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SALKONDER: QUOTA APPLICATION IN TOMATO PASTE EXPORTS IS CHALLENGING!

Stating that the restriction on tomato paste exports puts exporters at risk of losing the markets they have gained, Hakan Turan, President of SALKONDER, said that the practice harms both exporters and farmers.

“While companies continue production with low capacity due to the restriction, tomato sales prices are far below the contract prices. The products will either remain in the field or farmers will suffer great losses. We expect the application to be re-evaluated,” Turan said.

Pointing out that although the tomato planting areas surged by 45 percent in the 2023 season compared to last year, the quota limit remaining approximately the same will cause significant problems in the market, Hakan Turan, President of Tomato Paste, Frozen and Canned Food Industrialists Association (SALKONDER), said that this situation will lead to significant decreases in plum tomato (paste tomato) purchase prices.

“The products will either remain in the field or farmers will suffer losses”

Turan made the following evaluations regarding the ongoing tomato paste export restriction:

“While the paste tomato cultivation areas were 33 thousand hectares in the 2022 season, the 2023 season reached 48 thousand hectares. The 2023 yield is sufficient for both the domestic market and exports. Due to the restriction, companies continue production at low capacity. This situation has a negative impact on employment and free market tomato sales prices are far below the contract prices. The products will either remain in the field or farmers will suffer great losses. Türkiye’s increasing export potential cannot be utilised in this period too.”

Underlining that while they were waiting for the lifting of the restriction decision for tomato paste exports valid for August 2022-31 July 2023, Turan explained, “We regretted the announcement of a maximum export limit of 200 thousand tonnes in Türkiye. While the restriction imposed in the previous year was considered as an annual cumulative value, this time the quota was determined on a monthly basis and it was not possible to switch between months. If our companies cannot export as much as the quota amount recognised in the relevant month, that amount is deleted from their rights. We continue to submit our justified applications to our Ministries to make the method applied in quota distribution fairer and to review this practice that harms the sector.”

Demand in the domestic market contracted by 4 percent…

Reminding that shelf sales prices in the domestic market have not increased since September 2022, but on the contrary, they have decreased and that the domestic market demand has contracted by 4 percent compared to the previous year due to excess stock, Turan added, “The newly introduced monthly restriction application will bring great difficulties to exporter companies and will make their recognised rights unusable.”

“Exporter companies are facing the risk of losing the markets and customers that they have gained with great efforts for years and that they are worried about the loss of the market due to the inability to meet the product demands of the customers,” Turan concluded…

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