Opportunities for expansion of the NZ hazelnut industry

By Murray Redpath

HGA newsletter, February 2009

The New Zealand hazelnut industry is steadily establishing itself as an economically viable horticultural industry. With over 400 hectares planted, the increase in hazelnut production over the coming years will enable the existing cracking plants to take advantage of the expanding market for nuts. This market expansion is being led by research that is showing the health benefits of including nuts as a daily part of one’s diet. Research is continuing to prove that the nut oils are heart friendly, rapidly lowering levels of bad cholesterol, and recent research is indicating that they may also be useful in preventing diabetes.

The expansion of hazel growing out of the main Canterbury area has indicated the potential for hazelnut production in many areas that are now dominated by livestock production. In recent years the dairy boom has made it difficult for other land uses to attract attention but there is potential for a significant hazelnut industry in the sheltered, moister areas of South Canterbury, the lower Waitaki, and coastal Otago. Examination of new plantings and old stands indicate that the best sites have growth rates as good as in the main hazelnut producing areas overseas. Compared to dairying or intensive livestock production, hazel growing has lower total water use, no effluent disposal costs, and lower energy input costs. Nuts are machine harvested so seasonal labour requirements are not an issue.

The majority of hazels planted in New Zealand are the Whiteheart variety, selected for its high quality kernel. Grower success with this variety has been mixed, with many experiencing poor yields and high losses of young plants in some soils. The Hazelnut Growers Association of NZ (HGANZ) and the NZ Tree Crops Association have been working to identify the causes of these problems, running field days on pruning, orchard management, and testing young trees for disease. Poor pollination has been identified as the probable cause of poor yields and assistance from the Sustainable Farming Fund is enabling us to provide accurate advice to growers through a series of workshops in June of this year.

The Oregon hazelnut industry is a highly profitable horticultural industry concentrated on the high quality soils of the Willamette Valley. With returns of about $US7000 per hectare over cash costs, hazelnut production competes well with other land uses. Production is concentrated in the northern part of the valley between Salem and Portland, an area with large areas of grass seed cropping, berry growing, ornamental tree nurseries and wine grapes, especially pinot noir. Having watched the changes in the Oregon industry over the last 15 years, I had the chance to examine it during a visit in August/September of 2008 and see if there were lessons for the NZ industry.

The Oregon hazelnut industry has always been based on providing high quality nuts for the world inshell nut market. Fifteen years ago the traditional in-shell markets (Europe and domestic US consumption) were declining and the focus for hazelnut production was turning to the dominant kernel market. The situation has changed with the rise of China as a dominant economic force and about 50% of the total US in-shell hazel production now goes to China and Vietnam, often with prices negotiated and contracted prior to harvest. Processing plants in Oregon are keen to promote extra hazelnut production.

Both of the preferred in-shell hazel varieties, Barcelona and Ennis, are susceptible to Eastern Filbert Blight, a disease that has been spreading through the Willamette Valley since the 1980’s. This has restrained new plantings as growers wait for EFB-resistant varieties to emerge from the Oregon State University breeding programme. Recent years have seen resistant varieties emerge for the kernel trade but the first EFB resistant in-shell variety was not released until January this year. Oregon growers have a huge replanting task. Larger growers that we visited are replanting 10,000 trees per year.

The markets that the Oregon industry is supplying would be open to New Zealand growers if they had the right varieties. Good quality Barcelona and Ennis nuts are already being grown in Marlborough but quantities are not yet sufficient to fill local market requirements. The opportunity exists to expand our hazelnut plantings to take advantage of profitable markets for healthy food and growth in Asian economies.

International hazelnut quality characteristics

Niels Maness – Department of Horticulture, Oklahoma State University

HGA newsletter, June 2006

Quality Characteristics and Criteria

In-shell hazelnuts should be properly sized to meet the stated market type and should be properly filled with at least 50% of the shell cavity occupied by nutmeat. Shells should be free of cracks and noticeable mechanical injury, clean, brightly colored and coloring patterns should be characteristic of the stated variety. The pellicle should be smooth and devoid of husk attachments. Kernels should meet the stated market type, be free of any misshapen or underdeveloped kernels and be free of any shell or foreign material and off-odor, off-flavor or mold. Water content of kernels should not exceed 6% if shelled or 7% if in-shell, and the total water content of unshelled nuts should not exceed 10 to 12%. Size is specified with grade as a determinant of quality, and minimum sizes are used for specification of classes “Extra” and “Class I” in international trade. For in-shell markets, larger and particularly rounded types are preferred. Shelled markets accommodate both rounded and oblong types, and size preference is dependent on the intended end use. 

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Hazelnut product design

By Laura Brandt – Contributing Editor to ‘Food Product Design’ magazine

HGA newsletter, June 2004

Industry sources indicate that approximately 8% of the new products introduced over the last two years contain some type of nut. Besides adding visual appeal, nuts contribute texture and crunch, and their unique flavour profiles enhance many foods. As part of a well-balanced diet, nuts provide protein, minerals, vitamin E, fibre, unsaturated fatty acids and phyto-chemicals. The nutritional benefits include reduction of heart disease and certain cancers.

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Off to the market

HGA newsletter, August 2003

We’ve spent all year fertilizing, mowing, pruning, worrying, planning, pollinating, spraying, raking, rolling, harvesting, cleaning….a lot of organised work to get those little nuts into those sacks. It’s easy to think that this is the end of the line and look only to next season’s production. There is one other job that is at least as important as all of the production work put together…..and that’s MARKETING.

As hazelnut producers we have several options open to us for the disposal of our nuts once they have been harvested and all of those options involve planned marketing. We can sell to a processing company as a commodity, or sell to an agent, or we can package and sell our nuts directly to the public either in shell or, with a bit of work, as kernels. Or we can develop a range of products to sell or a combination of any of the above options. Our marketing can be as complex or as simple as we make it but we always have the choice as to how much control we have over our products. 

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