Ferrero is a manufacturer of the world famous Nutella chocolate spread, in which hazelnuts are processed. Ferrero employs more than a thousand people in Turkey and has been the largest buyer of hazelnuts for decades. Turkey is the largest hazelnut producer in the world.
Turkish farmers are now accusing Ferrero of paying them pittances for hazelnuts, while the famous Nutella jars and Ferrero Rocher chocolates are then sold at significantly higher prices.
“In September, we launched legal proceedings with the competition authority against Ferrero, which is trying to monopolize the hazelnut industry,” said Hilmi Güler, mayor of Ordu, Turkey, on the Black Sea. The economy is largely dependent on income from hazelnuts. “An investigation has been launched into the company’s actions.”
The investigation focuses on whether Ferrero or one of its affiliates violated competition laws “in all sectors, from manufacturing to purchasing to paring and exporting,” it said.
In the past, Turkish growers have complained of Ferrero’s stranglehold on the hazelnut market. The company would force too low prices. Ferrero has been active in the Black Sea region for over thirty years.
The company previously said in a response that it does not directly own or operate any farms in Turkey and does not purchase hazelnuts directly from farmers. The company procures the hazelnuts “in compliance with the rules of the free market and on the basis of market dynamics”.
