“New Increase in Food Prices is at the Door”

In a content we shared with you yesterday, CBRT Chairman Şahap Kavcıoğlufrom the statements made by we talked about. In his statements, Kavcıoğlu stated that the rate of increase in food prices is quite high compared to other countries. President of the Federation of Turkish Food and Drink Industry Associations (TGDF), speaking to Şehirban Kıraç from Cumhuriyet Umbrella KouzHe almost said that these are our better days.

According to the statements made by Şemsi Kopuz, almost everything we have to consume in order to survive, such as vegetable oil, pulses, bread and animal food. All food will be increased. The reason for this is that the already high production costs do not decrease in any way, but on the contrary increase. Moreover, in some food sources such as vegetable oil, foreign dependencywill begin to be felt directly due to the fluctuations in the dollar rate.

Here is the TGDF President’s statement on what awaits Turkey

Expressing clearly that food prices will continue to increase, Kopuz made the following statements in his statements:

The domestic producer price index (D-PPI) reached a really high level of 45.52 percent annually as of August. Producer prices for food products increased by 39.20 percent, and for beverages by 19.50 percent on an annual basis. While the Consumer Price Index (CPI) increased by 1.12 percent monthly in August, the annual increase rose to 19.25 percent. Food and non-alcoholic beverages group was the main expenditure group with the highest annual increase with 29 percent. And unfortunately in annual food inflation, 28-month high We saw.

From August 2020 to August 2021, producer prices increased by 39.20 percent in food and 19.50 percent in beverages, while consumer inflation in food and non-alcoholic beverages increased. 19.25 percent as realized. This reveals that the food and beverage industry companies do not reflect the cost increases to their prices at the same rate, but undertake a part of the cost. In its monthly inflation assessments, the Central Bank draws attention to the pressures on consumer inflation stemming from producer inflation. Indeed, companies that try not to reflect cost increases in their prices, up to a point based on this edition. If this high trend continues, price increases will be inevitable.

We feel the effects of the drought deeply with the decrease in the production of grains, forage crops and oilseeds, especially sunflower. According to the chambers of agriculture, this year in Southeastern Anatolia due to drought. up to 80 percent losses occurred. Tobacco produced in the Aegean Region was also adversely affected by the drought. Producers in Manisa, Denizli and Uşak reported that there was a 30-60 percent loss of yield due to drought. The US Department of Agriculture stated that there was a great drought due to decreased rainfall in May, and the drought affected barley and wheat production. In the report, it was estimated that Turkey would import 11.5 million tons of wheat and 2.75 million tons of barley. Due to the drought, the yield of many products in many regions of our country was adversely affected. Although it is not named, this is a serious crisis.There is an alarming gap in production.

While trying to close this gap through duty-free imports, the reflection of the increase in the commodity prices on a global scale is also evident. inevitable being; This directly affects the final product prices. It should not be forgotten that it is not the decrease in the product prices with imports, but the difficulties experienced in the supply of raw materials, the increase in the input costs, and the further increase in food prices. prevent is the main target. In this respect, importation is not permanent, it cannot and should not be an alternative to production as a periodic solution.