Food industry shifts toward mid-segment demand amid rising costs

Global food demand is shifting toward entry-level and mid-segment products as middle-income purchasing power declines worldwide. This trend has led international supermarket chains to narrow their product ranges and reduce the variety of similar items on shelves. For Turkish producers, this shift presents challenges; rising input costs and exchange rate fluctuations make it difficult to maintain competitive export prices, leading to a period of stagnation in the sector. Experts suggest that government support, such as subsidizing travel for purchasing managers to attend trade fairs, is vital to overcome rising costs and attract international buyers.

Domestically, Tarım Kredi has implemented price increases for various agricultural inputs. Prices for all mixed animal feed types have risen by 33 TL per bag, with increases ranging between 3.4% and 3.9%. Additionally, significant hikes were applied to raw materials, including barley, which rose by 7.69% to 700 TL per ton, and corn, which increased by 6.94% to 770 TL per ton. These rising costs are expected to directly impact the production budgets of livestock and dairy producers.