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May 12, 2019

Turkey's milling industry

by Mehmet Ugur Gürkaynak, Milling & Grain

The world is going through a difficult period. Tensions between countries and tougher market conditions, as well as various trade wars are widening the already existing problems. Under these conditions, high input costs in Turkey too are forcing manufacturers and Turkey in recent years, however, a mobility on the foreign exchange market also created a great deal of pressure for Turkish manufacturers.

2018 - 2019 value mobility in currency
At the beginning of 2018, foreign currencies started the year with the rate of around US $3.70, EUR €4.50 TL and GBP £5.00 TL. The Turkish Lira has decreased in some value, due to various external factors and problems.
 


Exchange rates followed a bumpy course up until May, followed by the inflation figures announced in the first week of May, followed by $4.20 and €5.00 respectively. On August 13th 2018 rates reached $7.2169 and the EUR and TL 8.2245.

End of the year exchange rates closed with $5.2920 and €6.0550. Following Turkey’s general election on March 31st, 2019, rates were approximately $5.8018 and €6.5575.

The Turkish Government's ınflation prevention plan
On April 10th, 2019 a "New Economy Package" was announced by the Turkish government which included requirements concerning the reform of tourism, education, industry, judiciary, finance and agriculture. It has been announced that it will take place during the 4.5-year term currently being run.

The agricultural sector, which is one of the critical sectors within Turkey, took its place among the issues to be solved in this project at first. In order to reduce the effect of high food prices on the economy due to inflation, production planning will be made according to individual regions and the National Unity Project in Agriculture will be announced later this month.

In order to keep the prices under control, a company with the name Sera AŞ, which are part of the Turkish Government, will be established. In 2019, 2000 hectares of technological greenhouses will be built under the roof of this company.

Red meat will be developed via ovine livestock to balance prices. With the support to be given to farmers, the 47 million small ruminants currently farmed will be increased to 100 million within four years.

Despite all these troubles, Turkey continues to move forward with confident steps with the aim to progress their flourmilling industry. Recently, the discovery of the first wheat cultivation and, quite possibly, the very beginning of farming, was discovered in Göbeklitepe, dating back 12,000 years. This news only highlights Turkey’s dedication to milling.


Read more HERE.
 

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.


For additional daily news from milling around the world: global-milling.com

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