Union of Chambers and Commodity Exchanges of Turkey

The TMO-TOBB Licensed Storage Joint Stock Company was introduced in the Üçpınar village of Ankara’s Polatlı district with the attendance of the TOBB President M. Rifat Hisarcıklıoğlu, Mehdi Eker, the Food, Agriculture and Livestock Minister and the Minister of Customs and Commerce, Hayati Yazıcı.

Stating that agricultural production and commerce are becoming increasingly important, Hisarcıklıoğlu stated that the agricultural sector hitherto seen as a job to get by was becoming a profitable and sought after sector.

Saying that as the world population increases while the amount of arable land stays roughly the same, even decreases, Hisarcıklıoğlu stated, “In such a world a global food crisis is just as important as a global economic crisis. In this regard, the whole world is reevaluating its agriculture policies. The days of spot stock exchanges are over. Products are changing hands electronically. 90% of the yearly consumed cereal is being supplied to the market without sufficient storage being available.

The price of a product naturally drops when there is a surplus of supply. The producer suffers. Without sufficient storage, consistent production of quality goods is disrupted. The consumer suffers. The farmers who meticulously work the land of our country and bring out its riches deserve to earn more money; our people deserve better quality food on their tables.”

Emphasizing that the way to achieve this goal is through placing the licensed storage system at the heart of agricultural produce trade, Hisarcıklıoğlu said, “We look at what troubles our producers. The producer cannot preserve his products, sells cheap during harvest and has difficulty attaining finances. Therefore has difficulty achieving profitable production, the quality of the product suffers. The industrialists are unable to find the same quality of products every month of the year.”

Stating that the tables of the producers and the consumers will prosper with the licensed storage system, Hisarcıklıoğlu said that the farmers would not be forced to sell off their produce at harvest when the price is low and would be able to sell it whenever he deemed fit after he stored it in a licensed storage facility.

Hisarcıklıoğlu stated that this would enable the producers to reach finances by presenting the receipt of his stored goods and attaining bank credit.

Relating that the producers would also be able to market their goods via exchanges, Hisarcıklıoğlu went on, “They won’t have to sell door to door, it will eliminate the cost of transportation. This way, they will have the chance to sell their goods for a higher price. The industrialist will be able to find the products of quality he needs any time of the year. Also thanks to this system agricultural produce trade will be recorded and the production of quality goods encouraged. More accurate figures pertaining to the production of agricultural goods will be attained. This will provide opportunities to formulate better agricultural policies. The producer will profit, the consumer will profit, our government will profit. In order for the establishment and the active and effective functioning of the licensed storage system certain supplementary measures must also be completed.

The translation of the product into electronic product bonds, the establishment of the insurance system and the development of the referee laboratories in the dispute of goods quality and reference laboratories is very important. Lastly, with the establishment of specialized exchanges we will achieve a revolution in agricultural goods.

With the aid of our ministers we will hopefully take these steps. As I conclude, I would like to state that it is my fervent wish that this development which is a very important step in agricultural product trade succeeds.”

- We are living on the cusp of change

Mehdi Eker, the Food, Agriculture and Livestock Minister and the Minister of Customs and Commerce, Hayati Yazıcı also made speeches, detailing their respective ministries’ plans to support and utilize the licensed storage system. The ministers placed great emphasis on the importance of the system and the possibilities it affords as well as the benefits it will provide many other branches of the economy.

After the speeches, the Ministers Eker and Yazıcı along with TOBB President Hisarcıklıoğlu were briefed on the delivery process and performed the analysis and intake of the various cereals brought to storage facility. It was reported that 17,000 tons of product were already stored in the facility which can store up to 40,000 tons.
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