Georgia's nut industry has seen a surge in export volumes, with walnut exports increasing nearly 100% in 2024 and hazelnut exports rising in price by 37% in the latter half of the year. Almond cultivation, a relatively new venture in Georgia, is gradually replacing imports, which fell by 49% in 2024. Despite these achievements, the industry faces challenges, particularly with the anticipated withdrawal of USAID support. USAID has played a crucial role in helping Georgian farmers meet Western market standards and combat issues such as stinkbug invasions.
Georgia's walnut production began gaining commercial importance in 2018, following a significant increase in plantings in 2014. The Almond & Walnut Producers Association reports a 36% increase in walnut export prices over the last six months, with export volumes rising by 18% to $84.4 million. However, challenges remain, with Georgian walnut farming yields at only 1.96 tons per hectare in 2023, compared to the global average of 3.1 tons. The introduction of the Chandler variety under the government's "Plant the Future" program has not met expectations due to insufficient farmer knowledge and incorrect orchard management.
Hazelnut farming, with a long history in Georgia, holds a world market share of around 3%. Despite low orchard productivity, hazelnut exports reached a value of $73.3 million in 2024, with volumes rising by 17%. EU countries, including Italy, Germany, and France, are major importers of Georgian hazelnuts. The industry has received support from donor organizations and companies like Ferrero Rocher, which have aimed to improve the hazelnut value chain. However, the end of USAID's involvement could pose difficulties for small hazelnut farms.
Almond cultivation in Georgia is expanding, with several major groups investing in new orchards. Despite a low market share, the potential for international orders is promising due to climate challenges in major producing regions like California. In 2024, Georgia's imports of shelled almonds decreased by 49%, and almond kernels by 25%. Local prices have decreased as supply increased, boosting demand.
Overall, while Georgia's nut industry has growth opportunities, challenges such as a lack of farmer knowledge, poor processing facilities, and limited access to finance remain. The industry must adapt to international market fluctuations with reduced external assistance.
Source: Georgia Today