Turkish Competition Authority has launched strict measures against dairy processors forcing farmers to buy feed in exchange for selling raw milk. Chair Birol Küle warned that firms violating the rule will face heavy administrative fines.

The Turkish Competition Authority (Rekabet Kurumu) issued a stern warning to dairy processors following widespread complaints that some companies compel producers to purchase animal feed as a condition for selling raw milk. Chair Birol Küle said precautionary measures had been imposed against these practices, emphasizing that the ongoing investigations would be closely monitored.

Birol Küle

According to Küle, complaints mainly centered on two issues: price-fixing among processors to suppress raw milk prices, and coercive practices linking milk sales to compulsory feed purchases. “We found that some industrial buyers force producers to buy feed from them in order to sell their milk, cutting off trade or delaying payments if they refuse,” Küle explained. Investigations revealed that such transactions were often undocumented, with overpriced feed and underpriced milk causing severe financial strain for producers.

The Authority ordered processors to comply with the Ministry of Agriculture’s Raw Milk Production Agreement, which requires voluntary feed purchases and adherence to a 1.3 feed–milk parity ratio. Processors were also instructed to inform producers of their right to seek arbitration through the Union of Chambers and Commodity Exchanges of Türkiye (TOBB) in cases of violation.

Küle concluded that the Authority would not hesitate to impose heavy fines on companies that continue to trap producers in the “feed squeeze.”