Turkish soybean imports are set to fall, as security problems in the border areas of major export markets such as Iraq and Syria, hurt the country’s poultry industry, US officials said.
Domestic consumption of soybean is expected to go down to 1.3m tonnes next year, according to the US Department of
Agriculture’s Ankara bureau, compared official USDA estimates of 1.45m tonnes.
Soybean imports were seen falling to a three year low of 2.15m tonnes, 100,000 tonnes below official forecasts.
New export markets needed
Lower imports are the result of falling soybean crushing, and lower soymeal demand from the domestic livestock industry.
“In 2015-16, the Turkish poultry industry faced difficulties in exports due to security problems in the border areas of major export markets such as Iraq and Syria, along with political disputes,” the bureau said.
“Presently the industry is showing great efforts to find new routes to the main export markets and also searching for new export markets.”
While the recent devaluation of the Turkish lira by over 10% during the last three months has been met with “mixed reactions by the industry”, the bureau said, it has lowered export prices and made Turkish products more attractive.
“But on the other hand, it greatly increases the cost of imported raw materials for production, where majority of production is used for domestic market,” said the bureau.
Waiting for stability
Thus, the industry is waiting for stability in exchange rates before committing to an export price.
Increase in the usage of alternative feed items, such as distiller’s grains in rations is also reducing soybean consumption.
As a result, due to difficulties in exports and slow increase in domestic consumption, soybean consumption is decreasing.
(Source – http://www.agrimoney.com/news/turkish-soybean-imports-fall-as-political-turmoil-hits-poultry-sector–10206.html)