Turkey Specialized Products Exchange (TÜRİB) Operating Permit Document Delivery Ceremony was held with the participations of Minister of Trade Ruhsar Pekcan, Agriculture and Forestry Minister Dr. Bekir Pakdemirli and the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu.
In his speech at the ceremony, TOBB President Hisarcıklıoğlu emphasized that globalization and drastic changes in technology affect every aspect of life. “In the US today, many factors such as the type of agricultural products planted in China, the amount and the timing of cultivation affect the price of food at the table. For this reason, we need to increase the efficiency of agricultural markets and have a developed agricultural market. To the north are Russia, Ukraine and Kazakhstan, some of the world’s largest grain exporters. In the south, the Middle East and the Gulf countries are among the largest grain and food importing countries.”
Hisarcıklıoğlu said, using the favorable geographical location of Turkey with an advanced agricultural markets in this picture could become the epicenter of agriculture, and that for many years they have been working on a two-step conversion process carried out under the leadership of the Ministry of Commerce.
A 50-year dream comes true…
Recalling that the first step of this transformation is the pioneering of licensed warehousing activities in 2005, TOBB President said, “With the active contribution of the Ministry of Agriculture and Forestry through TMO in the last 5 years, 163 licensed warehouses have now been granted permission. 80 of them have obtained a work permit and have a capacity of over 4 million tons. I hope we will have a capacity of 14.5 million tons when the remaining 83 warehouses are operational.”
Hisarcıklıoğlu, reported that the second leg of the process, commodity exchanges were spearheaded once again by the TOBB community, joined last year by Exchange Istanbul, CMB, TMO and public banks, founding the Turkey Product Specialized Exchanges, and that under the auspices of the Ministry of Commerce as well as the support of the Capital Market Council, a 50-year dream has been realized.
Hisarcıklıoğlu stated that with the approval of the Ministry of Commerce, product commodity exchanges will go into operation. “We are starting the transition phase of the new system as of tomorrow. The purchase and sale of electronic product bills will now be done only through the commodity exchanges. We will continue to make improvements in order to facilitate the transactions of our farmers and traders. When we have completed the transition process and reached full capacity, I hope we will have started a new historic period in the agricultural product markets with a gong ceremony attended by President Erdoğan.
In this new period, prices of agricultural products will not be speculated by 3-5 people. Our farmer will not be victims; they will not go door to door to trying to find financing. Prices of our agricultural products, especially cereals such as wheat, corn and barley, will be determined in a transparent manner. And more importantly, you will be able to buy these products with a click on an application on your mobile phone, and you will be able to invest in just and deserving endeavors.”
Commerce Exchanges backbone of the development of the agricultural commodity trade in Turkey…
Stating that they want Turkey to move forward day-by-day, to attract more investments, produce more, increase prosperity and be more peaceful, Hisarcıklıoğlu said, “In line with these objectives we are doing our best in every subject. Our Ministry of Trade, under the leadership of our Minister who comes from a trading background, is making great efforts for this transformation in the agricultural product market with the devoted efforts of the General Directorate of Internal Trade. The Ministry of Agriculture and Forestry, under the leadership of our Minister, who has adopted the principle of transformation in agriculture, supports us with all of its institutions, particularly TMO, throughout this process. The Ministry of Treasury and Finance both encourages the development of this new generation of instruments and provides an important know-how transfer to the development of the market through CMB and Exchange İstanbul.”
The TOBB President explained that trade exchanges started to be established in the late 1800s, reaching 113 today and went on: “Our commodity exchanges have always strived to fulfill the duties charged unto them by law, acting as the backbone of the development of agriculture commodity trading in Turkey. Recently, with the electronic sales halls, accredited laboratories, livestock exchanges and licensed warehouses, our exchanges have increased support for the agriculture and livestock sectors.
With the same awareness, TOBB community and Commodity Exchanges in Turkey have undertaken an important mission for the development of licensed warehousing, agricultural e-commerce. Our community, especially TOBB-TMO Lidaş, has ensured that licensed warehouses have spread throughout the country. The eight commodity exchanges which have established electronic agricultural trades have undertaken an important mission until the of Turkey Specialized Products Exchanges begin operations. These exchanges have fulfilled this duty admirably to date. I would like to express my gratitude to the presidents and staff of 8 commodity exchanges who undertook this very important mission throughout this process.”
Hisarcıklıoğlu emphasized that they follow the creed which states, ‘The most beneficent of people are those beneficent unto others,’ and said, “We are honored to be of service to our nation and state. Moving forward, we will shoulder any mission set to us by our state as the Turkish private sector and make the necessary sacrifice.”
– Minister of Commerce Ruhsar Pekcan…
Minister of Commerce Ruhsar Pekcan stated that they have taken an important step in agricultural trade with the specialization exchanges.
Pekcan pointed out that they have been working for a long time in order to ensure that the products in the licensed warehouses are marketable in the commodity exchanges, “163 companies have applied for permits – we have ratified 80 operation permits. Our established capacity has reached 4.077 million tons. Our goal is 14 million tons and attaining per-product specialization.”
Pekcan reported that people and institutions engaged in agriculture in the licensed warehouse products are able to make sales with electronic notes and using them as collateral for credit from banks, “Keep the products in the period when the prices are low and sell in healthy environments, storing goods in licensed warehouses with complete infrastructure. They can store their products in licensed warehouses without having to deal with the construction of warehouses, and when they want to sell, they will be able to sell their products through the Specialized Exchange. This will also be a mobile application.”
Pekcan also stated that their aim is to enable farmers to sell their products on international commodity exchanges. “We will have a chance to follow prices more clearly and precisely.”
– Minister of Agriculture and Forestry Bekir Pakdemirli…
Minister of Agriculture and Forestry Bekir Pakdemirli, pointing out the great importance of the licensed warehousing and specialized commodity exchanges for producers and farmers, said, “In some periods we cannot plan the sale of products well, we cannot calculate the yield well, we see that we cannot prevent the price fluctuations. You will be able to sleep at night after storing the product.”
Pakdemirli said that they received complaints from the farmers about the prices of the products and said that these complaints would not occur if the product exchanges are fully operational.
Pakdemirli stated that the farmers would take the product bill by delivering the product to licensed warehouses and expressed that the producer could use credit from Ziraat Bank with the product bill in hand.
Pakdemirli, indicating that in this way, the farmer’s relationship with the product will not be cut in the field, the producer will have access to the financial markets, “As the Soil Products Office, we have given great importance to this work. 4.2 million tons of licensed warehouse capacity will reach over 14 million. We need to increase this and not view 14 million tons as the final target.”
Ministers Pakdemirli stated that figs, grapes, apricots, nuts and olive oil, which are of strategic priority for Turkey, should be focused on, gaining depth for these products in specialized commodity exchanges.
“Will be discussed at the Agriculture Council”…
Pakdemirli said that he has dreamed of a new insurance model since his first day in office, “Let’s make an insurance in which the farmer will know the price his product. Let us insure the price of the product. Then we looked at the United States’ income guaranteed product sales insurance. Lacking product specialized commodity exchanges, we were unable to transition to such a model. We will be able to make it happen moving forward thanks to the efforts of the Ministry of Trade, TOBB and our ministry. This will mean that the farmer will know how much he will sell his products for before he plants them and act accordingly.”