Turkey. Soybean Update. Dec 2013 Dec. 26, 2013
Marketing Year (MY) 2013 Turkish soybean area and production are about 30,000 hectares and 110,000 metric tons (MT). During MY 2012 growth in Turkey’s poultry and livestock production increased demand for imported soybean and meal. Total imports of soybeans during the marketing year reached 1.25 million metric tons (MMT) and the U.S. was the leading supplier with 487,000 MT. Turkey also imported about 1 MMT of soy meal and the U.S. supplied 317,000 MT. The GSM-102 credit guarantee program has helped U.S. exports to Turkey. Total registration for both products reached US$ 283 million during the first eleven months of the financial year of which US$ 160 million were for soybeans and the rest, US$ 123 million, were for soybean meal.
MY2013 domestic soy bean planting and production are about 30,000 hectares and 110,000 MT. Weather conditions adversely affected yields in the Cukurova region where ninety-five percent of the local soy crop is grown.
Both domestic broiler and egg industries had a good year during MY 2012 while domestic and export demand was overall strong. However, high soy bean and meal prices affected production costs adversely. Turkey's egg industry is enjoying high exports and increasing local demand. The broiler industry, however, has been showing signs of slowing down since the last quarter of the marketing year due to negative press on genetically engineered poultry feed. Lower domestic consumption was barely made up for with increased exports. Seasonal events also played a role in the decline, such as fasting during the month of Ramadan in summer, the beginning of the sea food season in September, and the Hajj Bayram in October which increases red meat consumption. Hence, the broiler industry is slowing down production until local demand recovers in the coming months. Turkey's Middle Eastern neighbors are the leading export markets for Turkish broiler meat and eggs.
Total soybean imports during the MY 2012 were 1,249,000 MT. United States (502,000 MT) and Paraguay (355,000 MT) were the leading suppliers, followed by Ukraine (143,000 MT), Argentina (126,000 MT) and Brazil (92,000 MT). A significant drop in soybean prices in August 2013 made soy imports attractive for the industry. Imports during the first month of MY 2013 were 60,454 MT; all from South American sources. Accordingly, imports from Brazil were 20,000 MT, Argentina 16,000 MT, Paraguay 16,000 MT and Uruguay 8,000 MT.
Turkey also exported about 21,000 MT of soybeans during MY 2012. The main destinations were Slovenia (7,000 MT), Georgia (5,651 MT) and United States (4,800 MT).
The GSM-102 export credit guarantee program for FY 2013 helped U.S. soybean and meal exports to Turkey. The total registration for both products reached US$ 342 million during first eleven months of the fiscal year of which US$ 182 million were for soybeans and the rest, US$ 160 million, were for soybean meal.
Domestic production of soy meal remained stable at about 290,000 MT. Domestic crush was limited to the oil that the poultry industry can consume in feed, and also to limited exports. Consumption of soy meal, however, increased to 1.2MMT as it provided a cost advantage over the provision of full-fat soybeans.
Total Turkish imports of soy meal during the MY 2012 reached 1,015,000 MT (an import record), due to low margins in domestic crushing caused by the regulations that forbid GMO soy oil in food. The U.S. and Argentina were among the leading suppliers with 317,000 MT and 302,000 MT, respectively. Turkey continued to import EU-sourced soy meal, a total of 237,000 MT as well, due to cost advantages from lower shipping cost and smaller cargos. Also, soy meal imports from EU sources are subject to zero import taxes versus 5 percent from other sources. Spain (142,000 MT) and Germany (77,000 MT) were the main sources for EU soy meal.
Turkey exported about 12,000 MT of soy meal during the marketing year. Northern Cyprus and Iraq were the main destinations with 9,000 MT and 2,200 MT respectively.
Domestic production of soy oil remained stable at around 73,000 MT. Turkey imported only about 3,000 MT and exported about 10,000 MT of soy oil during MY 2012. Northern Cyprus (2,300 MT), Iraq (1,800 MT), and Sudan (1,300 MT) were the main export destinations