Interview: Mustafa Yağmurlu

While Türkiye’s cereals, pulses, oilseeds and products sector achieved exports worth $4.8 billion in the first five months of the year, attention was drawn to the 28% decline recorded in Iraq, one of the sector’s most strategic markets. Nihat Uysallı, Chairman of the TİM Cereals, Pulses, Oilseeds and Products Sector Board, emphasized that Iraq continues to be an indispensable market, particularly for Turkish flour, pasta and biscuits, stating that a recovery in the region is of critical importance for the sector’s export performance. Despite global cost pressures, Uysallı noted that Türkiye will maintain its regional leadership in flour, pasta and biscuit exports thanks to its strong raw material supply, advanced production infrastructure and competitiveness in processed foods. He also underlined that the high yields expected in the new harvest season will provide a significant advantage for the industry.

Nihat Uysallı

Türkiye’s cereals, pulses, oilseeds and products sector achieved exports worth $4.8 billion in the first five months of the year. However, the contraction experienced in Iraq, traditionally one of the sector’s strongest markets, was particularly felt in flour, pasta and biscuit exports. Elected Chairman of the Turkish Exporters Assembly (TİM) Cereals, Pulses, Oilseeds and Products Sector Board in May, Nihat Uysallı evaluated the sector’s export performance, developments in the Iraqi market, and expectations for the coming period.

How did the cereals, pulses, oilseeds and products sector perform in exports during the first five months of the year?

As a sector, we achieved exports worth $4.8 billion during the first five months of the year. While our export volume declined by 15.5% compared to the same period last year, the increase of 9.9% in export unit prices in dollar terms limited the decline in export value to 7.1%. Sunflower oil exports ranked first with $551.3 million, while pasta, sweet biscuits and wafers reached an export volume of nearly $400 million, remaining among the strongest product groups in our sector.

Iraq has always been a strategic market for the Turkish food industry. What kind of picture emerged in exports to Iraq this year?

Iraq continues to be one of the most important export destinations for our sector. However, our exports to Iraq declined by 28% in the first five months of the year, amounting to $560.2 million. Naturally, this decrease also affected our overall performance in the Middle East region, where exports contracted by 13.8%.

The Iraqi market holds an extremely important position for Turkish manufacturers, particularly in flour, pasta, biscuits, wafers and other processed grain products. Therefore, we closely monitor developments in this market. In addition to economic and commercial developments in Iraq, regional geopolitical risks can also influence trade flows. Nevertheless, we believe that Iraq will continue to be one of the indispensable markets for Turkish bakery and processed food products in the medium and long term.

What is the significance of Iraq in terms of flour, pasta and biscuit exports?

Today, Türkiye ranks among the world’s leading exporters of flour and pasta. In addition, our biscuit and confectionery industries hold a significant position in global markets. Iraq is one of the largest and most stable buyer countries across all of these product categories.

Turkish flour, pasta and biscuits have been preferred by Iraqi consumers for many years. Geographical proximity, logistical advantages and the strong quality perception of Turkish products all play a major role in this success. For this reason, every development in the Iraqi market directly affects our sector’s overall export performance. Recovering the losses experienced in this market and returning to a growth trend in the coming period is of great importance for our industry.

In contrast, a remarkable increase was recorded in the Iranian market. How do you evaluate this development?

Yes, our exports to Iran increased by 34.6% in the first five months, reaching $147.1 million. The fact that Iran has entered the top six destinations for Türkiye’s cereals sector exports is a noteworthy development. We closely monitor changes in regional markets and continue our efforts to establish a more balanced export structure. However, considering Iraq’s scale and strategic importance for our sector, this market occupies a very different position.

How are developments in global markets affecting export performance?

Both prices and costs remain highly volatile worldwide. We are going through a period in which the impact of geopolitical risks on regional trade is increasing. Data from the United Nations Food and Agriculture Organization (FAO) also indicate an upward trend in the prices of key inputs such as grains and sugar. Rising costs in these products, which constitute the primary raw materials for our bakery products, pasta and confectionery industries, make it more difficult for exporters to maintain competitive pricing in international markets.

When increasing energy costs and logistics expenses are added to the equation, exporters face a highly challenging environment. However, the contraction in export volumes should not be interpreted as a loss of market strength. Rather, it should be seen as a natural consequence of global uncertainty and mounting cost pressures.

What are the sector’s expectations as the new harvest season begins?

One of the most significant advantages this year is the expected high agricultural yield. According to forecasts by the Turkish Statistical Institute (TÜİK), production is expected to increase by 26.7% in wheat, 54.1% in red lentils and 16.2% in sunflower seeds. This outlook translates into a strong raw material supply for our flour, pasta, vegetable oil and pulses industries.

The preparations and procurement policies implemented by the Turkish Grain Board (TMO) for the harvest season also provide confidence to our industrialists. Through close coordination between the public and private sectors, we believe that we will maintain our strong position in global trade with high-quality processed food products. In particular, we aim to further strengthen Türkiye’s regional leadership in value-added products such as flour, pasta and biscuits.