Ahmet Güldal, General Manager of Turkish Grain Board (TMO), who attended the 'Sectors are Discussing' webinar in Borsa Meydanı organized by the Güvenilir Ürün Platformu (Reliable Product Platform) and Istanbul Commodity Exchange, presented important statements about the markets.  

Güldal stated that the prices of grains, especially wheat, which have risen to record levels due to the pandemic and drought, have started to decline recently. “Products have started to be supplied to the markets. Freight prices are falling. Especially, there are decreases in the taxes applied by Russia on grain. The new sowing and production data we received from the field are pleasing. In the Southern Hemisphere, there is an increase of 7 to 20 percent, especially in the wheat harvest.

There are positive parameters this year compared to 2021. As a country, we received more rain than last year. We were very happy with the snowfall that was effective in Southeastern Anatolia. The more snow there is, the better the yield will be in wheat and other grain products,” he commented.

TMO General Manager Ahmet Güldal stated that this year they will announce a price that will satisfy the farmer. “The farmer's production costs have increased. Prices of fertilizers and seeds increased. In so much that, there is a slight decrease in the use of fertilizers due to the price increase. Taking into account the increases in all cost elements during the 2022 harvest period, we will announce the grain purchase prices that are suitable for the real markets and that will satisfy our producers,” he added.

Güldal expressed that Turkey, like all countries, has been significantly affected by the world markets hit by the pandemic and drought. “As Turkey, we were very active in 2021 and experienced an active market in the field of grains. As TMO, we announced a price that will satisfy the farmer on May 17, 2021. At that time, the price we gave to our farmers was 265 dollars, above the foreign markets. However, world grain prices, which increased later on, were effective in all markets. We are trying to relieve the markets with flour and feed regulations,” he said. 

FUTURE OF GRAIN WILL BE  DISCUSSED AT TABADER SUMMIT

Mustafa Bayram, Chairman of The Association of Grain and Pulses Processing Technologies, Storage and Analysis Systems (TABADER), said in his speech that world food prices will increase by around 90 percent until 2030. Mustafa Bayram stated that the pandemic, which affected the whole world, created fluctuations in the grain markets. “Before the pandemic, countries were not managing their stocks very tightly. But with the pandemic, this system was broken. As each country started to purchase too many products to keep their stocks strong, prices increased rapidly. There have been developments that we can call a Protein War. In the 2050s, production amounts will have increased 2-3 times. The European Union will support its farmers more in grains. World food prices are expected to increase by around 90 percent by 2030. According to research on US markets, product losses due to global warming will increase and this will negatively affect world markets.

At TABADER 2nd International Grain, Pulses and Feed Summit, which we will hold in Istanbul on March 11-12, 2022 together with the Turkish Grain Board (TMO), we will discuss the sector from every angle. We welcome all stakeholders of the sector to this summit,” he said.

GOVERNMENT SHOULD INTERVENE IN FERTILIZER PRICES

Özkan Taşpınar, Chairman of the National Grain Council, said that the state must intervene in fertilizer prices. “Fertilizer prices must be intervened in the same way unfair product prices are interfered with on market shelves. We do not understand how come the fertilizer prices, which are 300 dollars in the USA, 700 dollars in Iraq, are 1100 dollars in Turkey. In order to prevent this, a solution must be found urgently by the state,” Taşpınar emphasized.

Gülfem Eren, the Chairwoman of the Grain Suppliers Association (HUBUDER), explained that the farmer is ill-disposed to planting wheat and reminded that 7.3 million tons of grains were imported in 2021. “If no precautions are taken, we will not be able to produce the wheat necessary for our national consumption. In other words, we will have to import the wheat we will use in bread. Due to the increase in input costs, the farmer shifts from wheat to more profitable products. I can say that the farmers who keep away from wheat tend to plant corn and cotton,” Eren added.