Dunya Gazetesi / It paid an extra 40 million TL not to aggrieve the farmers!

Last week, I had the opportunity to see Yenihane, the innovation center located in the production plants of Mey|Diageo in Alasehir district of Manisa. Having been put into operation with an investment of 18 million TL during the pandemic, Yenilikhane has been brought into life as part of the project "New Journey-Alasehir Experience Center". New product formulations are being developed with two copper stills called Saadet and Reyhan, each with a capacity of 500 liters, at Yenilikhane. The stills were named after the mothers of Duygu Beypinar and Koray Ozcan, the company's team leaders in charge of innovation and quality. A visual work by the artist Refik Anadol, who creates new generation works with artificial intelligence, and the animated sketches by the famous illustrator Ethem Onur Bilgic draw attention at Yenilikhane. There is an art space for the work of Anadol. The sketches drawn by Ethem Onur Bilgic and representing the brands of the company have been animated by Baran Baran and adorns the walls of the hall of 'digital 'brands'.

Before telling about our conversation with Levent Komur, the General Manager of Mey|Diageo, which started at Yenilikhane and continued in the vineyards, I would like to give some details about Alasehir. Alasehir plays a very important role in terms of raw materials for raki production since it is where Sultaniye grapes, native to Western Anatolia, and aniseed, both of which are used in raki production, meet. One third of the grapes produced in Turkey are obtained from the region which includes Alasehir. This year, Mey|Diageo will purchase 140 thousand tons of grape, 80 thousand tons of which will be purchased from Alasehir. On the other hand, 7 thousand tons of aniseed/year is produced in Turkey. 5 thousand tons of aniseed is used in raki production and Mey|Diageo purchases 4 thousand tons of this aniseed. The plant at Alasehir has a capacity of 28 million liters of raki and 18 million liters of suma annually.

We purchase products, which have no commercial value, at their actual price.

I wrote about the opinions and criticisms of Levent Komur on the price increases, counterfeit alcohol and tax system in a separate section below. For me, the importance attached to and the support provided to the farmers are noteworthy. Levent Komur said that they purchase grapes for raki from 18 thousand farmers. Noting that they are engaged in contract farming and that they provide the farmers with fertilizer and diesel support, Komur highlighted the fact that they strive to make the production sustainable and not to aggrieve the farmers, and added: “We do not purchase table grapes or wine grapes from the farmers. We purchase grapes with no commercial value. So, the producers make a complete profit with the money we pay. The grapes, which would normally be given to the animals, become valuable. But we do not take advantage of it. We pay the actual price of the product. This year we paid twice as much as last year. It was even higher in other locations. Because sustainability is important. We are glad to contribute to the farmers in order for them not to cut back the vineyards. This year, there is an incredible amount of crop in Alasehir. Normally, we used to send grapes to our plants in Nevsehir and Tarsus from Alasehir. But, this year, we paid more than 40 million TL and purchased grapes from Tarsus not to aggrieve the farmers. We purchased 24 thousand tons of grapes from Tarsus. The price per kg of the grapes we purchased was 4 TL and we paid 3.25 TL per kg. We could have purchased it from Alasehir at a price of 2 TL per kg, but we didn't."             

Levent Komur said that they are also working on the sustainability of water reserves in Alasehir. Based on the information given by Komur, Mey|Diageo has built an infrastructure on an area of 60 hectares in the Sahyar region of the district, in order to ensure drip irrigation to improve the quality of the products in the vineyards of farmers, to increase the yield and the income of the grape growers. Thanks to Sahyar Drip Irrigation Project, which is available for every farmer who wishes to participate in the project, about 50 percent of the water was saved.

'We are proud to employ unionized workers. Even our temporary workers are unionized'

Levent Komur said they have almost a thousand employees. Speaking highly of Tek Gida Labor Union, Komur said, "We strive to take the legacy we inherited from Tekel to a step further and we feel that we are doing something good for this land. Showing respect to people is very important, and unionization is a part of it… Our workers are unionized. Even our temporary workers are unionized… We are proud of it. We emphasize it at every opportunity so that everyone can make investment in their related field and employ unionized workers.” Stating that they also fight in order to take the rightful place for women in business life, Komur added: “There are 4 women in our board of directors, which consists of 7 members. But they are members of the board of directors not because they are women, but because they deserve these positions the most. This is a legacy we inherited from Tekel… 251 people work at our Alasehir plant. 28 of them are women. This number will increase to 34 next week and 50 next year.”

‘Farmers are not happy; producers are not happy; consumers are not happy; we all need a fair tax system.

Highlighting the need for a fair tax system in the sector, Levent Komur said: “Import has been increasing in the sector for the last 5 years. We work with a capacity of 30 percent. The highest tax applies to raki. Whiskey is exported and 12 percent less tax is applied. We are losing our competitive capacity in exports because of the exchange rate. We want the tax rate of raki to be reasonable. Grape producers are not happy; aniseed producers are not happy; Tekel stores are not happy; consumers are not happy, and raki producers are not happy. But counterfeiters are happy. Farmers in the importing countries are happy.” He also made the following evaluation about the recent price increases and taxation: “The price of Yeni Raki of 70 cl has increased by 135 percent in the last 32 months. Gasoline has increased by 179 percent and toothpaste by 179 percent. Raki was the product, the price of which increased relatively less. The price of one bottle increased by 194 percent in one year. The price per kg of aniseed was 20 TL last year and increased to 80 TL this year. The price of raki of 70 cl is 359 TL, and 244 TL of this amount is for the tax. If we were to reflect the normal cost increases, the price of raki of 70 cl would have been 450 liras. So, a fair tax system is inevitable. The tax applied on a product cannot be higher than its price. 2 percent of the taxes collected in Turkey is from alcohol. But it should not be higher than 1 percent. It should be 0.75 percent. Taxes should be increased according to the targeted inflation rate, not the actual inflation rate. The special consumption tax should be increased once a year. The prices of spirits will decrease if the special consumption tax is not increased for 3-5 years. For example, the special consumption tax has not been increased as much as the inflation rate in the last two years. This is a good development. Because, the consumers started not to buy counterfeit alcohol."