Poultry Situation in Turkey

An Expert's View about Food , Beverages and Tobacco in Turkey

Posted on: 9 Mar 2010

Turkish poultry production capacity is 1.5 MMT/year. In 2009 production reached an estimated 1.25 MMT. Exports of poultry and poultry product rose 44% in 2009 to 115,000 MT. Turkey gained permission to export processed poultry to the EU in August 2009, but shipped only 60 MT.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 1/29/2010 Turkey Post: Ankara Poultry Situation Report Categories: Poultry and Products Approved By: Ralph Gifford, Agricultural Counselor Prepared By: Samet Serttas, Agricultural Specialist Report Highlights: Turkish poultry production capacity is 1.5 MMT/year. In 2009 production reached an estimated 1.25 MMT. Exports of poultry and poultry product rose 44% in 2009 to 115,000 MT. Turkey gained permission to export processed poultry to the EU in August 2009, but shipped only 60 MT. On February 2, Russian and Turkish officials agreed on a veterinary certificate for poultry products. Although Russia announced it could import 500,000 MT of poultry meat from turkey, producers estimate that Turkey could supply Russia with no more than 55,000 MT of chicken meat annually. Biotechnology legislation that restricts feed imports could slow growth of production and exports. General Information: Summary Turkish poultry production capacity is 1.5 MMT/year. In 2009 production reached an estimated 1.25 MMT. Exports of poultry and poultry product rose 44% in 2009 to 115,000 MT. Turkish Prime Minister Erdogan visited Russia on January 12-13, 2010. During this visit, Russian authorities declared that Russia was interested in importing up to 500,000 MT of poultry meat from Turkey. Turkish producers estimate that Turkey could supply Russia with no more than 55,000 MT of chicken meat annually. Russian Veterinary and Plant Quarantine Service (FVBKS) inspectors visited 17 poultry plants in Turkey in August and September 2009. FVBKS approved six of these plants to export poultry meat to Russia. Russian and Turkish veterinary authorities on February 2 agreed on a health certificate that could be used by the approved establishments. It is not clear whether Turkish companies will need to wait for Russia to establish a quota in order to export. Despite ambitious hopes after obtaining approval from the European Union to export processed poultry products to the EU in July, 2009, sales were negligible because of technical problems. Iraq remains the primary market for Turkish poultry exports. One factor that could affect Turkey?s ability to export poultry competitively is availability of feed ingredients. Feed prices have increased since a biotechnology regulation issued on October 26, 2009, banned imports of most feed raw materials into Turkey. The Turkish Parliament is currently discussing a Biosafety Law that is expected to be approved in the next few months. The scope and details of this law could drastically reduce supplies of soy and corn products, consequently raise both the price of feed and poultry production costs. Currently, the poultry sector in Turkey uses feed that is made from 40% corn, 20% soybean, 5-10% soybean oil and 30% other feed material. The cost of feed represents 70% of the total cost of production in the Turkish poultry sector. Total production of mixed feed in Turkey increased to 9.8 MMT in 2009 from 9.5 MMT in 2008. Turkey imported 3.17 MMT of feed raw materials in 2008 and 4.9 MMT in 2008. Due to the new biotechnology regulation introduced at the end of October, Turkish soybean imports decreased from 1.23 MMT in 2008 to 855,000 MT in 2009. As a result, the price of feed ingredients has jumped. Soybean and soybean meal prices increased 40% and DDGS and corn gluten feed also increased dramatically. The market price of chicken meat in local currency increased 34% in 2009, after rising 22% in 2008. Turkey increased its poultry and poultry product exportation by 44% overall in 2009, reaching 115,000 MT. Turkey gained permission to export processed poultry to the EU in August 2009, and sent 60 MT of processed poultry products to EU countries. Production Turkey has 66 industrial integrated poultry slaughterhouses which have a total capacity of 220,000 head/hour and 13 slaughterhouses which have a total capacity of 7,500 head/hour. The daily capacity of the Turkish poultry sector is almost 5,000 MT and the yearly capacity for poultry meat is 1.5 MMT. Turkish total domestic poultry meat consumption in 2009 is estimated at 1.2 MMT. Per capita poultry meat consumption is estimated at 17 kg/year in 2009, up from 15 kg/year in 2008. The EU approved the import of Turkish processed poultry in March 2009 and Turkey started exporting in August 2009 with great publicity. Total exports to the EU in 2009, however, reached only 60 MT. The EU?s FVO conducted an inspection of Turkish facilities in November 2009; the report has not yet been published. Reportedly, Turkish producers complain that the EU regulations are overly bureaucratic and slow moving. The Russian Veterinary and Plant Quarantine Service (FVBKS) inspected Turkish poultry establishments in August and September 2009. The FVBKS approved six factories as eligible to export to Russia: Banvit Bandirma, Beypilic, Erpilic, Sen Pilic, Seker Pilic and Keskinoglu. Keskinoglu has a maximum capacity of 19,000 head/hour and runs 16 hours a day. Keskinoglu recently upgraded its factory operations and now has two lines of operation. Its target is to export 150 MT processed poultry per month to Germany, Sweden, Finland, Austria and Italy. Beypilic recently invested $30 million to increase its capacity from 265,000 head/day to 300,000 head/day, or 24,000 head/hour. Beypilic has a poultry house that holds 600,000 head and produced 130,000 MT of poultry meat in CY 2009. Banvit has a capacity of 300,000 head/day, but hasn?t exported to the EU yet. Erpilic, with a capacity of 300,000 head/day, is the number four poultry producer in Turkey. Senpilic, which is located in Sakarya province, has a capacity of 145,000 MT of poultry meat per year and 200,000 head/day. Sekerpilic, which has a production capacity of 60,000 MT/year and mainly focuses on processed chicken meat, will increase its capacity from 6,000 MT to 12,000 MT in 2010. Turkish commercial egg production was 10.5 billion eggs in 2007, 11.5 billion in 2008 and 12 billion in 2009. Table 1: Turkey: Laying Hens Turkey: Laying Hen Numbers Spent hen Year Number of poultry Slaughtered meat produced Eggs produced (000) (MT) 2003 60,399,520 6,642,439 9,463 12,666,782 2004 58,774,172 6,825,627 9,912 11,055,557 2005 60,275,674 7,200,133 10,797 12,052,455 2006 58,698,485 5,172,191 7,432 11,733,572 2007 64,286,383 6,361,000 8,970 12,724,959 2008 63,364,818 13,663,482 17,985 13,190,696 2009* NA NA NA 14,500,000 Source: TUIK **Estimate Table 2: Turkey: Broiler Chicken Turkey: Broiler Chicken Numbers Year Number of poultry Sl at produced aughtered Poultry me (MT) 2003 217,133,076 506,107,632 862,956 2004 238,101,895 505,412,926 866,862 2005 257,221,440 531,700,102 925,900 2006 286,121,360 490,394,162 910,226 2007 205,082,159 598,474,659 1,059,483 2008 180,915,558 604,322,129 1,069,696 *2009 NA 705,120,000 1,250,000 **2010 NA 760,000,000 1,300,000 Source: TUIK *Estimated **Forecast Trade Turkey increased poultry and poultry products exports by 44% in 2009 as exports rose from 79.852 MT in 2008 to 115,000 MT in 2009. Table 3: Poultry exports Turkey: Poultry Exports Year 2006 2007 2008 2009 Quantity/Valu MT USD USD T USD MT USD e (000) MT (000) M (000) (000) Total poultry meat 38,13 27,64 51,70 44,36 79,85 87,26 115,09 152,590 0 7 7 2 9 9 4 exportation Chicken meat 18,71 16,72 24,74 22,46 47,89 58,88 5 and offal 8 8 9 5 5 81,632 121,0 9 0 Ch ,08 10,70 26,15 21,63 30,65 26,75icken Paw 19 7 8 1 1 9 ,511 30,330 2 32 Turkey meat 319 201 807 539 1,296 1,630 953 1,193 Other fresh poultry meat 5.7 2.4 0.1 0.7 0 0 3 21 Source: BESD-BIR The main reason for the overall increase in Turkish poultry exports is an increase in the amount of chicken meat and offal exportation to Iraq, which went from 9,143 MT in 2008 50,647 MT in 2009. In 2009 Turkey also resumed shipments of poultry to China, which had been banned in 2008 due to avian influenza worries. However at the same time, Turkey?s exports of chicken meat to Azerbaijan decreased almost 50% for Turkey. Despite the publicity surrounding the Russian announcement during Prime Minister Erdogan?s visit that it was willing to buy up to 500,000 tons of Turkish poultry, currently the Middle East market is more attractive than the Russian market for Turkish poultry exporters. Also, many Turkish companies have lost interest in exporting to the EU due to past technical problems. Table 4: Poultry exports to top three destinations Turkey: Poultry exports to top three countries Year 2006 2007 2008 2009 Quantity/Value MT USD SD USD T USD (000) MT U (000) MT (000) M (000) Chicken meat and 18,71 16,72 24,74 22,46 47,89 58,88 81,63 121,05 offal 8 8 9 5 5 9 2 0 ,175 3,495 ,65 50,64 619 1,183 9,143 16 Iraq 2 7 92,629 7 6 833 5,470 2,999 8,328 5,432 10,08 Tajikistan 1,75 2 6,175 39 9,344 7,629 10,02 338 15,11 Azerbaijan 9,5 2 8, 4 4,805 8,271 Ch 19,08 10,70 26,15 21,63 30,65 26,75 32,51icken feet 7 8 1 1 9 2 1 30,330 14,96 ,84 18,41 29,54 25,81 24,63 Vietnam 5 8,652 20 0 6 2 5 3,444 8 2 Rep. of Ch 66 1,059 4,459 2,135 110 84 2,770 2,784 in 2,0a Hong Kong 72 51 696 645 880 722 2,572 2,166 Turkey meat 319 201 807 539 1,296 1,630 953 1,193 Tajikistan 278 143 562 301 579 400 517 269 Azerbaijan 39 50 46 79 292 798 206 588 Guinea 0 0 0 0 50 23 100 48 Source: BESD-BIR Turkey imported $15 million of live poultry in 2008, mostly breeding stock from the United Kingdom, Netherlands and Germany. . Table 5: Turkish poultry imports Turkey: Poultry import values ($US) 2006 2007 2008 2009* Total 9,080,734 8,294,390 15,170,216 12,765,103 United Kingdom 3,630,034 3,349,509 5,650,790 2,890,213 Netherlands 388,499 1,164,926 3,254,210 4,077,497 Germany 2,885,278 2,007,597 3,170,568 2,338,055 Hungary 198,233 0 967,564 555,908 France 404,429 265,896 909,290 829,069 Source: GTS *January-November Prices Broiler producer prices increased 3.4% and reached 6.7 TL per head in 2008. The laying hen price increased 4.1% reaching 8.2 TL per head. Table 6: Producer prices of poultry (TL/head) Turkey: Producer prices of poultry (TL/head) 2003 2004 2005 2006 2007 2008 Hens 5.98 6.93 6.42 - - Broilers 5.94 6.85 6.17 6.40 6.50 6.72 Laying hens 6.06 7.27 7.48 7.57 7.85 8.18 Turkeys 19.79 23.45 22.82 23.84 25.02 29.27 Ducks 9.04 10.96 10.61 11.21 12.47 13.86 Geese 13.78 16.33 17.79 18.46 23.02 27.97 Source: TUIK Table 7: Producer prices of poultry products (TL/kg) Turkey: Producer prices of poultry products (TL/kg) 2003 2004 2005 2006 2007 2008 Chicken meat 2.20 2.37 2.43 2.72 3.61 3.69 Turkey meat 5.02 4.59 4.78 5.44 5.66 5.11 Duck meat 2.85 3.12 3.10 4.09 - - Goose meat 3.41 6.00 5.17 6.82 - - Hen eggs* 2.19 2.37 2.43 2.62 2.83 3.04 *16 eggs=1 kg Source: TUIK Table 8: Total value of poultry production (Million TL) Turkey: Total producer values of poultry products (million TL) Products name CY 2007 CY 2008 Percent Change Poultry meat, (all) 4,035 4,200 4.1 Chicken meat 3,857 4,019 4.2 Turkey meat 178 181 1.7 Hen eggs 2,252 2,509 11.4 Source: TUIK The total output value of the poultry sector reached 4.2 billion TL in 2008 and is forecast to reach 4.5 billion TL in 2009. Table 9: Poultry producer price index in 2009 Turkey: 2009 Ppultry producer price (TL/head) Produ Ma Jun Sep ct Jan Feb Mar Apr y e July Aug t Oct Nov Dec Broile 5.2 5.3 5.4 5.3 5.7 6.2 6.1 6.0 5.8 6.1 7.8 6.4 r 7 9 4 7 5 8 2 7 0 3 6 6 Layin 8.5 8.5 8.6 8.6 8.6 8.6 8.6 8.7 8.8 8.9 9.0 9.3 g 7 9 1 1 5 8 4 5 0 0 0 5 hens Turke 27. 26. 27. 27. 27. 28. 28. 28. 28. 29. 31. 32. ys 44 22 23 38 44 03 25 09 01 52 31 87 Hen 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 eggs 2 1 1 1 1 1 0 1 1 1 1 2 Source: TUIK The average 2009 producer price for broilers is 5.99, for laying hens is 8.76 and for turkey is 29.27 TL/head. Although the broiler producer price decreased from 6.7 to 5.99 TL in CY 2009 the consumer price of chicken meat increased. Producer price increases were reflected in the consumer prices in 2008 and 2009. As shown in figure 1, the chicken meat consumer price was at a record level in CY 2009, due to increased domestic and export demand and high feed prices. The retail price of chicken meat rose 22% in 2008 compared to 2007 and 34% in 2009 compared to 2008. Due to implementation of biotechnology regulations and law, prices are expected to increase further in CY 2010. Figure 1: Chicken meat consumer price 2009 Feed Supplies Poultry feed in Turkey is generally made up of 40% corn, 20% soybean, 5-10% soybean oil and 30% other ingredients. Feed costs in the poultry sector represent 70% of total production costs. Turkey imported 4.96 MMT of feed ingredients in CY 2008. Soybeans represented 25% of total feed material imports in 2008, corn represented 23%, soybean meal represented 7%, and DDGS and CGF represented 11%. Turkey imported 1.23 MMT of soybean, 530,971 MT of CGF, 521,855 MT of DDGS and 359,000 MT of soybean meal in 2008. Turkey?s total mixed feed production increased to 9.8 MMT in 2009 from 9.5 MMT in 2008. Turkey imported 3.17 MMT of feed ingredients in 2008 and 4.9 MMT in 2008. Soybean imports decreased from 1.23 MMT in 2008 to 855,000 MT in 2009. The Regulation on the Importation, Processing, Exportation, Control and Inspection of Genetically Modified Organisms Intended for Food and Feed, published in the Official Gazette on October 26, 200, prohibited the importation of all GMO products. The regulation has been amended several times, and briefly was invalidated by a court decision that later was overturned. It is currently in force. In addition, the Turkish parliament is currently reviewing a draft National Biosafety law which also would affect trade in transgenic crops and their derivatives, including soy, soy meal, CGF and DDGS. As the situation is evolving rapidly, please contact AgAnkara@fas.usda.gov for up-to-date information. Table 10: Soybean Imports Turkey: Monthly Soybean Imports (MT) June nnual July Aug Sept Oct Nov Dec A Total 2008 175,618 148,391 83,346 68,970 120,724 49,339 118,501 1,239,065 2009 183,911 152,267 72,114 79,015 41,084 17,171 72,844 973,574 Table 11: Soy Meal Imports Turkey: Monthly Soybean Meal Imports (MT) Annual Jun Jul Aug Sep Oct Nov Dec Total 2008 9,757 22,183 397 29,043 45,011 25,083 28,987 359,556 2009 37,872 37,974 34,947 15,996 48,297 40 8,198 349,812 Turkey imported 3.17 MMT of feed ingredients in CY 2009. Of this, 27% was soybeans, 13% was corn, and 11% was soybean meal. Despite decreased DDGS and CGF imports in the last quarter of 2009 because of the biotechnology regulation, 11% of the year?s total imported feed ingredients were DDGS and 10% was CGF. In 2009 Turkey imported 855,942 MT of soybeans (1.23 MMT in 2008), 325,524 MT of CGF (530,971 MT in 2008), 354,090 MT of DDGS (521,855 MT in 2008) and 341,614 MT of soybean (359,000 MT in 2008). Feed material prices increased dramatically after the October 26, 2009, biosafety regulation blocked imports of soybean and soybean meal; soybean prices jumped 40% in November to $700/MT. DDGS and CGF prices also increased dramatically. Table 12: U.S. Exports Of Feed Ingredients To Turkey U.S. Exports Of Feed Ingredients To Turkey 2008 Jan - Nov 2009 Product Value Qty Value Qty Soybeans 213,738 497,202 234,793 550,951 Soybean Meal 51,887 141,905 69,684 158,767 Corn Gluten Feed 119,356 543,348 33,338 285,631 Corn Gluten Meal 5,411 29,649 1,179 10,075 DDGS 111,334 465,212 52,185 377,707 Source: U.S. Census Figure 2: Feed raw material prices in CY 2009 Source: YEMBIR Table 13: Feed raw material price before and after the October 26 biotech regulation Turkey: Feed raw material prices before and after biotech regulation (TL/MT) PRICE AFTER PRICE BEFORE REGULATION LATEST PRICE PRODUCT REGULATION (NOVEMBER) (DECEMBER) CHANGE Full fat Soybean 560 750 750 Soybean Meal 520 750 700 35% DDGS 180 250 280 56% CGF 150 220 250 67% Canola Meal 220 220 230 5% Sunflower Meal 150 350 360 140% Table 14: Feed prices in CY 2009 Turkey: feed price (TL/MT) TYPE OF FEED Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Broiler Feed 790 800 800 790 840 870 890 Layer Feed 600 590 580 570 620 640 660 Dairy Cattle Feed 420 400 390 390 420 450 460 Beef Cattle Feed 410 390 380 380 410 440 450 Source: YEMBIR Figure 3: Feed prices in 2006-2009 Sanitary Issues Chlorine usage in poultry factories is controlled in Turkey, so that only 0.5 ppm of chlorine can be used in poultry slaughterhouses. All slaughterhouse operations, including chlorine standards, are inspected by official veterinarians. For EU approved facilities, they are required to have four official veterinarians on the premises, permanently monitoring operations. On February 2, 2010, Russian and Turkish authorities concluded negotiations for a veterinary certificate.
Posted: 09 March 2010

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