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Lower alfalfa prices ease raw milk production costs in Türkiye

03 August 20262 min reading

Türkiye’s milk association lowered the production cost of 1 liter of warm raw milk for July to 26.87 TRY, driven by a 6% decline in alfalfa prices, while the USK kept its recommended selling price unchanged at 24.30 TRY. The 2.57 TRY gap between the producer cost and the recommended price continues to weigh on field cash flow, turning all eyes toward the USK's scheduled review in October.

Türkiye’s Milk, Meat and Cattle Breeders Association (TÜSEDAD) announced the production cost of 1 liter of warm raw milk for July 2026 as 26.87 TRY. Having stood at 26.97 TRY in June, the production cost dipped by 0.37% (10 kuruş per liter) in July. The association highlighted the 6% drop in dry alfalfa hay prices, a key roughage item, as the primary factor behind this modest relief.

Conversely, while concentrated feed prices remained flat, a 3% decline in culled livestock prices marginally squeezed farm revenues, counterbalancing the benefit gained from lower alfalfa costs. In its cost calculation, TÜSEDAD modeled a typical farm featuring 100 head of milking Holstein cows with an average daily yield of 30 liters. The cooling fee was noted at 1.80 TRY/liter.


Meanwhile, Türkiye’s official National Milk Council (USK), which sets the official recommended price, decided against updating the raw milk recommended selling price during its last meeting on July 16, 2026. Under the USK decision, the recommended selling price for raw cow's milk with 3.6% fat and 3.2% protein content continues to stand at 24.30 TRY per liter net to the producer (excluding raw milk subsidies). An additional payment of 1.80 TRY/liter is designated for cooling and transportation expenses covered by producer organizations. The Council previously stated that the current recommended price will be re-evaluated in October.

On the domestic market, a robust grain supply fueled by record rainfall has partially slowed feed price increases; however, global geopolitical tensions centered on the Black Sea and the Strait of Hormuz keep risks alive for key input costs such as diesel and fertilizer. The 2.57 TRY spread between TÜSEDAD’s 26.87 TRY cost estimate and the USK’s 24.30 TRY recommended price indicates that pressure on producer cash flow and operational sustainability will persist until October.

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