World Business Report Hazelnut supply crisis threatens chocolates like Nutella
Oct 31, 2025
Felice Knickley, an agricultural economist with extensive experience in Turkey, highlights the hazelnut crisis affecting Nutella, driven by climate issues and pest infestations. She details how production declines have led to soaring prices and market tensions with Ferrero. Randeep Somal, an investment professional, discusses the rise of NVIDIA in the AI sector and its strategy to bolster South Korea's tech ambitions. The conversation also touches on the economic impact of Halloween spending, boosting retail activity globally.
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Global Hazelnut Reliance Risk
- Turkey supplies about 70% of the world's hazelnuts, so disruptions have global effects on chocolate supply chains.
- Ferrero's standoff with Turkish dealers and crop losses from weather and pests have driven prices sharply higher.
Climate And Pests Cripple Yields
- Climate change, frost and pest outbreaks significantly cut hazelnut yields in Turkey this year.
- Reduced yields caused prices to almost double, squeezing farmers and buyers alike.
Ferrero's Market Power
- Ferrero became a dominant player after market liberalisation and acquisitions, intensifying its bargaining power.
- That dominance contributes to the current standoff with Turkish dealers amid tight supply.