ISOLATED by the Black Sea and Russia, Georgia has spent the past few decades binding itself closer to the rest of Europe. In this effort, hazelnuts play a crucial role. In 2007 Ferrero, an Italian company, set up a branch in Georgia to supply the key ingredient of its signature product: Nutella, the chocolate-hazelnut paste that is the most European of all breakfast spreads. The country has since become the world’s third-largest producer, behind Turkey and Italy. Hazelnuts are Georgia’s biggest export after copper ore.
In 2014 Georgia and the European Union concluded a Deep and Comprehensive Free Trade Agreement (DCFTA). Yet rather than making Nutella’s supply chain smoother, the DCFTA could render it a bit sticky. About 10% of the hazelnuts Georgia exports come from the Russian-backed breakaway territory of Abkhazia, which has enjoyed de facto independence since its war of secession in 1992-93. Georgia has no formal trade relations...Continue reading
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