Turkish Forum

Tag: food prices

  • Price of Nutella could rise as hazelnut crop devastated by bad weather

    Price of Nutella could rise as hazelnut crop devastated by bad weather

    Chocolate makers and fans of hazelnut-filled products including Nutella spread may need to brace themselves for price rises, after poor weather devastated hazelnut crops.

    Ferrero Rochers and Cadbury’s Whole Nut bars might also be affected

    Around 70 per cent of the world’s hazelnut crop is grown near Turkey’s Black Sea coast, but this year’s harvest is likely to be heavily hit after hail storms and frost in late March devastated hazel flowers at an important time in their growing cycle. The price of the nut has subsequently already skyrocketed by more than 60 per cent.

    Already faced with the rising price of cocoa, chocolatiers must now contend with the cost of the nuts reaching $10,500 (£6,300) per tonne, compared with $6,500 (£3,900) per tonne in February, according to Michael Stevens, a trader at Edinburgh-based Freeworld Trading, the Guardian reported.

    Stevens added that some buyers are living hand to mouth, as contracts pre-dating the frost cannot be fulfilled.

    While the extent of the damage is unclear, the Turkish hazelnut industry predicts it will only manage to harvest 540,000 tonnes of its 800,000 tonnes target.

    The world’s largest confectionary companies are now likely to be nervously watching the market to decide their next move.

    Ferrero, who are behind the moreish Nutella hazelnut spread and Ferrero Rocher chocolates buys 25 per cent of the world’s supply of hazelnuts, making it the world’s biggest buyer, according to the Italian Trade Agency. However, the company may not be affected as it recently purchased Oltan – Turkey’s largest hazelnut producer. The Independent has requested a comment from Ferrero UK and Ireland, but has not received a response.

    Meanwhile, Mondelez, the US owner of Cadbury – whose hazelnut-stuffed Whole Nut bar is a best seller – declined to tell the Guardian whether it would raise the prices of its chocolate bars.

    The potential changes come as manufactures attempt to deal with climbing almond and cocoa prices.

    However, while the weather in Turkey has coincided with a drought in California which has sent almonds prices to a nine-year high, cocoa is more expensive due to a changing market. The product is at a three-year high as customers in China and India appear to have developed a sweet tooth.

    via Price of Nutella could rise as hazelnut crop devastated by bad weather – News – Food + Drink – The Independent.

  • Biggest spending squeeze on families since 1921

    Biggest spending squeeze on families since 1921

    pocketmoney PINKY
    Squeezed: relative spending power is down to the lowest levels since 1921

    Families are facing the biggest peace-time squeeze in their spending power since 1921 as wages fail to keep up with soaring inflation, according to a new report.

    The rising cost of essential items such as oil, utility bills, food and clothes are set to leave the average household with £910 a year less to spend in 2011 than two years ago, said the Centre for Economics and Business Research (CEBR).

    Disposable incomes are due to fall by 2% in 2011, following a 0.8% drop in 2010, as cash-strapped consumers suffer the biggest hit to their finances apart from during World War Two and the recession following the First World War, it added.

    It forecasts that inflation will average 3.9% in 2011 – its highest since 1992 – as January’s hike in VAT to 20% from 17.5% and the rising cost of oil and other commodities continue to drive up prices.

    Pay packets, on the other hand, will rise just 1.9% as unemployment remains high and the public sector makes cut-backs.

    But the Government’s austerity drive is “only a minor element in the squeeze on household incomes”, with the soaring cost of commodities being the major factor, claimed the report.

    Commodity prices are being driven higher by surging demand from emerging economies such as China and supply shocks including the conflict in Libya, which is impacting the price of oil.

    The lack of consumer spending power means the economy will only grow by 1% in 2011 and will be “subdued” for the next two or three years, said the consultancy. Its forecast is significantly below the 1.7% predicted by Government’s Office for Budget Responsibility.

    The CEBR’s report echoes the views of Bank of England governor Mervyn King who earlier this year said consumers’ finances were facing their biggest squeeze since the 1920s.

    A spate of retailers have reported tough conditions on the high street in 2011 as consumers remain cautious, with HMV and Dixons Retail which owns Currys and PC World reporting disappointing profits.

    www.thisislondon.co.uk, 11 Apr 2011