April 10, 2012

Turkey's cotton output may decline

The cotton acreage and production in Turkey are anticipated to drop about 13% to 420,000 hectares and 630,000 million tonnes (2.8 million bales) in MY 2012.

Domestic cotton production and area was 480,000 hectares and 710,000 million tonnes (3.2 million bales) in MY 2011, respectively.

Overall yields improved in recent years, because the farmers who continue planting cotton are the most efficient, and have invested in modern equipment and larger fields. Increased utilisation of certified seeds, estimated to be about 85% of the total amount planted, also helped to increase yields. Mechanical harvesting is reported to have increased ginning yields as well.

Over the years the strength of the Turkish Lira against the major foreign currencies has facilitated imports of low cost fabric and garments and hurt domestic production. In an effort to protect local producers, the Turkish government (GOT) announced on March 25, 2011 an antidumping investigation on imports of fabric and garments and issued a temporary import tax.

The US continued to be the leading cotton supplier to the Turkish market, supplying 65% during MY 2010. The US market share was 37% during the first half of the MY 2011 but is expected go up to more than 60% at the end of the marketing year. Total cotton imports from the US in MY 2012 are expected to reach 350,000 million tonnes (1.6 million bales).

Turkey cotton exports were about to 8,500 million tonnes (39,000 bales) in MY 2010 about 15% less than the year before. Exports during the first half of the MY 2011 were about 23,000 million tonnes (105,000 bales), higher than usual due to attractive local cotton prices, and marketing year end exports are projected to reach 30,000 million tonnes. About 60% of exports were to international markets, primarily China (6,000 million tonnes), and about 40% were to the Mersin Free Trade Zone. These may or may not be imported back into the country later.

The Turkish economy is stable and has been growing steadily in recent years. In fact, Turkey is the third fastest growing market for US agricultural products in the world after China and Vietnam. A young and growing population and growing GDP make it a key market for many US agricultural products. Turkey is the second largest export market for US cotton.