TUSEDAD Recommends a Suggested Price of 22.40 TL/L for 1 Liter of Chilled Raw Milk

Foreks - TÜSEDAD suggested that the recommended price for 1 liter of chilled raw milk should be set at 22.40 TL/liter. The recommended price was 22.00 TL/liter in the previous month.

According to TÜSEDAD's statement, the cost for September was calculated at 18.37 TL/liter, while for October it was estimated to be 18.67 TL/liter.

The statement mentioned, "It is suggested that the recommended price for chilled raw milk, which will keep the sector balanced and ensure the continuity of both meat and raw milk production supply, should be set at 22.4 TL/liter with an average profit margin of 20% added to the costs calculated by our association every month, while the recommended price for hot milk (as announced by USK) should be set at 20.6 TL/liter."

Additionally, it was stated: "As in every month, our association shares the calculated production cost for 1 liter of CHILLED RAW MILK for October based on the real production input prices in the market.

Our cost commission calculates the costs based on a business with a capacity of 100 milking cows, consisting of cows that provide an average of 28 liters of milk per day, selling male calves at four days old, removing 20% of the reformer cows from the herd annually, and raising pregnant heifers by feeding all female births each year, adding back 20% of the herd renewal needs to the herd, and selling the excess 10% of pregnant heifers produced in the farm to maintain the milking capacity at 100 heads.

It is well known that USK announces the recommended price for hot milk. This month, we will further elaborate on our calculation method, providing explanations both excluding and including the chilling fee (equivalent to USK).

We have automated the personnel salaries indexed to the gross minimum wage, ensuring that any increases linked to the minimum wage will automatically reflect in the costs.

Accordingly, based on our calculation method, which considers current feed prices and all expenses and revenues, the production cost for 1 liter of chilled raw milk in October is calculated to be 18.67 TL/liter. Assuming the chilling cost for 1 liter of raw milk is 1.50 TL, the equivalent hot milk production cost is calculated to be 17.17 TL/liter.

Ensuring that farmers in rural areas are within a profitable production cycle is a strategic issue for the continuity of production, sustainable food supply in our country, allowing our citizens to access food with prices that can be balanced with purchasing power, stopping rural-to-urban migration, ensuring labor availability in rural areas, and maintaining competitiveness with other industries worldwide.

It is suggested that the recommended price for chilled raw milk, which will keep the sector balanced and ensure the continuity of both meat and raw milk production supply, should be set at 22.4 TL/liter with an average profit margin of 20% added to the costs calculated by our association every month, while the recommended price for hot milk (as announced by USK) should be 20.6 TL/liter."