LICENSED WAREHOUSE WILL BE BETTER TO AGRICULTURE

LICENSED WAREHOUSE WILL BE BETTER TO AGRICULTURE

• 08.02.2017

Although investments in licensed warehousing are mainly made by TOBB and Commodity Exchanges, private sector investments are also accelerating day by day. One of the important investments in this regard belongs to Ulusoy Un. Ulusoy Un, Ulidaş Agriculture Products Licensed Warehousing Industry and Trade Inc. in Alaca, Çorum. Established a licensed warehousing company. It has completed the construction of a 42 thousand-ton licensed warehouse and has reached the stage of obtaining a license. It will provide licensed warehousing services in the field of wheat. Eren Günhan Ulusoy, President of Ulusoy Un’s Board of Directors, said, "As a result of the bid we submitted to the 'Long-Term Grain Storage Rental' tender opened by TMO, our company has taken over the tender for the leasing of 1 million tons of grain warehouses in total, 60 thousand tons of Yozgat/Sorgun part. The construction of which will be completed in 2017. The grain warehouse with a capacity of 60 thousand tons will be leased to TMO for 10 years. Our goal is to increase our licensed warehouse capacity to 322 thousand 500 tons in the future." says.

"SHOULD BE AT LEAST 5 MILLION TONS"

Ali Rıza Menemenlioğlu, Vice President of the Turkish Flour Industrialists' Federation, states that the total capacity, which was 730 thousand tons, has approached 2 million tons with the incentives given by the state to licensed warehousing. Menemenlioğlu, who said that private sector investments will increase this year, said, "This year, with private sector investments, licensed warehouse will increase to approximately 2.5 million tons. The most important step in the world stock market is warehouse investment. Our total grain production is 36 million tons, at least 5 million tons of which should be stored with the stock market. Government incentives for licensed warehousing in 2015 have a great importance in multiplying investments in this field." says.

WHO WILL IT BENEFIT?

- The price decreases due to the accumulation of agricultural products during the harvest periods are prevented and the market is stabilized.

- Small farmers and product owners, who have financial difficulties in particular, obtain loans and financing from banks through the product certificates they receive in return for the products they give to licensed warehouses.

- Agricultural products trade is carried out on products with widely accepted standards, quality production is encouraged, and a safe market is created.

- Agricultural products trade is recorded.

- Private sector participation in the trade of agricultural products is increased.

- State interventions in production and pricing are minimized, significant savings are achieved from high expenditures in this area, interventions that distort the free market and price formation are avoided.

- A stable and higher income level is achieved with a system that is easily marketable, well-maintained and transportation costs are minimized for agricultural products producers.

- A new investment tool is provided for investors as an alternative to foreign currency, gold, stocks, interest and the like.

- Products whose quality is determined according to scientific criteria and whose price stability is ensured are easily supplied by our merchants and industrialists engaged in product trade.

- Agricultural products are traded through product certificates or electronic product certificates without the need to show and deliver physical goods and samples.

- Transition to futures and options markets in agricultural products, with a standardized product and licensed warehouse system.

- Product storage creates new business areas for the banking and insurance industry.

Source: Money Magazine