Turkey's red meat industry suffers, facing competition from imports
 
 
The Turkish red meat industry is experiencing perhaps the worst instability since the mad cow disease scare in 1996, amidst a growing meat shortage, ineffective government oversight and cheap imports. 
 
To control fast increasing prices caused by a growing shortage in the domestic market, the government recently decided to recommence importing of livestock and red meat through the state-owned Meat and Fish Institution (EBK). After, two separate tenders were drawn up to restart livestock imports to Turkey, but both failed to attract attention.

 

The EBK accepted and announced winning bids for each of the tenders but later announced that the auctions had been cancelled. EBK said that the reason for the cancellation of the tenders was the failure to benefit from free competition in the market.

 

Speculators argue that most animal breeders, already facing troubles from ill-advised state policies, would exit the business and not return if imports increase. The government said that imports would continue until prices in the country dropped to ''reasonable levels.''

 

A third tender for the purchase of livestock will be held on Thursday (May 20), despite the market's unstability. On Saturday (May 8), Agriculturalists' Association of Turkey (TZD) president Ä°brahim Yetkin said that following the unsuccessful tenders, the red meat prices in the market jumped yet again in 48 hours.

 

Following the EBK announcement, the Ministry of Agriculture said they would hold new auctions.

 

Hüseyin Büyüközer, chairman of the Food Auditing and Certification Research Association (GİMDES), the first body to issue halal certificates - indicating that a product is prepared in accordance with Islamic law - in Turkey, still hopes that the course of events will improve despite the latest cancellations. He said the main factor behind the cancellation of the two tenders was the time limit granted by the EBK. ''The majority of firms who were invited by the EBK decided not to submit bids, in particular because they found the 10-day delivery time 'too short.' If not for the time limit, there would have been more participation from different companies.''

 

Noting the significance of the government's decision to resume livestock imports, Büyüközer said they hope the government will successfully finalise the import process and prevent more businesses from engaging in unfair competition. ''It would have been better if the EBK had introduced more favourable conditions in the tender specifications. The imported animals will ease the shortage to a great extent while the government will also be sending a warning to those producers who are deliberately playing with the balances,'' he said.

 

Regarding health and safety concerns in the markets, Büyüközer said Turkish consumers can be assured that imported red meat products are halal. ''There is not a problem with regard to the safety of animals from abroad.'' Also mentioning a lack of relevant data in terms of the number of animals in the domestic market, Büyüközer said the government should find a solution to such a major drawback.

 

Nazif Karabulut, the head of the Union of Red Meat Producers in Konya, said that he cannot ignore the latest developments. He said the Ministry of Agriculture should abandon its decision to restart livestock imports and concentrate on re-establishing balance in the domestic market. ''This is not about stockbreeders. After hearing about the possibility of beginning livestock imports to Turkey, slaughterhouses have started to receive more animals from stockbreeders than before. But now the problem is that customers are reluctant to purchase red meat from the domestic market in anticipation that the beginning of imports will bring red meat for perhaps even half-price.''

 

''The wholesale price of a kilogram of red meat fell from TL18 (US$11.8) to TL13 (US$8.6) recently, but the customers are waiting for imported meat, which they think could be sold for TL7.5 (US$4.9 instead,''Karabulut said.