Union of Chambers and Commodity Exchanges of Turkey

In his speech at the workshop, Hisarcıklıoğlu stated that he is honored to be in Diyarbakır, one of the most important agricultural production and livestock centers of Turkey, and said that he considers it important that agricultural production, which is of great importance for both the region and Turkey, be handled together with a view to the future.

Emphasizing that he believes that Diyarbakır will become a world-prominent agricultural and food industry center when the ongoing major irrigation projects are completed, Hisarcıklıoğlu said, “For example, when the Silvan Dam becomes operational, another 2 million acres will be able to be opened to irrigated agriculture. Thus, important agri-industrial products such as cotton, corn, soy and so on will be produced here. In fact, agriculture is one of the most strategic areas; it is among the issues that our country is most powerful in. We are the first in Europe in agricultural product; tenth in the world. Thanks to the 25 billion dollars of exports we have obtained from here, we earn net foreign exchange income and provide a foreign trade surplus.”

Hisarcıklıoğlu pointed out that the agricultural sector should never be neglected, “Because the world population is increasing every year. Every year, the global population increases by as much as the total population of Turkey. The middle class in the world is constantly growing. The middle class consumes more, spends more. Almost twice the population of Turkey is added to the middle class every year. 2 billion people live next to us, in our surrounding region. It imports $500 billion worth of food, agriculture and livestock products. So we have a great opportunity at our disposal. We can feed this whole region. Thus, we gain both money and strategic power.”

Hisarcıklıoğlu said, “Whoever feeds the world will be the leading country of the world,” and went on, “For these reasons, we cannot neglect agriculture. Additionally, we have to combine agriculture with technology. Because climate change, environmental problems and drought are becoming bigger problems. Thanks to the new technologies emerging in the world, for example, the need for land in food production decreases by 90 percent and water consumption decreases by 70 percent. So, the question of how to transform this sector is the main agricultural and industrial policy problem of the next 10 years. Because we are also aware that we are behind our potential in agriculture and animal husbandry. We need to focus on that as soon as possible.”

Hisarcıklıoğlu thanked the Minister of Agriculture and Forestry Prof. Dr. Vahit Kirişçi for his working style that brought the consultation to the fore and for a very constructive dialogue with the sector.

Emphasizing that there is a lot of work to be done, Hisarcıklıoğlu continued: “The first of these is that we should move from the model of selling what you produce to the model of producing what you will sell. Secondly, we must apply a co-production model to reduce our input costs. We must move to economies of scale. Because if you want to survive in this era, you must either produce a lot, buy a lot, or sell a lot. One way to achieve this is through cooperativism. There are already good examples in this area. We should also expand the contract production model. Third, new financing models should be introduced for producers in accordance with the process by which the product will be converted from sowing to cash. Agricultural subsidies should be determined before the planting time and paid on time. And it should be announced in such a way that it covers several years. Fourth, to meet the labor force need in the sector, a new social security system is needed. Fifth, we must redesign animal husbandry according to the conditions and characteristics of our country. We should establish Organized Livestock Breeding Zones for the purpose of “raw material production” in Eastern Anatolia, “Dairy Husbandry” in the Aegean and Mediterranean and “Animal Husbandry” in Central Anatolia.

Hisarcıklıoğlu also touched upon their work on the agriculture and livestock market and said: “Our commodity exchanges regulate the agriculture-livestock market. Product analyses are carried out in accredited laboratories in our commodity exchanges. The prices of the products are determined in the electronic sales halls on our exchanges with the participation of the buyer and seller. With our accredited laboratories, electronic sales halls, licensed warehouses, we offer modern commodity exchange services. Today, our commodity exchanges have become an example to the world. We convey our experiences in Commodity Exchange to Islamic countries and Turkic Republics. Recently, we have taken important steps to further develop the agriculture and livestock market. First, we ensured that licensed warehouses came out. The electronic product bill (ELÜS) received in exchange for the product placed here is used as collateral in accessing financing. Our state also makes a great contribution to the development of licensed warehousing with investment, rent, logistics and analysis supports. Following the licensed warehouses, we realized the establishment of the Product Specialized Exchange, which is the 50-year dream of Turkish agriculture. Just like Exchange İstanbul, this is a commodity exchange. Product bills purchased from the licensed warehouse can be bought and sold at the Product Specialized Exchange. Our Diyarbakır CE, with a grand vision, became one of the founding partners of both this place and our TMO-Lidaş licensed warehouse company. In addition, one of the 25 Authorized Classifier Laboratories in Turkey today is in Diyarbakır thanks to our Commodity Exchange.”

Hisarcıklıoğlu reminded that both the Chamber and the Commodity Exchange are accredited in Diyarbakır and offer 5-star service to their members.

Stating that Diyarbakır CCI and CE Presidents brought all the issues of their members to Ankara, Hisarcıklıoğlu said, “We are working together and putting forward solutions. Then we go to our government and work to solve these problems and follow them. We got results from many of them. But of course our troubles are not over. That's what we're here for today. We will take our homework from you and return to Ankara. Together with my presidents, we will forward them to the relevant authorities and follow up with them.”