The Agriculture Ministry will provide monetary support to milk powder producers so as to prevent an extraordinary decline in milk prices. The decision was published on the Official Gazette on Tuesday and went into effect that day. Accordingly, the ministry will help bring milk powder sale prices in Turkey to a level similar to international markets. Along with the new incentive, the government allocated a total of TL 1.2 billion ($789 million) to be used in support of farmers in 2010. Some TL 20 million of this is expected to go to milk powder incentives. In coordination with this measure, the sale of milk powder will also be encouraged in the market, and the Ministry of Agriculture will monitor the developments closely.
Recent price hikes in red meat have led to problems in the dairy market, with milk providers now demanding that prices rise following the increasing cost of feed and other production inputs. Milk providers that are part of the Turkey Milk Producers Union (TSÜMB) started a strike yesterday over a disagreement on milk prices, the union announced. The union accused industrialists of unilaterally reducing milk prices from the previously agreed level of Kr 85 to Kr 72.5 per liter in March.
Turkish milk providers and companies that purchase milk are still having problems reaching a compromise over the minimum sale price of milk. Observers say time will show whether the measures will help stabilize the market.
