ich is responsible for 70 percent of the world’s hazelnuts may produce 30 percent less nuts hazelnuts than expected, Good Food reportsThe shortage has caused over a 60 percent spike in price for the nuts this year.
The news is getting Nutella fans worried, since Ferrero buys as much as a quarter of the world’s hazelnuts, and relies heavily on Turkey for supply.
But Nutella is able to somewhat protect itself from market pressures, since it acquired a Turkish hazelnut manufacturer Oltan Group earlier this year.
The Ferrero Group may also look to Australia for supply in years to come, as a subsidiary of the group, Agri Australis, established of a $70 million hazelnut production facility in Riverina, in December last year.
However harvest is not expected until March 2018, with hazelnuts hoping to be in full production by 2022.
