Oilseeds and Products Update

An Expert's View about Cereals, Leguminous Crops, Oil Seeds in Turkey

Posted on: 19 Dec 2012

MY 2012 Turkish soybean area and production are estimated about 20,000 hectares and 70,000 MT.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: GAIN Report Number: Turkey Oilseeds and Products Update Soybean and products update Approved By: Jess Paulson, Agricultural Attaché Prepared By: Ibrahim Sirtioglu, Agricultural Specialist Report Highlights: MY 2012 Turkish soybean area and production are estimated about 20,000 hectares and 70,000 MT. High temperatures during the season adversely affected yields. Turkey’s production of both poultry and livestock are growing, pushing up demand for imported soybean and meal. Turkey imported a total 1.05 MMT of soybeans during the MY 2011 and the US supplied about half of it, 0.5 MMT. Turkey also imported 915,000 MT of soy meal and the US supplied 180,000 MT during the marketing year. In September Turkey reduced import taxes on soybean and meal to zero and 5 percent from 8 and 13.5 percent respectively. Post: Ankara Soybean Soybean PSD Oilseed, Soybean T 2010/2011 2011/2012 2012/2013 urkey Market Year Begin: Sep Market Year Begin: Sep Market Year Begin: Sep 2010 2011 2012 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 17 18 15 12 15 20 Area Harvested 18 18 12 12 20 20 Beginning Stocks 701 409 644 361 401 188 Production 72 72 50 50 75 70 MY Imports 1,351 1,350 1,057 1,057 1,200 1,300 MY Imp. from U.S. 419 419 300 509 500 550 MY Imp. from EU 0 6 0 0 0 0 Total Supply 2,124 1,831 1,751 1,468 1,676 1,558 MY Exports 0 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 0 Crush 490 500 320 380 335 400 Food Use Dom. Cons. 0 0 0 0 0 0 Feed Waste Dom. Cons. 990 970 1,030 900 850 950 Total Dom. Cons. 1,480 1,470 1,350 1,280 1,185 1,350 Ending Stocks 644 361 401 188 491 208 Total Distribution 2,124 1,831 1,751 1,468 1,676 1,558 CY Imports 1,298 1,298 1,125 1,125 1,350 1,300 CY Imp. from U.S. 305 305 350 650 415 500 CY Exports 0 0 0 0 0 0 CY Exp. to U.S. 0 0 0 0 0 0 Production MY2012 domestic soy bean planting and production are now estimated about 20,000 hectares and 70,000 MT. Excessive heat during the season adversely affected yields in the Cukurova region. Efforts of the government to increase local production had not been successful due to higher income from competing crops, such as corn and cotton, in the region. Consumption Both domestic broiler and egg industries are having a very good year in 2012. While domestic demand is continuing to be strong with the help of tourism, exports are increasing as well. Exports of boiler meat and eggs are up about twenty-seven percent each during the first nine months of 2012, driving demand for imported soybean and meal. The Middle Eastern neighbors of Turkey are the leading export markets for Turkish broiler meat and eggs. Trade Total soy bean imports during the MY 2011 were 1.05 MMT compared to 1.35 MMT of a year ago due to demand shift to soybean meal because of crushing problems. United States (509,000 MT) and Paraguay (271,000 MT) were the leading supplier of soy beans, followed by Argentina (125,000 MT) and Ukraine (119,000 MT). Turkey also imported 157,000 MT of soybean during the month of September 2012. Paraguay was the leading supplier with 88,000 MT, followed by the US with 38,000 MT. The GSM-102 export credit guarantee program for FY 2012 helped US soy bean and meal exports to Turkey. Total registration for both products reached US$ 288 million during the fiscal year, of which US$ 220 million were for soybeans and US$ 68 million were for soybean meal. Soybean meal PSD Meal, Soybean T 2010/2011 2011/2012 2012/2013 urkey Market Year Begin: Oct Market Year Begin: Oct Market Year Begin: Oct 2010 2011 2012 USDA New USDA New USDA New Official Post Official Post Official Post Crush 490 500 320 380 335 400 Extr. Rate, 999.9999 1. 0.77 1. 0.7632 1. 0.775 Beginning Stocks 73 115 196 205 392 300 Production 387 385 253 290 264 310 MY Imports 557 533 910 915 650 650 MY Imp. from U.S. 125 125 120 181 120 250 MY Imp. from EU 143 143 0 438 0 100 Total Supply 1,017 1,033 1,359 1,410 1,306 1,260 MY Exports 8 8 8 10 8 12 MY Exp. to EU 0 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 0 Food Use Dom. Cons. 0 0 0 0 0 0 Feed Waste Dom. Cons. 813 820 959 1,100 1,082 1,030 Total Dom. Cons. 813 820 959 1,100 1,082 1,030 Ending Stocks 196 205 392 300 216 218 Total Distribution 1,017 1,033 1,359 1,410 1,306 1,260 CY Imports 572 542 800 1,000 650 650 CY Imp. from U.S. 120 120 120 300 120 150 CY Exports 10 10 8 10 8 12 CY Exp. to U.S. 0 0 0 0 0 0 Domestic production of soy meal declined to 290,000 MT due to low crushing margins due to limits on the use of soy oil as a result of Turkey’s Bio safety Law. Consumption of soybean meal increased, however, due to increased imports as a result of low cost EU and South American supplies. Turkey imported a total of 915,400 MT of soybean meal during MY 2011 compared to 533,000 MT in MY 2010. Argentina and the US were among the leading suppliers with 238,000 MT and 181,000 MT respectively. Turkey continued to import large amounts of EU sourced soy meal as well due to an import tax advantage. Imported soy meal from EU sources is subject to zero import tax as compared to 13.5% from other sources. Germany (218,000 MT) and Spain (200,000 MT) were the sources of EU soy meal for Turkey. Recent changes in import taxes on meal to 5 percent from 13.5 percent is expected to work against EU soybean meal, and Turkish importers are expected to go back to traditional sources, namely the US and South America. Turkey exported about 9,500 MT of soy meal during the marketing year. Turkish North Cyprus was the main destination with 5,800 MT. Turkey also exported soybean meal to nearby countries, namely Iraq (2,900 MT) and Iran (700MT). Soybean oil PSD Oil, Soybean Turkey 2010/2011 2011/2012 2012/2013 Market Year Begin: Sep Market Year Begin: Sep Market Year Begin: May 2010 2011 2012 USDA New USDA O N USDA New ew Post fficial Post Official Official Post Crush 490 500 320 380 335 400 Extr. Rate, 999.9999 0. 0.19 0. 0.1921 0. 0.19 Beginning Stocks 3 4 4 15 0 10 Production 87 95 57 73 60 76 MY Imports 3 3 2 1 2 2 MY Imp. from U.S. 1 1 0 1 0 1 MY Imp. from EU 1 0 1 0 1 0 Total Supply 93 102 63 89 62 88 MY Exports 4 5 4 4 4 4 MY Exp. to EU 0 0 0 0 0 0 Industrial Dom. Cons. 23 20 23 15 23 15 Food Use Dom. Cons. 42 15 21 5 20 5 Feed Waste Dom. Cons. 20 47 15 55 15 60 - 0 0 Total Dom. Cons. 85 82 59 75 58 80 Ending Stocks 4 15 0 10 0 4 Total Distribution 93 102 63 89 62 88 CY Imports 2 2 2 2 2 2 CY Imp. from U.S. 0 0 0 1 0 1 CY Exports 5 5 4 4 4 4 CY Exp. to U.S. 0 0 0 0 0 0 The Bio safety Law limits the utilization of soy oil produced from biotech soybeans to be used only in feed and prevents its use in food and industry (mostly paint and ink production). Only locally grown and imported non-GM soy beans and oil are used in food. The great majority of imported and crushed soybeans are biotech varieties which adversely affects domestic crushing margins, which has caused production and consumption of soy oil to decline. Even though the industry received permission after long negotiations to use soy oil in paint production, so far high world soy oil prices have prevented greater utilization. Total soy oil imports in MY 2011 were 1,200 MT and the US was the sole supplier. Exports were about 3,700 MT, the great majority (2,200 MT) of which was to Turkish Northern Cyprus, and 300 MT to Iraq. Policy In September 2012 the GOT lowered import taxes for both soybeans and soybean meal to prevent high world prices of both commodities from fueling increases in local food prices. Accordingly, soybean import tax has been reduced to zero percent from 8 percent, and soy meal import tax to 5 percent from 13.5 percent.
Posted: 19 December 2012

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