Original Article here from August 19, 2014
It's not time to start stockpiling
little jars of chocolate but poor weather in Turkey has sent hazelnut prices
surging 60 percent to their highest levels in 10 years. That's unbottled speculation that Ferrero Rocher, the
largest global buyer of hazelnuts, could be under pressure, especially with
pricing and availability of its signature spread, Nutella. Hazelnut crops are
currently estimated at around 520,000 tons, as much as 280,000 tons below
initial estimates. "It’s difficult to know whether the fears of a Nutella
shortage are overblown, but it is certainly feasible to expect extra pressure
on supply in view of ongoing strong demand and a much smaller crop in Turkey,
due to frost damage to the bloom in March," said Julian Gale, Food News
deputy editor. "I don’t know whether Ferrero has enough contracts to
weather fluctuations like this." Speculators in Turkey can fuel increases,
added Gale, by holding back stock or exaggerating weather concerns. The company
did not return multiple calls and emails seeking comment.
- Ben Popken
 |
No comments:
Post a Comment