The price of this important ingredient in the production of products such as the famous Nutella chocolate cream has increased by over 35% since April
Summary
The frost in Turkey, the largest world hazelnut manufacturer, has caused an increase of over 35% of the fruit price since April, influencing the cost of desserts and products such as Nutella, with possible lasting impacts due to climate change.
A frost devastated the hazelnut harvest in Türkiye, the largest fruit supplier in the world. If the cocoa price was not enough, the market is preparing for the impact on Nutella costs and on the candies that use hazelnuts. After coffee and cocoa, it is now the turning point of hazelnuts. The price of this important ingredient in the production of products such as the famous Nutella chocolate cream has increased over 35% since April. The reason is a rare frost – from climate change – which devastated hazelnut plantations in Türkiye, the largest supplier in the world.
The registers already show that the price of a kilo of Turkish hazelnuts exceeded 4.91 dollars, the equivalent of almost 27 reais per kilo. It is expected that it will reach $ 10 per kilo (54 reais).
This lack of hazelnuts should mainly affect the production of candies.
The ingredient
Although not most of the hazelnuts, they are a key ingredient in many products considered gourmet and consumed on a large scale all over the world.
For brands such as Ferrero, which produces Nutella, the damage can be enormous because they use about a quarter of the global supply of hazelnuts. This fruit represents about 13% of the Nutella hazelnut cream recipe. Millions of vases are sold every year, which means that even a small increase in prices increases production costs and reduces the margin.
If the scarcity of hazelnut remains constant, Ferrero and other candy producers can be forced to reformulate their recipes. The manufacturers may have to reduce the size of the product or pass the costs to the final consumer, and this is missing only just over four months at Christmas.
Shortage
Ferrero is a company with roots in the Piedmont region in Italy, where high quality hazelnuts of the “Tonda Gentile” variety are grown. This nut is called because it is “round and kind”, describing the rounded format of the fruit in Italian. In addition to Italy, Ferrero matters hazelnuts from Türkiye, Chile and the United States.
The Italian food giant also produces Ferrero Rocher chocolates, Kinder Bueno and Mon Cheri. Everyone is made with hazelnut.
In a DW declaration, the company has minimized concerns about the scarcity of the fruit in question: “The Ferrero group has different suppliers all over the world and, thanks to its long -term strategy, the group does not count on any interruption in the supply of its products”.
The harvest
Turkish Statistics Institute (Turkstat) estimates indicated in June to a harvest of 520,000 tons for this year, against the initially expected about 750,000 tons. So this number was revised.
The International Council of Nuts and Essicied Fruits (inc) informed DW that the frost in Türkiye has reduced the hazelnut harvest scheduled until 2025 by almost 22%. We are talking about 601 thousand tons with Peel, citing a more optimistic projection of the Esports Association of the Black Sea (Kib).
The most recent estimate suggests that Turkey has lost about 167,000 tons due to the frost, according to the inc – which approaches the initial forecast of 250 thousand tons (revised number).
According to inc, Turkey has retired part of its 2022 harvest (about 150,000 metric tons), which should help reduce the lack of hazelnuts this year. But this amount has now run out.
The hazelnuts are collected every year, usually at the end of the summer in the northern hemisphere. And every time there is more harvest than expected, Turkey stores an excess harvest for a future sale, since farmers provide higher prices.
Level change
In order to reduce Türkiye’s dependence, small and large companies are now keeping an eye on the hazelnuts of countries such as Chile, Georgia and the United States. But they also expect prices to set themselves if the Turkish harvest of 2025 is better than expected.
“The collection of hazelnuts in Türkiye has just started and should be completed in mid -September,” said the German association of BDSI candy producers in DW to a note.
Bdsi said he could evaluate the impact only after the end of the harvest.
Strategies
Other regions that produce hazelnuts also face challenges. Chile and Georgia produce much less than Turkey; And the hazelnuts of the United States, in particular Oregon, have a different flavor and cost less. The increase in production elsewhere takes a long time, since hazelnut trees need 5-7 years to mature, which actually limits short-term relief.
Some believe that the fact that Turkey announced a basic price for hazelnuts last year, with a certain delay, ended up leaving a gap for speculators and exporters.
The Kib Association usually defines a minimum price at the beginning of the harvest to stabilize the market and guide the expectations of farmers. But the lack of a basic price – in 2024 – increased the fear of scarcity, increased prices and caused panic purchases. By creating an opportunity to profit, the farmers kept their actions, which ended up further limiting the hazelnut offer.
Is scarcity the “new normality”?
Scation also exposes a deeper vulnerability: the fragility of the sectors that depend on agriculture regarding the effects of climate change.
The hazelnuts are particularly sensitive to the spring frosts of the northern hemisphere and the cold wave of this year in Türkiye is a warning that the climatic crisis is not only heat, but also unpredictability.
Coffee and cocoa have recently dealt with climate problems. Now, with the scarcity of hazelnuts, in particular the smallest companies will be required to rethink the ingredients of their desserts and where their supplies will arrive.
Experts warn: the unstable climate can become increasingly common, threatening not only hazelnuts but also almonds and nuts.
Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
