International Programs

The hazelnut market has been on an upward trend with increased consumer demand which has encouraged producers from several countries to enter the industry. Perhaps the most notable of these countries is Chile, whose ideal climactic conditions for hazelnut production, and potential organic production, has sparked investment from both domestic and foreign participants, the local Chilean farmers, who have already proven they can produce quality hazelnuts, are eager to find buyers for their product. The most probable buyers of Chilean hazelnuts are European food processors. The relatively small size of these particular farmers operations hinders their ability to enter the foreign market. This inability to market internationally, along with the high cost of hazelnut production, has prompted the idea of cooperative organization. This study shows that the costs and returns of hazelnut production in a cooperative are preferable to the costs and returns of hazelnut production outside a cooperative; however, establishing such a cooperative proves to be difficult for several reasons. Overall cultivation problems, a lack of cultivation history, a lack of potential management and a lack of committed potential members prevent the establishment of a marketing cooperative among the Chilean farmers. Each of these problems can be overcome with a systematic approach, but first requires an increased commitment level to hazelnut production from the local growers.