Ferrero Hazelnut Company (HCo) was set up in 2015 as a division within Ferrero as an example within the hazelnut industry of a “fully integrated value chain” company, with the aim to unite all hazelnut value chain activities under one structure. HCo leverages on its own farms, and operates in agricultural research and innovation, processing, industrial quality, as well as procurement and B2B activities. Mr. Fraser Scott currently serves as the Agribusiness Development Manager for HCo.
 
As the Agribusiness Development Manager for Ferrero Hazelnut Company, are there any new innovative projects or plans that you would like to mention or highlight?
One of my responsibilities, as Head of the Ferrero Agri Competence Center through which we deploy our knowledge and experience in hazelnut cultivation, is to improve quality, productivity and enhance sustainability in all the geographies in which we operate. Our Agri Competence Center is organised under six streams of research, each led by a subject matter expert, and within each stream are a number of projects.

For example, one of our projects is focused on the monitoring and implementation of Integrated Pest Management strategies against the brown marmorated stink bug (Halyomorpha halys), and we are engaging with other stakeholders to share our knowledge and discuss options to address this topic, including biological controls. Another example is in Australia, where, in partnership with a national research agency,  we have just begun a project that aims to develop our understanding of how to optimize water usage and its impact on hazelnuts trees in different conditions with the objective of continuing to enhance Good Agricultural Practices through this new knowledge. Furthermore, in our farm in Chile, we are trialing a method to grow hazelnuts without the use of inorganic inputs. We are also collaborating with a number of universities to enable research into the understanding of the development of new varieties that are more resistant to climatic conditions.
 

Sustainability is a continuously growing important topic in agriculture. What steps are Ferrero Hazelnut Company taking to increase sustainability in their operations and the existing value chains?
 
Our own farms located in Argentina, Chile, Georgia, Serbia, South Africa and Australia, are key to reaching farmers and sharing with them Good Agricultural Practices and supporting the sustainable development of the sector. In fact, our farms in Chile and Serbia have been certified under the Sustainably Grown standard, an accredited certification program. It provides assurance that hazelnuts meet several environmental standards, that farm workers and farm communities are protected and engaged, and that the farm is economically resilient.

We believe that partnerships are essential to achieving our goals in terms of environmental sustainability and this is one of the key pillars of our Supplier Code, to which all of our suppliers are expected to adhere. In our work in this area we are leveraging on innovation such as the adoption of precision agriculture. For example, we are supporting and participating in a project with the European Commission and in collaboration with several European universities. The project is based on a system of drones and ground robots to collect data and perform farming operations tree by tree, with the aim of improving quality while minimizing the environmental impact. In our pursuit of having our own farms be the illustration of best practice, our aim going forward is to work towards demonstrating the benefits of Regenerative Agriculture in developing our sustainable approaches to hazelnut cultivation.
 

Regarding the AgriBusiness Development of hazelnuts, what steps are being taken to increase the quality or quality standards of hazelnuts?
Through our Agri Competence Center, a lot of our work is focused on quality. Two of the main factors that affect the quality of our nuts are rot and pest damage (known as “cimiciato”). To understand how such problems manifest themselves in the hazelnuts requires extensive collaboration with our partners in universities and institutions, to help us to firstly understand how these problems occur, and then aim to put programs in place to reduce the risk. A good example is the work we are involved with in relation to the brown marmorated stink bug to monitor in country populations of this most damaging of pests for many agricultural crops, with programs that focus on the correct timings of any applications, enabling farmers to reduce their use of inputs. We have also been supporting the work of public authorities in Italy and Turkey as they explore methods for biological control with the samurai wasp (Trissolcus japonicus) to address this issue.
 
In your opinion, how has the COVID-19 pandemic affected production, international trade, or any other aspect of the hazelnut industry?
Covid-19 has naturally impacted everyone to some extent. Despite this unprecedented situation it seems that farmers have on the whole been able to manage their crops well and the impacts on hazelnuts have been minimal. Thankfully, farmers throughout the world have a great capacity to adapt and to ensure the health of their crops, and this experience together with good growing conditions can enable a successful harvest. The foremost and most significant priority in these continually evolving circumstances is protecting people throughout the value chain.
 
Do you foresee any long-term changes or challenges for the hazelnut industry caused by COVID-19?
The key for everyone involved in hazelnuts is having a business that allows long-term economic and sustainable production that enables the whole value chain to deliver quality hazelnuts to consumers. There will no doubt be the need for greater flexibility to be able to adapt actions accordingly and this may change the way some businesses operate in order to ensure the health and safety of people. However, consumer expectations are increasing and our challenge from an agricultural point of view will be to research and develop sustainable programs that continue to ensure the potential of the hazelnut tree for the future.
 
 
What value do hazelnuts bring to the confectionery industry and what makes hazelnuts so incredibly popular with chocolate?
Hazelnuts are a versatile ingredient available in many forms from raw, roasted or ground into a paste. They offer a rich, premium and distinctive taste, as well as providing a positive nutritional role thanks to their antioxidants and micronutrients. When blended with chocolate, the hazelnut accentuates the experience whilst still retaining its unique characteristics. Our products require hazelnuts with a very precise quality
 
Where do you see the worldwide hazelnut market in the next 10 years?
It is likely that the demand for nuts in general will follow current positive trends and that the popularity of hazelnuts will remain consistent. However, the unforeseen circumstances brought about by Covid-19 and its unpredictable evolution of course makes any forecasts more difficult than normal.    

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