On paper, the increase equaled the price to the market
In the dairy sector, which has experienced a decline in production for 3 consecutive months since March, official purchase prices have caught up with market prices with the announcement of a 35 percent increase. It was pointed out that since the beginning of the year, in the sector, where the producer went to the slaughterhouse last year and costs could not be covered, the market trades with sales prices between 11-13 TL per liter. Noting that the National Dairy Council’s announcement of a 35 percent increase is on paper, producer representatives noted that they expect government support and that new price regulation is needed, especially in the fall months. .
50 CRYING SUPPORT IS NOT ENOUGH
In a weekday statement from the National Dairy Council, “As of August 1, 2023, the recommended retail price of raw cow’s milk containing 3.6% fat and 3.2% of protein has been determined at 11.50 TL per liter (excluding raw milk support) for the producer. It was noted that corrections were made with the statements ”.
Tevfik Keskin, President of the Central Union of Turkish Dairy Producers, pointed out that the perception of the increase was incorrect and made the following assessment: “Last year, the cows went to slaughter because there was no regulation for a long time. Currently, there are those who sell milk for more than 13 TL in the market. There was no increase with 11.50 TL. The official announcement has come to market prices. Market prices have been met. There is no 35 percent increase in milk. It is necessary to understand well here. We don’t know the state budget, but support needs to be increased above 50 cents. Prices may go higher. The milk will begin to decrease. Support is very important here.”
Cost at the manufacturer 12.63 TL
According to data from the Turkish Statistical Institute, drinking milk production decreased by 11 percent in May, the latest announced period. In the January-May period, compared to the same period of the previous year, cow’s cheese production increased by 7.5 percent, drinking milk production increased by 4.2 percent, ayrán production increased 6.2 percent and yogurt production increased 1.3 percent. As for production costs, the National Dairy Products Council announced the production cost of 1 liter of raw milk at 10.54 TL in June, while the Whole Dairy Meat and Cattle Breeders Association announced the production cost of 1 liter of milk in 12.63 TL.
The increases were reflected on the shelves early
Noting that the average price of raw milk across the country is 10.70 TL, Tevfik Keskin pointed out that these prices, which are formed in the field, are accepted by the dairy industry and the retail sector and are reflected in the prices in the first months of the year. Noting that consumers are buying at outlets above the current advertised price, Keskin stressed that the manufacturer should not raise the asking price any further.
Source: Sozcu

Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.