TOBB Commodity Exchanges Council convened
08.03.2020 / Ankara- The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu stated that the dormant treasury and individual land should be rented and brought into production by land banking, “We must move to the economy of scale. Because if you want to survive in this day and age, you either need to produce a lot, to buy a lot, or sell a lot. That's the rule of this era.”
Hisarcıklıoğlu, speaking at the opening of the Commodity Exchanges Council Meeting held at TOBB, stated that they would consult with Trade Minister Ruhsar Pekcan, Agriculture and Forestry Minister Bekir Pakdemirli on how to increase production, agriculture and trade.
Stating that agriculture and animal husbandry is an area that should not be neglected, Hisarcıklıoğlu reported that the middle income group continues to grow in the world and consumption is increasing steadily.
Hisarcıklıoğlu drew attention to the fact that 2 billion people are living in Turkey's region, wherein 500 billion dollars of food, agriculture and livestock products are imported.
Pointing out that Turkey has a great opportunity, Hisarcıklıoğlu said, “We can feed the whole region. So we gain both money and strategic power. Whoever feeds the world is the world's leading country. The world food market is $1.5 trillion, Turkey's share here is $18 billion, only 1.2%. We're way below our potential. In our opinion, the first important point here is that we need to move from the model of selling whatever we happen to produce to the production model focusing on what will sell.”
Hisarcıklıoğlu, pointing out that in order to reduce input costs in agriculture and livestock, a joint production model should be implemented, said that the contract production model should be expanded.
Referring to the dormant land, Hisarcıklıoğlu said, “The treasury and individual land in the dormant state should be rented and brought into production by renting with land banking. We need to transition to economy of scale. Because if you want to survive in this day and age, you either need to produce a lot, to buy a lot, or sell a lot. That's the rule of this era.”
- “The 50-year dream of Turkish agriculture has come true”
Hisarcıklıoğlu, pointing to the implementation of licensed warehousing, said that the state has provided investment, rent, logistics and analysis supports for further development.
Hisarcıklıoğlu stated that licensed warehousing investments are increasing rapidly with the efforts of both commodity exchanges and entrepreneurs, and said, “The 50-year dream of Turkish agriculture, my 15-year dream came true. With the support of our government and ministries, we have completed the establishment of the Product Specialized Exchanges. Product notes from the licensed warehouse can now be bought and sold on Product Specialized Exchanges. We are carrying out projects and studies that will further develop the agricultural and livestock sector, with 113 commodity exchanges across TOBB and Turkey. We are developing commodity exchanges in parallel with the digital transformation of the world. Thanks to the registration software we have prepared, we integrate the trading exchanges with many relevant institutions.”
Hisarcıklıoğlu, stating that in terms of geographical markers, chambers and exchanges are the most active working organizations in Turkey, said, “Currently, 40% of geographically marked products were registered by our chambers and exchanges. We have ensured that our 3 geographically marked products are registered in Europe; the Gaziantep baklava, the Aydın fig and the Malatya apricot. Many of our products in Europe are in the process of registration. We are also working across the country to increase the production, trade and consumption of geographically marked products. Together with our trade exchanges, we will continue to work on the transformation of agriculture and livestock.”
- Agriculture and Forestry Minister Bekir Pakdemirli
Agriculture and Forestry Minister Bekir Pakdemirli said they’ve found the opportunity to engage in a high degree actionable work with the Presidential Government System.
Pakdemirli stated that, with rapid coordination with the relevant ministers, they receive results very quickly, “We are solving everything that needs to be resolved. We are obliged to serve our business world, our citizens. We need to be more motivated to grow our business world and increase employment, and needs better direction. We seek to answers of question like how do we support our business world, what kind of business world employs another person, how our businessmen, how can they make more money, how can we ensure that they can do their jobs more smoothly.”
Pakdemirli pointed out that agriculture is much more important than the defense industry, and said: “Agriculture is not an issue to be instrumental in politics. We're not supposed to bring the food we consume into everyday politics. Unfortunately, I find the ongoing wheat and hay debate tragicomic. Arguments are cherry-picked, bemoaning the state of Turkey, and unfortunately they are trying to deter our producer from their job. Turkey continues to grow steadily in agriculture despite the decline of the population in this area. Agriculture has shown itself as a sector that is growing steadily.”
Pakdemirli reminded that they convened the Agricultural Forest Summit last year as the ministry, and that agriculture in Turkey is more talked about and commented on than football. Pakdemirli, by making the lessons they take from here into a business plan, they want to make these 5-year plans every 5 years, and shed light on 25 years moving forward. Pakdemirli pointed out that they are organizing one of the most important campaigns in the history of the Republic and with the Breath for the Future Campaign, that more than 1 million people have planted more than 13 million saplings.
Pakdemirli emphasized that he sees licensed warehousing works as a success in agriculture, and said: “One of the development areas in agriculture is the good management of the processes of the product after the field. One of the conditions in managing these processes well is the provision of logistics, storage conditions and price stability. In this sense, product specialized exchanges, licensed warehousing, income guaranteed product insurance spurring farmers will be introduced. That's what's in the U.S. All that is necessary is for product specialized exchanges to gain sufficient penetration. From now on, our producers will know how many liras the product they plant will sell for tomorrow. I care deeply about that. This means manufacturers looking to the future more confidently."
Pakdemirli, emphasizing that geographical markers and branding is also extremely important, said, “Even the simplest products have meaning. When Queen Elizabeth ate Bursa's black fig, the price of this product increased. We should be selling Turkish products by uploading stories and meanings on the products. Turkey is a healthy and gmo-free producing country. We have very important potential in processed food. We are at the disposal of our businessmen today as well as tomorrow.”
- Minister of Trade Ruhsar Pekcan
Trade Minister Ruhsar Pekcan said that they broke records in exports, and that the contribution of trade exchanges was great.
Pekcan stated that the work of trade exchanges locally in both livestock and agricultural trade and export is extremely important, "We have developed licensed storage. Currently, 183 companies have obtained permission for the license, 91 are already active. We have increased our licensed warehouse capacity to 4.8 million tons, our goal is to increase to 10 million tons. As of July 2019, we opened the Product Specialized Exchange, and here we made it possible to trade products on a single platform without relocating electronically."
Pekcan emphasized that they expect support to cooperativization in the provinces and districts where they are located from the commodity exchanges, and that both the trade and exports of local, regional and geographically marked products can be increased thanks to cooperativization.
Pekcan, pointing out that the Ministry of Trade attaches great importance to technological development, reminded that they have taken operations related to export supports completely electronically from New Year's Eve.
In addition, they have adopted ‘consulting with the consultant’ regarding foreign representation, Pekcan noted that through the system, trade consultants can now be reached wherever they are in the world, and commodity exchanges can also be accessed from these systems should benefit from it.
Pekcan, touching on the Virtual Trade Academy which they started, stating that the website was edited and implemented, and that there is intense information covering every stage of trade.
Noting that they provide all kinds of training online regarding entrepreneurship, exports, supports, international trade rules, Pekcan stated that they want trade exchanges members and commodity exchange personnel to make use of them as well.
Pekcan, noting that they have established export support offices, said, “We are always on the side of the business world with our technological breakthroughs."
- “Radical transformation should be made in agriculture”
Trade Exchanges Council Chairman and Konya Commodity Exchange (KTB) President Hüseyin Çevik also noted that agriculture and food is gaining importance as a strategic sector for national security, it is inevitable that radical transformations will need to be made in the agricultural sector.
Emphasizing the need to resolve the problems that will pave the way for the sector and move the country forward in agricultural production and trade, Çevik said: “Supports for agricultural electricity, input costs, agricultural employment, agricultural irrigation, water transfer between basins, reduction in strategic product wheat cultivation areas, input costs in livestock and animal production, financial supports, effective use of licensed storage, technological and digital in agricultural production and trade are problems waiting to be resolved by our sector. In order to balance the manipulations of our agricultural industry through pricing, production should be ensured under free market conditions.”