Milk production slowdown due to rise in production costs

ANKARA

Raw milk production decreased by about 10 percent last October compared to the previous year due to the increased costs.

Due to the low selling price in the face of costs throughout 2022, the producers sent their milk-producing animals to slaughter.

Accordingly, the latest bulletin of the country’s official statistical institute TÜİK advised that the amount of milk collected by commercial enterprises last October decreased by 9.6 percent compared to the same month of the previous year.

The amount of cow’s milk collected by commercial enterprises, which was over 750,000 tons the previous month, dropped by 3.4 percent last October to around 725,000 tons. While milk production, which was nearly 124,000 tons in the previous month, decreased by 15.6 percent to below 105,000 tons.

According to data published on the National Dairy Council’s (USK) website, the cost per liter of raw milk production was 8.74 liras in last December. Although a 0.50 lira support is provided, the purchase price was determined as 8.50 liras.

In return for the USK’s figures, milk, meat and breeding cattle producers association TÜSEDAD also published a cost table on its website.

According to the calculation, which included the general expenses as feed, and waste, the production cost of 1 liter of milk was 12.90 liras.

Noting that commercial enterprises have made their own agreements with all producers, small and large, sector representatives say the price ranges between 10-12 liras in the free market. They, however, pointed out that small family businesses should be particularly protected.

“We do not find the price announced by the council very important anymore as it is a reference price just determined to protect against low prices that may be against the producer,” said Tevfik Keskin, an official from Milk Producers of Türkiye, suggesting that the prices are currently set in the free market.

“No need for a new meeting to set the price. The industrialist and the producer determine the price by bargaining,” he said.