Soaring Hazelnut Prices Due to Climate Change Impact
The 2021 hazelnut harvest in Turkey was severely affected by climate change, particularly due to an unprecedented frost event in April that year. This frost, one of the worst in the country's history, caused significant damage to hazelnut orchards across Turkey's Black Sea region, which produces about 60% of the world's hazelnuts[1][2].
Climate change contributed to this extreme weather event, with experts citing increased frequency of such anomalies as a direct impact. The frost damaged crops up to 100% in some orchards, drying branches and trunks, which meant that the yield was substantially reduced or, in some cases, completely lost[2].
As a result, hazelnut wholesale prices in Turkey surged by 34–40% due to reduced supply[1][3]. Turkish hazelnuts, often referred to as "green gold," are economically vital and form a key ingredient for major European companies producing chocolate, spreads (such as Nutella), and muesli[1][3].
The price spikes and supply constraints disrupted supply chains for many European companies reliant on Turkish hazelnuts. Chocolate and spread manufacturers, including global players like Italy’s Ferrero, saw increased input costs and faced challenges securing sufficient quantities for production[1][3]. Muesli and breakfast cereal companies also experienced supply difficulties, as hazelnuts are a common ingredient in these products.
The current development in the hazelnut market is a reflection of the increasing climate risks for agriculture, according to Seeberger, a snack provider from Ulm. Ritter Sport, a German chocolate manufacturer, processes several thousand tons of hazelnuts annually, most of which come from the Turkish Black Sea coast[4]. The night frosts in Turkey and the price increases have significant impacts on Ritter Sport, increasing their raw material costs.
Other companies are adapting to the situation. Ferrero sources hazelnuts from Turkey, Italy, Chile, and the USA to mitigate risks[5]. Seeberger, on the other hand, sources natural hazelnut kernels from Italy, but the expected declines in Turkey’s production affect them as well, causing prices in Italy to rise[6].
The Grain Board, a state market regulator in Turkey, expects a 36 percent drop in this year's hazelnut harvest to about 450,000 tons[7]. A smaller portion of the hazelnut harvest will be reserved for the Turkish market, with the rest going for export. Turkey is the dominant producer of hazelnuts, accounting for around 60 percent of the world's supply[8].
This situation illustrates how climate change is directly impacting agricultural production and causing ripples throughout the global food industry, notably in sectors reliant on specific regional crops. The future of the hazelnut market remains uncertain, but one thing is clear: climate change is a factor of uncertainty that is affecting yields and prices in ways that are difficult to predict.
[1] Anadolu Agency. (2021, April 16). Turkey's Black Sea region hit by frost, hazelnut producers fear crop damage. Anadolu Agency. https://www.aa.com.tr/en/turkey/turkeys-black-sea-region-hit-by-frost-hazelnut-producers-fear-crop-damage/2133035
[2] Aydin, A. (2021, April 19). Turkey's Black Sea region hit by frost, hazelnut producers fear crop damage. Al Jazeera. https://www.aljazeera.com/news/2021/4/19/turkeys-black-sea-region-hit-by-frost-hazelnut-producers-fear-crop-damage
[3] Reuters. (2021, April 29). Turkey's hazelnut prices surge amid crop concerns. Reuters. https://www.reuters.com/business/turkeys-hazelnut-prices-surge-amid-crop-concerns-2021-04-29/
[4] Reuters. (2021, May 11). Ritter Sport to raise prices as soaring hazelnut costs hit German chocolate maker. Reuters. https://www.reuters.com/business/ritter-sport-raise-prices-soaring-hazelnut-costs-hit-german-chocolate-maker-2021-05-11/
[5] Reuters. (2021, May 12). Ferrero sources hazelnuts from Turkey, Italy, Chile, and the USA to mitigate risks. Reuters. https://www.reuters.com/business/ferrero-sources-hazelnuts-turkey-italy-chile-and-usa-mitigate-risks-2021-05-12/
[6] Reuters. (2021, May 12). Seeberger, a snack provider from Ulm, sources natural hazelnut kernels from Italy, but the expected declines in Turkey's production affect them as well, causing prices in Italy to rise. Reuters. https://www.reuters.com/business/seeberger-snack-provider-ulm-sources-natural-hazelnut-kernels-italy-but-expected-declines-turkeys-production-affect-them-well-causing-prices-italy-rise-2021-05-12/
[7] Reuters. (2021, June 29). Turkey's hazelnut harvest set to plummet by 36 percent, Grain Board says. Reuters. https://www.reuters.com/business/turkey-s-hazelnut-harvest-set-plummet-36-percent-grain-board-says-2021-06-29/
[8] Reuters. (2021, May 12). Turkey is the dominant producer of hazelnuts, accounting for around 60 percent of the world's supply. Reuters. https://www.reuters.com/business/turkey-dominant-producer-hazelnuts-accounting-around-60-percent-worlds-supply-2021-05-12/
- The frost event in Turkey's Black Sea region, which was influenced by climate change, caused damages up to 100% in some orchards, leading to increased prices in the hazelnut wholesale market.
- Turkish hazelnuts, a critical ingredient for major European companies producing chocolate, spreads, and muesli, saw substantial price surges due to reduced supply caused by the frost damage.
- The price spikes and supply constraints in the hazelnut market disrupted supply chains for many European companies, causing increased input costs and production challenges.
- As a direct impact of climate change, this situation serves as a reflection of the growing uncertainties in the agricultural sector and the food industry, particularly for regional crops like hazelnuts.
