We discussed the deplorable situation of the agricultural sector in Turkey and the wheat purchase prices announced by TMO for 2024 with Baki Remzi Suiçmez, Chairman of the Turkish Chamber of Agricultural Engineers.
The wheat purchase prices announced by the Turkish Grain Board (TMO) for 2024 are one of the most vivid examples that reveal why the crisis in the agricultural sector in Turkey is escalating.
Although annual inflation exceeds 75 percent, according to the statement made by TMO, there will be an average 19 percent increase in wheat purchase prices this year.
At this rate of increase, which literally means farmers are selling at a loss, this year's price of wheat does not even cover planting costs.
The information that a payment of 10 thousand liras per ton for pasta wheat, 9 thousand 250 liras for bread wheat and 7 thousand 250 liras for barley caused serious reactions from farmers and agricultural sector employees.
Speaking to Milli Gazete regarding TMO's wheat purchase prices, Baki Remzi Suiçmez, Chairman of the Turkish Chamber of Agricultural Engineers, drew attention to the importance of continuity in grain production.
“WHEN THE POPULATION IS CONSTANTLY INCREASING, IS THIS WHEAT PRODUCTION ENOUGH?”
President of the Turkish Chamber of Agricultural Engineers, Baki Remzi Suiçmez, drawing attention to the rate of wheat production in our country over the years.
"In 1980, when Turkey's population was 43 million, we were producing 17.5 million tons of wheat. If we look at the last 10 years, there is an average wheat production of 20 million tons. So, is this wheat production sufficient while the population is constantly increasing? According to TUIK figures, when 17.5 million tons of wheat was produced, our self-sufficiency was at 87 percent, and when 19.5 million tons was produced, it was at 97 percent. Last year, wheat production was nearly 22 million tons, and this year, according to TÜİK's first estimate, it decreased to 21 million tons, and in its second estimate, it decreased to 20 million tons," Suiçmez said.
“CONCRETE SUPPORT IS NEEDED REGARDING INPUT COSTS”
Baki Remzi Suiçmez pointed out the importance of input costs in wheat production.
"In an environment where diesel, seed, medicine and irrigation-electricity costs are high, the agricultural input price index is 49.9 percent according to TUIK. This being the case, concrete supports regarding input costs are needed so that farmers can use inputs. Small farming is common in wetland farming areas. Since these farmers do not have enough equity capital, they mortgage their land, tractors and animals in return for the loans they take. If he cannot make a profit, the things he mortgaged are taken away from him. Now, this year, while inflation is 75 percent and the producer price index is 50 percent on average, a 12 percent increase in grain and a 3.5 percent increase in barley means that farmers will give up wheat production in the coming period. If the producer withdraws from the field, worse scenarios await us. Wheat planted areas decreased by 13.7 percent in 10 years. The fact that wheat cultivation areas are decreasing, the number of registered farmers is decreasing, and grain planting will decrease even more will have negative reflections on Turkey in the long term in terms of feed, flour, bread, animal prices and many other items," Suiçmez added.
“THE SOLUTION IN IMPORTER POLICIES”
Baki Remzi Suiçmez pointed out the problems that would arise from farmers not producing wheat and said, "After the figures announced by TMO, it is not difficult to predict that wheat production will decrease next year. At these stages, the solution is sought in import policies. Now, during the Russia-Ukraine War, we bought various agricultural products from Russia, including wheat, barley and sunflower oil, while last year we bought nearly 12 million tons of wheat. While TMO's wheat warehouses are now full, the wheat prices announced this year are both late and below the input costs, meaning that the wheat market will be left at the mercy of the private sector in 2024. It is also important that the premiums are increased for wheat and barley, but those premiums must be given on time. Under normal circumstances, premiums are given after one year, and in an inflationary environment, premiums to be given after one year do not make sense."