War impacts the dinner table: Double-digit increase in food prices

Cost increases triggered by US-Iran tensions have impacted the food sector. Disruptions in logistics and rising expenses have pushed product prices up from the field to the market.

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War impacts the dinner table: Double-digit increase in food prices

The escalating tension between the US and Iran has driven up costs in the food sector. According to a report in Türkiye Gazetesi, the increase in energy, logistics, and packaging expenses has begun to reflect in prices across the chain, from production to consumption.

RAPID RISE IN FOOD PRICES

According to assessments by Hüseyin Bozdağ, President of the Federation of Food Industrialists' Associations (YESİDEF), an increase in the range of 15-20 percent has been observed in fruit and vegetable prices, in particular, due to the impact of the war. It was stated that a significant gap has formed between the farm-gate price of products and the price on market shelves, and that this gap is widening due to rising costs and the influence of intermediaries.

EXPECTATION OF PRICE HIKES IN THE CATERING SECTOR

It is noted that prices in the mass catering sector have not yet been directly passed on to the consumer, the reason being that contracts are generally determined in three-month periods. However, it is reported that the rising costs will be reflected in prices in the near future, and an increase of approximately 20 percent is expected in the "kitchen inflation," which the sector defines as its own cost indicator.

DISRUPTION IN LOGISTICS: IRAQ ROUTE STANDS OUT

It is stated that the war is complicating not only the domestic market but also foreign operations. Restrictions around the Strait of Hormuz and problems in air and land transport have made access to the region difficult.

On the export side, it was reported that operations with Saudi Arabia and Qatar are continuing, but serious difficulties are being experienced on the Iraq route. While it was stated that the time restriction imposed by Iraq on Turkish trucks is practically unenforceable due to the mandatory rest periods for drivers, it was noted that contacts are continuing with the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and relevant institutions for the resolution of the problem.

News Source: 12punto