HAZELNUTS: Ontario producers see an opportunity in this crop

money out of it. One day we may see the mention “made with Canadian hazelnuts” on Ferrero or Nutella’s label. That is my dream.”

“I think the demand is there; we just have to figure out how to tap into it,” says Hodge. “Canadian farmers are famous for producing quality raw ingredients, but we tend to sell our commodities on the wholesale market and processing takes place outside of Canada. It would be nice to be able to retail our end-products ourselves.”

Hodge is a member of the Ontario Hazelnut Association that wants to promote the brand “Hazelnuts Ontario.” The Association is working on the marketing plan right now. There is no established market for the moment simply because Canadian production is not there yet.

“I didn’t know until recently that we grow hazelnuts in Canada,” says Gilmour. “As a company that is always trying to find local ingredients, we would make quite an effort to source hazelnuts grown in Canada.”

According to the Farm Credit Canada (FCC) Food and Beverage Report published in March 2021, shifts in demand and increased production costs have challenged profitability for the sugar and confectionery industry, and 2021 should be sweeter with the re-opening of food service businesses. Consumers are also looking for indulgence foods after going through various lockdowns. FCC projects sales to increase in this sector by 12.3 per cent in 2021 (3.7 per cent above 2019).

Healthy eating is expected to continue in 2021, but indulgence is also a major trend. The combination of healthy and premium ingredients can introduce differentiation and offer interesting niche markets. Product development and marketing can be reassessed to support consumers’ balanced approach to eating.

According to a survey conducted by FCC in January 2021, when asked if their behaviour has changed since the start of the pandemic, six out of 10 people or 58 per cent said they are more likely to buy Canadian made or grown food, 56 per cent are more likely to look for Canadian made or grown food when they buy groceries and 50 per cent are more likely to think about how their food is grown.

“With the local food movement, I think consumers will be willing to pay a premium price for local hazelnuts simply because they’re Ontario grown and not imported. At least it is my hope,” adds Hodge.