ATB President Çandır: “Agricultural inflation has decreased monthly, but increased annually.”

Ali Çandır, the Chairman of the Board of Directors of Antalya Commodity Exchange (ATB) and Antalya Agriculture Council (ATAK), evaluated the June 2024 Agricultural Input Price Index (Agricultural-GFE) announced by the Turkish Statistical Institute (TÜİK).

Stating that the Agricultural-GFE was announced as 0.93% monthly in June, Çandır said, “This figure is 46% below the average of June months since the index began measuring in 2015 (2.01).” Noting that the Agricultural-GFE was announced as 47.56% annually in June, Çandır remarked, “This annual figure is 51% above the average of June months over the last 9 years (31.53). The Agricultural-GFE is announced as the fourth highest increase in June compared to previous years, despite a declining trend monthly. Annually, it is declared as the second highest increase in June compared to past years.”

“Veterinary services are increasing annually”

When looking at the sub-items of the June Agricultural-GFE, Çandır indicated that there was a 0.61% monthly and a 44.60% annual increase in the prices of goods and services used in agriculture. He stated, “These have been the highest values in June months since 2021 and 2022 monthly and since 2022 annually.” Çandır highlighted increases of 0.65% in seeds, 0.25% in energy, 0.19% in fertilizers, 1.25% in medicines, 0.13% in veterinary services, 0.17% in feed, and 3.67% in other items; while he recorded annual increases of 61.56% in seeds, 63.17% in energy, 27.53% in fertilizers, 23.54% in medicines, 114.01% in veterinary services, 30.01% in feed, and 90.69% in other items. Çandır noted that there was a 2.84% monthly and a 67.47% annual increase in the prices of goods and services contributing to agricultural investment. He commented, “The changes in the sub-items of the Agricultural-GFE in June have shown similar trends since the beginning of the year. For example, the ongoing extraordinary increases in veterinary services and other service items, along with the monthly and annual decreases in fertilizers, medicines, and feed, have been noteworthy.”

“June PPI increase is favorable for producers”

Stating that TÜİK announced the agricultural producer price index (Agricultural-PPI) for June as 1.95% monthly and 54.58% annually, Ali Çandır said, “While the trend in the last year for those engaged in agricultural activities has generally been unfavorable for producers, the monthly increase in June has been favorable for producers. The annual increase in input costs has also remained below producer prices. It is important for this annual trend in favor of producers to continue in the coming months. This will contribute to reducing the accumulated losses of the producer segment.”

Çandır pointed out that domestic and foreign producer inflation indirectly affects the agricultural sector, stating that foreign producer inflation (YD-PPI) increased by 0.97% monthly and 44.51% annually in June. He drew attention to the rise in domestic producer inflation (YI-PPI) of 1.38% monthly and 50.09% annually, emphasizing that the food items at the producer level increased by 1.69% monthly and 62.19% annually. Çandır remarked, “This situation shows that in June, inflation in the agriculture-based manufacturing industry has remained higher than in agriculture.”

“Consumer inflation is high”

In June, in response to the inflation in the producer segment, consumer inflation (CPI) rose by 1.64% monthly and 71.60% annually, according to Çandır. He stated, “The food inflation on the consumer side was announced as 1.78% monthly and 68.08% annually in June. Unprocessed food inflation increased by 0.79% monthly and 70.50% annually in June. Inflation for fresh fruits and vegetables increased by 6.07% monthly and 78.61% annually. These figures on the consumer side continue to indicate that there is a consumer inflation that is higher than the inflation faced by producers.”