Milk and dairy products increased by an average of 25 percent as of the new year. Evaluating the price increases, dairy producers said that the price increase is inevitable due to the increasing costs, and drew attention to the decrease in sales after the hikes.
According to the news of Burak Coşan from Hürriyet newspaper; In 2020, as the whole world struggled to combat the pandemic, economic balances also deteriorated. Turkey was also in the economic balances deteriorated in some countries, due to increased demand and rising costs have lived on the rise in the price of many products. Almost every product, from vegetables and fruits to sunflower oil, has increased. The latest hikes were experienced in milk and dairy products. There was a 20-30 percent increase from cheddar cheese to yoghurts, from white cheese to packaged milk, butter and cream.
According to TURKSTAT’s data, annual inflation was 14.6 percent, while the increase in food products exceeded 20 percent. The highest increase was in instant milk desserts with 674 percent. We investigated the reasons for the price increase in milk and dairy products. Sector representatives said that the hike was inevitable after the increase in raw milk prices, and that the rise in energy costs and the increase in packaging prices were also effective in the hikes. While the price hikes on milk and dairy products have just been reflected in the new shelf prices, dairy producers stated that there was a slight decrease in sales after the price increases.
‘OPPORTUNITIES ALSO EMERGED’
The price increases in some products exceeded 25 percent. While the price of one kilogram of butter was 60 TL, it exceeded the level of 80 TL. The price of 500 grams of kasarp cheese increased from 24 TL to 35 TL. These hikes, which are higher than the average, drew the reaction of the citizens. Some producers, on the other hand, described the price increases as opportunistic, while some of the markets emphasized that they pushed prices even higher.
‘IT WAS NOT AVOIDED TO MAKE TIME’
Noting that the latest raw milk prices increased from 2 TL to 2.3 TL as of November 15, 2019, Eker Süt Chairman Ahmet Eker said, “There has been no increase in raw milk prices since then. As of January 1, 2021, raw milk prices increased by approximately 25 percent and were increased to 2.8 TL. In addition, there was an increase of 20-25 percent in exchange rates during the same periods.
This resulted in an increase in our packaging cost. Energy prices have risen, and the minimum wage has also increased. When all these came together, the raise was inevitable. The sector made an average of 20-25 percent hike in final products. The hike remained at this level as there was a lot of competition in the industry. If the actual costs were reflected the rate would be much higher. After this hike, there was a decrease in sales, ”he said.
‘WE ARE ABLE TO INCREASE PRICE ‘
Underlining that there is no increase in milk and dairy products throughout 2020, Teksüt Chairman of the Board Cevdet Arınık said, “In the last year, there have been price increases in every product used by dairy producers from feed to raw milk, from packaging to energy”. Arınık stated that the increase in dairy products is inevitable when the raw milk prices are increased by approximately 25 percent. “We also did not want to raise our products. We had to. After the hikes reflected on the shelves, there was a decrease in sales. Because when people suddenly saw the 20-25 percent hikes, they were more affected. “If we had actually reflected the increase in costs to prices, the raise rates could exceed 30 percent.
RAW MILK PRICES INCREASED
The kilogram price of raw milk was around 1.7 TL at the beginning of 2019. In May 2019, the price was 2 TL. In the middle of November 2019, the price was up to 2.30 TL. In 2020, the price of 2.3 TL was valid. However, by 2021, the price per kilogram of raw milk has been increased to 2.8 TL. This increase in raw milk prices also had an effect on products delivered to consumers.
*The article has been translated based on the content of bigpara- GÜNDEM by bigpara.hurriyet.com.tr. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!