The 'middleman' profiteering from farm to table: How much does the farmer sell for? How much do we pay?

In recent years, the rise in food prices in Turkey has left consumers in a difficult position. The massive gap in the prices of products as they travel from the field to the table has become particularly striking. In some products, a 4 to 5-fold difference between producer and consumer prices is sparking significant public outcry.

FIRST STOP: THE 'ÇENGELCİ'

According to a report by Betül Alakent from Sabah, 15 different middlemen are making unfair profits on various products reaching the consumer from the producer. In other words, while the farmer bears the burden of production, the middlemen reap the rewards. In the end, neither the farmer nor the citizen wins. As a result, a product that costs 3 liras in the field can reach up to 30 liras on the shelf. There are different middlemen for almost every product. For example, for high-value products like grapes, apricots, figs, and hazelnuts, the first middleman is the person who collects the goods from the producer, known as a 'çengelci' (hooker/collector). These individuals usually operate off the books. They do not issue any invoices. The çengelci's job is to collect the goods from the producer.

FROM THE COLLECTOR TO THE WAREHOUSE, FROM THE WAREHOUSE TO EXPORTERS

For example, let's take dried figs, the price of which has recently reached 500 TL on the shelf. In the Aydın region, the farmer harvested and dried their figs. These dried figs are bought from the producer by the 'çengelci' for 120 TL per kilogram. They add their own profit to the price of the product. According to information provided by producers, they pass this product on to the warehouse owner with a profit margin of at least 50 percent. In other words, the dried figs that cost 120 TL at the producer enter the warehouse at 180 TL. The warehouse owner sells the product they bought for 180 TL to merchants and exporters. Of course, by adding their own profit... Thus, the product the warehouse owner bought for 180 TL rises to at least 250 TL before it even leaves the city. The price has doubled before reaching the consumer. Then, the merchant or broker gets involved.

NEARLY 4-FOLD PROFIT

These individuals, who buy the product from the warehouse, add their profit and sell it to the supermarket for 350 TL. The supermarket then adds its operating expenses and puts the product up for sale. In the final analysis, although the supermarket making the sale appears to have the lowest profit, many of them actually run this chain of middlemen through their own shell companies. They bring the product they bought from the farmer for 120 TL to the supermarket through their own companies and sell it for 500 TL. Therefore, they make a profit of nearly 4 times.

THE SYSTEM IN FRUITS AND VEGETABLES

The system works differently for fruits and vegetables. For example, let's take tomatoes, which are currently 3 TL in the field. How does this product end up being sold for 30 liras in the supermarket? The first person to buy the product from the farmer who grows the tomatoes in the field is an off-market trader. 90 percent of these individuals also operate off the books. They sell the tomatoes they bought for 3 TL to wholesalers and suppliers for 5 or 6 TL. The price doubles before the product even leaves the city. The off-market trader sells the product to the wholesaler. The wholesaler or supplier then delivers the product to the wholesale markets in Istanbul or Ankara. Citing logistics costs, they set a price of 15 TL for the product. Thus, the price of the tomato increases 5-fold from the province where it is produced to the province where it is sold.

'A COOPERATIVE PRESIDENT WHO MAKES A MISTAKE SHOULD BE ARRESTED'

The wholesale market trader who buys the product for 15 TL also adds their own profit and commission. Thus, 1 kilogram of tomatoes is delivered to the street vendor and the supermarket for 20 TL. The street vendor makes the lowest profit in the middleman chain. The vendor puts the product brought to them for 20 TL up for sale at 25 TL. The supermarket, citing operating expenses, puts the product on the shelf for 30 TL.

Farmers, producers, and chambers of agriculture presidents want the middleman system to be reformed. It is stated that a solution is possible through producer cooperatives. For this, the Cooperatives Law needs to be reorganized. They point to the system in Europe as an example. In Europe, the only authorized institution to buy goods from the producer is the cooperative. They also manage the marketing process. The state provides warehouses and cold chain vehicles to the cooperatives. Cooperatives are strictly audited. Stating, "The system should be like this, a cooperative president who makes a mistake should be arrested," the presidents point out that the middleman lobby does not allow the Wholesale Market Law to be enacted.