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Türkiye’s Competition Authority has called on Italy-based confectionery giant Ferrero to fully honor its market commitments following reports that the company halted its hazelnut purchases from Türkiye, a key global supplier of the crop.
Speaking to state-run Anadolu Agency, the Competition Authority President Birol Kule said Ferrero — which has long operated in the Turkish market — is obliged to fulfill its commitments "completely and transparently," describing this as both a matter of business ethics and public accountability.
In a Financial Times report last week, Ferrero was said to have temporarily halted its purchases amid shrinking supplies and soaring prices following severe weather and pest outbreaks, while the report implied allegations of market manipulation by local producers, noting that aggressive buying by Turkish intermediaries had further driven up prices.
Kule said the recent report unfairly portrayed Türkiye’s hazelnut market as speculative. He argued that this characterization was inconsistent with the authority’s 2024 investigation and subsequent compliance commitments, which showed that the domestic market operates under fair competition.
"This issue goes beyond commerce — it concerns protecting the labor of farmers and maintaining a fair market order," he said, adding that blaming Türkiye’s producers and traders amounted to "a distortion of reality" and "an injustice against Turkish farmers."
Türkiye is the world’s largest producer and exporter of hazelnuts, accounting for about 70% of global output with 714,000 tonnes in 2024. However, according to reports from the Turkish Statistical Institute (TurkStat), production is projected to shrink sharply by 38.5% by the end of 2025, falling to 441,000 tonnes, due to extreme weather conditions this year.
In the report, Ferrero executive Marco Botta said the company is currently sourcing hazelnuts from Chile and the United States, where it has expanded production capacity over the past two years.
On the local Ordu Commodity Exchange, the price of one kilogram of Levant hazelnuts rose to ₺306.44 ($7.29) on Monday, more than double the level recorded during the same period last year.
Botta noted that the company has no formal agreement with the Turkish Grain Board (TMO) but emphasized that Ferrero remains committed to long-term investments in Türkiye.
Kule said that, contrary to Ferrero’s claims, farmers were behaving in accordance with market logic by selling their products gradually in a season of reduced supply. "This is not unique to Türkiye — it is a universal rule of economics," he noted.
The chairman underlined that Ferrero’s procurement delay stemmed from its own market strategy, not from any external constraints. "Competitors made early purchases, while Ferrero chose to wait. The consequences of that decision cannot be shifted onto Türkiye," he said.
Kule criticized attempts to attribute the company’s planning errors to Turkish farmers, traders, or institutions. "If a global firm has made a strategic miscalculation, that is an internal issue. Seeking to restore prestige by blaming Türkiye is unacceptable," he said.
He also highlighted that Turkish farmers’ labor is deeply embedded in the global confectionery supply chain. "Many of the chocolate products seen on store shelves around the world contain the hard work of Turkish farmers," he added, warning against rhetoric that "belittles or discredits" that contribution.
Reiterating that Ferrero’s commitments to the authority are binding, Kule said that Türkiye’s market operates under legal and regulatory principles, not through external pressure. He warned that suggestions of rising product prices or recipe changes due to the Turkish market would be seen as attempts to suppress prices during a tight supply year.
"The market order in Türkiye cannot be manipulated to serve individual interests," Kule said. "The producer’s labor will be protected, and no international company can cast a shadow over the country’s institutions. Ferrero must meet its obligations fully — this is a requirement of both business ethics and public responsibility."
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