August 29, 2011

Turkish exchange to launch livestock bourse

The Turkish Derivatives Exchange (TurkDex) is preparing to unveil a livestock bourse in Istanbul in mid-September to aid secure the cattle's transparency and fair prices in the market, its chairman said on Friday (Aug 26).

Delivery will take place during the Muslim Feast of Sacrifice (Eid al-Adha) in November.

"This will be the first derivatives contract with a maturity of a religious feast," said TurkDex Chairman Cetin Ali Donmez.

Cattle sold on the bourse will be male, more than two years old, an average of 500 kilogrammes and born in Turkey.

"Cattle will be delivered to owners during the four days of Eid in Tuzla near Istanbul, and the market will be attractive for wholesalers, supermarkets and voluntary organisations as well as individual consumers," Donmez said.

"It's too early to set a market size for the bourse, we have to wait and see. But the cattle market in the US has an annual volume of US$2.5 billion. Reaching 5% of that size would be significant," he said.

The bourse is expected to decrease the number of street bazaars during the cattle sacrificing season and help shield children from scenes of animal slaughter.

Streets traditionally turn red with slaughtered animal blood during Eid al-Adha.