Inflation in Turkey, source of most of the world’s hazelnuts, is affecting farmers so badly that supplies will soon start to shrink.
Turkey produces about 70% of all hazelnuts; Ferrero Group purchases about a third of its production for Nutella, its signature breakfast spread, and other products. Increased prices for seeds, fertilizer and other necessities have cut into production to the point where products with hazelnuts might soon become scarce and/or expensive.
“If you are a Nutella fan, you better stock up at your next food-shopping visit,” a Turkish business consultant told the Wall Street Journal.
The problem is Turkey’s raging inflation, now standing at about 21%, which has caused the Turkish lira to lose 30% of its value in November alone. The situation affects hazelnut farmers in two main ways: by raising the prices of the supplies and labor they need, and by making it harder to export product, since purchasers keep asking for reductions in price every time the lira drops further.