Turkish authorities on Thursday warned that they could impose fines on Italian sweet-packaged food company Ferrero for failing to buy Turkish hazelnuts, a key ingredient in its globally popular Nutella spread.
The Turkish Competition Authority said Ferrero is required to purchase at least 30,000 tons of in-shell hazelnuts from local producers between September and December. It warned that penalties could follow if the company does not meet the target.
The authority said Ferrero normally has an obligation to buy about 45,000 tons annually, but the amount was reduced this year to 30,000 due to lower production and quality problems caused by bad weather.
Turkish media had reported that Ferrero planned to stop purchases in Turkey — the world’s largest hazelnut producer and its longtime supplier — because of higher prices following a late frost in April and a hot, dry summer that damaged crops.
Ferrero, which also makes Kinder chocolate bars and breakfast cereals, did not immediately comment.
Ferrero and the competition authority reached a deal last year after Turkey investigated allegations that the Italian company had abused its dominant position in the hazelnut market.
A European nut trader, speaking on condition of anonymity, said Ferrero had taken a tougher stance with Turkish suppliers after the harvest began in September. The trader added that prices for Turkish hazelnuts had roughly doubled this year on European markets, reaching more than 20 euros ($23) per kilogram.
Turkey exported more than 280,000 tons of hazelnuts in 2023, worth $1.86 billion, according to industry data.
© Agence France-Presse