Restrictions imposed on chicken meat exports: How much should a chicken doner cost on the morning of May 1st?

According to the statement made by the Ministry of Trade, restrictions have been imposed on chicken meat exports between May 1st and December 31st. The Ministry stated that it has set a limit of 80 thousand tons until the end of the year. 

Professor Dr. Duran Bülbül from the Department of Finance at Atılım University said, "If this decision is implemented correctly, the prices of chicken products should drop by approximately 60 percent starting from May 1st." 

Bülbül stated that chicken meat prices have been raised to exorbitant levels in recent months, which is why the Ministry of Trade has taken such a step. Bülbül noted that Turkey is the 8th largest producer of chicken meat in the world, with an annual production of 2.3 million tons. 

Bülbül used the following sentences regarding the restriction: 

"Imposing a restriction on chicken meat exports does not mean that the price of chicken meat will automatically fall. If you cannot manage the market correctly in this sense, you could cause chicken producers to go bankrupt with this decision. If chicken meat producers are not managed correctly regarding this issue, wealth could be transferred to certain individuals. Because the chicken meat export restriction has been limited to 10 thousand tons per month from 30 thousand tons, and this will start on May 1st and continue until the end of December." 

Stating that there are two risks with this decision, Bülbül said, "Chicken meat prices should normally be reduced by around 60 percent, if the goal is truly to protect the consumer in the domestic market. The price of chicken meat should drop by approximately 60 percent, or at a minimum by 50 percent. With this restriction, we will have lost approximately 60 percent of our market. Other countries will start importing chicken meat in our place. With the import of this chicken meat, it will not be possible for us to re-enter those markets."

"PRODUCERS WILL FACE BANKRUPTCY"

Bülbül explained that producers will face bankruptcy with this decision using the following sentences:

"With the restriction on chicken meat, if they cannot subsidize the input costs of chicken producers; we will face a serious problem because the chicken meat will remain in their hands. In particular, we will face the risk of nearly 60 percent of producers going bankrupt."

Offering a solution to sell chicken meat at a cheaper price, Bülbül stated that the Ministry of Trade should subsidize the producer and support them with input costs, adding, "If they do not provide support due to the restriction, we will seriously lose our chicken producers in our country to foreign countries."

WE MAY LOSE A MARKET

Bülbül stated that in a previous period, an embargo was placed on chicken egg exports due to ticks, and as a result, Iran now handles exports in this area, and he expressed that the same thing could happen again with these words: 

"With this restriction, we will suffer a loss in chicken exports. Because of this export situation, chicken producers will go bankrupt. For this reason, the Ministry of Trade must immediately compensate for this loss. How restricting chicken meat exports will reflect on prices needs to be monitored very seriously by the Ministry of Trade. Because restricting prices in chicken products means that a restriction of nearly 60 percent has been placed on exports. When we look at this 60 percent restriction, the prices of chicken products should fall by around 50 percent. If the price of chicken products is not falling, it means there is another problem here."

NEED FOR EXPORTS BUT...

Stating that the country's economy needs exports and foreign currency, Bülbül said that the restriction would not pull down the prices of chicken products and expressed that the Ministry of Trade must support the producer for prices to fall. He explained that the state must use its inspection mechanism with the following sentences:

"The state must use its inspection mechanism. Because the inspection mechanism is not used correctly; because penalties are not very high, and because the rights of those who trade with exorbitant prices are not taken away, this system is constantly turned into an opportunity and then people are left with that decision."

News Source: 12punto