Costs outpace selling prices for milk producers

Gamze Bal – ISTANBUL

The ongoing debate over milk prices in Türkiye has reignited as producers demand an increase in the recommended selling price, arguing that the current rate does not cover rising production costs.

According to the National Milk Council, a liter of raw milk is currently produced at 17.5 Turkish Liras (around $0.50), while the recommended selling price is 14.65 liras per liter — a figure set by the council. The producers are adamant that this disparity threatens the sustainability of their business.

Sencer Solakoğlu, the head of the Meat and Cattle Breeders Association, argues that the sales must be raised to 21 liras per liter for producers to make a profit, given a sharp increase in production costs.

“If you look only at feed costs and ignore other costs, you come to the figures announced by the National Milk Council. However, when all costs are considered, the current recommended price is insufficient,” Solakoğlu said.

Industrialists, however, are concerned about the rising cost of domestic raw milk, which they say has already made Turkish milk more expensive than European products, impacting exports significantly.

“We lost the Chinese market and are facing difficulties in other export markets,” said Cevdet Arınık, chairman of a dairy products company.

He added that this price spiral could further harm the Turkish dairy industry if not addressed promptly.

Meanwhile, milk retailers have reported a decrease in consumer demand due to higher market prices, leading to unsold stocks and the need for discounts.

According to Arınık, “Retail prices have exceeded 40 liras per liter in some regions and consumers are purchasing less, leading to an increase in stocks.”

In addition to cost concerns, Solakoğlu highlighted a lack of technical knowledge among producers, which he believes exacerbates the problem. “We need to help farmers out of the bottleneck by providing necessary training. This should be within the framework of agricultural policy, and we need to start with awareness-raising activities all over the country,” he stated.