As the pandemic increased sales in the panic wave due to quarantine and the disruption it created in their supply chains, the importer countries began to look for alternative sellers, in the pasta industry, as in the whole food industry. At this point, as a reliable supplier, our industry has increased its exports. The fact that our exports to EU countries increased by 52% in 2020 despite the quota is the best example of this situation. According to research published by the International Pasta Organization (IPO), global pasta consumption increased by 25% in 2020. The increase in consumption has also been reflected in international trade statistics. According to Trademap data, 2020 global exports increased by 9.61% compared to the previous year reaching up to 8 million 105 thousand tons.

Final export of pasta was banned by the Ministry of Commerce from January 1 to April 30, 2021, and exports were only allowed under the inward processing regime (DIR), provided that the raw materials have been imported beforehand. The effects of this decision were immediately seen in our exports as a decrease due to the shortage in wheat supply. In order to ensure that the measures to be taken by the public authorities due to the drought in the 2020-2021 harvest season as well as the developments in the agricultural markets, a permanent arrangement has been suggested to the Ministry of Agriculture and Forestry and the Ministry of Trade representing the common opinion of our industry.

CUSTOMER REQUESTS ARE DETERMINANT

In many countries, there is a habit of consuming pasta produced from 100 percent bread wheat or a mixture of bread and durum wheat in certain proportions. Production is made in line with this habit. The demand for pasta/orzo made from 100% bread wheat is coming from African and South American countries, where the majority of our sector's total exports are made, as well as from Iraq, Syria, Lebanon, and Jordan. Despite this, while 30 percent of bread wheat was allowed in the production of pasta exported only to African countries, with the amendment made in the legislation, at the most, 100 percent bread wheat is allowed to be used in the production of pasta/orzo to be exported to the specified countries in line with customer demands.

There is no final export of pasta/vermicelli to the countries already mentioned, and all exports are carried out within the scope of the inward processing regime (IR) provided that wheat has been imported beforehand. Final exports to other countries are permitted under certain conditions. 

With the start of the execution, exports have started to recover and it is estimated that exports in 2021 will come close to the amount in 2020. On the other hand, the demands from Pacific and Far East countries such as Japan, Malaysia, and China, which demand high value-added and high-priced pasta produced with "domestic durum wheat", are continuing to be met. Our efforts to create the identity of "Anatolian Durum Wheat" in an attempt to strengthen the brand perception of Turkish Pasta and to create brand value have not been interrupted.

DURUM WHEAT CULTIVATION AREA IS DECREASING

Wheat is a prominent grain for all the world in terms of cultivation and production. Wheat, which is an indispensable element of human nutrition, will maintain its strategic significance in the future. According to TURKSTAT data, wheat has a share of 29.9% in the agricultural area.

While our pasta export, which was 164 thousand 412 tons in 2005, increased to 1 million 464 thousand tons in 2020, 20 million decares of durum wheat cultivated area in 2005 decreased to 12 million 581 thousand decares by 2020. 

World's top durum wheat producers are Canada, Italy and Turkey. In the 2020, 21% of global durum wheat production took place in EU countries (11% in Italy), 20% in Canada and 12% in Turkey. Other important producing countries are the USA, Algeria, Mexico and Kazakhstan.

Together with climate change, the pandemic has made the strategic importance of agricultural and food products even more evident. As the global demand for agricultural and food products increases as countries increase their stocks, producer countries limit the export of agricultural and food products for their own food security. For this reason, prices of all agricultural and food, including wheat, keep increasing. 

WE MUST ACT IMMEDIATELY FOR GLOBAL FOOD SECURITY

According to the World Food Organization (FAO) reports, the grain price index increased by 3.1% in November compared to October, and by 23.3% compared to November of the previous year, and by 27.3 percent in the Food Price Index compared to the same month of the previous year. Increases in prices of agricultural products and food increase food inflation all over the world and reduce the purchasing power of consumers. 

As stated in Export Report 2021 of TİM (Turkish Exporters Assembly), “As agricultural production is not an ordinary production sector, the resulting agricultural products cannot be described just as a commodity. In this strategically important sector, Turkey must take steps to rapidly increase its score in the global food safety index, where it ranks forty-first. In this regard, it is important to reduce production costs and prevent imports by making use of its experience in agriculture."

In this entire process, the crisis has been managed successfully by both the public authorities and industry. Since the continuation of exports in the pasta industry, whose main raw material is wheat, and which is the most convenient industry to use domestic inputs in its production, depends on increasing the farmer's welfare and increasing the amount and quality of wheat, it is of great importance to take precautions against risks which are quite distinct.