Turkey's hazelnut market has faced a major setback after Ferrero, the Italian maker of Nutella, temporarily halted its purchases due to dwindling supplies and rising prices following severe weather and pest outbreaks.
According to foreign media, Telegrafi reports, frosts and pest infestations at the beginning of this year drastically reduced hazelnut yields in Turkey.
Normally producing between 600,000 and 700,000 tons a year, nearly two-thirds of global supply, the country's production is expected to drop to 500,000 tons or even below.
Provincial data from the Ministry of Agriculture estimates around 450,000 tons, while Ulubey FISKOBIRLIK President Cemil Temiz said the real figure may not exceed 300,000 tons.
Meanwhile, Giles Hacking, founder of London-based supplier CH Hacking & Sons, said the price of shelled hazelnuts had almost doubled, rising from $9,000 to $18,000 per tonne since July.
As media outlets point out, small producers in Turkey are reportedly holding onto their stocks, rejecting Ferrero's low-price offers.
Meanwhile, Ferrero is postponing purchases, waiting for prices to stabilize.
Marco Botta, head of the hazelnut procurement division, said that Ferrero is currently being supplied with hazelnuts from Chile and the United States, where the company has expanded production capacity over the past two years.
Despite the pause in purchases, he added that Ferrero remains committed to long-term investments in Turkey, even without a formal agreement with the Turkish Cereals Board (TMO). /Telegraph/
