Midwest Hazelnut Growers Trying To Crack The Market

Midwest Hazelnut Growers Trying To Crack The Market CROPS New Crops Two dozen Midwestern hazelnut growers have built a market for their nuts by creating demand before they have a supply Frustrated when selling their nuts at farmers markets without much return they banded together “The problem with getting a new crop established is we didn’t produce enough to establish processing and distribution ” says Brad Niemcek a founding member of the American Hazelnut Company AHC “In Wisconsin even cracking the nuts required a licensed facility ” Once they formed the company the growers worked with the Kickapoo Culinary Center The center is a food company incubator that rents licensed processing space to start-ups or small producers They also developed a relationship with large scale low cost hazelnut producers in Oregon “We have lowered our costs for reducing our nuts to clean kernels by 25 to 30 percent in the past few years but that still leaves the cost at around $11 per pound ” says Niemcek “In Oregon their costs are around a dollar a pound ” Blending nuts in a ratio of 10 to one Oregon to Midwest AHC gained a marketable supply and the lower costs needed to attract customers “Our first product was oil followed by non-gluten flour ” says Niemcek “As a result of the COVID-inspired home baking increase the flour may soon outsell the oil which is doing reasonably well also ” The difficulty AHC faces with oil is to break into the market and earn shelf space He explains that grocers want a fast turnover and are skeptical that a few bottles of a new oil will compete against 6 to 10 ft of shelves filled with established oils Another problem for the growers is that the hazelnuts grown in the Midwest often produce less than a pound of nuts per bush In addition there is no such thing as a hazelnut bush harvester The AHC is working with the University of Wisconsin Extension to trial harvesters An even bigger problem is increasing the number of hazelnut producers “Most of the early innovators in hazelnut production in the Midwest are hobbyists and our median age is older ” says Niemcek who recently turned 80 “There are barriers to entry in terms of costs and time to establish bushes that deter young people We are trying to find ways to encourage new producers ” Niemcek believes the niche product has a future Several young people from large farming operations have joined AHC One is adding hazelnuts as an enterprise while the other is waiting for higher producing clones under development to be introduced “It will take about 6 years for the bushes planted this year to produce a significant number of nuts ” says Niemcek “However they should continue producing for more than 50 years ” Niemcek is optimistic about the introduction of a third product to the AHC brand “We are introducing roasted hazelnut kernels this year ” he says “They will be exclusively from our bushes not a blend ” AHC products are available at 45 food co-ops and other stores in Minnesota and Wisconsin and two in Illinois They are also available from the AHC website Hazelnut flour is priced at $15 95 per pound Oil is $15 95 per 8-oz bottle and kernels are $18 75 per pound Contact: FARM SHOW Followup American Hazelnut Co c/o Kickapoo Culinary Center 16381 Hwy 131 Gays Mills Wis 54631 ph 608 485-3413; americanhazelnutcompany@gmail com; www americanhazelnutcompany com

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