Turkey. Oilseeds and Products Update. Jul 2014 July 14, 2014
Marketing year (MY) 2014 Turkish soybean area and production are estimated at about 35,000 hectares and 130,000 metric tons (MT). Declining domestic soy prices and increasing corn prices caused declines in soy planting as a second crop, resulting in a reduction of overall planting. Turkey’s production of both poultry and livestock has grown, increasing the demand for imported soybeans and soybean meal. However, recent political unrest in Iraq, the leading export market for Turkish poultry meat and eggs, is expected to slow down the growth for both sectors. Total soybean imports during the first eight months of MY 2013 were 760,000 MT, and the U.S. was the leading supplier with 269,000 MT. Turkey also imported 503,000 MT of soybean meal, with the U.S. supplying 223,000 MT during the first seven months of the marketing year.
MY 2013 domestic soybean planting and production is estimated at about 30,000 hectares and 110,000 MT. In the Çukurova region, where ninety-five percent of the domestic soy crop is grown, farmers are switching to corn for a second crop as a result of recent declines in local soy prices and increases in corn prices.
The Turkish broiler industry had experienced a decline in demand in the domestic market due to negative press on biotech feed items, but strong export demand helped the industry rebound during the first quarter of the marketing year. Both the broiler and egg industries had a very good start to 2014 in terms of production, in addition to strong domestic and export demand. Exports of broiler meat and eggs were up 13 and 22 percent respectively during the first four months of 2014 compared to the same period last year. However, recent political unrest in the Iraq, the leading market for several sectors, is a concern for the industry. Both industries are export dependent for growth, with about 25 percent of eggs and 18 percent of poultry meat production being exported. Iraq is the largest market for Turkish poultry products, and about 88 percent of the egg exports and 65 percent of broiler meat exports are to Iraq. Recent unrest in the Northern Iraq has not completely stopped shipments, but it has been causing delays of shipments and adversely affecting exports. The industry and officials are hoping that logistic lines are back to normal soon.
Total soybean imports during the first eight months of MY 2013 were 760,000 MT. The United States (269,000 MT) and Paraguay (156,000 MT) were the leading suppliers, followed by Ukraine (121,000 MT) and Brazil (109,000 MT). Turkey also imported 60,000 MT of soybeans from Argentina and 19,000 MT from Canada during the same period.
Turkey exported about 7,000 MT of soybean during the same period. Northern Cyprus and the Netherlands were the main destinations with 2,000 MT each.
Favorable domestic crushing margins are causing soybean meal production to increase. MY 2013 production is expected to be about 470,000 MT.
Turkey imported a total of 503,000 MT of soybean meal during first seven months of MY 2013. The U.S. and Argentina were among the leading suppliers with 223,000 MT and 139,000 MT, respectively. Other leading suppliers were Paraguay (87,000 MT) and Brazil (37,000 MT).
Turkey’s imports of European soybean meal have declined drastically following the reduction of the import tax to 5 percent from 13.5 percent last year. Total imports of soy meal from the EU during the first seven months of the marketing year were about 18,000 MT compared to 116,000 MT in same period last year. Spain was the only supplier of soybean meal from the EU to Turkey.
Turkey exported about 25,000 MT of soy meal during the same period. Northern Cyprus (8,300 MT), Georgia (7,700 MT) and Romania (5,500 MT) were the leading destinations.
The main uses for soybean oil in Turkey are poultry feed and industry since the biosafety law forbids soybean oil to be used in food products if it is produced from biotech soybeans. Turkey has imported 8,000 MT of soybean oil so far in MY 2013. Spain and Ukraine were the main suppliers with 5,000 MT and 3,000 MT, respectively. Exports, however, were only about 1,600 MT, of which 1,400 MT were to Northern Cyprus.