Giresun Chamber of Agriculture Warns on Hazelnut Floor Price
· TMO
With the gap between the hazelnut purchase prices announced by the Turkish Grain Board (TMO) and the free market reaching 70 Turkish Liras per kilogram, producer representatives called for effective intervention from the institution.
Free Market vs. TMO Price Difference
As new season hazelnuts entered the free market, a significant gap emerged between the prices set by the Turkish Grain Board (TMO) and those offered by traders. While TMO announced purchase prices of 250 TL for Levant quality and 255 TL for Giresun quality, shelled hazelnuts with a 50% yield are trading between 180-185 TL in the Eastern Black Sea region, 185-200 TL in Giresun, and 190-195 TL in the Western Black Sea region. This discrepancy, with free market prices falling approximately 28% below TMO levels, has created a difference of up to 70 Turkish Liras per kilogram.
Producer Debt Burden and the Market
It is assessed that free market prices could rise to 200 TL and above if the TMO demonstrates a strong purchasing will in the market. However, the financial strain on producers, who are indebted due to fertilizer, pesticide, and maintenance costs, and are forced to sell their products early in the free market due to advances received before harvest, is increasing price pressure. The course of the market in the coming period will be determined by the total amount of product the TMO purchases, the demand producers show to the institution, and the quantity of hazelnuts that will enter the free market.
Chamber of Agriculture Emphasizes Floor Price
Giresun Chamber of Agriculture Chairman Nurittin Karan emphasized that producers, who harvest to cover their costs, are selling their products to reduce losses, and that the TMO should increase its purchase points to absorb supply. Stating that the TMO price is a floor price, not a ceiling, Giresun Chamber of Agriculture Chairman Nurittin Karan made the following statement on the matter:
"Selling a product valued at 250 liras for 170 liras is not ethical in my opinion. Transactions below this price should be questioned."
Karan stated that the TMO's swift intervention in the market would balance the free market.