Turkey Sets Raw Milk Price Below Farmers’ Demand: Can Dairies Survive?
Raw milk
The National Milk Council of Turkey (USK) has announced a new reference price for raw milk, setting it at ₺19.60 per liter effective October 1, 2025. While this represents a 6.8% increase, it falls short of the ₺21 per liter demanded by producers struggling with rising costs.
Producers Say “₺21 is the Minimum”
The decision came after the USK’s Board of Directors meeting on September 17, 2025. The new rate raises the current price of ₺18.35 by ₺1.25 per liter.
However, the Association of Dairy, Meat and Cattle Breeders (TÜSEDAD) had pushed for a minimum of ₺21 per liter, warning that anything less would undermine production sustainability and fail to cover input costs such as feed, energy, and transport.
Details of the New Pricing
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The ₺19.60 per liter is calculated as the net amount producers will receive (excluding government subsidies).
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Cooling, transport, and other operating costs will be reimbursed to producers if covered out-of-pocket.
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The reference price is based on milk with 3.6% fat and 3.2% protein. For every 0.1% deviation, an adjustment of ± ₺0.29 will apply.
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The council said the raw milk reference price will be reviewed again in December 2025.
Rising Costs, Tight Margins
While the adjustment acknowledges increasing production costs, dairy farmers argue the hike does not match the scale of inflation and currency-driven price pressures. Turkey’s feed and energy costs, largely tied to foreign exchange rates, have surged, leaving many farmers in a profit squeeze.
TÜSEDAD has warned that if prices remain below production costs, many small and medium-sized farms could exit the sector, creating risks for domestic milk supply.
The Bigger Picture
Turkey consumes millions of liters of milk daily, making pricing decisions critical for both farm incomes and consumer food inflation. The raw milk price directly influences the cost of dairy staples such as cheese, yogurt, and butter.
As negotiations between producers and regulators continue, all eyes will be on the December 2025 review, which could determine whether Turkey’s dairy sector stabilizes or faces deeper strain.