Union of Chambers and Commodity Exchanges of Turkey

In his speech, M. Rifat Hisarcıklıoğlu, President of TOBB, pointed out that they gathered for the opening of an important investment in Turkey’s future, and said, “With this investment, quality will rise. Producers, merchants and industrialists of the Aegean region will benefit, and also Turkey will benefit”.

Hisarcıklıoğlu extended his thanks to Hayati Yazıcı, Minister of Customs and Trade, stating that he was the pioneer of the licensed warehousing system.

Telling that in the past agriculture was made to satisfy hunger, Hisarcıklıoğlu, President of TOBB, said that agriculture became one of the sources of enrichment today. 

Hisarcıklıoğlu expressed that agricultural products became the most valuable commodity in 2012, and would gain more importance in the period ahead. 

Drawing the attention to the fact that the world population increased as much as the population of Turkey every year and the middle class fostered, President of TOBB said, “1.5 billion people migrated from rural areas to the urban areas.  They are no longer producers and are now consumers.” 

Telling that agricultural products would gain more importance, Hisarcıklıoğlu said Turkey was very lucky in the field of agriculture, and could produce all agricultural products, listed in the 12th rank among the countries possessing arable land.  

Emphasizing that engaging in the trade of agriculture was important in order to make money out of agriculture, Hisarcıklıoğlu, President of TOBB, nut prices were set by Hamburg although Germany was not a nut producer. 

Stating that they wanted to win the leading position in the trade of agricultural products, Hisarcıklıoğlu said they needed to adapt to the changing circumstances, and licensed warehousing had importance at that point.

Telling that the investment was the best answer to those asking “What is the function of chambers and exchanges”, Hisarcıklıoğlu, President of TOBB, said, “Our chambers/commodity exchanges are adding value to the value of the product.  They benefit to the producers, merchants and industrialists. In this period when agriculture gains more important, our commodity exchanges gain more importance, too.    The experience and knowledge of the commodity exchanges will support development in agriculture.  With their knowledge and experience, commodity exchanges are the only address that can handle this business.” 

-Minister Yazıcı

Hayati Yazıcı, Minister of Customs and Trade said that the opening would start a new era in the trade of agricultural products, and said that different problems were experienced among producer, industrialists and merchants in the cereals, grains, cotton, nut, oily seeds, olives and olive oils sectors which accounted for half of the herbal production.   

Stating that warehousing capabilities were not sufficient, and commodity exchanges, in their current state, remained insufficient in the marketing of products, Yazıcı said that owing to the licensed warehouses, producers would be able to keep their products in a healthy, secure and insured environment, and they could use loans under suitable conditions by presenting the commodity bills which they will be given in return for the products kept in such warehouses. 

Pointing out that these products could be marketed at better prices through the commodity exchanges, Yazıcı said that merchants and industrialists could supply the products in such quantity, type and quality they required in an easily and reliable manner, and commodity bills would provide a hedge against price differences and reduce risks.

Barış Kocagöz, President of Board of Directors of ELİDAŞ said some segments that think of their personal interests, might prevent the operation of the system, and patience should be shown for the adoption of the system. 

Hisarcıklıoğlu, President of TOBB, and Minister Yazıcı issued the first electronic commodity bill after the ceremony.

- How will the system function?

Qality criteria will be determined for the cottons brought to ELİDAŞ for storage, and cottons physically admitted to the warehouse will be entered in the electronic system, and the investment account of the product owner held in any bank.  The Holder of an Electronic Commodity Bill (ELUS) will thereafter sell the cotton through IZBEP, or may, if he desires, present the bill to a bank as security to obtain a loan.  

ELUS notes which represent the cotton may be processed on the internet.  Buyers and sellers will be able to place trading orders via brokers.  Transactions on IZBEP shall be conducted via the matching of electronically placed orders.   Orders will be matched by price and time priority.  Price priority will be determined by the system starting with the highest price in case of buy orders, and with the lowest price in case of sell orders.  

IZBEP transaction screens will display the type of product represented by ELUS, sales price and quantity, buying price and quantity details.   The identity of the buyer and the seller or the broker will remain unknown.  At the end of the session, the settlement of the transactions will be performed , and ELUS and price of the product will have been exchanged between the buyer and seller.  

-First gong on IZBEP

A ceremony was organized at Korbey Hall of Izmir Commodity Exchange (IZTB) due to the opening of İzmir Commodity Exchange Electronic Commodity Bill Platform (IZBEP) with the participation of Hayati Yazıcı, Minister of Customs and Trade and Rifat Hisarcıklıoğlu, President of TOBB.

Minister Yazıcı hit the first gong and started transactions on IZBEP, a platform on which agricultural products licensed warehouse bills would be processed electronically for the first time.  

Delivering a speech during the ceremony, Minister Yazıcı said that they witnessed a historical moment, and commodity bills produced by licensed warehouse would be traded on the electronic trading platform established. 

Saying that subsequent to the licensed warehouse for cereals established in Polatlı in July 2011 a nut warehouse was established in Ordu and a licensed warehouse for cotton by ELİDAŞ in Selçuk this morning, Yazıcı said, “Today we are inaugurating the first electronic product application at the 122-year-old İzmir Commodity Exchange.      I have the pleasure of opening such an important application at a historical setting in a city which has pioneered many applications.”

Işınsu Kestelli, President of Board of Directors of IZTB said that with the platform where buyers and sellers from place of the country could execute transactions, electronic commodity bills could be used as an investment instrument just like stocks, gold and foreign exchange, and loans could be obtained from banks by presenting the bills as a security.

It was stated that the application was important in terms of easier access of the agricultural sector to financial resources, and integration with the financial markets.

Hitting the first gong after the speeches, Minister Yazıcı started the trading of electronic commodity bills issued by the cotton licensed warehouse. 

Performing the first buying transaction, Yazıcı bought cotton product bills representing 5 bales over 4 lira 5 kurus per kg, and Hisarcıklıoğlu, President of TOBB, bought 5 bales over 3 liras 95 kurus per kg.