Tree crops have proven themselves as a sturdy investment option that can bring an investor returns for years to come. Recently, hazelnuts have gained ground as a tree crop that increasing in global demand, while generating an appealing risk/return profile, and rightfully earning the spot as the fifth largest nut crop in the world.
Healthy Hazelnuts
Hazelnuts, also referred to as filberts, have gained popularity over the past few years as they have become an integral ingredient in many of our food products. Most consumers have noticed them in incorporated into chocolates, spreads, desserts, cakes, muffins, pastries, and flavorings.
Another feature of hazelnuts that are catching consumers’ attention are their unique health benefits. Hazelnuts are rich in vitamins B, E, and K. They’re also an excellent source of protein, unsaturated fatty acids, and linoleic acid. Studies show that consuming hazelnuts can lower bad cholesterol and increase good cholesterol. These health benefits are making hazelnuts a staple in plant-based diets.
Growing Hazelnut Demand
Once hazelnut trees are planted, they begin to produce nuts in two to four years, or eight years if grown from seed. These hardy trees can produce for over 100 years. A unique feature of hazelnuts is that the trees bloom in the winter and self-pollinate in the winter breeze. Hazelnuts are most heavily grown in Turkey. For U.S. production, Oregon produces 99% of the country’s supply, though it’s only 3.5% of global production.
Hazelnut trees are a permanent crop, making them a much different investment when compared to annual crops. This means they have a slower but longer growing and producing horizon. The trees produce their first crop from between two and five years of being planted. More and more investors are looking at diversifying their portfolios with permanent crops because of the higher returns they bring over row crops.
As for the market outlook on hazelnuts, the global demand is continuing to grow as hazelnut health benefits spread and as these nuts continue to develop as a key ingredient in many of our foods. With a CAGR of 10.1% during the forecast period 2020-2025 there is no wonder why hazelnut prices have only strengthened over the past 15 years.
Investing in Hazelnuts
We’ve seen demand for healthy foods, including hazelnuts, rise within the last decade as consumers become more aware of how their food is produced. Real assets, like tree crops, provide a hedge against inflation, and are an attractive investment for a diversified portfolio. As the trees produce nuts year after year, hazelnuts can be considered a safe asset to grow your wealth over the long term.