Changes in Turkey’s feed tax threaten farm operations

Turkey has removed VAT exemptions for feed premixes and certain grain components, raising concerns among industry experts. The measures come amid rising inflation and increasing production costs for farmers. Analysts warn that the new rules could have serious implications for the country’s livestock sector.

According to amendments to the General VAT Application Instructions published in the Official Gazette on January 31, 2026, feed premixes and processed grain products are no longer classified as “compound feed.” As a result, they are excluded from the VAT-exempt list and subject to a 20% tax rate.

Veterinarian and İzmir municipal council member Selçuk Karakülçe warned of potential severe consequences for farmers: “It seems the government is set on eliminating the last remaining farms,” he noted, highlighting risks for small and medium producers.

The measure comes at a difficult time for the sector, which is still recovering from recent foot-and-mouth disease outbreaks. According to Karakülçe, “Producers are already facing high costs. The new regulation effectively increases feed prices by 3–6%.” Experts also warn that it could increase Turkey’s dependence on imported food and lead to higher prices for meat and eggs.

Farmers confirm these concerns. Mehmet Doğan, president of Titar Agriculture and Livestock, emphasized: “The regulation creates additional financial pressure, sharply increases production costs, which will lead to higher prices for meat and milk.” The new rules could destabilize food supply chains, undermine domestic production, and reduce consumers’ purchasing power.

Tags: Turkey, compound feed