November 17, 2005

USDA: Turkey soybean and products update 2005
 

According to the official statistics, Turkey's soybean and meal imports for the MY 2004 exceeded early predictions and reached 1.13 million tons and 685,000 MT, respectively. 

Fuelled by the incentive to avoid higher import taxes and availability of GSM-102 program, MY 2004 become a record year for soybean and meal imports to Turkey. 

But the recent outbreak of avian influenza (AI) in Turkey caused by migrating birds has shaken the local poultry industry. Following the outbreak, poultry sales reduced significantly and forced poultry producers to cut production and prices. 

Some representatives indicated that demand dropped by 80 percent immediately after the outbreak. The industry contacts indicated that poultry sales are gradually increasing following the end of the physical quarantine in the region where the AI was seen. Members of the industry believe that the poultry sales will not return to prior AI levels until at least February 2006. 

Overall, about a ten percent of reduction is expected in poultry production in CY 2006, which, in turn, will eventually cause reduction in demand for soybeans and meal. 

Last spring, the GOT announced (TU 5015) that import taxes for a variety of feed ingredients including soybean and meal would be increased in the summer. Importers were in a rush to bring their cargos in prior to the import tax increases and, according to industry sources, in June and July a total of 500,000 MT of soybeans were imported in to the country, almost half of the annual consumption. 

In recent years, steady increases in the poultry production, until the AI outbreak, and increased utilization in the livestock rations were the main reasons for the increase in domestic consumption of soybean and products.

For the full USDA report, click here.