Ministry Launches Investigation into Feed Price Increases
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Ömer Gökhan Tuncer, Chairman of the İzmir Commodity Exchange Council, highlighted economically unfounded price movements in the feed market, announcing that the Ministry of Agriculture and Forestry has initiated an investigation.
Investigation into Feed Market Prices
Ömer Gökhan Tuncer, Chairman of the İzmir Commodity Exchange Council, stated that caution should be exercised against price movements in the feed sector that do not stem from market conditions and lack economic basis. Tuncer announced that the Ministry of Agriculture and Forestry is closely monitoring speculative developments in the market and has initiated the necessary investigations. Pointing out that the increase in feed prices could have critical consequences for the agriculture and livestock sectors in Turkey, Tuncer emphasized the need to maintain market balance during important evaluations at the Exchange's August Council Meeting.
Raw Material Imports and External Dependency
Sharing data on the sector's raw material structure at the meeting, İzmir Commodity Exchange Council Chairman Ömer Gökhan Tuncer stated that simultaneous price increases occurred in corn, wheat, and soybeans. Tuncer made the following statement on the matter:
"Despite our expectation of high yields and a positive harvest for fodder crops, as with many products this season, we are receiving notifications from our sector about recent increases in feed prices. The Turkish feed sector is significantly dependent on external sources, particularly for corn and soybeans. Approximately 3.5 million tons of our annual corn requirement, exceeding 11 million tons, and almost all of our soybean needs are met through imports. Therefore, price movements in international markets, freight costs, exchange rates, climate conditions in producing countries, and geopolitical developments are directly reflected in our production costs."
Call Against Speculative Price Increases
Stating that not every price movement in the market is based on economic grounds, İzmir Commodity Exchange Council Chairman Ömer Gökhan Tuncer called on all stakeholders in the sector to act responsibly. Tuncer noted in his evaluation:
"It is of great importance for all market actors to act with responsibility; to support a healthy price formation that protects the producer, the industrialist, and the consumer. At this point, we need common sense more than ever. While protecting the producer's labor, we must also consider the sustainability of our livestock businesses. We must show sensitivity towards price movements that do not stem from market conditions and lack economic basis. We are aware that our Ministry of Agriculture and Forestry is closely monitoring market developments and conducting the necessary investigations. We must increase our domestic production capacity for feed raw materials, develop alternative feed sources, strengthen strategic stock policies, and gradually reduce our external dependency, especially in corn and soybeans."
Animal Health and Risk Management
İzmir Commodity Exchange Council Chairman Ömer Gökhan Tuncer also touched upon the effects of risk factors in animal health on the production chain, highlighting expenditures in this area. Tuncer concluded his remarks as follows:
"An animal disease means a decrease in food supply, an increase in production costs, disruption of supply chains, risks to export markets, and damage to the rural economy. Therefore, it is not correct to evaluate expenditures on animal health solely as a cost item."