet: Arial– 2nd bullet: Arial

• 3rd bullet: Arial

– 4th bullet

PESTS DAMAGE

Insect Damage to Hazelnut Kernel

Thank your and any Questions