Hazelnuts

We source around 3895 tonnes of hazelnuts annually. They are an important ingredient for us, being used in a range of foods and beverages, including confectionery – especially chocolate – pastries and ice cream. As well as being used whole, hazelnuts can be roasted, powdered and puréed. The hazelnut supply chain contains serious challenges, especially over labor conditions and child labor. We work closely with partners and governments to address these.

Sourcing hazelnuts responsibly

We carry out assessments to understand the conditions in hazelnut farming wherever we source from.

The bulk of our supply of hazelnuts comes from the western and eastern parts of the Black Sea region of Turkey, the world’s largest hazelnut producer. We do not source directly from the farms but from a small number of suppliers, who obtain the hazelnuts through a chain of intermediaries. In order to drive industry-wide transparency, we are making available (pdf, 364Kb) the list of our Hazelnut Tier 1 suppliers and the list of their cracking sites, along with the country of origin.

As Turkey provides most of our supplies, it is there that we focus the main part of our responsible sourcing activities. In 2017, we extended our farm assessment work to our hazelnut sourcing regions in Italy and Spain to better understand the conditions in these regions related to hazelnut farming.

Our main sources of hazelnuts

Italy, Spain, Turkey.

Our progress

CSV - Hazelnuts - responsibly sourced

80%

of our total hazelnut volume purchased in 2018 was responsibly sourced

CSV - Hazelnuts - traceable

90%

of our total hazelnut volume purchased in 2018 was traceable to its source

CSV - Hazelnuts - child labour

2450

children benefited in 2017 from our activities to address child labor in hazelnut orchards

Supply chain challenges and solutions

The most widespread and serious challenges in the hazelnut supply chain in Turkey are around safe and healthy living and working conditions for laborers, especially the many temporary migrant workers employed during the harvest period, and the existence of child labor. In the summer, tens of thousands of seasonal migrant workers, mostly from the southeast region of Turkey bordering Syria, travel across the country to harvest hazelnuts for 30–45 days. Children often work alongside their parents in the hazelnut gardens. This has had a direct impact on the incidence of child labor in Turkey in various industry sectors, including agriculture.

Labor conditions

Pilot testing the USDA’s new guidelines on child labor and forced labor

In 2018, we completed a pilot of the USDA’s , a collaboration with the , Turkish government agencies and our two hazelnut suppliers in the Black Sea region of Turkey, and .

Working together, we identified the risks of child labor and forced labor in the hazelnut supply chain, which relies on tens of thousands seasonal migrant workers. We then strengthened our capacity to address these risks. In June 2018, the .

During the pilot, we learned that:

  1. Collaboration is fundamental to achieving the maximum impact. By working with farmers, suppliers, labor contractors, local and national government, and NGOs, we were able to achieve the best results.
  2. Data is key. Gathering robust data on worker demographics, migrant workers’ movements and workplace conditions enabled us to develop a clear picture of the issue and design remediation.
  3. Understanding workers’ needs is crucial. Each workforce faces different issues, and it’s essential to communicate effectively with workers to understand the issues they face and develop systems that protect them.
  4. Flexibility makes a big difference. Risk needs to be assessed continually, considering the shifting needs of the local environment and the possibility to improve process.

Piloting of these guidelines has demonstrated how effective they are. They’re practical, and one of their greatest strengths is that they can be used by everybody from small, agricultural firms to large multi-national companies.

What this means for the broader supply chain

Along with other collaborations with NGOs, local authorities and suppliers in the hazelnut supply chain, this project has given us a deeper understanding of the root causes of child labor and labor rights issues. In particular, we now have detailed information on workers’ migration routes, literacy levels, gender split and basic needs, and labor standards.

The lessons we learned on the pilot project have helped us to redesign our approach to improving the livelihoods of seasonal migrant workers through co-funding agreements. In 2018, our projects trained 6 044 farmers, workers, traders and labor brokers on issues including health and safety, labor rights, responsible recruitment and the prevention of child labor. These training sessions happened both in the Black Sea area, where the farms are, and in southeastern Turkey, where most of the workers live.

As part of the training, we use our Responsible Sourcing Best Practices handbook (pdf, 2.3Mb) as well as a video about responsible employment practices. The handbook is distributed to all Tier 1 suppliers, traders, farmers, labor brokers and workers at the end – in 2018, we distributed 2 435 copies.

As a result of the training, we also used formal recruitment for the first time. In 2018, 366 workers, farmers and labor brokers made contracts before the hazelnut harvest. Additionally, 277 workers have benefited from improved shelter conditions, and 413 workers have benefited from improved and , and with the support of the Turkish Ministry of Labor, Nestlé has been using a grant from the US Department of Labor to pilot the USDA Guidelines for Eliminating Child Labor and Forced Labor in Turkey’s hazelnut orchards. The four-year project was completed in May 2018 and has provided valuable learning on how to tackle these issues, including the need for:

  • Colloboration for maximum impact.
  • Solid data on workers’ demographics and movement, and on workplace conditions.
  • Understanding workers’ needs and channels for workers to communicate concerns.
  • Flexibility in the development of processes and programs.

We continue our partnership between the and the trade association . During the 2018 harvest, together with our suppliers, and the on the summer schools project. Initially launched in Ordu province, in the eastern Black Sea region, the project has since expanded west. Together with our suppliers Balsu and Olam, we financed three centers – two in Düzce province and one in Sakarya – and saw 248 children attend school instead of working in the hazelnut gardens during the 2018 harvest.

As well as giving the children much-needed education, our summer schools raise awareness about child labor among teachers and local villagers.

We have also established three toy libraries in the western Black Sea region, in co-operation with the . and . We work closely with both to implement activities aimed at improving conditions and achieving responsible sourcing in the supply chain. The , our suppliers also organized child labor awareness training for women farmers. The ‘Safe Space’ project gives more than 500 children a safe place to play and learn while other family members work in the hazelnut gardens.

Supporting female and young workers

Our programs with Balsu and Olam are also designed to build the confidence, status and incomes of female workers, improving their leadership skills, financial literacy and knowledge of labor rights. Throughout the year, training on a range of good agricultural and social practices is made available, but historically only male farmers have participated. To reach female farmers and their children, five training sessions just for them were conducted in April and May 2018. To make the women feel more comfortable, the sessions were held in the schools their children attend. In total, 147 women farmers and 175 children took part.

Programs also train female workers on hygiene and personal care, workplace health and workers’ rights, and support local authorities in delivering self-development training to promote female education and personal development. Workshops for young laborers cover topics such as , we assessed the responsible sourcing standards of four hazelnut suppliers in Europe – two in Naples, Italy, and two in Tarragona, Spain. Our aim was to review the management systems and assess the ability of our supply chain to meet the sustainability requirements of the Nestlé Responsible Sourcing Standard.

Tarragona is home to 90% of all the hazelnut production in Spain. We found that in the region, a typical hazelnut grower is over 60 years old, cultivates small plots of land, hires no workers, and does most of the work themself or with the help of family members. Usually, they work part-time on their farms, as ‘weekend growers’. They prefer biological pest control to chemicals. Occasionally, they’ll hire one or two workers.

Looking at issues including labor violations, discrimination, child labor, forced labor, long working hours, payment and health and safety, we found there were no problems in the supply chain. The two co-operatives we assessed showed no evidence of noncompliance with the Nestlé Responsible Sourcing Standard and were not categorized as a risk.

In Italy, however, we did find risk of noncompliance. Several issues were identified, including workers who had only verbal contracts. There was also concern over health and safety practices, despite the supplier assessing farms on those issues. In addition, agricultural waste burning is common, despite a local regulation prohibiting the practice.

As a consequence of this assessment, we provided a series of detailed recommendations to help growers and suppliers reach compliance. As they range in complexity and length of time required for implementation, we know that these recommendations can’t all be implemented immediately – so we are collaborating with our suppliers to mitigate key risks, and to develop programs that will have a longer-term impact.

Download our Creating Shared Value report

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