W12 Hazelnut Update: Turkish Hazelnut Exports Rise Amid Pricing Concerns, Ferrero Agrees to Fair Practices

Published 2024년 4월 1일

In W12 in the hazelnut landscape, Türkiye's hazelnut export performance in the first half of the 2023/24 season reflects a significant increase in volume but a decline in overall value, hinting at potential pricing challenges. While export volumes surged by 43.1% YoY, reaching 167.7 thousand mt, export revenue dipped by 10.5% YoY. Concurrently, the conclusion of the TCA’s investigation into Ferrero's hazelnut purchasing practices marks a notable shift, with Ferrero committing to fair pricing measures, ensuring equitable compensation for local producers. This resolution sets a precedent for ethical sourcing practices and highlights the potential for positive change in the agricultural sector through collaboration between regulatory bodies and multinational corporations.

Turkish Hazelnut Exports Up in Volume, Down in Value for First Half of 2023/24 Season

Data from the Black Sea Hazelnut and Products Exporters' Association (KIB) provided insights into Türkiye's hazelnut export performance during the first six months (September 1, 2023 to February 29, 2024) of the 2023/24 season. While export volumes have risen significantly, the overall value has declined, suggesting a potential decrease in average export prices.

Compared to the same period in the previous season, hazelnut export volume increased by 43.1% year-on-year (YoY), reaching 167.7 thousand metric tons (mt). Despite the volume increase, export revenue for the first half of the season stands at USD 1.213 billion, a decrease of 10.5% YoY compared to USD 1.036 billion in the same period of the previous season. Hazelnut exports in Feb-24 (25.6 thousand mt) remained relatively flat compared to Feb-23 (24.3 thousand mt), with export revenue in Feb-24 reaching USD 196.6 million.

Türkiye's Hazelnut Industry Secures Fairer Treatment: Ferrero Agrees to Equitable Pricing Practices

A recent investigation by the Turkish Competition Authority (TCA) into the practices of Italian confectionery giant Ferrero regarding hazelnut purchases has concluded successfully. This development signifies a significant shift in the dynamics between the multinational corporation and Türkiye's hazelnut producers. The TCA launched the investigation in 2022 in response to complaints from local hazelnut farmers. These complaints centered around accusations that Ferrero, a major buyer of Turkish hazelnuts for over three decades, was leveraging its dominant market position to unfairly influence hazelnut pricing. Hazelnut exports are a crucial component of Türkiye's agricultural sector, contributing over 280 thousand mt in 2023, valued at approximately USD 1.86 billion. The allegations raised concerns about the impact of potentially unfair pricing practices on the livelihoods of Turkish hazelnut farmers.

To address the concerns raised by the TCA, Ferrero agreed to implement several key measures. Notably, the company pledged to purchase in-shell hazelnuts at no less than the intervention reference price, a government-established minimum price to ensure fair compensation for producers. This commitment signifies Ferrero’s willingness to engage in ethical sourcing practices that support the long-term sustainability of the Turkish hazelnut industry. The TCA accepted Ferrero's commitments, leading to a successful conclusion of the investigation and expressions of mutual satisfaction from both parties. This outcome sets a valuable precedent for future interactions between multinational corporations and local producers in Türkiye. The adoption of fairer business practices by Ferrero could pave the way for a more equitable and sustainable agricultural sector within the country, potentially influencing practices elsewhere as well.

As the focus on corporate social responsibility intensifies, the resolution of the Ferrero investigation showcases the potential for positive change through collaborative efforts between regulatory bodies, multinational corporations, and local producers.