The Confederation of Turkish Trade Unions (Türk-İş) has released data on the hunger and poverty lines for July 2023. According to Türk-İş’s research, there has been a significant increase in food inflation, with the hunger line surpassing the minimum wage. The monthly food expenditure for a family of four in Ankara to maintain a healthy diet is 11,658.10 TL, while the poverty line, which includes other essential expenses like clothing, housing, transportation, and education, is 37,974.10 TL. The cost of living for an employee is 15,123.60 TL per month.
The article highlights a double-digit monthly increase in food expenditure, specifically a 12.38 percent increase compared to the previous month. This marks the first time since May 2022 that such a significant increase has occurred. The seven-month change rate for food expenditure is 43.38 percent, while the rate of change for the past twelve months is 70.44 percent. The twelve-month average change rate stands at 107.54 percent.
The prices of various food products have experienced notable changes. While the prices of milk and yogurt have remained stable, the average price of cheese has increased by 4 percent. Meat, chicken, fish, eggs, legumes, and oilseed products have also seen price increases. Ground beef, for example, was initially sold for 190 TL and cubed meat for 210 TL. However, the price of ground beef has now risen to 269 TL and cubed meat to 289 TL. Additionally, there have been price increases of 6 percent for beef, 13 percent for chicken, 12 percent for fish, 9 percent for eggs, 7 percent for dried beans, and 8 percent for green lentils. Lamb and chickpeas, on the other hand, have maintained their prices, while oilseeds have experienced a 2 percent price decrease. The cost of a single egg has increased by 25 kuruş, reaching 3.25 TL.
Other food items that have witnessed price increases include rice (8 percent), semolina (6 percent), and white bread (30 percent). The price of 200 grams of white bread in Ankara has reached 6.5 TL, leading to a significant increase in the monthly bread expenses for a family of four.
The prices of vegetables and fruits have also seen notable changes. Salad greens and green leafy vegetables have increased in price, while potatoes and onions are now being sold for 20 TL each. The price of melon has increased by 135 percent, making it the fruit with the highest price increase. The average price per kg of vegetables (excluding salad greens) is 27.29 TL, and the average price per kg of fruit is 35.20 TL. Essential oil products, such as olive oil and margarine, have experienced price increases as well.
In summary, the article highlights the increasing food inflation in Turkey, with significant price increases observed in various food products. These price hikes have implications for the cost of living and pose risks to the well-being of vulnerable groups.
(2) Specific ESG Risks deduced from the article:
– Inflation risk: The article highlights the double-digit monthly increase in food expenditure, indicating the presence of inflationary pressures on essential goods.
– Affordability risk: The rising prices of food products, including meat, vegetables, and fruits, pose affordability challenges for consumers.
– Food security risk: The increasing cost of food and essential commodities may impact the accessibility and availability of nutritious food for vulnerable populations.
– Social inequality risk: The disparity between the hunger line and the minimum wage indicates an income gap and potential social inequality issues.
– Supply chain risk: Price increases in essential food products may disrupt supply chains and impact the availability of goods.
(3) Groups of affected or vulnerable people:
– Low-income families: The rising food prices and the disparity between the hunger line and minimum wage have implications for the well-being of low-income families.
– Workers: The cost of living and affordability challenges may affect workers’ ability to meet their basic needs.
(4) Companies mentioned and their roles in regards to the ESG Risk:
– Ankara Food and Consumer Goods Retailers Association: The association is mentioned in relation to the Meat and Milk Institution (ESK) offering imported carcass meat at low prices to markets within the association’s network. This involvement may have implications for the affordability and availability of meat products.
– National chain markets and local markets in Ankara: These markets play a role in determining the prices of food products, including meat, vegetables, and fruits.
(5) Affected or relevant sectors:
– Food and agriculture sector: The article focuses on the prices of various food products, highlighting the impacts on the sector’s supply chains and affordability for consumers.
(6) Keywords:
– Hunger line
– Poverty line
– Food inflation
– Minimum wage
– Food expenditure
– Cost of living
– Inflation
– Affordability
– Food security
– Social inequality
– Supply chain
– Low-income families
– Workers
– Ankara Food and Consumer Goods Retailers Association
– National chain markets
– Local markets
– Meat and Milk Institution (ESK)
– Food and agriculture sector