Hazelnuts are a key ingredient in many of Ferrero’s beloved products, including the ever-popular Nutella and Kinder Bueno. But have you ever wondered just how many hazelnuts it takes to satisfy the world’s Nutella cravings?
The answer may surprise you. Ferrero purchases a quarter of the world’s hazelnuts every year, which amounts to over 100,000 tons. These hazelnuts are sourced from various countries, including Turkey, Italy, Chile, and the USA.
But with hazelnut prices on the rise due to Nutella’s popularity, Ferrero is taking steps to ensure a sustainable and traceable supply chain. In this article, we’ll explore the fascinating world of Ferrero’s hazelnut sourcing and production.
How Many Hazelnuts Do Ferrero Use
As mentioned earlier, Ferrero purchases over 100,000 tons of hazelnuts every year to meet its Nutella-making needs. This equates to around a quarter of the world’s hazelnut supply. The hazelnuts are sourced from various countries, with Turkey, Italy, Chile, and the USA being the main suppliers.
Ferrero is committed to ensuring a sustainable and traceable supply chain for its hazelnuts. By 2023, the company aims to have all of its hazelnuts completely traceable. Currently, it has 100% traceability in three of its hazelnut source countries: Chile, Argentina, and the USA.
To ensure a steady supply of quality and fresh hazelnuts, Ferrero also cultivates them in countries in the Southern Hemisphere. This provides an additional harvest from February to March. Ferrero has established hazelnut farms (Agrifarms) in Chile, Argentina, South Africa, and Australia, in addition to Georgia and Serbia. Through these Agrifarms, Ferrero is developing a sustainable business model with local farmers to share and promote good agricultural practices.
The Importance Of Hazelnuts In Ferrero’s Products
Hazelnuts are a critical ingredient in Ferrero’s popular products, including Nutella, Ferrero Rocher, and Kinder Bueno. In fact, 52 hazelnuts are used in every 14-ounce jar of Nutella. Ferrero’s commitment to using high-quality and sustainably sourced hazelnuts is evident in its acquisition of the Oltan Group, the worldwide leading operator in the procurement, processing, and marketing of hazelnuts.
Ferrero’s dedication to sustainable agricultural practices is reflected in its program named Ferrero Farming Values (FFV), which enhances farming skills and improves the possibility of revenue increase for farmers. The company aims to foster its Corporate Social Responsibility engagement through this program and ensure that its hazelnut sourcing is sustainable and ethical.
Furthermore, the importance of hazelnuts in Ferrero’s products is not just limited to taste but also to texture. Palm oil, another key ingredient in Ferrero’s products, provides them with their characterizing texture. However, palm oil is widely criticized for causing deforestation and releasing greenhouse gases that accelerate global warming. Ferrero uses only 0.3% of global palm oil production but has been repeatedly attacked publicly as a culprit of global warming.
Ferrero’s Annual Hazelnut Purchases And Sourcing
Ferrero’s annual hazelnut purchases are a significant part of the company’s supply chain. As mentioned earlier, the company purchases over 100,000 tons of hazelnuts every year. These hazelnuts are sourced from various countries, with Turkey, Italy, Chile, and the USA being the main suppliers.
Ferrero is committed to ensuring a sustainable and traceable supply chain for its hazelnuts. The company has established 100% traceable plantations in three of its hazelnut source countries: Chile, Argentina, and the USA. This allows Ferrero to track the origin of each hazelnut and ensure that they meet the company’s quality standards.
To ensure a steady supply of quality and fresh hazelnuts, Ferrero also cultivates them in countries in the Southern Hemisphere. This provides an additional harvest from February to March. Ferrero has established hazelnut farms (Agrifarms) in Chile, Argentina, South Africa, and Australia, in addition to Georgia and Serbia. Through these Agrifarms, Ferrero is developing a sustainable business model with local farmers to share and promote good agricultural practices.
In addition to promoting sustainable practices, Ferrero’s hazelnut purchases have had a significant impact on the global hazelnut market. According to NPR, Nutella’s popularity has driven up demand for hazelnuts, leading to increased prices and encouraging farmers in new regions to start growing them. Despite this impact on the market, Ferrero remains committed to promoting sustainable practices and ensuring a traceable supply chain for its hazelnuts.
Hazelnut Prices And Ferrero’s Sustainability Efforts
Hazelnut prices have been on the rise, with Ferrero’s increasing demand being a contributing factor. In addition to this, a late frost in Turkey cut the country’s hazelnut production in half, causing prices to spike even further. This has led to more people wanting to grow hazelnuts, with farmers expanding their hazelnut orchards in countries like Chile and Australia. Ferrero has also acquired the Oltan Group, the worldwide leading operator in the procurement, processing, and marketing of hazelnuts, to further strengthen its presence in the hazelnut market.
Despite these challenges, Ferrero is committed to sustainable agricultural practices through its dedicated program named Ferrero Farming Values (FFV). Through this program, the company aims to enhance farming skills of all farmers and improve their possibility of revenue increase. Ferrero’s long-term and quality-oriented investment approach aligns with Oltan’s historical and valuable presence in the Turkish hazelnut market, providing a significant opportunity for sustainable growth in the Turkish hazelnut sector.
Ferrero is also taking steps to address climate change concerns related to its raw material sourcing. As climate change affects the yields of cocoa and hazelnuts, Ferrero is cultivating hazelnuts in countries in the Southern Hemisphere and developing sustainable business models with local farmers through its Agrifarms program. Additionally, the company aims to have all of its hazelnuts completely traceable by 2023, ensuring a sustainable and traceable supply chain for its products.
The Production Process Of Ferrero’s Hazelnut-Based Products
Once the hazelnuts are harvested, they are sent to Ferrero’s hazelnut plants for processing. The hazelnuts are first dried and cleaned before being classified according to their sizes. Then, they are carefully cracked to break the shell of the hazelnut without damaging the kernel. This process is done with utmost care to ensure that only high-quality kernels are selected in conformity with Ferrero Rocher’s quality criteria.
Ferrero is committed to sustainable agricultural practices and has been operating the Ferrero Farming Values (FFV) program for hazelnuts in Turkey since 2012. Through this program, Ferrero works with farmers, mostly smallholders, to empower them with knowledge of good agricultural and social practices. Every year, specific audits of farmers chosen at random are carried out to ensure compliance with the program’s standards. The orchards that participate in the program have increased their yields by an average of 40-45% compared to other orchards in the same areas.
Ferrero has also acquired Oltan Group, the worldwide leading operator in the procurement, processing, and marketing of hazelnuts. This acquisition will foster Ferrero’s Corporate Social Responsibility engagement on sustainable agricultural practices and guarantee a further improvement in the quality of its hazelnut supply chain.
In Ferrero’s hazelnut-based products such as Nutella and Kinder Bueno, each jar of Nutella contains about 50 hazelnuts while each Ferrero Rocher uses one hazelnut. The hazelnuts are roasted and encased in a thin wafer shell filled with hazelnut chocolate and covered in milk chocolate and chopped hazelnuts.
To summarize, Ferrero’s production process for its hazelnut-based products involves sourcing high-quality hazelnuts from various countries, processing them with utmost care, ensuring sustainable agricultural practices through the FFV program and Agrifarms, and using them in its products to provide a unique taste to its consumers.
Hazelnut Alternatives And Future Plans For Ferrero
While Ferrero heavily relies on hazelnuts for its products, the company is aware of the risks associated with depending on a single source for such a large quantity of a key ingredient. As mentioned earlier, Ferrero has taken steps to diversify its hazelnut sourcing by establishing hazelnut farms in various countries. However, the company is also exploring alternative ingredients that could potentially replace or supplement hazelnuts in its products.
One such alternative is almonds. Ferrero has already introduced a Nutella spread that contains almonds instead of hazelnuts. The company is also researching the use of other nuts such as cashews and macadamias as potential substitutes for hazelnuts.
In addition to exploring new ingredients, Ferrero is also investing in research and development to improve hazelnut farming practices and develop hazelnut varieties that are more resilient to climate change and diseases. The company’s Hazelnut Charter aims to promote regenerative agriculture and enhance farm biodiversity to improve soil health and farmers’ climate change resilience.
Overall, while Ferrero’s dependence on hazelnuts remains significant, the company is taking a proactive approach to mitigate the risks associated with relying on a single source for such a large quantity of a key ingredient. Through diversification, sustainability initiatives, and research and development, Ferrero is working towards a more secure and sustainable future for its hazelnut supply chain.