Turkish grocers work with cooperative to control inflation

Date : 28 March 2019

Turkey’s Agricultural Credit Cooperative or Tarimsal Kredi Kooperatifi (TKK) will sell fruits and vegetables to national retailers. A101, BIM, Carrefour, Migros and Sok will buy agriculture produce from the TKK at no margin and are obliged to sell them on at the same price of purchase. This is to help subdue food price inflation, which reached over 30% in January 2019.

This is part of tanzim satis system

Tanzim satis (regulated sales) is a scheme run by the TKK to regulate prices of basic foods in times of high inflation. The cooperative buys agricultural produce from farmers and sells them to shoppers and retailers at no margin. They sell at prices at least 40% lower than retail prices. However, shoppers can only buy a limited amount of goods, up to eight different fruits and vegetables and no more than 3kg each.

TKK collaborates with national retailers for nationwide coverage

The TKK operates over 110 tanzim sales points, but they are located only in major cities. The cooperative is, therefore, partnering with national retailers to help it offer its margin-free prices to shoppers nationwide.

Tanzims will have little impact on retailers’ fresh food margins

Considering that a tanzim forgoes margins, and retailers are obliged to sell at a margin-free price, there is no profitable advantage. Instead, retailers are likely to gain from the additional traffic generated with the offer of such value-priced fruits and vegetables. Also, because of the narrow range of fresh produce tanzims offer, and the limited amounts shoppers can purchase, shoppers will have to top up from retailers for the rest of their fruit and vegetable needs.

Government improves shopper access to tanzims with eTanzim

The state run postal service, Turkish Post and Telegraph Organization (PTT), added an eTanzim service to its online platform www.epttavm.com. The service only covers Ankara and Istanbul, though. It also offers margin-free prices, in line with the tanzim satis scheme. Orders placed before 14:00 are delivered on the same day, and those after 14:00 are delivered the next day.

Source: www.epttavm.com

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