The Turkish government has revoked VAT exemptions for feed premixes and selected components, prompting concern among industry leaders. The move comes as farmers contend with rising inflation and increasing production costs. Analysts warn the new tax could have far-reaching impacts for Turkey’s livestock sector.
According to the amendment to the VAT General Application Circular, published in the Official Gazette on 31 January 2026, feed premixes and processed grain products – known locally as ‘flakes’ – will no longer be classified as ‘mixed feed’. Consequently, these products are excluded from VAT exemption and will be subject to a 20% tax.
Selçuk Karakülçe, a veterinarian and member of the İzmir Metropolitan Municipality Council, as well as head of its Agriculture Commission, cautioned that the measure could have severe consequences for livestock businesses. “It seems the government is determined to eliminate the last remaining farmers,” Karakülçe said.
Despite rising demand, Turkey relies increasingly on imports to control meat prices, leaving domestic producers at a disadvantage.
Hidden costs
The initiative arrives at a challenging time for the livestock sector, which is still recovering from recent foot-and-mouth disease outbreaks. Karakülçe noted, “Producers are already grappling with high costs. This regulation effectively introduces a hidden price increase of 3 to 6% on feed costs.”
Industry experts also warn of possible long-term effects, including greater reliance on imported food. “Turkey is searching globally for meat to stabilise prices amid ongoing demand, yet domestic producers receive little protection,” Karakülçe added. “This will inevitably push up prices for poultry and eggs, placing greater strain on consumers.”
Impact on food prices
Farmers echo these concerns, warning that increased feed costs are likely to be reflected at the checkout. Mehmet Doğan, President of Titar Agriculture and Livestock, said producers would have to pass these costs on to consumers. “The regulation has introduced an additional financial burden. It will drastically increase production costs, which will in turn drive up prices for meat and milk,” Doğan said.
As Turkey’s agricultural sector braces for the economic impact, many worry that the policy could further destabilise the food supply chain, undermine domestic production, and reduce consumer purchasing power.
