Raw Milk Production Cost Rises to 28.50 Turkish Lira

September 9, 2026 · Bloomberg HT

According to TÜSEDAD data, the cost of raw milk increased to 28.50 TL in August, with urgent calls for the 24.30 TL reference price to be updated.

Sharp Increase in Raw Milk Costs

The All Milk, Meat and Breeding Cattle Breeders Association (TÜSEDAD) has shared its hot raw milk production cost data for August. According to the association's calculations, the production cost of 1 liter of hot raw milk, which was 26.87 TL in July, increased by 6.1% to 28.50 TL in August. The cost study was based on a standard farm model with 100 lactating cows, yielding an average of 30 liters of milk per cow per day. All income and expense items of the farm were meticulously evaluated with current input prices.

Feed Prices Drove Up Costs

In its statement, TÜSEDAD emphasized that the increase in concentrate feed prices played a leading role in the 1.63 TL rise in production cost per liter within a single month. The approximately 11% increase in concentrate feed prices directly burdened producers. Additionally, rising diesel prices compared to July and updated veterinary and health expenses in line with Turkish Statistical Institute (TÜİK) data also reflected in the cost structure. The 4.5% increase in the prices of culled cows and heifers was not enough to offset the rise in feed prices.

Global Shipping Issues Hit Raw Materials

It was reported that the sharp rise in feed prices was due to disruptions in the international supply chain. TÜSEDAD stated that difficulties in passage through the Strait of Hormuz due to tensions between the US and Iran, along with shipping problems in the Black Sea region, negatively impacted the supply of feed raw materials. These logistical and geopolitical disruptions led to significant increases in the market prices of feed raw materials, which directly affected the feed costs for domestic producers.

Demand for Reference Price Update

The cost of 1 liter of hot raw milk determined by the National Milk Council (USK) for August was 21.48 TL, while the current recommended reference price for raw milk is applied at 24.30 TL. TÜSEDAD requested an urgent reassessment of the current reference price of 24.30 TL, which is fixed until October, in the face of real production costs reaching 28.50 TL. It was stated that a price update in line with market conditions is essential to prevent producers from incurring losses due to rising input costs.

Criticism of the National Milk Council's Calculation

Criticizing the National Milk Council's cost determination methodology, the All Milk, Meat and Breeding Cattle Breeders Association (TÜSEDAD) made the following statement:

As is known, the National Milk Council announces the cost of 1 liter of hot milk every month as per its regulation. In the explanations of the Council's cost calculation, it is stated that expenses are determined based on the expenses of farms with 10 heads or more. It is unclear how many heads are being referred to here. Furthermore, only the feed expenses of the lactating cows in a herd yielding 20 liters of milk per day are considered; all born female and male calves are sold at 4 days old. All other expenses are stated as 'feed constitutes 62.1% of the total cost'. In the explanation, the phrase 'etc.' is used in the section for expenses other than feed, and it is stated that this section is calculated in detail in a separate program. Are animals that die or need to be culled taken into account in this detail? Has the cost of purchasing pregnant heifers and/or lactating cows to maintain the herd's continuity been added for a culled or deceased lactating cow? Similarly, only calf income is considered in the income section. However, income is also generated from the sale of culled cows. Although this situation would remain below the amount required to replace the culled animal, the purchased cow must also be considered in the expense items. All these details are calculated in a different program in the explanation, but how this program calculates and the percentage rates of the mentioned details are not disclosed.

Drawing attention to the decrease in the share of feed expenses from 63.35% in the first 2 months of the year to 62.10% from March onwards in the USK data, the All Milk, Meat and Breeding Cattle Breeders Association (TÜSEDAD) posed the following question:

Should this decrease be interpreted as the effect of the electricity price hike?

Call for Transparency in Cost Items

Emphasizing the need for clarity in cost items for the healthy functioning and sustainability of the sector, the All Milk, Meat and Breeding Cattle Breeders Association (TÜSEDAD) made the following assessment:

In the cost calculations made by our association, although feed expenses change monthly, they are calculated closely with our council, and there are no significant differences in our feed prices. Therefore; it would be beneficial for the institution authorized on cost and reference price, which affects the entire sector, to explain the 'other expenses' section in detail for the difference in costs to be perceived.

The official statement reiterated the necessity of publicly and clearly disclosing definitions of farm size, herd replacement costs, and all operational expense items other than feed.

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