Thursday, July 18, 2013

Hazel Nut Trade

Following cotton yesterday, trade in hazelnuts, of filberts, is another example of "everything happens.."  Here is an article regarding a plant blight, but it summarizes the crop, largely grown in Oregon.

Oregon produces 99 percent of U.S. hazelnuts, roughly 37,000 tons a year, and a $40 million annual harvest was slipping away.
Sixty percent of the crop is exported, and China is gobbling about 85 percent of the shipments. 

So the math tells me about half the crop goes to China.

About half the hazelnuts consumed in the U.S. are grown in Turkey, he said. "We could double our production just to replace imports," he said. 

So we export about sixty percent of the crop, and what we consume domestically is matched by imports from Turkey.  Ummm...  How come we don't just consume our own, why all of the trading?  That would take some research, but most likely reason is not all filberts are equal, and then another reason would be tax avoidance and capital flight.  Hard to say without being in the business.

Major nut buyers are "scrounging around the world" to find new supplies, "Another sign that there's not enough hazelnuts," Mehlenbacher said. The Willamette Valley has the ideal climate for hazelnuts -- not too hot, not too cold. 

So right now demand is strong.  Well, the markets will sort that out.  The story has another interesting aspect, it touches on two instances where young people escaped the farm only to come back and take a management position.  Kids want int'l travel and an iPhone as part of their job.  Well, small farming today requires both.

I did some nosing around on hazelnuts, and found this.
Americans eat an average of 8 ounces of hazelnuts each year (ERS 2010). In comparison, the Swiss consume more than 4.4 pounds per person and Germans consume more than 2 pounds.
Can you say Nutella?  If USA doubled it's per capita consumption, then we'd still be less than 1/4 of what those hearty Swiss eat.  And why not eat them, look what is in one of the little beasts.  Try getting that in a multi-vit.

So next I hit customs rulings, for news.  Which leads to the name of a small business int'l trader, which no one has ever heard of.

What is the difference between these people with in a thriving small business and you?  They started.  Get going!

Feel free to forward this by email to three of your friends.


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