Severe frost damage earlier in the year in Turkey, the world’s largest producer of Hazlenuts, has pushed prices to levels not seen in 10 years (FT).
The benchmark price in Turkish lira, which was fluctuating around TL12 ($5.56) a kilogramme earlier this year, almost doubled to TL23/kg just after the frosts.
Technically, the shrinking supply means that this can't be classified as part of overall price inflation. However, as I have detailed in the EPJ Daily Alert, when supplies of any commodity have tightened of late, the upside price reaction has been very strong.
Note: For those who occasionally have a glass of Frangelico after dinner, this is going to mean higher prices for the liquer. Although Frangelico is made with Tonda Gentile hazelnuts,which are grown in the Langhe, Italy and not Turkey. The chain reaction price ramifications for hazelnuts will mean higher prices for Tonda Gentile hazelnuts and Frangelico.
-RW
Aesome, and equally hilarious, review. Much appreciated.
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