Sector Analysis with Avcı Kardeşler
We have interviewed our feed dealers and milk suppliers in Denizli Çivril district, brothers Levent Avcı and Özkan Avcı.
Yıldız: Hello, Mr. Özkan, we have had established our milk-feed stuff transactions for long years. We have also conducted several studies in the region to develop animal breeding along with trade and to serve the producers. How did you first start this line of business and what were your reasons for preferring Pınar?
Özkan Avcı: Our milk trade started during the years 1992-1994, while in 2002 upon a decision taken overnight due to the fact that we had good relations with Pınar, even though our country was in a crisis, our milk-feed stuff relationship had begun. At the beginning, we have started out by supplying 250 liters of milk to Pınar unit located in the town of Çivril in Denizli. In 2007, we have established our own unit. We were collecting 12 tons of milk and in 2008 in order to boost the quality levels, we have transformed our system into central collection and 8 more units were established. Today we are carrying out our business with 9 units and 14-15 tons of milk.
Nevzat: With each passing day, the synergy between Feed stuff-Milk is coming to the fore in the industry, and as a group we would like to also continue this synergy and to be more present in the market. Can we learn what are some of the advantages of this model as you are the dealership that we best implement this model with?
Levent Avcı: Working with a single company is both advantageous for us and for the people. The producers are happy to see the feed stuff input as well as the milk market in the same account. This synergy also helps us to control our accounts more comfortably.
Nevzat: Why do you think the feed stuff milk synergy model has become so prominent in the industry?
Levent Avcı: Because one cannot have milk without the feed stuff. The most important input cost in animal breeding was the feed stuff sources. The producer can now follow his/her own enterprise as he/she follows the largest input of its production and its efficiency levels from the same account and knows how much he/she is earning. Moreover, they do not spend time on shopping for feed stuffs anymore. It is enough for them to tell us how much they need. They get the amount of feed stuff they request to their enterprises whenever they want. Particularly the small enterprises that have a lower purchasing power are provided with lower costs.
Nevzat: As you are our exemplary model, we would like to establish this system around Turkey. What are some of the significant points you would recommend to us?
Levent Avcı: I see this system appropriate. The satisfaction of the producers is significant for us. In the end, we are marketing their milk. We are providing our services so that we can have a say in the market both in terms of milk and feed stuff. Not only milk and feed stuff, but we also provide other smaller services they might need. These include some additives, disinfectants etc.
Nevzat: Do you think the feed stuff and milk business should go together? If you were not in the milk market, would you have only become a feed stuff dealership?
Levent Avcı: No I would not. Because everyone who is in the milk procurement business also carries out the feed business. The producers are happy about this. Dealerships are quite hard while this system is so common. Collecting the charges for the feed also becomes easier in this regard. We are working with hundreds of producers. Therefore, this makes following easier and the producers know what they purchase and what they sell.
Yıldız: Are there any other firms that apply this synergy in your region? If there are, how do they implement it?
Levent Avcı: Yes this synergy is quite common, even some milk firms that do not have feed, work with feed factories. The producer wants this implementation. There are only a few suppliers that do not implement this.
Nevzat: What should be the price of a good quality feed?
Every level of quality has its price. With respect to feeds, quality shows up as efficiency following the right implementations. However, unfortunately in our country feed prices are particularly very high in those feeds that have higher qualities. As the costs increase, even though the milk prices increase, the producers cannot earn money. Of course the reason is not just that. Feeding and sheltering mistakes are also major factors.
Yıldız: Are you satisfied with the feed quality of Çamlı? How are the feedbacks from producers?
Levent Avcı: We do not have any problems with respect to quality. In the past, we had experienced some problems with respect to keeping sperms. However, this problem has been reduced significantly now. Of course, the producers are not fully satisfying in terms of feeding. The levels of consciousness in animal breeding should increase.