Wheat Harvest High, But Flour Exports Decline
· Dünya Gazetesi
While Turkey's wheat harvest is expected to reach 24 million tons, quality losses in the raw material and high domestic market prices pose a risk of a sharp 50% drop in flour exports.
Expected Decline in Flour Exports
Mesut Çakmak, Chairman of the Turkish Flour Industrialists Federation (TUSAF), reported that Turkey exported 195.3 thousand tons of flour in July. However, he indicated that a 50% decrease in flour exports is anticipated for August due to price uncertainties in raw material procurement and quality losses. Çakmak stated that manufacturers are struggling to make offers in foreign markets because they cannot finalize wheat procurement costs, and the sector is facing significant difficulties in forecasting its future.
Quality Issue and Price Gap
Mesut Çakmak pointed out that untimely rains during the harvest season have led to significant quality losses in bread wheat, advocating for the controlled opening of high-protein wheat imports. He noted that the price of quality wheat in Turkey ranges between 17,500 TL and 19,000 TL per ton, averaging around 18,000 TL ($370-380), while global market prices are between $250-280. Çakmak emphasized that this gap hinders global competitiveness.
Harvest Yield and TMO Purchases
TUSAF Chairman Mesut Çakmak stated that wheat harvesting has reached 75-80% completion across Turkey, with work continuing in the Kayseri, Sivas, and Eastern Anatolia regions. He indicated that the total wheat harvest is expected to reach 24 million tons and that the amount of grain delivered to the Turkish Grain Board (TMO) is 10.5 million tons, a figure projected to rise to 12.5-13 million tons by the end of the harvest. Çakmak added that farmers are storing quality crops.
Inward Processing Regime Regulations and Cost Pressure
Mesut Çakmak touched upon how new inspections under the Inward Processing Regime (IPR) are complicating matters for flour manufacturers. He explained that the practice of sending non-compliant products back to the loading port, in accordance with the General Directorate of Protection and Control regulations, is paralyzing trade. Reminding that rising domestic wheat costs previously led to a 10-15% increase in flour prices, Çakmak warned that if current market conditions persist, flour prices could see another 10-15% increase in the near future.
Global Market Share Targets
Evaluating the sector's long-term foreign market vision, TUSAF Chairman Mesut Çakmak made the following assessment:
"We aim to increase our share in the 12 million-ton global export market to over 25%. We believe we will achieve and even exceed this goal with our experience, quality, capacity, and competitive pricing policy. With political steps and public support, we can compete even in African and Arab markets with cost-advantaged countries like Egypt and Russia."