Farmers' inflation hits all-time record

Economic Service

Farmers' inflation is relentless. Production costs are constantly rising, leaving farmers with losses on every product. Producer inflation in agriculture has broken an all-time record on a monthly basis.

The Turkish Statistical Institute (TurkStat) has released the agricultural products producer price index (Agricultural Producer Price Index) data for June 2025. Prices for agricultural products saw significant increases. According to the data, the Agricultural Producer Price Index (PPI) saw an annual increase of 50.31 percent.

The index reached its highest level since its first calculation in 2010. The 18.82 percent monthly increase set a record. The agricultural PPI increased by 33.74 percent compared to December of the previous year. The twelve-month average increased by 35.46 percent.

FROM RECORD FRUIT

The effects of the agricultural frost were felt across the index. A record increase was calculated in fruit prices. The subgroup with the highest annual change was pome fruits and stone fruits, with a 202.59 percent increase, while the subgroup with the highest monthly change was pome fruits and stone fruits, with a 47.92 percent increase.

Compared to the previous month, there was a 19.98 percent increase in agricultural and hunting products and related services, a 0.50 percent increase in forestry products and related services, and a 5.25 percent increase in fish and other fishing products; aquatic products; and support services for fishing.

Compared to the previous month, there was a 0.22 percent increase in annual plant products and a 51.08 percent increase in perennial plant products across main groups. Live animals and animal products also decreased by 0.19 percent.

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DON'T ABANDON CORN TO THE MARKET

Corn producers are counting down the days until harvest. Farmers facing rising costs are demanding a base price from the Turkish Grain Board (TMO), which failed to announce a purchase price last year. Mutlu Doğru, President of the Adana Farmers' Association, shared the union's calculated corn cost. Doğru requested a base price of at least 12.50 TL per kilogram for the 2025 season. Emphasizing the yield losses and the disappointing tax incentives for corn imports, Doğru said, "This decision is a great disappointment for our farmers, who have experienced frost damage in alternative crops, struggled to find water due to the dry winter, and were unable to access production financing in a high-interest environment." Doğru stated that the TMO, which last announced a base price in 2023, should not have left producers out of the market this year.

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Milk producers were victimized

The National Milk Council (USK) updated its raw milk purchasing price for the first time in seven months, but the failure to disclose cost data for two months has sparked outrage. CHP Tokat Deputy Kadim Durmaz stated that milk producers have been left to their fate after the National Milk Council failed to disclose raw milk production costs for two months. He said, "The raw milk reference purchasing price announced by the National Milk Council is 17.15 TL, but producers in Tokat and many other provinces are selling their milk for 13 lira. This is blatant exploitation. As production costs rise, producers are forced to sell their milk for 12-13 TL per liter in many provinces like Tokat, let alone at the reference price. But the National Milk Council is not disclosing the cost. Why? This silence betrays the hard work of the producers. Without transparency, there is no trust. The National Milk Council's duty is to protect the producers, not to protect the interests of the buyers."