The increase in foreign exchange caused locally produced corn, barley and wheat to be sold at more competitive prices. If the yield will be as expected, the producers may be satisfied this year.
İsmail Kemaloğlu, the General Manager of Turkish Grain Board (TMO), said that "The increase in foreign exchange, made locally produced corn, barley and wheat more competitive compared to the imported products. The sector will demand more production after the harvest." Kemaloğlu added that the plants and grains had the rainfall they demanded until April, the expectation on harvest is positive, and he said there is no problem.
Kemaloğlu stated that the planting period last year was better than 2016, and that there are no problems in the products of TMO area. He pointed out that the rainfalls in April and May are important for the product and expressed that they expect at least last year's harvest as of today. Saying that there can be some loss in certain parts of the Southeastern Anatolia due to the lack of rainfall, he said that there is good production development in Turkey. "If we get the expected rainfall in the next two months, I hope to have a nice season. The General Directorate of TMO will make more certain buying prediction according to the harvest situation, market dynamics and overseas prices at the end of May," he said.
He pointed out that the purchases of TMO depend on possible developments in the market. Kemaoğlu said the following: "At this point, together with the increase in foreign exchange, locally produced corn, barley and wheat became more competitive compared to imported products. Therefore, the increase in the exchange rate and the price movements abroad has also made the local product attractive in terms of price. That means the sector will demand more products at the harvest. Instead of importing barley, they will buy what they have in the local market."
When speaking about cost, logistic is an important factor, Kemaloğlu stressed. He said the sector will buy products from its close region. Recalling that the licensed warehousing is gradually becoming widespread in Turkey, he said that "I hope that this year a warehouse with a capacity of 2.5 million tons will become active. Producers can use the warehouse for six months free-of-charge and will receive 25 Turkish liras as transportation support. Producer organizations are provided with the same opportunity; industrialists and traders are given support in the warehouse. Interest in the licensed warehousing will increase, and the warehouse producers will want their warehouse to be full. All these will mobilize the market."
In Turkey there are some factors putting pressure on wheat production such as narrow and divided fields, rough terrains for grain harvest and other products which have a higher profit margin than wheat. However, wheat production is generally 1-2 million tons higher than wheat consumption of the country. And the reason for seasonal wheat import between 3 and 5 million tons is a prosperous milling industry and 3.5 million tons of wheat flour export volume of this industry. As the lead supplier of wheat flour for five years, Turkish millers do a third of total sales in the global market. Turkey's industrial development in this sector, while giving rise to an increase in raw material requirements, continues to attract the attention of wheat exporting countries.