Oregon's Hazelnut Growers Overcome Barriers

Oregon became America’s hazelnut capital more than a century ago, partially because of what it didn’t have that other areas did: a tree-killing fungus.

But that advantage didn’t last.

Eastern filbert blight, which native hazelnut trees tolerate but which kills European varieties many growers prefer, was accidentally introduced in Oregon in the 1950s. Producers in the state’s Willamette Valley, which had previously benefitted from its geographic isolation, could only watch and wait as the fungus crept across the region.

Nik Wiman, Oregon State University: “It slowly started to move through our industry in the Willamette Valley in the ‘80s through up til recently. But already we had so much infrastructure built around hazelnut production that hazelnut growers really wanted to come up with a solution to that problem.”

Oregon State University researchers set out to breed hazelnut varieties more resistant to the blight. After decades of plant breeding, they succeeded, releasing key new resistant varieties starting in 2008.

Miller Hazelnut Farms, a family operation that has been growing hazelnuts near Hubbard, Oregon since 1944, replaced 16 acres of wheat and seed crops with the new resistant trees. Matt Miller and his family would later add more resistant trees to the mix. 

Matt Miller, Miller Hazelnut Farms: “So now eastern filbert blight wasn’t as much of an issue. So … at that time, grass seed, which is a big crop here in the valley - we’re known as the grass seed capital of the world here - a lot of grass seed markets were in the tank. So they just started planting acres and acres and acres of hazelnuts.”

As hazelnuts can take from seven to 10 years to hit full production, USDA’s count of “bearing acres” shows a notable increase beginning about a decade after the resistant varieties were released. The acreage grew 206% between 2009 and 2024, climbing from 28,700 acres to 88,000 acres.

But success brought new vulnerability. As most of those new orchards were fitting full production volume, President Trump’s first trade war began, setting off a series of events that caused hazelnut prices to drop dramatically.

Matt Miller, Miller Hazelnut Farms: “Historically, Oregon has had a niche market in China for the in-shell hazelnut market. So we sell nuts to China just like this, not shelled. So there’s like a - I think it’s northeast of Beijing - there’s like a cultural area there that they view hazelnuts as sacred. And they liked Oregon hazelnuts because of their size. They’re big. They’re really attractive looking and the quality is the best in the world. So Oregon had this little niche market that was 25% above market price roughly, depending on the year. So at the start of the trade war, we lost 40% of our gross revenue because of that.”

A trade route that had previously allowed the hazelnuts to reach China indirectly without getting hit by a tariff was now closed off.

To add insult to injury, Oregon State experts confirmed in 2024 that the blight had mutated, overcoming the resistance gene in the specially bred hazelnut trees.

Nik Wiman, Oregon State University: “Recently we are learning that there have been some genetic changes in the disease itself that have allowed it to overcome the resistance gene that we relied heavily upon. So we are still really depending on improving our genetics for the long-term sustainability of this industry.”

If Oregon hazelnut growers, who produce 99 percent of the U.S. crop, have proven anything, though, it’s that they don’t give up easily.

Recently, prices have rebounded. The country of Türkiye, the world’s largest hazelnut producer, responsible for about 70 percent of the planet’s crop,  experienced a spring frost and drought, damaging the country’s nut production. In Oregon, these overseas negative weather events helped boost hazelnut prices  by about 40 percent over last year.

Market demand has also begun to shift from  in-shell to shelled hazelnuts. About half of U.S. hazelnuts are still exported, with Canada now the biggest buyer.

Ferrero Hazelnut Company, the Italian maker of the hazelnut spread Nutella and hazelnut chocolates, is the biggest single buyer of Oregon hazelnuts. It announced in November 2024 that it was investing $170,000 toward hazelnut research at Oregon State and a similar amount was sent to Rutgers University. 

Oregon State feels confident they can use biotechnology to accelerate their traditional plant breeding program. Wiman said they hope to then produce trees with multiple genes of resistance through natural plant breeding.

Nik Wiman, Oregon State University: “With gene editing or genetically modified, we still feel that the consumer is not going to be open to either one, especially our target European market. So we’re very cognizant of that. And we are going to use those tools to their greatest effect to assist that traditional breeding program.”

In the meantime, orchard owners can prune and use fungicides to help keep infected trees for much longer than they would have in the past.

Matt Miller, Miller Hazelnut Farms: “Right now what we have going is we have the tools in the toolbox. Forty years ago, when we as an industry first faced this issue, we didn’t know what sprays worked, we didn’t know how to control it. … Now we know how to battle it…. There is blight in these trees, but, depending on how you manage it determines if it will last seven years once you get the blight or 35 years, all on how you manage it.”

Miller has learned that careful planning and patience is key.

Matt Miller, Miller Hazelnut Farms: “I mean all farming is a long-term play, but this is really a long-term play…I mean you plant an orchard and it’s, like I said, ten years to recoup your investment. But farming is the school of hard knocks, no matter how educated you are.”

By Colleen Bradford Krantz, colleen.krantz@iowapbs.org