Tensions are flaring between Ferrero and Turkish hazelnut exporters, in a tug-of-war that is inflaming global commodity markets. Due to a harvest compromised by a spring frost and the invasion of an Asian bug nicknamed "Sputnik," Turkish hazelnut production—which normally accounts for about two-thirds of global production—has plummeted from over 600 tons to less than 500, with some estimates putting the figure at as low as 300.
The supply squeeze has pushed international prices skyrocketing, nearly doubling in just a few months: from $9 to $18 per ton. Faced with the surge, Ferrero—which uses about a quarter of the world's hazelnuts for Nutella, Ferrero Rocher, and other brands—has decided to temporarily suspend purchases from Turkey, one of its main historical suppliers.
The decision, reported by Financial Times, has shaken the sector: many Turkish retailers are now stockpiling, convinced that the Alba-based company will soon be forced to backtrack. But a clear message is coming from the Piedmont headquarters. "We have sufficient coverage for the entire year and are in no rush to restock," said Marco Botta, general manager of the Ferrero Hazelnut Company.
The Piedmontese group, which has been pursuing a strategy of geographically diversifying its supplies for twenty years, can count on production facilities in Chile, the United States, Serbia, and Italy, established specifically to reduce dependence on the Turkish market. This far-sighted move is now proving crucial to maintaining the supply chain's stability.
Frost and pest infestation have severely impacted plantations on the Black Sea coast, where most of the crops are grown. The result is a crisis that is impacting thousands of small Turkish producers and agitating international financial operators, who are betting on further price increases.
Ferrero, however, doesn't seem inclined to give in to the markets' "blackmail." "Everyone plays their own game," Botta commented, "but we're ready to wait. Anyone who wants to sell us hazelnuts will have to be patient." A message that sounds like a warning to the entire industry: Nutella is not
