When they could not compete, they opened an investigation: Tax deterrence for Turkish flour industrialists

While Turkish flour producers stand out in many different markets with their high capacity and competitiveness, the success achieved in the South American geography disturbed US wheat producers. US manufacturers, who do not want to lose market dominance to Turkish industrialists, are filing lawsuits against Turkish manufacturers in international courts through the association they formed. At the same time, while no tax is imposed on other producers in the market, a tax burden is imposed on Turkish producers. Turkish producers met most of the needs in the Venezuelan market, where significant success has been achieved recently.

Answering our questions at the 18th congress of the Turkish Flour Industrialists’ Federation (TUSAF) held in Antalya between 15-18 February, Chairman Haluk Tezcan also evaluated the intimidation policy applied to Turkish industrialists. Tezcan stated that the most important reason for the lawsuits is that Turkey has a say in the market by exporting flour to the countries where the USA sells wheat. Stating that they have not lost any of the cases they have been tried so far, Haluk Tezcan said, “We talk about it but its importance becomes apparent in time. We are leading as the flour industry, but the machinery industry comes after us. There is no factory left without a laboratory, food engineer and technical staff. “We can report step by step at every stage of flour production,” he explained.

Stating that flour prices should be balanced, TUSAF President Haluk Tezcan said, “The wheat purchase price was 8.3 TL. This year it may be 9.5-10 TL. “Except for supports,” he said. Tezcan, who also answered the questions about the wheat stock on hand in the case of the Turkish Grain Board (TMO), said, “It is positive that wheat is bought from farmers at a good price and sold to the consumer at a good price and the state does not suffer any losses. We are the sector that provides the greatest support to the fight against inflation. Our profitability is very low. “Our cooperation with our state continues,” he said.

Explaining that when there is wheat in Turkey, that is, when TMO’s warehouse is full, the bargaining power of the exporter is high, TUSAF President said, “We have a strong hand with the countries we buy wheat from, and raw materials are purchased at more affordable prices. Thus, it is also reflected in flour exports. “At that point, exports can compensate for domestic costs,” he said. Tezcan said: “2023 was a year in which we managed to break records for our country. “In addition to the increase in our cultivation areas, we reached 21.5 million tons, the highest production in the last seven years.”