Why Has The Company Behind Nutella And Ferrero Rocher, “Ferrero Group” Stop Growing Hazelnuts In Australia?


Italian confectionery company the Ferrero Group is giving up on a $70 million hazelnut farm near Narrandera in southern NSW, saying the long-term climate is unsuitable. The Australian arm of the company, which produces brands such as Ferrero Rocher, Nutella and Kinder Surprise, will remove the million hazelnut trees it has planted at the farm since 2013. Over the duration of the 10-year project, hazelnut yields have fallen below expectations making the project no longer commercially viable. What do you think LiveTribers? Why will the company behind Nutella and Ferrero Rocher, “Ferrero Group” stop growing hazelnuts in Australia?

Posted by on 26 Jan 2024

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  • [0] [0]
    Brendon

    The company has realised that the growing of its products in Australia will be cheaper and more viable than the present if it is done outside Australia and I am sure like a lot of company's that have made a move offshore and the profits are still growing and the check will continue to grow with the new site

    Posted by Brendon on 10 May 2024
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  • [0] [0]
    goulah

    Although I did not know this was happening, it does make me wonder if it has anything to do with a headline that popped up last week saying that thousands of dollars of hazelnuts are being plowed back into the ground. This discussion picked my interest so I did some investigating and came across the following article: https://www.worldwildlife.org/magazine/issues/spring-2021/articles/hazelnuts-gr eat-for-the-environment-but-vulnerable-to-climate-change Apparently “hazelnuts do not tolerate windy conditions combined with high summer temperatures and low humidity. More than 750 mm annual rainfall is required for good production, and supplementary irrigation is useful during the establishment stage.”

    Posted by goulah on 27 Feb 2024
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  • [0] [0]
    vlee

    It's a shame as I'd rather they buy and use as much Australian produce as possible. I rarely buy chocolates anyway so it won't really affect me.

    Posted by vlee on 27 Feb 2024
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  • [0] [0]
    JennyC

    Wow such a shame , loss of jobs for one thing but also a waste if it cant be sold . The production of the nuts could help keep our cost down in australia

    Posted by JennyC on 27 Feb 2024
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  • [1] [0]
    flowerpot person

    stop buying those products

    Posted by flowerpot person on 22 Feb 2024
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  • [0] [0]
    MS

    I did read this on the news web. It's a pity, but they have made their decision. It's their choice.

    Posted by MS on 04 Feb 2024
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  • [1] [1]
    CILLY0

    It is no longer profitable to grow them here in Australia and future water usage from the Darling is not assured with the buy backs from the government to return water to the river for down river use. We can't have everything in this life - and the government has decided where the water will go, so the trees and the farm will be demolished.

    Posted by CILLY0 on 29 Jan 2024
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  • [0] [0]
    Angieilyxxx

    WARNING LIVE TRIBE DOESN'T PAY THE $50 PAYPAL DEPOSIT. THEY IGNORE YOU ONCE YOU REDEEM THAT REWARD

    Posted by Angieilyxxx on 02 Feb 2024
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  • [2] [0]
    LeafyGreen

    Cheaper to use slave labor in other poor countries, including children.

    Posted by LeafyGreen on 28 Jan 2024
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  • [3] [0]
    yelsha42

    All comes down to making money

    Posted by yelsha42 on 28 Jan 2024
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  • [1] [0]
    kendallx3

    Clearly not as profitable

    Posted by kendallx3 on 28 Jan 2024
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  • [1] [0]
    fatmantis

    I guess every profit-making business will be ultimately considering the financial side of things, and if the business is not thriving financially they have to make drastic decisions like the one we're seeing here. I just wonder what will happen to the farm land after the hazelnut trees removal.

    Posted by fatmantis on 28 Jan 2024
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  • [0] [0]
    Guntis

    Because of global plans. Labour is more expensive everywhere - so it is not a reason. But there are not any planned climate changes! Must be done - by removing the million hazelnut trees... Step by step.

    Posted by Guntis on 28 Jan 2024
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  • [0] [1]
    BRAD

    Because it is too expensive in labour in Australia

    Posted by BRAD on 28 Jan 2024
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  • [1] [1]
    Ibrahim

    Myself, I believe it is not just the climate change that affected the production of Hazelnuts. we need to keep in mind other factors that might have contributed to that decision, I am talking about the high salary of the farmers and maybe decrease in the availability of skilled workers due to more strict immigration laws.

    Posted by Ibrahim on 28 Jan 2024
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  • [1] [0]
    Jay

    Since hazelnut yields have fallen below expectations, clearly the cost was increasing significantly. As a profit-oriented company, Ferrero Group has to come up with some solutions for future reference. the result is only reasonable.

    Posted by Jay on 28 Jan 2024
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  • [1] [0]
    G@CC

    Maybe they could search for a more climate suitable area within Australia? I noticed this last Xmas Ferrero Group offerings were quite expensive even if the big supermarkets had them marked half price, I assume producing the selection will be overseas so even more expensive in 2024.

    Posted by G@CC on 28 Jan 2024
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  • [1] [0]
    eddie1953

    If they can't make money out of it what is the incentive?

    Posted by eddie1953 on 28 Jan 2024
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  • [0] [0]
    YvetteP

    Seldom people will buy them

    Posted by YvetteP on 28 Jan 2024
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  • [0] [0]
    Instnx

    I understand it’s a Trial & Error basis - terrible outcome and hazelnut are healthy surely it can be utilised in another way for environmental purposes too!

    Posted by Instnx on 28 Jan 2024
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  • [1] [0]
    Enchantress

    What is going to happen to all this food? What about the farmers this is a huge disaster.

    Posted by Enchantress on 28 Jan 2024
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  • [0] [0]
    bmlglp

    I wonder if they are going to make these products using hazelnuts elsewhere in Australia.

    Posted by bmlglp on 28 Jan 2024
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  • [1] [0]
    Joshy79

    comes down to cost

    Posted by Joshy79 on 28 Jan 2024
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  • [1] [0]
    John

    I think they chose poorly for where to locate their orchards. Further south and a lot closer to the coast would have been a much less vulnerable location. If my memory serves me correctly southern England is one of the hazelnut growing areas in Europe.

    Posted by John on 28 Jan 2024
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  • [2] [0]
    Minh-Hai Henry

    nothing to do with the climate. just cost savings and increasing profits elsewhere

    Posted by Minh-Hai Henry on 28 Jan 2024
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  • [1] [0]
    wombatwagon

    If its not profitable then i suppose they have the right.

    Posted by wombatwagon on 28 Jan 2024
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  • [1] [0]
    Richard

    A 10 year study. Good data. I wonder if the original test study was flawed. Only one farm? There must be other areas that would be more conducive to hazelnuts, surely

    Posted by Richard on 28 Jan 2024
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  • [1] [0]
    Debra

    It is a great pity that all those trees have to go as they would have captured a lot of carbon while they were there. Surely they could stay and see what happens?

    Posted by Debra on 28 Jan 2024
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  • [1] [0]
    stratman

    Two words - commercial decision. Companies are in business to make a profit. Having said that it begs the question as to where it will get its future supply of hazelnuts - my guess it will be somewhere cheaper than Narrandera

    Posted by stratman on 28 Jan 2024
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  • [1] [0]
    michele63

    I can understand that this would have been a wise financial decision ...it looks as though that area is not conducive to hazelnut growth with the changes happening within weather patterns.

    Posted by michele63 on 28 Jan 2024
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  • [0] [0]
    mact

    Your preamble has answered the question!!!

    Posted by mact on 28 Jan 2024
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  • [1] [0]
    mary

    i am positive the company had to make this decision after a lot of thought. this would have come at a huge loss . while it is still available to buy and is still being made has kept other people employed. sad for us

    Posted by mary on 28 Jan 2024
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  • [1] [0]
    jeeves01

    It is pretty obvious and the answer is in the question!! If you owned a business that spent more money than it made you would be broke wouldn't you? If it was working they would keep it. If they are the ones that planted the trees and spent all the money I think we can assume they had a go and it hasn't worked with this particular crop.

    Posted by jeeves01 on 28 Jan 2024
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  • [1] [0]
    traveller56

    I would think this is a financial decision and has been made by the company with a long term outlook. A lots of money and time goes into establishing something like this. Productivity needs a good return to make it viable and this is no doubt impacted by higher than reasonable temperatures for the nuts as well as increasing wages and associated production costs. Sometimes we just have to accept certain locations are not conducive to growing particular crops. Even when trying to replicate ideal conditions such as where they grow well, the operating costs make it a non-viable financial business.

    Posted by traveller56 on 28 Jan 2024
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  • [1] [1]
    Tara Rata

    Anything to make more money or to cut the loss of money. They don't care about anything else.

    Posted by Tara Rata on 28 Jan 2024
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  • [1] [1]
    LOVE

    Given recent adverse weather conditions, the pilot study found that the region's climate in the long term is not conducive to hazelnut farming.

    Posted by LOVE on 28 Jan 2024
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  • [0] [0]
    tutti_cutie

    Well if something is not making the money it has to stop. Often Australia is not viable for most nuts, everything tends to be imported

    Posted by tutti_cutie on 28 Jan 2024
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  • [1] [0]
    Andrew1

    The company has said that the hazelnut yields are not commercially viable.

    Posted by Andrew1 on 28 Jan 2024
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  • [1] [0]
    merryl

    The company has said that the hazelnut yields are not commercially viable.

    Posted by merryl on 28 Jan 2024
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  • [0] [0]
    allandiana

    If the yields are not commercially viable they will certainly look for more favourable places to grow their hazelnuts - not good business to prop up a commercially unviable operation.

    Posted by allandiana on 28 Jan 2024
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  • [0] [0]
    sulter

    It's probably cheaper to go elsewhere like dozens of other firms have found out. It's a sad fact but the truth.

    Posted by sulter on 28 Jan 2024
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  • [1] [0]
    Paula

    Some feel the decision has been made offshore and a great disappointment as the trees were just starting to produce good harvests. As all costs of running businesses have soared in Australia in the last 18 or so months there could well be more to the decision. There has been a rash of businesses going offshore recently, one making parts for electric vehicles was only opened 18 months ago and now a company responsible for 50 electric charging stations is also leaving our shores. Businesses departing Australia may well be a trend.

    Posted by Paula on 27 Jan 2024
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  • [1] [0]
    Peter

    Like all companies that have yits origins overseas have shirt sighted NESS when it cc omes to investing here what if we avoid they're products will they leave as well let Australians look after our selves we collaborated Australia Day yesterday let's tell these overseas company respect us or go

    Posted by Peter on 27 Jan 2024
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