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NDTV
04-07-2025
- Business
- NDTV
Nutella Fans Brace to Pay More As Frost Hits Turkish Hazelnut Harvest
First olive oil, then cocoa and coffee. Now a fresh supply squeeze is set to hit another food pleasure - the hazelnuts that go into making the chocolaty Nutella spread. Wholesale prices in Turkey, which accounts for around 65% of global hazelnut output, have jumped by around 30% since April following the country's worst spring frost in more than a decade. And they are expected to continue rising, according to data from agricultural intelligence firm Expana. "Fluctuations in Turkish supply and pricing ripple through the entire market," the International Nut and Dried Fruit Council, an umbrella body for the industry, said. Some alternative supply is available from smaller producers Italy, the US and Chile, "though not enough to fully offset Turkey's dominance." Some hazelnuts farmers have lost 50%-100% of their crop, according to Turkey's National Hazelnut Council. Turkey accounts for around 65% of global hazelnut output. That could be bad news for the world's biggest buyer, Italy's Ferrero SpA, which takes around a quarter of Turkey's crop to make products like Ferrero Rocher chocolates and Nutella. Hazelnuts constitute 13% of the spread's ingredients, and it produces millions of jars each year. Weather events including the frost "can have an impact" on Turkish production, the confectionery maker said in a statement, but added that that it didn't expect disruption to supplies, citing alternative sources from Italy, Chile, and the US. It's yet another reminder of how vulnerable the world's food supplies - from treats such as Nutella to essentials like wheat - remain to climate change. Prices of coffee and cocoa have soared - buffeted by unpredictable weather. Olive oil supplies have been hit as heat waves across southern Europe have intensified. Brazil, one of the world's top crop exporters, was hit by the worst drought in its history last year. Turkish Hazelnut Price Jumps After Frost Hits Harvest "In recent years, especially due to climate change, temperatures have been high in the winter months and fruit trees have been waking up early," the head of the country's Agricultural Engineers Association was reported as saying. "Therefore, early spring frosts, which we did not talk about much in previous years, have now started to pose a major risk for fruit growing." Some farmers growing hazelnuts at the highest altitudes have lost between 50% to 100% of their crop, according to Cem Senocak, who heads the National Hazelnut Council. Political Cost The damage to the hazelnuts could also pose a political problem for President Recep Tayyip Erdogan. Around 450,000 families depend on the crop for their livelihoods, concentrated in the northern Black Sea provinces that are a key stronghold of support for Erdogan, who hails from the region. The president personally announces the price that the state grain board will pay farmers each year, and disappointing prices have, at times, translated into lost votes at elections. The unseasonable cold snap also risks pushing up Turkey's food prices more broadly, the central bank warned in its latest inflation report, complicating efforts to rein in 35% price growth. Seeking Profits Still, some investors are looking for ways to profit from the shortage. Finnish asset manager Evli said it has added Turkish hazelnut processing company Balsu Gida Sanayi ve Ticaret AS to its Emerging Frontier fund, predicting that wholesale prices for the nut could rise fivefold over the next year based on an analysis of the impact of previous frosts and growing pest infestations. Turkey's main exporter group has already slashed its forecast for this year's harvest - which runs from August to September - by a fifth to 609,000 tons. "There simply is no place to get these missing hazelnuts from at scale until the next year's harvest in Turkey in August 2026," Burton Flynn and Ivan Nechunaev, investment advisers to the fund, wrote in a blog post last month.
Straits Times
04-07-2025
- Business
- Straits Times
Nutella fans braced to pay more as frost hits Turkish hazelnut harvest
Sign up now: Get ST's newsletters delivered to your inbox Hazelnuts constitute 13 per cent of the spread's ingredients, and millions of jars are produced each year. First olive oil, then cocoa and coffee. Now a fresh supply squeeze is set to hit another food pleasure – the hazelnuts that go into making the chocolaty Nutella spread. Wholesale prices in Turkey, which accounts for around 65 per cent of global hazelnut output, have jumped by around 30 per cent since April following the country's worst spring frost in more than a decade. And they are expected to continue rising, according to data from agricultural intelligence firm Expana. 'Fluctuations in Turkish supply and pricing ripple through the entire market,' the International Nut and Dried Fruit Council, an umbrella body for the industry, said. Some alternative supply is available from smaller producers Italy, the US and Chile, 'though not enough to fully offset Turkey's dominance'. That could be bad news for the world's biggest buyer, Italy's Ferrero, which takes around a quarter of Turkey's crop to make products like Ferrero Rocher chocolates and Nutella. Hazelnuts constitute 13 per cent of the spread's ingredients, and it produces millions of jars each year. Weather events including the frost 'can have an impact' on Turkish production, the confectionery maker said in a statement, but added that that it didn't expect disruption to supplies, citing alternative sources from Italy, Chile, and the US. It's yet another reminder of how vulnerable the world's food supplies – from treats such as Nutella to essentials like wheat – remain to climate change. Prices of coffee and cocoa have soared – buffeted by unpredictable weather. Olive oil supplies have been hit as heat waves across southern Europe have intensified. Brazil, one of the world's top crop exporters, was hit by the worst drought in its history in 2024. 'In recent years, especially due to climate change, temperatures have been high in the winter months and fruit trees have been waking up early,' the head of the country's Agricultural Engineers Association was reported as saying. 'Therefore, early spring frosts, which we did not talk about much in previous years, have now started to pose a major risk for fruit growing.' Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: 9 financial institutions handed $27.45m in MAS penalties over breaches Singapore Seller's stamp duty hike will curb short-term speculation; market effect likely minimal: Analysts Singapore NTUC says some foreigners taking on platform work illegally, calls for work group address issue World Trump says countries to start paying tariffs on Aug 1, floats range of 10% to 70% Singapore Sengkang murder: Man accused of killing elderly mother escorted back to crime scene Singapore Tourism bump from Lady Gaga concerts raked in up to estimated $150m for Singapore economy Singapore Jail for man who recruited 2 Japanese women for prostitution at MBS Life Book review: OB Markers sequel Ink And Influence makes catch-22 proposal for The Straits Times Some farmers growing hazelnuts at the highest altitudes have lost between 50 per cent to 100 per cent of their crop, according to Mr Cem Senocak, who heads the National Hazelnut Council. Political cost The damage to the hazelnuts could also pose a political problem for President Recep Tayyip Erdogan. Around 450,000 families depend on the crop for their livelihoods, concentrated in the northern Black Sea provinces that are a key stronghold of support for Erdogan, who hails from the region. The president personally announces the price that the state grain board will pay farmers each year, and disappointing prices have, at times, translated into lost votes at elections. The unseasonable cold snap also risks pushing up Turkey's food prices more broadly, the central bank warned in its latest inflation report, complicating efforts to rein in 35 per cent price growth. Seeking profits Still, some investors are looking for ways to profit from the shortage. Finnish asset manager Evli said it has added Turkish hazelnut processing company Balsu Gida Sanayi ve Ticaret AS to its Emerging Frontier fund, predicting that wholesale prices for the nut could rise fivefold over the next year based on an analysis of the impact of previous frosts and growing pest infestations. Turkey's main exporter group has already slashed its forecast for 2025's harvest – which runs from August to September – by a fifth to some 609,000 tonnes. 'There simply is no place to get these missing hazelnuts from at scale until the 2026's harvest in Turkey in August,' Mr Burton Flynn and Mr Ivan Nechunaev, investment advisers to the fund, wrote in a blog post in June. BLOOMBERG
New Indian Express
19-06-2025
- Business
- New Indian Express
Nuts about cashews! India emerges largest consumer globally
KOCHI: Indians are munching on cashew nuts like never before. Now, India accounts for more than 30% of the world's processed nuts or kernel consumption. And the demand for nuts, whole or broken, is surging at a phenomenal pace, driven largely by the bakery and snacking industry. According to the International Nut and Dried Fruit Council (INC), the country's insatiable appetite for cashews touched 3.76 lakh tonnes in 2024, and shows no signs of slowing down. For good measure, the projected annual growth in demand stands at 8%. 'The world now looks to India for growth in the nuts and dry fruits market,' INC director Pratap Nair told TNIE. He says the Indian middle class has developed a taste for cashew nuts, not just as a snack but also as an ingredient in baked goods and other food items. 'Take Kaju Kathli, for instance: it has become one of the most popular sweets in the country, both as a gift and for personal consumption, and the demand for roasted cashews to make it is skyrocketing,' said Pratap, who is also a representative of Vijayalaxmi Cashew Company (VLC), one of India's oldest and largest cashew exporters. He noted that post-pandemic, Indians have developed a voracious appetite for snacking on cashews despite their premium price tag of around Rs 1,200 to Rs 1,500 per kilogram for whole nuts. According to INC data, India accounted for 13.5% of global raw cashew production, 36.5% of global processing share, and a staggering 30.5% of total global cashew consumption in 2024. 'The domestic demand for cashews has exploded with the growth of the bakery and snacking industries,' said Hari Nair, of Western India Cashew Company. 'Cashews are an integral part of namkeens (savouries), sweets, and even temple offerings. In fact, the Tirupati temple alone is one of the largest consumers of cashews, using them to make laddoos that are in huge demand among devotees.' Burgeoning domestic consumption has also led to a change in the dynamics of the industry, which was once clustered around Kollam, known as the cashew capital of the world. Swaminathan, a native of Tamil Nadu, established the first cashew processing unit in 1925.
