Almost everyone on the planet has heard of the global brand Ferrero, the owner of the famous Nutella spread, and has tasted at least once in their life the luxurious chocolate produced by this company. However, what might be less known is that some of the hazelnuts found in these sweet products are grown in N Macedonia.

In 2019, the Bitola-based company Socotera DOOEL signed an agreement with Ferrero for hazelnut export. The company has 505 hectares of plantations spread across three different locations in the country: the Bitola, Prilep, and Kavadarci regions. They grow four of the most sought-after Italian hazelnut varieties: Tonda delle Langhe, Tonda Romana, Tonda di Giffoni, and Nocchione.

"It is not very common for a world-leading company like Ferrero to choose to develop a modern supply chain in N Macedonia, so we consider this opportunity unique for the country," says Biljana Siljanovska, General Manager of Socotera DOOEL. "Ferrero is one of the largest buyers of hazelnuts in the world. In 2019, Socotera proposed to Ferrero to jointly develop a modern hazelnut supply chain in N Macedonia, combining Socotera's operational expertise with Ferrero's extensive knowledge of everything related to hazelnuts. Since both companies share similar principles regarding ethics, responsible and sustainable agricultural production, and adhere to Good Agricultural Practices (GAP), the project quickly grew and is now in its fifth successful year," explains Siljanovska.

Socotera DOOEL Bitola is a member of the Socotab Group (www.socotab.com) and was established to promote and develop hazelnut production in the country. The goal is to create a network of own orchards as well as third-party orchards. Socotab (an abbreviation of the French name for the Tobacco Trading Company) is a leading trader of oriental tobacco, successfully operating for more than 100 years since its establishment in 1923.

"For several years, the company has been evaluating how best to use its expertise in agricultural supply chain management to diversify its core business. Hazelnut was chosen for several reasons, the main one being the suitability of the climatic and soil conditions in N Macedonia, the country's agricultural tradition, and the growing global demand for high-quality hazelnuts," says Siljanovska.

Hazelnut Cultivation Positively Contributes to the Local Economy

The company is also a partner with local farmers who already have existing orchards and offers to purchase their hazelnut production in-shell. At the same time, Socotera DOOEL actively promotes the advantages of hazelnut production in N Macedonia by organizing informative seminars for local farmers and offering them support and advice.

Agronomist Boris Simovski says they are dedicated to promoting hazelnut production in the country through cooperation with third-party farmers who may be interested in hazelnut cultivation.

"Our goal is to develop a modern, sustainable, and export-oriented hazelnut supply chain in N Macedonia. With this in mind and in cooperation with local institutions, we will hold several informative seminars for farmers to present the opportunities of hazelnut production. Furthermore, we are open to partnerships with farmers who already have existing orchards and offer to purchase their in-shell hazelnut production. We also expand our services, including cleaning and drying these hazelnuts. Like all agricultural crops, hazelnut cultivation positively contributes to the local economy by creating jobs and bringing in export revenue, thereby increasing overall economic prosperity," notes Simovski.

Various Expert Studies Have Proven That North Macedonia Has Suitable Climatic and Soil Conditions for Hazelnut Cultivation

A well-maintained orchard can bear fruit for over 50 years, making it a good long-term investment. Various expert studies have proven that North Macedonia has suitable climatic and soil conditions for hazelnut cultivation, says Ratko Hristov, Administrative and Financial Director of Socotera.

"Although hazelnut trees typically start bearing fruit in their fourth year, North Macedonia offers both administrative and financial support for hazelnut cultivation. The state also supports the maintenance of hazelnut orchards through direct and additional payments per hectare (subsidies). Additional funding is available through the National Rural Development Program and IPARD.

Concurrently, we realize that the extended period from the initial investment can be discouraging. Our contracts with farmers provide favorable payment terms for seedlings to ease this initial cost. In cooperation with local banks, we have developed a new credit product tailored to the needs of our hazelnut-growing farmers. We offer continuous monitoring and support to our farmers throughout the entire process. And lastly, but certainly very important, we guarantee the purchase of their produce and provide them with a sense of security and trust," explains Hristov.

What Are the Main Criteria and Conditions That Hazelnuts Must Meet for Ferrero

In addition to meeting certain basic qualitative and quantitative criteria to fulfill Ferrero's quality standards (which essentially means supplying certified, healthy, and undamaged hazelnuts), the supplier must ensure that the hazelnuts are grown sustainably and that their production can be traced back to the field. In other words, say representatives from Socotera, all criteria, procedures, and steps of sustainable production must be adhered to, allowing the final product to be traced all the way back to the place (orchard) where it was produced.