Cobnut Orchards

We are very interested in supporting the establishment of commerical-scale cobnut orchards. To date, we are helping with the establishment of a number of nut orchards in different parts of Ireland. The largest of these orchards, in Wicklow, has involved around 800 nut trees.

Once the trees reach full bearing-potential, average annual yields of 2.5 per tree can be expected. At a planting density of 12-20m² per tree, this gives 500-830 trees per hectare planted (200-330 trees per acre) with an annual yield of 1250-2000 kg per hectare of trees. Even taking the lower figure, this provides a very good return. Nut orchards that are well managed should exceed these yields.

As it can take up to 12 years for cobnut trees to reach the start of their production plateau, we strongly recommend planting well developed 3, 4 or even 5 year old container-grown trees, that have the potential to begin nutting immediately. The 150-180cm container-grown trees we supply have good side branch development and have the potential to nut from the very first year. By comparison, young cobnuts trees will require several years before side branches begin to develop. The younger trees also require a lot of maintenance in the first few years and particularly dislike competition from weeds.

We also stock larger container-grown trees, which will begin producing good nut crops even sooner after planting. We also offer reasonable discounts for large planting schemes. Please enquire for further details.

We provide a full consultancy service, including detailed site assessment, site preparation and planting services, annual pruning, and after-sales support.

Commericial possibilities for cobnut orchards in Ireland

Recent research carried out by us has shown the most viable size for a cobnut orchard is probably between 1.0 and 2.5 hectares.

Economies of scale tend to favour the larger area. Further economies of scale could apply to even larger orchards, although this is unclear as reduced unit production costs may be offset by the extra transport costs incurred by having to access more distant markets. Allowing for set-up costs being spread over 25 years, the return per hectare (the total area, not the area within the plot that is planted in nut trees) after all capital expenditure, maintenance, harvesting and marketing costs are factored in, is around €700-950 per annum in the case of the 1.0 hectare plot, rising to €1100-1450 per hectare per annum per with the 2.5 ha plot. Estimates of market prices are based on the price for unshelled nuts. However, shelled nuts command far better prices (see below).

Plots of under 1.0 hectares in size may also be commercially viable, but the margins become significantly tighter as the some of the set-up and maintenance costs are proportionately much higher. The cut-off point for commerical viability may be around 0.5-0.6 ha (1.25-1.5 acres). Orchards smaller than this may work best when geared towards domestic consumption combined with occasional sales, and may still produce a reasonable cash return in good years.

Set-up costs are in the region of €10,000-18,000 for a 1.0 ha (2.5 acres) plot. The higher figure is applicable to land requiring shelterbelt protection, ploughing, manuring, re-sowing in a cover crop such as clover, and the provision of new stock-proof fencing. The lower figure is for sheltered ground which is not accessible to livestock and which requires little in the way of remedial work or fencing. The cost of the trees and of all work associated with planting is included in the estimates.

Land-owners may reduce costs by carrying out much of the preparation and planting work themselves. However, it is likely be beneficial to have professional advice prior to work commencing. Conventional tree-planting protocols used in forestry plantations are completely inadequate for cobnut orchard establishment.

Further savings may be made by planting young barerooted trees, but this will lengthen the pay-back time.

More information can be found in our recently updated 27 page technical document, Growing Nuts in Ireland: An examination of the commercial potential of cobnuts (version 4.1 January 2012), available (free) in pdf upon request.

Market prices for hazelnuts/cobnuts

The prices below are typical in Ireland in 2009:

Retail price, shelled, packed: €18-25/kg
Wholesale to retail outlets, packed and shelled: €13-18/kg
Bulk price, shelled: €10-12/kg
Retail price, loose, unshelled: €6-8/kg
Bulk price, loose, unshelled: €4-6/kg

Prices quoted are for organic nuts

Size of market: National, County level and local

National:

Irish market, hazelnuts in shell: 60-90 tonnes per annum (CSO 2007-2009)
Irish market, shelled hazel nuts: 160-320 tonnes per annum (CSO 2007-2009)

County level (for example County Mayo):

Mayo market, nuts in shell (estimate): 1-2 tonnes per annum

Local level (for example West Mayo):

Westport/Newport/Castlebar market, nuts in shell (estimate): 500-1000 kg per annum

Further information on commerical nut orchards

We provide a comprehensive consultancy service and can undertake site assessments and feasability studies, as well as assisting with funding applications.

Nut orchards may qualify for assistance under the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector.

This scheme falls under the remit of the Irish National Development Plan 2007-2013. Nuts are listed among the categories of crops that are considered ‘horticultural’. The minimum investment that will be considered for grant aid is €10,000. Among the pre-requisites is demonstration of the financial viability of the proposal. The level of grant aid is normally 40 percent. The grant can cover the cost of trees, ground preparation, and establishment of shelterbelts.

Applications are taken on a year-by-year basis. Further details can be found in the link below or at www.agriculture.ie

Scheme of Investment for the Development of the Commerical Horticulture Sector (2012)

The deadline for applications for this year is 10th February 2012