February 12, 2004

Turkish 2003 Corn Imports Seen Down By 1 Million MT

Turkish corn production is expected to increase significantly in MY 2003. This is attributed primarily to an increase in planted area for the second crop corn in Cukurova. Additional corn area was previously planted with cotton. Due to large carryover stocks and increased production, corn imports are estimated to decline by 1 MMT in MY 2003.

Along with the decrease in feed wheat availability and relatively cheaper price for corn, more corn is being used for livestock in MY 2003.

Turkey imported a record quantity (around 1.8 MMT) of corn in MY 2002 with most importers choosing to carryover stocks in expectation of increased Turkish corn import duties. Fortunately for importers, the GOT announced the increases a month before implementation. As a result, importers were able to import additional corn with the lower duty.

Initially, the GOT raised the duty from 20% to 45% in September. The duty was raised again to 70% primarily because of the depreciation of the U.S. dollar against the Turkish Lira. The lower dollar value reduced the cost of imported corn and as a result TMO could not sell its stocks. Parallel to the industry suggestion, TMO started to sell corn with five-month deferred payment system with zero rate of interest. However, the GOT raised the duty once again with the 2004 Import Regime to 80% effective January 1, 2004.

Source:USDA