December 17, 2003
Turkey Soybean and Soyoil Review 2003
Turkey's MY2003 soybean area and production are now estimated at 15,000 hectares and 45,000 MT, representing a reduction in production of approximately fifty percent compared to last year. Farmers in the Cukurova region, where eighty percent of the local soybeans are grown, had difficulties marketing their crop last year and have shifted to corn. There is little interest to plant soybeans in the coming season as well. In recent years, the GOT has issued production bonuses for soybeans and other oilseeds to increase production of oilseeds. However, late payments and the relatively small amount of the payments are not helping to encourage production. Turkey will continue to be a net-importing country for soybeans and products for many years to come.
The poultry industry continues to be the major consumer of soybeans and soybean meal in Turkey. After two years of crisis, the local poultry industry has grown considerably in 2003. High red meat prices and the convenience of poultry products (special cuts and ready-to-consume value-added products) are encouraging consumers to buy poultry meat and products. Poultry production is expected to continue to increase in the future as well. The Turkish poultry industry is also hoping to become accredited by the E.U. during 2004 which will allow them to export to E.U. member countries.
Domestic soy oil consumption decreased about thirty-five percent in MY2002 to 170,000 MT and will show only a minor increase in MY2003 due to the high cost compared to other oils.
Total soybean imports during MY2002 reached 746,549 MT up fourteen percent from last year. Soybean meal imports during the MY2002 become 461,271 MT, up twenty-four percent. Imports of both commodities will continue to increase in coming years in the view of declining local production and increase in poultry production. Soybean imports are expected to show higher increases than soymeal as long as favorable domestic crushing margins continue.
Soy oil imports, however, declined about forty-eight percent to 130,665 MT during MY2002 and are expected to show a minor increase in MY2003 due to continuing high world prices.
The United States continues to be the market leader for both products, exporting 383,000 MT of soybeans and 231,550 MT of soybean meal in MY2002. This is currently is approximately fifty percent of total bean and meal imports. In previous years, the U.S. market share was as high as 85% for soybeans and 80% for soybean meal. The U.S. has lost market share due to the growing spread between U.S. and South American prices. When the spread is narrow, U.S. soybeans and meal are preferred. However, when the spread widens, as it has in the past year, buyers switch to South American production. U.S. exports of soy oil to Turkey declined to 16,400 MT from 85,200 MT a year ago due high world and U.S. soy oil prices.
Turkey is expected to continue to source soy oil imports from the E.U. because of the 60,000 MT crude soy oil and 2,000 MT refined soy oil TRQ agreement with the E.U. Turkey also has 9,300 MT crude soy oil tariff rate quota agreement with Romania.