June 7, 2010

Cattle imports to prevent decline in Turkey industry

Turkey is suffering from a serious decline in livestock numbers and meat production, Agriculturalists' Association of Turkey (TZD) President Ibrahim Yetkin said, urging that restrictions be lifted on the import of live breeding cattle.

Yetkin, speaking at a press conference on Sunday (June 6) in Ankara, said that breeding cattle are unavailable to replace slaughtered cattle with new ones. "Livestock numbers and the amount of meat produced are in significant decline in Turkey. We should acknowledge this fact and immediately take measures to prevent any further decline. Thus, we should import live breeding cattle," he said.

The price of a kg of cattle carcass has recently fallen from TRY 18 (US$11.2) to TRY 12 (US$7.48), Yetkin said. "It is worrisome that we cannot predict how far this downward trend will go," he said, citing meat producers who purchased carcasses prior to the decline as being in a particularly disadvantaged position. "Producers who purchased carcasses at a price of TRY 10 (US$6.23) and above should be provided with premiums of TRY 1.5 (US$0.94) per kg," said Yetkin.

Yetkin noted that economic relations between Israeli and Gaza should be continued. "I found the public's reaction correct in political terms, but the continuation of trade ties is to the advantage of our own country. Thus, an economic embargo against Israel should be reconsidered," said Yetkin. According to the information he gave, Turkey exports agricultural products worth US$1.5 billion annually, while also importing US$1 billion worth of goods. Turkey also imports 60% of its seeds from Israel, he said.

The price of meat is likely to drop by TRY 5 (US$3.12) per kg at least with the recommencing of livestock and red meat imports, Turkish Restaurateurs Federation President Ismail Sezer said, calling for the support of domestic stockbreeders to avoid a repeat of similar problems in the meat industry.

Sezer blamed meat wholesalers for price hikes, rejecting the existence of such a huge meat shortage driving prices up to TRY 30 (US$18.7) for one kg of meat. "With meat imports, prices will be down by at least TRY 5 (US$3.12); however, this will be a temporary solution to the problem. We should extend the necessary support to domestic stockbreeders to ensure the domestic supply of meat by also preventing wholesalers deriving benefits from the situation," he said.

The government recently decided to resume livestock and red meat imports through the state-owned Meat and Fish Institution (EBK) following an eight-year ban as a result of the mad cow disease scare.

Sezer confirmed that food prices in restaurants will also drop in line with the decline in meat costs. Prices are likely to drop by TRY 2 (US$1.25) per portion, he predicted.