Rising paper costs hurt publishing companies in Turkey
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by Ebru Tuncay - Referans
Oluşturulma Tarihi: Şubat 10, 2009 00:00
ISTANBUL - Publishers using imported paper face tough times due to rising costs in line with increasing exchange rates. Many publishers are obliged to change their press schedule and delay publishing books that require high-quality paper
The burden of rising costs for imported paper has many publishers in Turkey feeling crushed and considering a revision of plans for the year as the global crisis continues to impact all sectors.
The euro, which stood at 1.80 Turkish Liras in August, has risen to 2.13 liras and contributed to a 17 percent increase in paper costs. Publishing companies that need to import much of their raw materials with foreign currency are being forced to revise their plans, which is jeopardizing the publications of the books’ 2009 editions.
The newly adopted "cash only" policy of most paper suppliers also is hindering the sector. While paper suppliers have felt the need to adopt the new policy due to low liquidity in the markets, their demand has been forcing the hands of publishers that had the choice of paying in installments prior to the global turmoil. Nowadays many publishers are feeling inclined to be more selective about the books they planned to publish this year.
Some publishers have called off plans to publish new books, said Kenan Kocatürk, the founder of Istanbul-based publisher Literatür Yayınevi and a member of the Turkish Publishers Association.
The number of new book publications will decline as publishers and suppliers shift from production financed by postdated check and bills to financing by cash, he said, adding that Literatür is determined to follow its previously designated press program till March.
"Publishers are obliged to buy paper in cash," said Erden Heper, a partners at Altın Yayınevi, a leading Turkish publisher. "A firm that has built everything on forward paper purchase of course experiences problems with cash sales."
The increasing costs of imported paper may even cause some smaller publishing companies to close up shop. The declining consumption due to the global crisis as well as the low-level reading habit in Turkey have been generating additional threats in the sector. Overall, production cost has increased 20 percent for publishers and they are seeking ways to avoid reflecting the rise in their retail book prices.
Grave problems
On the crisis management policies implemented by some firms, Nermin Mollaoğlu of Kalem Ajans said many firms are inclined to publish books with more chance to sell. "Publishing is a sector that is impacted by even the slightest crisis. Therefore, those that lack feasibility work and capital will be affected gravely during the current period." Kalem Ajans functions as a bridge between writers and publishers abroad.
Representatives from Remzi Kitabevi, a publishing house founded in 1927, also commented on the decline in sales. The publishing sector has been facing many basic problems for a long time and recent developments are only piling on top of those, creating acute results.
The contraction of the world’s paper producers may distress the sector even more in the upcoming period. Finland’s largest paper producers have started to suspend their production due to the decline in demand and paper prices have started to decline on the FOEX Bourse in Finland. Book paper prices, which were trading at 695 euros as of Nov. 25, 2008, dropped to 687 euros as of Jan. 27.
The euro, which stood at 1.80 Turkish Liras in August, has risen to 2.13 liras and contributed to a 17 percent increase in paper costs. Publishing companies that need to import much of their raw materials with foreign currency are being forced to revise their plans, which is jeopardizing the publications of the books’ 2009 editions.
The newly adopted "cash only" policy of most paper suppliers also is hindering the sector. While paper suppliers have felt the need to adopt the new policy due to low liquidity in the markets, their demand has been forcing the hands of publishers that had the choice of paying in installments prior to the global turmoil. Nowadays many publishers are feeling inclined to be more selective about the books they planned to publish this year.
Some publishers have called off plans to publish new books, said Kenan Kocatürk, the founder of Istanbul-based publisher Literatür Yayınevi and a member of the Turkish Publishers Association.
The number of new book publications will decline as publishers and suppliers shift from production financed by postdated check and bills to financing by cash, he said, adding that Literatür is determined to follow its previously designated press program till March.
"Publishers are obliged to buy paper in cash," said Erden Heper, a partners at Altın Yayınevi, a leading Turkish publisher. "A firm that has built everything on forward paper purchase of course experiences problems with cash sales."
The increasing costs of imported paper may even cause some smaller publishing companies to close up shop. The declining consumption due to the global crisis as well as the low-level reading habit in Turkey have been generating additional threats in the sector. Overall, production cost has increased 20 percent for publishers and they are seeking ways to avoid reflecting the rise in their retail book prices.
Grave problems
On the crisis management policies implemented by some firms, Nermin Mollaoğlu of Kalem Ajans said many firms are inclined to publish books with more chance to sell. "Publishing is a sector that is impacted by even the slightest crisis. Therefore, those that lack feasibility work and capital will be affected gravely during the current period." Kalem Ajans functions as a bridge between writers and publishers abroad.
Representatives from Remzi Kitabevi, a publishing house founded in 1927, also commented on the decline in sales. The publishing sector has been facing many basic problems for a long time and recent developments are only piling on top of those, creating acute results.
The contraction of the world’s paper producers may distress the sector even more in the upcoming period. Finland’s largest paper producers have started to suspend their production due to the decline in demand and paper prices have started to decline on the FOEX Bourse in Finland. Book paper prices, which were trading at 695 euros as of Nov. 25, 2008, dropped to 687 euros as of Jan. 27.