Turkey is currently experiencing a steadily worsening situation with regard to the decline in the national currency and the corresponding surge in inflation. According to the Bureau of Statistics in Ankara, consumer prices in July were 15.85% higher year-on-year. What influence does that have on importers and marketers in the German-speaking region? Three import companies from Germany and Austria commented on the current situation.
Prices of fruit & vegetables stable
The lira's standing against the euro has not been as weak as it is currently in recent years, says an importer of Turkish specialties based in Frankfurt's Frischezentrum. "Interestingly, we are currently not seeing any major price differences in Turkish goods. On the contrary; last week we mainly marketed vegetables from Turkish soil at equal or higher prices."
According to the specialist, wholesalers with a strong Turkish clientele currently have no opportunity to source their goods from alternative countries. "The Turkish retail trade and catering suppliers are an integral part of today's fruit trade in Germany, and for some products in the Turkish product range, there is no real alternative, as there is for German, Dutch and Spanish seasonal products."
With regard to the upcoming season for Turkish citrus fruits, the price decline of the lira will make no difference according to the Frankfurt wholesaler. "In turn, we assume that oversupply will cause suppliers and producers to lose money, especially in the Turkish fruit sector, where there are always oversupplies. Which is why many products have to be offered below cost price, but this situation is independent of price erosions."
The exceptional situation of the lira is also noticeable in Austrian wholesaling. The goods that are bought in Turkey are becoming more expensive relatively, because people buy products with euros and dollars. At the same time, the entire production is rising steadily and you can now start to feel it in the trade,'' says a large Viennese importer. "Of course, packaging also starts to increase in price gradually as the prices are simply out of balance. Although we are currently talking small amounts, if it persists it will eventually be problematic. We expect the situation to stabilize temporarily, but for the remainder of the season, I expect the lira to drop further. ''
Difficulties covering costs
A spokesman for an import company at the Munich wholesale market explains that he himself is not experiencing the decline of lira. The company only has contracts, laid down in euros and it only imports Turkish figs. "We only notice that there are more figs this year and the prices are very low." However, it is only the beginning of the season, so he expects an even greater price decline. For the exporters in Turkey, in turn, the situation was very bad, the expert said: "Although they do get some amounts in euros, they have a huge problem covering their costs."
All in all, the traders of Turkish fruits and vegetables in Germany themselves do not seem to be affected too much by the fall in the currency, but there is reason to be concerned about the future.