Turkiye Warns Ferrero Over Hazelnut Purchases
Turkiye has warned Italian food giant Ferrero over its decision to cut hazelnut purchases from local farmers. The government said the company could face heavy fines if it fails to meet buying obligations.
According to Turkish media, Ferrero plans to scale back purchases due to rising prices and poor harvests. Unfavorable weather and limited supply have pushed prices higher, making hazelnuts more expensive for the company.
Hazelnuts and Local Economy
Hazelnuts are a vital part of Turkiye’s agricultural exports. The country produces around 70% of the world’s hazelnuts, many of which are used in Ferrero’s famous Nutella spread.
However, Turkish growers have long accused Ferrero of keeping prices low despite global demand. Farmers say the company’s buying practices affect their income and the local economy.
In response, the Turkish Competition Authority issued a clear warning. It stated that Ferrero must buy at least 30,000 tonnes of in shell hazelnuts between September and December. The agency added that the company usually has an obligation to purchase around 45,000 tonnes a year.
If Ferrero fails to meet this quota, the authority said fines could follow. This decision aims to protect local producers and stabilize the market.
Rising Tensions Over Supply
The issue reflects growing tension between global food companies and suppliers facing climate related challenges. Bad weather, including heavy rain and frost, has damaged hazelnut crops in recent seasons. As a result, prices have surged while overall quality has declined.
Ferrero, which makes Nutella, Ferrero Rocher, and other popular sweets, has not yet commented publicly. The company relies heavily on Turkish hazelnuts for its production lines worldwide.
Experts believe this conflict could push Ferrero to explore alternative sources. However, replacing Turkiye’s supply would be difficult given its dominance in the market.
Turkiye, on the other hand, wants to protect its farmers and ensure fair trade. Officials said they will monitor Ferrero’s actions closely in the coming months.
