How Turkey's Currency Crisis Is Hurting Your Favorite Nutella

Turkey has been facing a massive currency crisis in recent times, with its currency lira on a free fall in the past few months. And to make things go from bad to worse, there have been rising concerns over an inflationary spiral brought on by Turkey President Tayyip ErdoganĄŻs unorthodox plan to slash interest rates in the face of soaring prices.

But amidst all this, another industry that has taken a deep hit is the Turkish hazelnut industry which employs about 4 million people who produce 70% of the worldĄŻs hazelnuts.

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The supply chain crisis

The case is that the farmers in Turkey who produce most of the worldĄŻs hazelnuts are facing this currency crisis which has shaken a supply chain that stretches from this townĄŻs jagged hillsides to Nutella jars on global supermarket shelves. This is a stark example of the potential global implications of an economic gamble set in motion by Turkish President Recep Tayyip Erdogan.

The cost of seeds, pesticides and fertilizer, the latter of which tripled from $215 a ton in 2020 to $650 a ton this year, has made farming too expensive. Hence, some farmers have already shut down and gone to work in textile factories.

Also Read: Oreo Pakoda To Nutella Biryani: Worst Viral Dishes

The World is on the verge of Hazelnut shortage

World's largest hazelnut industry, which keeps global Nutella supplies afloat, is buckling under pressure.

Not only does the Turkish hazelnut industry make 70% of the world's supply, but Ferrero, the Italian company that makes Nutella, also buys 33% of Turkish hazelnut exports.

Even as per an export consultant for Turkish companies- the world is on the verge of a hazelnut shortage. So if you are a Nutella fan, it's better to stock up before the supply chain crisis deepens!

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