NEWSBEEZER.COM: PRODUCTİON WİLL FALL, PRİCES RİSE: 15 PERCENT HİGHER EXPECTATİONS- 27 SEPTEMBER 2021
The doubling of natural gas prices in Europe will increase electricity and natural gas bills in Turkey and lead to serious increases in food prices.
As a reminder that natural gas is one of the raw materials for fertilizer production, the chairman of the TMMOB Chamber of Agricultural Engineers (ZMO), Baki Remzi Suiçmez, announced that the tonne of fertilizer had increased by 500 TL in one day in the past week.
Suiçmez to Gamze Bal from Sozcu.com.tr in his assessment “Since the beginning of the year, the fertilizer has already been increased by 150 percent. With the rise in natural gas prices, that increase exceeded 200 percent. In the current situation, the farmer who does not get enough fertilizer due to the high costs now has to add even less fertilizer to the soil. This will negatively affect both yield and yield, reduce the food supply and increase prices. “ called.
“THE MORE THAN 1
Emrah İnce, member of the TÜSİAD Food and Agriculture Working Group and founder of the New Farmer Platform, came to a similar assessment. “Fertilizer makes up 15-20 percent of the farmer’s economy. I assume that this situation will increasingly affect end product prices and inflation over 15 percent. “ called.
“However, this rate is within the production and yield conditions we expect,” said Ince, “when production is reduced not only because of fertilizer prices, but also other factors such as the farmer’s distance from production and the shrinking of the arable land. ” This will also have an impact on food prices, “he said.
“It is better to wait 6 months”
Allegedly, the fertilizer industry is 90 percent dependent on foreign countries for raw materials. Natural gas is one of the most important raw materials in chemical fertilizer production.
Speaking to Sozcu.com.tr, another name, the general secretary of the Turkish Food and Beverage Industry Association (TGDF) İlknur Menlik pointed out that you have to wait at least 6 months to see how much the youngest Price increases for fertilizers are reflected in the food prices on the shelves.
Self, “The food supply chain works with a supply management approach of at least 6 months, one year. This means that the prices of the products to be placed on the shelves within 6 months are determined according to a retrospective annual cost system. called.
‘SPECIFIC DISCOUNTS MUST BE MADE FOR EMERGENCY SOLUTIONS’
ZMO President Suiçmez said the urgent solution is to expect concrete reductions in inputs so that farmers apply their fields with fertilizer and maintain production yield and efficiency after recent fertilizer price increases cannot be overlooked for such reasons.
Suiçmez said feed prices had increased 30 percent last year compared to TUIK and that real field price increases had increased to 60-70 percent, emphasizing that there were similar increases in seeds and pesticides. Suiçmez added that despite the 150 percent increase in fertilizers in the first 9 months of the year, TÜİK announced a 62 percent annual increase in fertilizers.
“THE EXPENSIVE END DEPENDS ON COSTS”
Suicmez, “Due to the high exchange rate, the inputs are constantly increasing. As the farmer’s costs increase, the citizen cannot be expected to consume cheaply. In order to end the vicious circle, production costs must be reduced, but such a policy does not exist. On the contrary, dry decisions are made. As with the last rate cut …" he said.
IT WILL SPEED UP THE BREAK FROM AGRICULTURE
Emrah Ince, former general manager of Tekfen Agriculture and founder of the New Farmer Platform, which is already transferring innovative agricultural technologies, said the recent surge in fertilizers will accelerate the separation from agriculture and prompt farmers to move away from agriculture and cultivation .
“These fluctuations in world markets will have a negative impact on the agricultural sector of all countries,” said Ince, “This turnover will undoubtedly lead farmers to turn away from agriculture and cultivation, which are different in every country. Although it is impossible to predict how much will happen in which country, Turkey will also get its share.” he said.
Noting that all of this had an upward effect on food prices, Ince continued:
“This situation will not improve overnight. The initiative should be taken together with the area-based planning to be drawn up in Turkey and the regional planning in the plant pattern. This initiative should involve the ministry, both farmers and farmers’ associations. In this way it is necessary to direct production. This equation can be solved with macro planning. I think Turkey can easily solve this problem with a determined attitude of 3-5 years. “
FOOD INFLATION IS ALREADY ON TOP
On the other hand, according to the Turkish Statistics Institute (TUIK), food inflation in the country rose 29 percent annually in August 2021, peaking in the last 28 months.
Speaking to Sozcu.com.tr, experts stressed that the consumer pays dearly for the farmer’s inability to produce cheaply.
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