Ahmet Güldal: If prices for our producers fall below expectations in 2024, the TMO will, of course, intervene

Güldal made an assessment regarding the Board's activities this year and its expectations for 2024.

Drawing attention to the instability experienced globally in recent years, particularly in food-related sectors, Güldal expressed that the importance of staple foods has been understood once again due to the impact of drought and wars.

Güldal stated that there has been a bountiful production season globally, noting that 787 million tons of wheat, 143 million tons of barley, and 1.2 billion tons of corn were produced this year.

"Logistics for access to basic agricultural products need to be opened up"

Underlining that there are countries in the immediate geography of the Black Sea Region that export grain to the world, Güldal noted the following:

"Significant production has taken place in Russia for 2 years. With the outbreak and continuation of the Russia-Ukraine War, problems arose in the supply of products, especially to countries in need. With the initiatives of our President, the Black Sea Grain Corridor continued for a while and played a very important role in overcoming the raw material supply shortage in the world. Despite the war, a bountiful season is again expected in Russia and Ukraine next year. There is no shortage of product supply globally, but the logistics for access to basic agricultural products need to be opened up."

Pointing out that Russia has set quotas for grain exports, Güldal said that Turkey would not be affected by this situation as it has had a bountiful season.

Stating that approximately 21.8 million tons of wheat were produced in the country last season, Güldal shared the following information:

"This year, the highest durum wheat production in the last 18 years was achieved with 4.3 million tons. Barley also reached its highest figure in the last 17 years with an amount exceeding 9 million tons. In corn, there is a production approaching 9 million tons, the highest yield in history."

Pointing out that the TMO carried out a record purchase of 13 million tons of products in the 2023 harvest, starting from June, Güldal used the following expressions:

"I am only talking about barley, wheat, and corn. In return, of course, this has a significant financial cost. We made payments of over 100 billion to our producers this year. After the TMO's purchases, there was a shift towards wheat and barley by our producers. This year, cultivated areas increased to 7.3 million hectares."

Reminding that the TMO also purchases hazelnuts, Güldal reported that they regulated the market in favor of the producer in hazelnuts this year.

Purchases were made without applying quotas to producers in the earthquake zone

Underlining that they showed a positive approach to producers in the region following the February 6 earthquakes centered in Kahramanmaraş, Güldal pointed out that the TMO made purchases in the region without setting a quota limit and that they carried out daily purchases of 1.5 billion liras during peak periods.

Stating that the plantings for the next season are about to be completed, Güldal noted that rainfall in November this year was above averages and that no drought risk is foreseen.

Expressing their belief that the grain product yield will be high in 2024, Güldal said, "We are making our preparations accordingly. We hope to see a plentiful and bountiful season and period in the harvest season that will begin at the end of May this year, just as in the 2023 harvest."

Stating that they base their policy on protecting the producer, Güldal made the following assessment:

"The producer must continue to produce, engage in sustainable production, and not regret what they have produced. At this point, the TMO has monitored the market and the producer, and has intervened if they have suffered any losses. If prices for our producers fall below the expected level in 2024, the TMO will, of course, make its intervention in a robust manner, just as it did this year. We do not have any problems regarding storage or finance. We advise our producers to be comfortable about this. The TMO will continue all its preparations by monitoring the products within its scope of duty, their costs, and by reviewing domestic and foreign trade measures. I wish our producers a bountiful year."