August 16, 2007

Cattle sector facing new "breeding grounds" in Turkey

The cattle industry has never been a major agri-sector in Turkey. According to the "Turkey Livestock and Products Annual 2007" of the US Department of Agriculture (USDA), cattle inventories have been decreasing steadily for more than a decade due to poor animal nutrition and feed rations. The report says cattle are publicly grazed on a first-come, first-served basis and the sector doesn't receive support or good livestock policies from the government.

Moreover, the government -- in its effort to protect the industry -- has restricted imports of beef and veal despite surging demand due to its booming tourism business.

However, the scenario is gradually changing as the Turkish Ministry of Agriculture and the USDA signed in July a protocol that will open the Turkish market for breeding cattle imports from the United States. It is projected that Turkey will source 2,000 heads of breeding cattle from the US for the rest of 2007 that will subsequently reach 10,000 heads in 2008. Last year, the country imported 2 million doses of bovine semen worth US$4.4 million and 1.6 million doses worth US$3.6 million in the first half of 2007.

High meat prices due to declining supplies have also attracted investors to venture in cattle farming. The report said large private sector entities have tried to establish commercial farms in the western parts of the country. These investments have increased demand for quality live cattle and livestock genetics in recent years. A zero-tariff on imports has also encouraged exporters to ship more cattle and cattle genetics in the country.

For more of the USDA report, please click here