Association of Cereal and Pulses Processing Technologies, Storage and Analysis Systems (TABADER) discussed the problems of the sector in detail with the International Flour, Feed, and Pulses Summit it has organized in Istanbul. Future analyzes and predictions of the sectors were discussed and strategic suggestions were put forward for the sectors. The presence of participants from different countries provided a global view of the problems that, concern the sector.

Food and grain/pulses, one of the biggest problems of the world in recent years, will remain the main subject of the coming years. Many local and foreign non-governmental organizations and various associations that want to raise awareness in this issue have been offering solutions to this issue. One of these associations is the Association of Cereal and Pulses Processing Technologies, Storage and Analysis Systems (TABADER). TABADER is an umbrella organization for persons, institutions, companies, entrepreneurs, academicians, and researches in milling, grain, and pulses processing technologies, warehousing and analysis systems. Simultaneously with IDMA 2019 Exhibition organized by TABADER, the challenges facing the sector were discussed at the International Flour, Feed, and Pulses Summit in WOW Hotel.

During TABADER-IFP 2019 – International Flour, Feed, and Pulses Summit, the future, economy, and challenges of flour, feed, and pulses sector have been discussed. Ahmet Güldal, General Manager of the Turkish Grain Board, Erhan Özmen, Chairman of Southeast Flour Industrialists Association; Ülkü Karakuş, Chairman of Turkey Feed Industrialists Union (Türkiyem-Bir); Abzal Saparbekuly, Kazakhstan’s Ambassador to Turkey, and Antonina Sklyarenko, Head of Community of Pulses Producers and Customers, has participated to the summit.

At the summit, flour, feed, and pulses sectors were evaluated globally. Future analyzes and predictions of the sectors were discussed and strategic suggestions were put forward for the sectors. The presence of participants from different countries provided a global view of the problems that concern the sector. At the end of the summit, the Summit Declaration was published at an international level.

During the summit, Güldal mentioned TMO’s move to start pulses buying after 25-year-long hiatus and the board’s future policies. “From 1941 to 1994, our board bought chickpeas, lentils, and beans. Because of the April 5 economic measures published in 1994, the board’s duty to buy pulses had ended. In 2018, the production of chickpeas increased by 34 percent compared to the previous year and reached 630 thousand tons, and green lentil production reached 43 thousand tons increasing by 43 percent. Because of this increased production, in order to prevent the market price from hurting our producers, the board was tasked to buy pulses after 25 year long hiatus. After this task, the buying price for chickpea has been announced as 3.250 TL per ton on June 27, 2018, and buying price for green lentil has been announced as 3.000 TL per ton on July 23, 2018. A total of 96 thousand tons of chickpeas from 8 thousand 120 producers and a total of 14 thousand tons of green lentils from 1530 producers were purchased across the country. In return, a total of 314 million TL was paid to 9 thousand 650 producers. Thus, possible suffering has been prevented. In addition to these prices, our ministry also provides 792 TL support payments for premium, diesel, fertilizer, and seed support per ton. When TMO was tasked with the purchase of pulses and started to purchase at the announced prices, the price of natural chickpea which was 2,500 TL / ton at the beginning of the harvest was increased to 3,250 TL / ton. TMO takes all necessary measures to protect the producer and the consumer. With the purchase of pulses, we prevented the producer’s victimization. In order to protect the consumer, we sold the chickpea stocks in the range of 4.0 - 5.50 - 6.5 TL / kg according to the caliber and the green lentil stocks in retail at 4.5 TL / kg. Our board’s sales prices are about 40 percent below the market prices on average,” Güldal said.

PRODUCTION OF PULSES INCREASED BY 50% IN THE WORLD During his speech, Ahmet Güldal commented on the world’s pulses market: Around 95-100 million tons of pulses are produced in the world. The pulses production in the world has increased by around 50 percent in the last ten years. In order to secure the food safety and to close the protein gap of population suffering from undernutrition, pulses are one of the most important products, and they are considered as a strategic product. 25 percent of the world’s total pulses production is carried out in India and 10 percent in Canada.

Total export of pulses is around 20 million tons and has increased by 80 percent in the last ten years. Canada and Australia, the largest suppliers, account for 27% and 18% of total exports, respectively. World pulses imports have increased by 96 percent in the last ten years. While the top importers are Asian countries, 35% of the world imports are made by India and 7% is China.

The world’s most widely produced pulses are dry beans. It has a production volume of 31 million tons, an export volume of 4.3 million tons, and an import volume of 3.7 million tons. The exports of world dry beans have increased by around 60 percent in the last ten years. In 2017, Myanmar realized 25 percent of total exports approximately. The United States, China, Argentina, Canada, and Ethiopia have been other important exporter countries. The imports of world dry beans increased by 50 percent in the last ten years and reached 3.7 million tons. India followed this import with 15 percent and the United States with 4 percent.

The world’s production of chickpeas is 15 million tons. It has 3.2 million tons of export volume and 3.5 million tons of import volume. More than half of the world’s exports of chickpea (59 percent) were carried out by Australia. This country is followed by the United States with 6 percent, Argentina and Canada with 5 percent. As for the import of world chickpea, India was the leading country with 45 percent and Pakistan with 14 percent as of 2017. The amount of chickpea import in the world has increased by about four times in the last ten years and reached 3.4 million tons.

World lentil production is around 8 million tons. There are 3.6 million tons of export volume and 3.9 million tons of import volume. Canada, which meets 46 percent of exports, is the leader country with 1.6 million tons of lentil exports. Turkey meets 7 percent of the world’s lentil exports and ranks the 4th with 264 thousand tons of exports. Other important countries are Australia and the USA. When the export quantities of countries are examined; the largest increase is seen in Australia. Turkey’s exports of lentils increased two times in the last ten years, the amount of Australian exports has increased by eight times. India is the leader of world lentil imports with a share of 28 percent. India is followed by Turkey with 9 percent.

IMPORT AND EXPORT HAVE INCRESED IN PULSES

Ahmet Güldal, General Manager of TMO

Ahmet Güldal, General Manager of TMO, has shared his thoughts about pulses market in Turkey: According to TURKSTAT 2018 data; 51 percent of the pulses production is chickpea, 25 percent is red lentils, 18 percent is dry beans, and 3 percent is green lentils in 2018. As of 2017, total plant production value was 135 billion TL. The production value of legumes in 2017 was 4.7 billion TL. Of these, 53.7 percent was chickpea, 23.1 percent was dry beans, 20.5 percent was red lentils, and 2.1 percent was green lentils. In 2018, the exports of legume worth were USD 344 million. 54 percent of this was red lentils, 30 percent chickpeas, 6 percent dry beans, and 1 percent green lentils. In 2018, the import value of dry pulses was 338 million dollars. 41% of this was red lentils, 35% chickpeas, 8% dry beans and 5% green lentils.

Although the plantation areas for pulses in our country have shrunk by 20 percent in the last ten years, production has increased by 43 percent. On the other hand, although our imports doubled, our exports have tripled.

Our chickpea production was increased by 22 percent in the last ten years. Especially in 2018, our production was above the consumption figure, and we have become a net exporter. In 2018, total chickpea imports amounted to 93 thousand tons ($119 million) and exports amounted to 117 thousand tons ($102 million). In 2018, the main suppliers of chickpea imports were Argentina (21 thousand tons), Mexico (16 thousand tons), and Bangladesh (14 thousand tons). Our exports were carried out to Iraq (17 thousand tons), Pakistan (16 thousand tons), Jordan (9 thousand tons), Iran and Algeria (8 thousand tons).

Commenting on the board’s perspective on Turkey and the world’s market, Ahmet Güldal said that agriculture and food sector have become more strategic because of population increase, urbanization, and climate changes. He said the cereal and pulses are among the basic food and thus they should be among the products that need to be given importance.

Güldal said: “Turkey has a strategic position in the region because of its geopolitical location. It is at crossing points for export and import regions of agricultural products. CIS countries such as Russia, Ukraine, and Kazakhstan, which are located in the north, have increased their pulses production and trade in the last 10-15 years. And they have been supplying products to a substantial part of the world. For example, Russia was a net cereal importer in the 1990s, and now it is the leading country in cereal exports. In particular, the US dominated the wheat markets over time and changed the cereal trade balances.

The countries in the south, North Africa and the Middle East, are the largest cereal importers. In this context, around 415 billion dollars of product trade, which corresponds to one-fifth of the world’s approximately 2 trillion dollar food and agricultural product exports, is realized around our country. Turkey, which is located in the middle of this trade, has evaluated its position well so far and has reached an important place in the export of end products. Significant progress has been achieved not only in wheat products but also in the export of poultry sector. As a matter of fact, our flour exports have doubled in the last ten years, our pasta exports have increased six times, and our exports of egg and white meat have increased four times. In the following process, we believe that the efforts to increase the exports of finished goods in our country are important both in terms of the added value to be provided to our country’s economy and to increase the value of Turkish products.

On the other hand, Turkey’s strategic position should be utilized as an advantage for transit trade, by making logistic investments.”

OUT OF 40 MILLION TON OF GRINDING CAPACITY, 18 MILLION TON IS USED

Erhan Özmen, Chairman of GUSAD

“In the summit, Erhan Özmen, Chairman of Southeast Flour Industrialists Association, talked about “Flour Sector, Its Economy and the Future.” He said the following:

You are in one of the youngest countries in the world. You are in a huge and very energetic country of 80 million with an average age of 29. As you know, this country has become a country that adds important value to the world’s flour trade. On the other hand, there is the machine industry.

Turkey’s machine technologies have great potential. This sector accomplishes ten percent of Turkey’s export. They reached an export volume of $16-17 billion. There are 715 facilities in Turkey, and the annual capacity of the flour industry has reached 40 million tons of wheat grinding level. While 475 plants with a capacity of 32 million tons are active, 240 plants with a capacity of 8 million tons became inactive, meaning closed down. The annual active capacity with 32 million ton has 18 million tons of grinding capacity. 14 million tons of wheat grinding, meaning 43 percent, is idle capacity. 13 million tons out of 18 million tons of wheat grinding, which is handled by 57 percent of our capacity, is used in the domestic market. The rest is, meaning 5 million tons equivalent to 28 percent, is exported.

When we examine the world trade, it is seen that there is a market of 12 million tons. Turkey, which dominates the market for the last six years, carries out 3 million 500 thousand tons of flour export annually. After Turkey, Kazakhstan comes with 2 million 500 thousand tons and EU countries realizes 1 million 500 thousand tons of flour export. The EU countries are followed by Argentina, Ukraine, USA, Canada, and India.

Turkey, which remains at the top spot for years, carries out 50 percent of its flour export to Iraq. In 2018, the flour export to Iraq reached 1 million 633 thousand tons, meaning USD 531 million. Last year, we realized USD 1 billion 17 million flour export. Out of this, Iraq’s share is USD 531 million.

Iraq is followed by Syria. Last year, we exported 360 thousand tons of flour worth USD 97,5 million to Syria. We realized 224 thousand tons of flour export to Angola, 188 thousand tons to Yemen, 100 thousand tons to Madagascar, 87 thousand tons to Somalia, and 84 thousand tons to Benin.

In our flour exports, Mardin ranks the first with a share of 28 percent and USD 320 million. Mardin is followed by Istanbul, Gaziantep, Adana, and Samsun. Istanbul’s share is 23 percent while Gaziantep’s is 11 percent. 58 percent of Mardin’s export goes to Iraq.”

TURKEY HOLDS THE FIRST SPOT FOR FEED PRODUCTION IN THE EU Ülkü Karakuş, Chairman of Turkey Feed Industrialists Union

Ülkü Karakuş, Chairman of Turkish Feed Industrialists’ Union (Türkiyem-Bir): “As the feed sector, in 2018, we produced around 25 million tons of compound feed and we hold the first spot among the European Union countries. With these figures, we are in the 7th place in the world ranking leaving Germany behind. China holds the top position in the world with 188 tons of compound feed production while the United States has the second position with 177 million tons of production. Brazil comes with the third place with 69 million tons of compound production while India and Russia comes at the fourth and fifth spot with 39 million tons of production. Mexico, which comes ahead of us, has 35 million tons of annual production.

As Turkey, in 2019, we expect to further increase our production by at least 1 million tons. I believe that this will continue to increase every year. Small businesses are replaced by big businesses. We are a sector with a turnover of 35-40 billion TL.

We are dealing with agricultural sector in Turkey. Our first challenge is what measures we will take against the climate change. This is our first priority in agricultural policies, micro policies or macro policies. In the three main subjects, the climate change shows itself. The first is volcanic eruption, the second is sun radiation, and the third is greenhouse effect, which has affected Turkey. Our share dealing with agricultural production in the greenhouse effect is 11 percent. As of Turkey’s feed sector, we are an environment friendly sector.

In the last 20 years, there are noticeable production increase in cereal, oilseed, and feed production. Our cereal growth is increased by only 1 percent during this period. Our oilseed production is increased by 67 percent while our combined feed production is increased to 358 percent.

As Turkey, we have to incentivize the rural life. The agricultural lobby should be strengthened, and university-industry cooperation has to be developed, and the state should withdraw from the trade in a planned fashion.”

SUMMIT’S DECLARATION The milling, grain, and pulses sectors that have determined the humanity’s destiny since when the stone touched another stone will continue to determine the future for the coming hundred years.

Industry 1.0 period is considered to start with the use of steam engine outside of manpower; however, apart from manpower, mills that have started to use water and wind energies in a mechanical system much earlier are in fact the oldest industry branch of the world and still the largest industry branch. For this reason, the most important output of this summit is that the beginning of the Industry 1.0 starts with mills.

The Earth, which is the home of humanity, is now giving signals. In particular, global warming, seasonal changes, and drought have become the most important issue for the grain and pulses sectors. The cereals and pulses sector, which is one of the most important sectors in human nutrition and industry, will experience these changes in the most painful way. In this regard, the world leaders and countries should prioritize measures to minimize reasons behind the climate change while protecting water and soil resources.

In production, it is necessary to have new field and to increase the yield in current productions.

In terms of protein, which will be the most important element for nutrition in this age, protein-rich grains and pulses must be taken into production lines.

In order to support farmers and producers and sustain agricultural activities, new policies need to be determined at the global level.

The Human Resources deficit of the sector has reached an important level, and new initiatives are needed in this area.

The preservation of geographical and traditional types of cereals and pulses and the traditional historical seeds need to be safely transferred to the future.