Ankara – February 11, 2021
Turkey’s 2020/21 wheat area and production remain the same at 7.1 million hectares (ha) and 18.3 million metric tons (MMT).
In recent years, alternative crops, orchard development, greenhouse development, and increased vegetable production due to new irrigation areas account for the reduced wheat planted acreage.
However, durum wheat is still attractive for farmers and gaining area because of higher prices.
According to the official statistics, during the first six months of 2020/21 total wheat imports were about 4.4 MMT, and they are expected to reach 8 MMT by the new harvest with private sector and government imports.
2019-20 campaign June 2019 to May 2020 wheat import reached the 10,8 Mio Mt
Russia is the main supplier of milling wheat to Turkey with 3.5 MMT in 2020/21, followed by Ukraine with about 430,000 MT.
Turkey imported 195,000 MT of durum wheat during the first six months of 2020/21.
Turkish wheat product exports have been over 6 MMT in recent years.
In 2020/21, exports from Turkey (including flour and wheat products) are estimated to be 7 MMT (wheat equivalent basis), of which about 3.1 MMT is wheat flour, 1.5 MMT is pasta, and 275,000 MT is bulgur.
Turkey’s wheat flour exports during the first six months of 2020/21 (from June to November) were just below last year’s exports of the same period, reaching 1.553 MMT.
Exports during the same period of last year were 1.741 MMT.
Iraq continues to be the leading importer with 747,000 MT, followed by Syria with 98,000 MT, and Yemen with 92,000 MT. MY 2020/21 is a busy time for Turkish pasta producers with increased domestic and international demand.
Total wheat consumption forecast at 20.1 MMT in 2020/21.
In 2020/21 wheat consumption increased by 200,000 MT compared to 2019/20, with an increase in the consumption of wheat for food purposes while a marginal decrease in feed wheat consumption.
The majority of wheat in Turkey is utilized for human consumption as flour, biscuits and pasta, some of which is exported, with the rest of the wheat used as feed.
Seed and industrial consumption remain the same.
Average monthly pasta exports reached around 124,000 MT between June 2020 and November 2020.
Turkey’s pasta exports were up 18 percent during the first six months of MY 2020/21, reaching a record level 745,000 MT.
Somalia and Venezuela were leading markets with 98,237 MT and 94,150 MT, respectively.
African countries such as Benin, Ghana, Niger, and Senegal were also important markets for Turkish pasta.
Another wheat product for export is bulgur.
Turkey is forecast to export 275,000 MT of bulgur in 2020/21 due to stable demand from neighbouring countries.
CORN
Turkey 2020/21 corn area and production is estimated at 620,000 ha and 7.1 MMT, an increase of 1.1 MMT compared to the last marketing year, due mainly to increased planting area /regions.
Second-crop corn is a common product in Southeast Anatolia, especially in the Sanliurfa and Mardin provinces.
Second crop corn yields were better than expected due to favourable weather conditions during the harvest that was completed in December, 2020.
BARLEY
The production forecast at 8.1 MMT of barley in 2020/21, up 200,000 MT compared to 2019/20.
Good returns on barley and the high cost of pesticides and fertilizers used in the production of other crops, especially milling wheat, continue to influence farmers’ planting decisions.
GOVERNMENT POLICY
Turkey has suffered from an increase in international commodity prices since the last harvest, exacerbated by a weak Turkish Lira and a faltering Turkish economy.
Over the last few months Turkey has tried to supply grain to the domestic market at reasonable prices to curb food inflation, which was about 20 percent in 2020.
As a first step…………….
The Turkish Grain Board (TMO), a governmental affiliated body that is authorized through a presidential decree to import grain at a zero tariff, completed a series of tenders between August 2020 and January 2021 for about 2.3 MMT of wheat (of which 110,000 MT was durum wheat), 345,000 MT of barley and 500,000 MT of corn.
TMO wanted to supply high quality wheat to the domestic market and strengthen the state of emergency stocks.
TMO would then sell the imported commodities to the domestic market for a lower price than commodities imported commercially.
TMO also started its domestic sales after the harvest in October 2020
Second move …………….
In October 2020, the Government of Turkey (GOT) announced some tariff reductions on grain for all importers.
The GOT reduced the import tariff on wheat (45%), barley (35%) and corn (25%) to zero through a decree published in the Official Gazette on October 21, 2020.
The new tariffs were valid between October 21 – December 31, 2020.
On December 17, 2020, the Turkish government extended the tariff reductions until April 30, 2021.
The total subsidies for 2021 will be 22 billion TL ($2.6 billion), which remained the same as the previous year.
