July 7, 2010

 

Turkish producers disappointed by US-Russia poultry agreement

Turkish poultry producers' hopes of a swell in Russian exports have been ruined as Moscow renewed its poultry agreement with the US.

 

The US, a key provider of poultry to Russia, had faced the possibility of losing the market due to "excessive chlorine usage" in its products. As a result of lingering disagreement with the US, Russia had announced that it would give its 600,000-tonne poultry quota to other countries, primarily Turkey.

 

Turkish exporters' hopes were dashed, however, after Russia renewed its agreement with the US during the recent Group-of-20 summit in Toronto. Turkish poultry exporters, who had been preparing for a surge in exports for the past year, were disappointed by the recent development.

 

According to the latest agreement, Russia will import 450,000 tonnes of poultry from the US.

 

"Turkey was able to make headway in its exports to Russia," said Zuhal DaÅŸtan, chairman of the White Meat Industrialists' Union, or BESD-BÄ°R.

 

The issue has been full of uncertainties, DaÅŸtan said. "From the very beginning, both sides talked a lot and determined quotas. But so far, Turkey has been unable to export even one kilogram of white meat to Russia," he said.

 

The US-Russia agreement is a negative development for Turkey, DaÅŸtan said. "The agreement completely removes Russia's need for Turkey."

  

Turkey's main expectation was to obtain a country-specific quota from Russia and conduct exports within this context, DaÅŸtan said. "Still, Turkey remains a country that Russia does business with. The quota for other countries remains at around 180,000 tonnes due to the high quota for the US."

 

Turkey has no chance to compete with the US in poultry export prices, DaÅŸtan said.

 

"The US exports mainly drumsticks to Russia - at low prices because Americans do not consume them," he said. "Now, the US can sell one kilogram of white meat for US$1.20. Turkey can sell it at US$2."

 

Turkey's white meat exports to Russia have been on the agenda for the past few years. Russia, which imports 786,000 tonnes of poultry annually, has been importing 600,000 tonnes from the US. Roughly 150,000 tonnes are imported from EU countries while 36,000 tonnes come from other countries.

 

A total of 13 Turkish poultry companies, including Banvit, Beypiliç, CP Piliç, Erpiliç, Keskinoğlu, Şeker Piliç, Alp Hindi, Banvit Hindi, Aytaç, Bu Piliç, Mudurnu and Pınar Hindi, had received licenses to export to Russia.