February 10, 2010

 

Turkey's GM ban threatens poultry growth

 

 

A jump in feed costs prompted by a ban on GM crops is hampering Turkey's attempts to increase poultry production and fill a void in Russian imports.

 

Russia, which effectively banned chicken meat imports from the US in January, has expressed an interest in buying up to 500,000 tonnes of Turkish poultry per year.

 

But Turkey's poultry farmers are doubtful they could ship more than 100,000 tonnes a year to Russia, as the domestic industry is too small. Turkey produces about 1.2 million tonnes of poultry per year, with much of it going to the domestic market, according to the Poultry Meat Producers and Poulterers Association (BESD-BIR).

 

Clampdowns on GM crops also hurt Turkey's efforts in expanding export capacity, said a report from the USDA's Ankara bureau.

 

A ban on imports of GM food and feed crops in October sparked a 40% jump to US$700 a tonne in soy prices in November, with costs of distiller's grains and corn gluten feed also jumping.

 

Legislation, which is expected to be approved later this year, barring domestic production of biotech crops, could also spur feed price inflation.

 

Costs of feed, which comprises mainly corn and soy, account for 80% of production costs for Turkish poultry groups, the report said.

 

Omer Gorener, the chief executive of chicken group Banvit, has called on Ankara to subsidise Turkish poultry exports to eliminate their "price disadvantage" with those of some competitors.

 

Some producers also doubt the long-term export future in Russia, as the federation is aiming for self-sufficiency in poultry before stopping all poultry imports in five years' time.