The Trouble in The Meals Sector

by uchi-meshi
the trouble in meals sector in turkey
Food industrialists stated that companies operating in the ready-to-eat food sector have become unprofitable due to the difference between general inflation and food inflation.

Bursa Food Manufacturers Association (BUYSAD) announced the cookware inflation in July. Association President Coşkun Dönmez announced that food prices increased by 3.18 percent in July, thus the 7-month increase in food reached 20.18 percent.

Pointing out that companies operating in the ready-to-eat catering sector have become unprofitable due to the difference between general inflation and food inflation, Mayor Dönmez said, “This will not stop there. We began to fear the onset of bankruptcies. The constant increase in raw material prices in our industry, which operates with low profits, is not a sustainable situation. Now we have to make price updates in shorter timeframes.”

Confession from the Central Bank President: “The Food Committee has not been successful”

“We are unable to keep up with the price increases”

Drawing attention to the negative effects of the continuous increase in food prices in the ready-to-eat food sector, Coşkun Dönmez stated that the profit margin in the ready-to-eat food and catering sector, the main raw material of which is food, declined to 6 percent. Stating that this situation is not sustainable, Coşkun Dönmez said, “We are unable to keep up with the price increases.

Some of our customers are aware that general inflation and food inflation do not coincide, and they are generally understanding. However, some companies want to take advantage of the competitive weakness of our sector and buy food at a fixed price. This drags businesses in the ready-to-eat sector to unprofitability and even to the brink of bankruptcy.”

the trouble in meals sector in turkey

The expectation of a “volatile course” in inflation from the Central Bank!

“Menu cost 16-18 liras!”

Coşkun Dönmez argued that they updated the price once a year until a few years ago, that this period was reduced to 6 months with the rapid increase in food prices in recent years, and now it should be further reduced. BUYSAD President Dönmez said:

“With the last price hikes, our raw menu cost, which consists of 4 dishes, has reached 12.00 TL. When we add the costs such as salad-bar, yoghurt, bread, personnel and fuel, our menu costs can reach 16.00 / 18.00 TL. In this case, our sales prices increase to 18.00 / 20.00 TL. Raw food accounts for 50 percent of our costs.

We cannot cheapen it. As you know, electricity, natural gas and fuel prices have also increased. We want our customers to understand this in our industry, where our profit margins are 6-8 percent. But this situation is not sustainable. Unprofitable businesses cannot invest. A business that cannot invest will not survive. It should not be forgotten that everyone will suffer from negativities in the sector.”

The Central Bank announced the price developments report! What about the food?

In his evaluation, Coşkun Dönmez emphasized that it is worrying that food inflation, which is experienced due to global reasons and Turkey’s own conditions, does not slow down even in summer.

Noting that a decrease in the prices of fresh vegetables and fruits is expected in the summer months when the harvest starts in the fields, Mayor Dönmez said, “Unfortunately, this did not happen. Food inflation, which is normally expected to be negative in July due to the shortage of crops due to drought, exceeded 3 percent.

We are in a series of vicious circles such as the lack of sufficient production due to the negative climatic conditions, wrong import policies, and lack of planning in animal husbandry and agricultural activities. We expect the Ministry of Agriculture and Forestry to find a solution to this issue immediately,” he said.

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