Turkey, the first producer and exporter of hazelnuts, reported a sharp slide in production that warns confectionary companies worldwide. The country experienced adverse weather conditions that caused drop in production of about -30 per cent. Production reached only 480.000 tons of hazelnuts against 800.000 tons usually. The huge deficit of 320.000 tons will weigh and rise prices.
Ferrero company, which on July 2014 bought Olton Group, the Turkey’s largest hazelnuts exporters and considered the leading producer worldwide, seek to calm fear of consumers. Despite the decline in underlying production, the Italian company excluded that its list prices of chocolate and snacks will increase currently and they will now be flat compare to the last year.
Although confectionary companies warn about the scarcity of raw material. The question is what kind of measures they will take up to face the fall.