By AZE.US
A strong harvest has pushed farmgate prices down by more than half in Azerbaijan’s Oghuz district, with growers saying current rates barely cover production and labor costs.
Hazelnut farmers in Azerbaijan’s Oghuz district are complaining about a sharp decline in purchasing prices despite reporting a strong and high-quality harvest this year.
Prices have fallen from 6–8 manats ($3.53–$4.71) per kilogram last season to just 2–3 manats ($1.18–$1.76) this year.
Hazelnut cultivation is one of the main agricultural activities in Oghuz. Orchards cover 4,375 hectares across the district, including approximately 2,300 hectares of fruit-bearing trees.
Farmers say the large harvest has increased supply but left them unable to recover the money spent on maintaining their orchards.
“Last year, prices ranged between 6 and 8 manats per kilogram, often remaining close to 7 manats. This year, buyers are offering only 2 or 3 manats,” one grower said.
The farmer, who owns between 15 and 20 hectares of hazelnut orchards, said producers must pay for fertilizers, pest control, agricultural treatment, transportation and seasonal labor throughout the year.
Selling Price Near Production Cost
The Oghuz State Agricultural Development Center estimates that maintaining one hectare of hazelnut orchards costs at least 708 manats ($416).
Harvesting alone costs farmers no less than 40 gapiks ($0.24) per kilogram. Once fertilizers, orchard treatment, labor and transportation are included, the total production cost can reach 2.80–3 manats ($1.65–$1.76) per kilogram.
That leaves growers with almost no profit when hazelnuts are sold for 3 manats. Farmers accepting offers closer to 2 manats risk selling their crop at a loss.
Storage creates another problem. Many small producers lack suitable warehouses and drying equipment, forcing them to sell immediately after harvesting, when market supply is at its highest and prices are typically at their lowest.
Those who decide to wait for better prices also face losses because hazelnuts lose weight during drying.
Strong Harvest Pressures Prices
Agricultural specialists link the decline to market conditions in both Azerbaijan and Türkiye, the world’s dominant hazelnut producer and exporter.
Dry weather reportedly reduced Türkiye’s crop last season, limiting supply and supporting higher prices. Production has been stronger this year in both Türkiye and Azerbaijan, placing downward pressure on purchasing prices.
Azerbaijan is among the world’s leading hazelnut producers and exporters, making domestic prices highly dependent on international demand, crop quality and production levels in competing countries.
More than 1,500 metric tons of hazelnuts were harvested in the Oghuz district last year. Prices could change in the coming months as exports increase and buyers sign new supply contracts.
For now, however, farmers face a difficult choice: sell their crop at or below production cost or store it in the hope of higher prices while risking losses in weight and quality.
AZE.US