24.07.2019 Ankara
Turkey Specialized Products Exchange (Turiba) 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 come 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.”