Walnuts are an almost zero-waste crop. And income can be generated not only from selling the kernels. Oil is pressed from them, macerates are produced, while the press cake left after pressing is processed into flour and other food products. Even green walnuts, partitions, shells and leaves can be put to use. Thus, a single harvest can provide a producer with several value-added products at once.
But there is a «however.» A walnut orchard requires significant investment at the outset, and it takes years to recoup it. The first substantial harvest is obtained only after 6–7 years. If the business model involves only growing and selling walnuts as a raw material, a full economic return can be expected approximately in years 12–13.
Therefore, processing can become a solution for small farms.
This is the path taken by Petro Skrypchuk from Rivne Region — Professor, Doctor of Economics at the National University of Water and Environmental Engineering (NUWEE), Head of the regional branch of the Ukrainian Nut Association, and a farmer. Together with partners, he grows walnuts, and in 2024 began processing them into cold-pressed oil.
The producers grow their own planting material at the BIO TRIO farm in the Krupets community together with farmer Mykhailo Pakush (the farmer’s family is currently serving in the Armed Forces of Ukraine). During this time, the team also completed the procedure for registering its own walnut variety, Soika. The process took around three years and cost UAH 30,000.
«Variety selection is particularly important for walnuts. The crop is highly dependent on regional adaptation, so producers are increasingly focusing on local planting material suited to specific climatic conditions,» Petro Skrypchuk explains.
Overall, the farms can jointly harvest up to 4 tonnes of walnuts. However, quantity is not the only thing that matters to producers. Having their own raw material base makes it possible to control the variety, growing conditions, the timing of shelling and kernel storage.
It was precisely this control over the entire product life cycle that became the foundation of the further business model: from the orchard to your table.
For cold pressing, they mainly use «butterfly» kernels — whole walnut halves (the timing of shelling and storing the kernels at a temperature of around 0°C are particularly important). They do not use broken pieces: crushed kernels have a larger surface area exposed to air and therefore oxidise faster.
However, immediately before pressing, the kernels are still crushed. One loading of the press and the oil pressing process take up to an hour. The raw material can be pressed again to increase the oil yield by a further 25%.
After pressing, the oil is left to settle in a refrigerator for approximately a day, after which it is bottled and sealed. Around 700 litres of finished product are produced per year.
A 250 ml bottle costs around UAH 300.
«Due to the weaker harvest last season and losses from frosts this year, the market price of walnuts increased from UAH 200 to UAH 400/kg. But we have managed to keep our price stable thanks to our own stocks,» the farmer notes.
The economics of production do not end once the oil has been extracted from the kernels. After pressing, a defatted walnut mass remains. It is sold in the form of flakes, which people then grind further into flour or consume with muesli and porridge, use for breading cutlets, make halva or nutritious bars, and so on.
The team does not yet plan to increase production. This would require a separate processing facility and new equipment, which means additional investment. Therefore, they first want to establish stronger sales and make sure that larger volumes of products will have regular buyers.
«We sell all our products through personal and specialised social media: Facebook, Instagram, TikTok, as well as at exhibitions and fairs. People already recognise us and make repeat purchases. The main drivers of successful sales are quality, life-cycle control, made-to-order production, and support for the Armed Forces of Ukraine (we provide products free of charge for treatment and health improvement, as cold-pressed oil has a number of unique properties known in the treatment of heart diseases, digestive organs, and so on),» the craft producer notes.
They also produce macerates. These are oils with various plant additives or products of walnut kernel processing. The maceration processes are currently undergoing patenting. Macerates are made to order to enhance the benefits of the oil through various physical processes during production. All maceration processes are studied using walnuts of their own production, which is extremely important for promising business areas such as dietary supplements, specialised food products and others. They also cooperate with original restaurants on the use of their products.
«Our mission is to focus on the conscious consumer. Our main target audience is people who understand the impact of their purchases on their own health, the natural environment and society,» Petro Skrypchuk adds.
According to his observations, few new walnut orchards are currently being established in Ukraine. The main reason is the long wait for a return on investment. Instead, producers are showing greater interest in hazelnuts, which begin bearing fruit earlier. Almond orchards are also being established in Ukraine, but again, this business is only at an early stage.
There is another problem as well. A significant share of walnuts in Ukraine is still harvested by households from trees in their yards. They are then purchased, consolidated into large batches and sold, including for export. It is difficult for a farmer who has invested money in establishing a professional orchard and spent years maintaining it to compete with such a market, which is why processing is becoming one of the ways to earn more from their own harvest.
For reference: CraftUP Ukraine is an educational and grant project for craft food producers organised by the online publication AgroPortal.ua with the support of the Government of the Kingdom of the Netherlands in Ukraine. The project consists of several stages. The first was a study of Ukraine’s craft production market, based on the results of which a training programme was developed. Its participants included 40 craft producers from different regions of Ukraine.
Following the educational stage, 10 finalists were selected and are now preparing for the final presentation of their business projects. On September 15, they will present them to the Expert Council. At the same time, the CraftUP Ukraine team is introducing the audience to the stories of all the finalists.
Information about the project is available on the page of the Embassy of the Kingdom of the Netherlands in Ukraine
Ivanna Panasiuk, AgroPortal.ua
