Dear readers,
We are here with the 80th issue of our magazine.
The export of the grains, pulses, oilseeds, and products sector, which mainly covers staple food items such as biscuits, wheat flour, pasta, vegetable oils, sugary and cocoa products, reached $7.8 billion with a 0.9% increase by the end of the first eight months of the year. In this period, wheat flour exports reached $870 million, pasta exports $643 million, and exports of sweet biscuits and wafers $616 million, among the top three product groups.
With 3.663 million tons of flour exports in 2023, the sector broke an all-time record, becoming the world champion in flour exports for ten consecutive years and setting a new target of 4 million tons for further growth.
In the early part of the year, while industrialists were making steady progress toward this new target by sourcing products at international prices, the Turkish Grain Board (TMO) introduced a wheat import ban during the harvest season to prevent price drops caused by increased supply and to ensure that exports are met from domestic production. This measure, effective from June 21 to October 15, deeply impacted the flour industry. The sector’s exports for June, July, and August experienced declines of between 30% and 40%.
As global wheat prices fall, the ongoing wheat import ban until October 15, coupled with domestic wheat prices being unable to compete with lower international prices, continues to put pressure on exports.
The sector, which initially set a target of 4 million tons based on data from the first four months of the year, was shocked by the subsequent decisions. Unable to source raw materials from abroad, the sector lost markets to competitors and revised its year-end export target to 3.5 million tons.
When we look at wheat prices, those in Türkiye are 35-40% higher than in the world market. This weakens the sector’s competitive strength. The sector is eagerly awaiting the lifting of the wheat import ban as soon as possible.
Looking forward to seeing you in our next issue.