Miller Magazine Issue:114 June 2019

45 NEWS JUNE 2019 the plains in the Southeastern Anatolia Project (GAP), we now see corn rather than wheat ears. These were concerns of stakeholders who had the chance to know about measures of policy makers. Ahmet Güldal, the General Manager of the Turkish Grain Board (TMO), stressed that they are going to declare buying prices for products like grain before the harvest season begins. He also added that they are going to prepare price scenarios for all types of products and they will take into considera- tion the domestic and international prices, inflation rate and size of the harvest for each product in order to encourage farmers to grow their products and also protect consumers against skyrocketing prices. “We are fully ready to buy all products that come to us. We will put a price that ena- bles sustainable production to guarantee the amount of the grain crop for next year. We aim to see a grain harvest of over 20 million tons for 2020-2021 production year. We definitely do not want to see high prices that would affect consumers in a negative way.” he added. “ALSO DECLARE SELLING PRICES” Grain Suppliers Association’s (HUBUDER) Chairwoman of the Board Gülfem Eren applauded the decision for an- nouncement of grain prices before the harvest. She also urged the policy makers to declare selling prices as soon as possible. “Diesel fuel, pesticide and seed costs are correlat- ed with the foreign currencies”, she reminded. “To increase grain cultivation, well-calculated buying prices should be put into action, a careful production planning should be in force. Those measures will also decrease the inflation rate in the long term as a substantial solution. We foresee a more balanced market thanks to a substantial amount of purchas- ing by the Turkish Grain Board in many regions excluding South Eastern Anatolia and Cukurova. We wish to see that grain selling prices would also be declared as soon as pos- sible and a gradual increase in prices,” Gülfem Eren added. INDUSTRIALISTS NEED TO KNOW THE SALE PRICE BEFORE OCTOBER Turkish Flour Industrialists (TUSAF) Chairman Eren Gün- han Ulusoy also highlighted his concerns about shrinking cultivation areas for the wheat and supported the idea to declare the buying prices before farmers plant the seeds. Ulusoy also stressed that the climate change affects produc- tion in a negative way and makes farmers to decide not to produce wheat. As a result, costs are increased for flour in- dustrialist. Eren Günhan Ulusoy added: “Wheat cultivation areas had shrunk by 23% to 7.2 million hectares from 2000 to 2018. The yearly shrinkage had been between 1 and 1.5 percent in the last 18 years but this rate has increase to 5% in the recent year. The alarm bells ringing and something must be done to prevent the worst scenarios. We think, the 5% loss can be offset thanks to the positive weather con- ditions and we expect a harvest of at least 20 million tons for the wheat. But in order to have a sustainable wheat pro- duction, we have to compensate the costs of our farmers. And it will be much better if farmers knew the buying prices before planting the seed in October or November. They will be more comfortable if uncertainties are prevented. GLOBAL WHEAT CONSUMPTION IS SET TO DECREASE BY 10 MILLION TONS The Director of Moscow-based Institute of Agricultural Market Studies (IKAR) Dr. Dmitri Rylko, highlighted the dominant position of Russia and the Ukraine in the wheat market. Iran also has become a more important market for Russia in recent years. President of Tallage, France-based agricultur- al-economic research and analysis bureau and consultancy and Strategie Grains Chief Editor Andrée Defois said that the global wheat con- sumption is expected to increase by 10 million tons this year. He also underlined that Russian wheat has a price advantage over all suppliers and this situation will continue until the new harvest season in November or December.