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TABLE OF CONTENTS
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Hazelnuts
General Description
Nut is a general term for the dry seed or fruit of some plants. While a wide variety of dried seeds
and fruits are called nuts, only a certain number of them are considered by biologists to be true
nuts. Nuts are an important source of nutrition for both humans and wildlife.
• Walnut
• butternut
• hazelnut
• pistachios
• oak
• wingnut
But for exporting we chose hazelnut, because this type is mostly available and harvested in
Georgia.
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The Common Hazel (Corylus avellana) is a species of hazel native to Europe and western Asia,
from the British Isles south to Iberia, Greece, Turkey and Cyprus, north to central Scandinavia,
and east to the central Ural Mountains, the Caucasus, and northwestern Iran.
Botany
Common hazel is typically a shrub reaching 3-8 m tall, but can reach 15 m. The leaves are
deciduous, rounded, 6-12 cm long and across, softly hairy on both surfaces, and with a double-
serrate margin. The flowers are produced very early in spring, before the leaves.Male catkins are
pale yellow and 5-12 cm long, while female catkins are very small and largely concealed in the
buds with only the bright red 1-3 mm long styles visible. The fruit is a nut, produced in clusters
of one to five together, each nut held in a short leafy involucre ('husk') which encloses about
three quarters of the nut. The nut is roughly spherical to oval, 15-20 mm long and 12-20 mm
broad (larger, up to 25 mm long, in some cultivated selections), yellow-brown with a pale scar at
the base. The nut falls out of the involucre when ripe, about 7-8 months after pollination.
It is readily distinguished from the closely related Filbert (Corylus maxima) by the short
involucre; in the Filbert the nut is fully enclosed by a beak-like involucre longer than the nut.[1]
Hazelnuts are rich in protein and unsaturated fat. Moreover, they contain significant amounts of
thiamine and vitamin B6, as well as smaller amounts of other B vitamins. Additionally, for those
persons who need to restrict carbohydrates, 1 cup (237 ml) of hazelnut flour has 20 g of
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Common Hazel is cultivated for its nuts in commercial orchards in Europe, Turkey, Iran and
Caucasus. The name "hazelnut" applies to the nuts of any of the species of the genus Corylus.
This hazelnut or cobnut, the kernel of the seed, is edible and used raw or roasted, or ground into
a paste. The seed has a thin, dark brown skin which has a bitter flavour and is sometimes
removed before cooking. The top producer of hazelnuts, by a large margin, is Turkey,
specifically the Ordu Province. Turkish hazelnut production of 625,000 tonnes accounts for
approximately 75% of worldwide production.[9] A large number of seeds are edible by humans
and used in cooking, eaten raw, sprouted, or roasted as a snack food, or pressed for oil that is
Harvesting
Hazel nuts are harvested annually in mid autumn. As autumn comes to a close, the trees drop
their nuts and leaves. Most commercial growers wait for the nuts to drop on their own, rather
There are three primary pieces of equipment used in commercial harvesting; the sweeper, the
harvester, and the forklift. The sweeper centralises the material into rows, the harvester lifts and
separates the nuts from the debris, and the forklift hauls the nuts away for processing. The
sweeper is a low-to-the-ground tractor that makes multiple passes up and down the rows with a 2
m belt attached to the front that sweeps leaves, nuts, and small twigs from left to right,
depositing the material in a row as it drives forward. On the rear of the tractor is a powerful
blower that pushes material left into the adjacent row with air speeds up to 90 m/s. Careful
grooming during the year and patient blowing at harvest can eliminate the need for hand raking
around the trunk of the tree where nuts can accumulate. The sweeper will prepare two rows at a
time as it goes up and down the rows. After its final pass, all the material on the ground has been
deposited in 60 cm wide rows for the harvester to process. It is best to only sweep a few rows
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ahead of the harvesters at any given time, as the rows are susceptible to moisture and parasites
over time.
Nutrition
Nuts in general are very nutritious, providing protein and many essential vitamins, such as A and
E, minerals, such as phosphorous and potassium, and fibre. Nuts are also high in carbohydrate
Whereas pulses all belong to the legume group of plants, nuts come from a variety of different
plant groups, so the nutritional content is more varied too. A brief description of individual
varieties is given below, together with the main nutrients they contain.
Storage
Nuts should be stored in cool, dry conditions in airtight containers away from the light. Because
of their high fat content, many of them benefit from storage in the fridge or freezer to deter
rancidity.
Corylus avellana), which are roundish, and Lambert's nuts (giant filbert, Corylus maxima),
Hazelnuts must be clean, tender and fresh to the taste and have a large kernel and a thin shell;
they must not taste bitter, sour or rancid. Mixtures of nuts from various years' harvests are
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inadmissible.
Hazelnuts may be kept for approx. 12 months at temperatures of -3 - 0°C [5] (cold storage) and a
Hazelnut kernels, on the other hand, may be kept for just a few weeks at temperatures of 2 - 8°C
and approx. 65% relative humidity. At room temperature there is a risk of the highly fatty
It is very important for the surveyor to ascertain the year of harvest: it must be taken into
consideration that the nuts may be mixed with nuts from the previous year's harvest. This
possibility must not be disregarded when determining whether or not loss has occurred in transit.
Nuts from the previous year's harvest have a tendency to beetle infestation and rancidity.
Quality parameters
• diameter
• dryness
• percentage of damage and injury of heart of hazelnut by insects and other mechanical
damages
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• percentage of underdeveloped heart of hazelnut
It’s strictly forbidden to mix the newly and old harvested nuts.
Due to the development of foreign laboratories , Georgian hazelnut exporting companies are
FUTURE PROSPECTS
World production has almost doubled in the last two decades. Throughout that period of time
Turkey has been the dominant producer and lastest crops indicate that still this country supplies
around 75 %. The rest is mainly produced in Italy (15 %), USA (4 %) and Spain (2 %). In the
last years, other countries such as Australia, New Zealand, Chile, Poland, etc., hazelnuts are
considered a potential new crop. Since 1990, world's production seems to be stabilized 500-
600.000 in shell, meanwhile consumption round 450-550.000 t in shell. It seems that in coming
year's Turkish production could become higher, although cultivation expansion has been
With respect to the consumption, an annual growth rate of 1 % to 2 % has been estimated for
hazelnuts in the near future. It is the result of a larger use in industrial products with hazelnuts
considered as another ingredient but not the main one. At the same time, hazelnut, as part of
Mediterranean diet, should profit from a beneficial image. Consumption in the United States,
Australia and Japan is expected to rise in the future, in the former as a result of promotional
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In recent ten years Georgian nut industry developed significantly. According to the present data
there is 13000 tones of hazelnut hearts. Basically the hazelnut is produced in western part of the
Georgia.
95 percent of Georgian hazelnut is successfully exported to the western and eastern European
2005 Georgia exported hazelnuts for 70,3 Mln. $. In 2006 besides the better harvest of
hazelnuts Georgia exported only for 56,6 Mln. $. Thus could be explained by dramatic drop in
prices. As we mentioned above price leader in hazelnut production is Turkey. Thus Georgian
producers only could follow the prices set-up by Turkish producers. To minimize the risks
Georgian hazelnut producers should move to the high value added hazelnut production sector.
For example hazelnuts roasted and salted, hazelnut pasta and oil. This high value added products,
have more stable prices. To produce high value added hazelnut products producers would need
to invest in production capacities ( new technological lines ,specialized equipment etc.). Besides
Georgian producers should concentrate on marketing efforts to enter the new segments, of the
high value added products which usually have very tough competition.
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Production of Georgian hazelnut
zemo
svaneti
others 1.4 1.5 1.2 1.0 0.9 1.1 0.6 2.7 1.1
We have already mentioned that Germany is one of the biggest producer and exporting country
of hazelnut. In this market importer, converters and intermediaries play the major role. Here the
tendency of importing the natural hazelnut heart is decreasing, although there is a great demand
The process of importation lasts for the whole year in Germany. There is a relatively high
demand on the Easter and Christmas. 70% of imported hazelnut is refined and rest is delivered
80% of refined hazelnut is used in the chocolate production, the rest is used to confectionary
businesses.
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Germany- Hazelnut Import
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Importers
Supermarkets
Wholesalers
Bars/Restaurants/Hotels
Catering
International trade
European Union is one of the biggest markets for hazelnut producing countries. Due to its trade
potential, import/export infrastructure and high local consumption, the major part of the products
Price of the Georgian hazelnut is relatively lower than of the Italian and Turkish product. But
There are many factors that influence the quality and the price of the hazelnut, therefore there are
• CENTIV
• ISPA-CNR
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• PROTECH
• RIHSC
• Turkey dominates world hazelnut trade and largely determines world export process.
Their largest export market is the EU. Turkey is trying to expand markets in Asia as well
• Virtually all of the expected USA production will come from Oregon. US exports will
• Italy's main export market is the EU. The EU program favoring domestic hazelnut
producers has expired and no new support actions have been adopted by the EU for the
hazelnut industry.
• Hazelnut exports in Spain are expected to decrease and imports to increase as a result of a
smaller crop. While there is no support program for tree nuts, the EU does have an
• Applications: Processed kernels include roasted, sliced, chopped, paste, meal and flour.
The confectionery and baking industries are the largest consuming industries.
Imports 2001-2005
Product group: 057 - Fruit and nuts (not including oil nuts), fresh or dried
Reporter Value Value Value Value Value
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2001 2002 2003 2004 2005
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
4,525,94
United States of America 4,870,694 5,260,713 5,762,267 6,385,680
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4,007,04
Germany 4,020,517 4,872,706 5,693,826 5,635,259
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United Kingdom of Great Britain & 2,494,67
2,778,407 3,249,808 3,829,660 4,234,311
Northern Ireland 2
2,095,97
France 2,247,489 2,870,629 3,282,286 3,399,614
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1,532,54
Belgium 1,801,590 2,365,865 2,837,720 2,960,733
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1,404,40
Netherlands 1,518,412 2,208,693 2,265,489 2,854,797
2
1,408,63
Canada 1,534,536 1,729,730 1,940,504 2,219,825
0
1,203,29
Italy 1,342,212 1,855,750 2,046,445 2,186,777
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Russian Federation 673,308 804,986 1,123,428 1,551,073 2,112,820
1,754,28
Japan 1,840,941 1,921,760 2,138,555 2,104,389
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Major exporters
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The major exporting countries are Turkey, Italy , Spain , USA and Greece. The relatively small amount
of Hazelnuts is exporte d
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Our suppliers
We choose to buy hazel nut from Guria region , specifically from Ozurgeti , the Tsitelsopeli and
Shemokmedi villages.
Our coordinator in this villages , who contacted the local people and is aware of the nut business
situation in Guria is Lika Megreladze. She has close contact to the local families and we decided
that it was better if she negotiated with farmers. In this villages the factor of trust is very
important and because of that we chose the person who already has a trust of these people.
We buy 20 tonnes of Hazal Nut from the following families ( all of them are farmers from
Jujuna Megrelazde
Robert Megreladze
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Mamia Esadze
Robinzon Esadze
Zaur Esadze
Germane Todradze
Soso Todradze
Bejan Todradze
Jondo Dumbadze
David Dumbadze
Badri Dumbazde
Zaur Miminoshvili
Vano Miminoshvili
Anzor Doborjginidze
Giorgi Chxartishvili
The realization of the hazel nut begins in the end of August and the beginning of September and
lasts till the end of December. We already contacted Lika Megreladze who negotiated with
farmers , all of them agreed to sell us the product but on the following conditions, the payment
They sell 1 kg. of hazel nut for 1.95 gel. So we should pay farmers 39000 Gel.
Farmers are against of any kind of contracts because they never had dealt before with such type
of payment forms, almost none of them have the account in the bank and they agree to sell their
The person who will give them the money will be Lika Megreladze , because they have trust
factor toward her and are sure that she will pay them the correct amount.
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The major problem associated with the hazel nut production is that after the nuts are picked they
should be dried , because if they are not dried they rot and go bad. The nuts should loose 20 – 30
Many newly formed Businesses didn’t know that it was necessary to dry the nuts in special
machinery and shipped the product with ships . The result was that the nuts rotted and damaged
In order not to face the same problems we contacted Zurab Vashalomidze , who agreed to rent
out his building with the drying machinery for 5 months . The cost of the rent is 400 USD for a
month.
We will place 20 tonnes of hazel nut in this building that is equipped with special machinery.
This machinery consists of the two roling plates, on them is installed the large flat material , on
this material are placed the nuts . Under it comes the heat and dries the nuts. The material moves
from one side to the other. In order to properly dry the production is needed 3 or 4 days.
After the hazel nuts are dried , they should be left in this building for some time , before they are
We can’t stay there are secure the product for this period ourselves , so we contacted the local
people and they agreed to secure our production . We agreed on the 100 USD a Month for each
In this period the security of hazel nut is very important , because the percentage of crimanl
increases significantly . For thiefs to steal the nuts is equal to steal the money from bank ,
because they can sell it the next day and no one will know whose nut is it, it is not car to have
numbers in order to recognize who’s car is it. So the realization of the stolen nut is as easy as the
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Our agent keti Sharabidze has contacted our client Tom Bakkelund , Harlem-food company
The major determinants of the hazelnut price are quality and environmental factors like climate.
Last years the major influence of the price change of the hazelnut were buyers and how much
were they willing to pay , but this changed this year because there were the great droughts in
Turkey and Greece so the great demand was on the Georgian nut . As the demand grew the price
raised from 1.80 to 2 .00 Gel in the period of September, October, November and to 4. 15 in
December.
Another determinant of price is the year period, typically the nut price per kg in autumn is 1.8-
1.95 Gel, but in December because of the new year and other holidays the price raises to 3.95 –
to 4.00 Gel.
Basically Turkish prices are 4.55 Euro per kg. In order to attract more customers should be
minimum by 20 percent lower. Our agent negotiated with our potential client and the price that
Labeling/ Packaging
We don’t have any label because we are just wholesalers and an intermediary between Gurian
farmers and German Company. The farmers advised that we packaged our production in jut
sacks , because they are more comfortable, and can contain from 30 to 40 kg nuts.
We negotiated with the bread selling shop and they agreed that they will give us 500 sacks made
from several layers of craft paper, for discount and each sack will cost us 35 tetri.
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Shipping arrangements
From incoterms we chose FCA , free carrier terms. We place the goods in the hands of the
carrier , the company “Multi Modal service” , and it provides the distribution of our product to
We negotiated with Mr.Merabishvili and the price of the fright is 4285 Euro.
The company “Multi Modal service ” provides the insurance of the Delivery. The delivery terms
are – after payment the company provides to deliver the production during the following week.
Because the period of delivery is very short , we do not need to rent ventilized vessel in order to
Financing Method
Taking into consideration that we are now beginning to operate in hazelnut market and our main
goal is to find wholesalers/ brokers abroad, our offer should sound attractive for them. Mainly
attractiveness is reflected in payment methods and we think exactly this will help us differentiate
We decided to offer open account , which is quite risky for us. But in order not to be in loss, we
demand 20% in advance and rest in specified time. This 20% exactly matches with our break
-even point. In our opinion this is best method, because we have to gain trustworthiness. In order
to eliminate risk our buyer should be well established, has a long and favorable payment record,
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The Sources of our Capital
After calculation of the amount of money we need to successfully operate this business, we
Therefore we provided our business plan to Mr.Irakli Kakabadze , the general Director of the
Invest bank.
Mr. Kakabadze is in the process of making decision , is it reasonable to give us a loan or not. But
BUSINESS PLAN
GEONUTS
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Description of the Business
We provide the following product , we buy the hazelnuts from Gurian farmers,(from villages
Tsitelsopeli and Shemokmedi) dry it in special machinery, provide security before the
‘Geonuts’ to become more stable there is needed some time . Because our company is newly
After the time passes we will gain loyalty of the foreign clients and the demand will grow
significantly.
our Service/Product
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Our compnay has a close realtionship with Gurian farmers . They have a trust factor toward our
coordinator Lika Megreladze , because she has a long lasting and successful business
relationship with them. This has a positive side for our company because the fraud from their
side is excluded.
There is favourable condition for our business because of the drought in Turkey and Greece the
Due to the great demand the price of the product has risen substantially in the foreign markets.
Our foreign clients will pay us the larger amount of some than in was in the last years.
Our potential clients are German and Swiss wholesale and confetionary companies.
We have a negotiation with Swiss copmany , they are in the process of making decision .
The major factor that there is a great demand on the Georgian hazelnut in the foreign market is
Also due to the unfavourable climate conditions in other Hazelnut producing countries the
Competition
Our main competitors are the Georgian wholesale companies , that resell the Hazelnuts from
There is also a black market in Guria , that is controlled by the officials with high positions.
Our competitors are also the Turkish and Greek wholesale companies .
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But for this year due to the drought in this countries the demand is on the Georgian Hazelnut.
The foreign wholesalers contact Georgian farmers and offer higher prices but there is not a large
amount that agree to have a business relationships with foreigners, because farmers don’t have
trust factor toward them and are unaware of the financial documents .
Location
It is the property of one of the managers , Irina Sakvarelidze. So we don’t have to pay the rent .
The building is equipped with the special machinery to dry the nights , the process requires 3
days.
Financial Part
We plan to take a loan from the bank. The building in Guria, equipped with drying machinery is
Other associated costs are the cost of the security ,electricity and shippment.
Detailed :
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Total Costs – 53740 Gel.
INCOME STATEMENT
Equipment……………………………………………………………………(175 Gel)
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