Expectations regarding new harvest period in Turkey have been the hot topic during HUBUDER’s conference in Ankara.
Gülfem Eren, the Chairperson of HUBUDER, said the association predicts the grain shortage in the coming periods because of the reduction in cultivated areas, trends towards planting cotton and oilseed and negative impacts of the climate change.
Vital messages have been given during The Grain Suppliers Association’s (HUBUDER) conference on “2018-19 Turkey towards Harvest and Grain in the World,” held on 3-4 May in Ankara. More than two hundred sector representatives gathered for the conference and discussed new market conditions and supply and demand balance at harvest period.
During the opening speech at the conference, Gülfem Eren, the Chairperson of Board of Directors of HUBUDER, said that the Turkish Grain Board (TMO) carried out a contradictory target which was to decide on intervention purchase prices while preventing inflation in food. She praised the fact that the infrastructure for licensed warehouse was prepared quickly and emphasized on the need to fulfill required arrangement for the Commodity Exchange as quickly as possible.
Saying that the financing costs have reached a high point where no goods can be stocked, Eren said merchant and industrialist should be able to utilize from the fifty-percent support that is allowed for farmers. “We predict that merchant and industrialist who lost money or gained a little during 2018-19 period would be reluctant to buy products at harvest. Our demand is to let merchants and industrialists utilize from 50 percent interest support for products at the Grain Board’s licensed warehouses. Additionally, the board should gradually increase its purchase prices this year,” Eren said.
“NEED FOR IMPORT TO CONTINUE”
She said Turkey’s need for grain will increase as a result of a substantial increase in the feed sector and increasing flour and pasta exports. “On the other hand, reduction in the cultivated areas and the trend towards planting cotton and oilseed due to more revenue expectancy of producers and the government’s supports signal that there will be a grain shortage. For this reason, it is important to carry out a serious production planning. Considering that the negative impact of dry season on the productivity in recent years, there will be a need for imports, excluding barley, at the 2018-19 harvest seasons as well,” she maintained.
“NO SALES WITHIN DIR SCOPE”
Günhan Ulusoy, the Chairperson of Board of Directors of Turkey Flour Industrialists Federation (TUSAF), said that Turkey leads the flour export around the world but this success was based on imports. He said exports within the Inward Processing Regime (DIR) should be restarted.
İsmail Kemaloğlu, the Chairperson and General Manager of TMO, said that the board will not enter into the DIR system this year. “There will be no sale within the scope of DIR. Turkey should produce more. Turkey cannot reach anywhere with imports,” he said. Kemaloğlu said that there are more people planting cotton as a result of incentive and fewer people planting corn and wheat. “Producers run away from wheat. Transportation and logistics have turned into a serious problem. For these reasons, production and process will remain their hinterlands in the sector,” he maintained.
During the conference, Cihan Soyalp, the Deputy General Manager of TMO, presented predictions on grain production in Turkey. Soyalp said that the total wheat plantation area decreased by 4 percent while the barley area increased by 3 percent. He said that if the precipitation of May is around seasonal normal, it is estimated that wheat production will be at last year's levels.