Hazelnut processing enterprises stopped in Georgia


Hazelnut processing enterprises stopped in Georgia

03/31/2020

At the moment, in warehouses in Georgia, about 5,000 tons of inshell hazelnuts, which means about 1,500 tons of kernel

In an interview with EastFruit, participants in the sector say that since mid-March, most of Georgia’s processing enterprises have stopped working for two reasons related to the spread of COVID-19:

  1. due to the difficult situation in the importing countries – Italy, Germany – the demand for hazelnuts has decreased significantly. For example, the Ferroro factories in Alba and Milan have reduced production by almost half, but the capacities in the south of the country continue to operate;
  2. the introduction of a state of emergency in Georgia, where from March 21 the right of assembly is limited to 10 people, which in turn has affected enterprises where hazelnuts are sorted only by hand.

Another negative factor is the restriction of the movement of people across the border, as EastFruit wrote earlier – the bulk of hazelnuts from Georgia to Europe are transported by road. Accordingly, taking into account the risks and new delivery routes (instead of Turkey – through Ukraine and Belarus), the price of overland transportation increased from 3500 EUR to 4500 EUR (to Germany) per car, moreover, now no carrier can guarantee the time of arrival of the goods.

See also: Export of fruits from Georgia increased by 30.6%, vegetables – decreased by 10.2%

The 19/20 season is already drawing to a close, and for many businesses it’s time to settle loans. Therefore, many manufacturers have already reduced the price of hazelnuts from 7 (1.92 EUR) to 6 lari (1.65 EUR) per kg (in shell).

According to market participants, at the moment in warehouses in Georgia there are about 5,000 tons of hazelnuts (in shell), which means about 1,500 tons of kernel.

According to the latest data from the National Statistics Service of Georgia, the volume of exports of fruits and nuts (group 8 on NTN FEA) for January-February 2020 in dollar terms amounted to $ 14.28 million. 50% of this amount came from export of hazelnuts.

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