News Headline: TZOB/Bayraktar: The Price Gap Between Producers and Supermarkets Reached 368.5% for Cauliflowers in October

Forex - The President of the Turkish Union of Agricultural Chambers (TZOB), Şemsi Bayraktar, evaluated the price differences between producers and markets in October, the discrepancies in fertilizer prices from different sales points within the same region, and the changes in input prices on a monthly and yearly basis in a video press statement.

“Bayraktar noted that in October, the price difference between producers and markets was most pronounced in cauliflower at a rate of 368.5%. He continued his statement as follows:

“The price difference in cauliflower was followed by potatoes at 281%, white cabbage at 259.4%, oranges at 236.6%, and lemons at 205.3%. Cauliflower was sold at 4.7 times, potatoes at 3.8 times, white cabbage at 3.6 times, oranges at 3.4 times, and lemons at 3.1 times more.

Cauliflower, which cost 12.50 Turkish lira at the producer level, was sold for 58.56 lira; potatoes priced at 3.60 lira were sold for 13.72 lira; white cabbage costing 4.81 lira was priced at 17.30 lira; oranges, which were 13.75 lira, were sold for 46.28 lira; and lemons priced at 10 lira were sold for 30.53 lira in the market. In October, cucumbers had the highest price increase in both markets and producers, while the product with the largest price decrease was dry onions in the market and potatoes at the producer level.”

Market Prices “In October, prices for 21 out of 36 products in the market increased, while 15 products saw a price decrease.

The product with the highest price increase in the market was cucumbers at 89.8%. Following the price increase in cucumbers were pointed peppers at 65%, green onions at 60.4%, zucchini at 46%, and tomatoes at 34.1%.

The product with the greatest price decrease in the market was dry onions at 18.7%. Following the price drop in dry onions were lemons at 17%, dried figs at 9.2%, pistachios at 7.9%, and dried apricots at 7.5%.”

Producer Prices “In October, out of 28 products at the producer level, 18 saw price increases, while 7 experienced price decreases. There were no price changes in 3 products.

The largest price drop at the producer level was observed in potatoes at 23.4%. This drop was followed by lemons at 13%, eggs at 10.1%, rice at 8.8%, and chickpeas at 2.2%.

The most significant price increase at the producer level was in cucumbers at 105.9%. This increase was followed by zucchini at 104.8%, pointed peppers at 102.2%, tomatoes at 64.4%, and carrots at 60%.”

Reasons for Changes in Producer Prices “Changes in supply and demand lowered egg prices. Early maturing lemon varieties reaching harvest at the same time due to climate change led to an increase in supply and a decrease in demand, resulting in lower prices. Due to high yields in potatoes, the current absence of demand has caused prices to fall. The transition from field to greenhouse for cucumbers, zucchini, pointed peppers, and tomatoes has raised producer prices.”

Fertilizer Price Study “Fertilizer prices have been rising since October 2021, peaking in August 2023, and these prices continue at those levels. Increased fertilizer prices have prompted producers to seek cheaper fertilizers, which vary from dealer to dealer. Our organization conducted a study in an Ankara district where agricultural activities are intense, focusing on price variations for the same fertilizer at different sales points.

In the study, among the most used fertilizers in our country: The price of 1-ton ammonium sulfate fertilizer is 11,000 lira at Dealer 1, 9,300 lira at Dealer 2, 10,500 lira at Dealer 5, 11,250 lira at Dealer 6, and 11,480 lira at Dealer 7. The price of ammonium sulfate fertilizer varies by 23.4% across different sales points. The price of 1 ton of UREA fertilizer is 15,500 lira at Dealers 1, 2, 4, and 5, while it is 15,000 lira at Dealer 3, 16,200 lira at Dealer 6, 15,940 lira at Dealer 7, and 15,050 lira at Dealer 8. The price of UREA fertilizer varies by 8% across different sales points. The price of 1 ton of DAP fertilizer is 23,750 lira at Dealers 1 and 5, while it is 24,000 lira at Dealers 2 and 4, 22,850 lira at Dealer 3, 24,950 lira at Dealer 6, 24,220 lira at Dealer 7, and 23,500 lira at Dealer 8. The price of DAP fertilizer varies by 9.2% across different sales points. The price of 1 ton of 20.20.0 compound fertilizer is 15,000 lira at Dealers 1, 2, and 4, while it is 14,600 lira at Dealer 3, 15,350 lira at Dealer 5, and 14,750 lira at Dealers 6 and 8. The price of 20.20.0 compound fertilizer varies by 5.1% across different sales points.

In these challenging times when fertilizer prices are straining our producers, a price difference of up to 23% for the same fertilizer across different sales points is unacceptable. Farmers need to be protected from disparate high prices. To prevent the significant price discrepancies, a ceiling price should be implemented on fertilizers.”

Changes in Monthly and Yearly Input Prices in September “According to the price data we collect through our Agricultural Chambers from input markets; in October, compared to September, the price of UREA fertilizer rose by 6.4%, DAP fertilizer by 2%, ammonium sulfate fertilizer by 1.7%, 20.20.0 compound fertilizer by 1.4%, and ammonium nitrate fertilizer by 0.6%. Compared to the last year in October, in the past year, ammonium sulfate fertilizer increased by 23.1%, DAP fertilizer by 19.8%, 20.20.0 compound fertilizer by 12.1%, UREA fertilizer by 7.2%, and ammonium nitrate fertilizer by 6.9%. In October, compared to September, dairy feed rose by 2.4%, and fattening feed by 3.7%. In the last year, dairy feed increased by 38.3%, and fattening feed by 36.8%. While pesticide prices have risen by 82%, electricity prices have increased annually by 30.4%. Diesel prices increased by 2.6% month-on-month and by 7.8% year-on-year.”