Turkey Opens Investigation Into Dairy Sector Over Milk-for-Feed Practices

The Turkish Competition Board has launched a full investigation into dozens of dairy companies over allegations that they pressured livestock farmers through the practice of providing animal feed in exchange for raw milk.

The probe, announced on 4 September under decision no. 25-31/718-M, follows a preliminary inquiry into claims that producers may have breached Article 4 of the Competition Act, which prohibits anticompetitive agreements and practices.

Among the firms under investigation are some of the country’s largest dairy producers, including Sütaş, Pınar, Teksüt, Muratbey, Danone Tikveşli, and Sek, alongside numerous regional and local milk processors. In total, more than 40 companies are named in the case.

As part of the proceedings, the Board has imposed interim measures. Companies are prohibited from forcing livestock farmers to purchase specific brands or quantities of feed as a condition for selling raw milk. Instead, all transactions must comply with the provisions of the Raw Milk Production Agreement.

To ensure compliance, dairy companies must submit detailed records of milk purchases and feed sales on a quarterly basis, including invoices and any associated penalties or returns. They are also required to inform raw milk producers of the interim measures within one month of receiving the investigation notice and provide proof of this communication to the authority.

The Board’s final decision will determine whether the alleged practices constitute a violation of competition law. If confirmed, the companies could face significant fines and mandatory changes to their business practices.

Source: https://www.rekabet.gov.tr/en/Guncel/investigation-opened-into-the-provision–37c691947089f01193e30050568549fa

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