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Significant focus on wheat expected in the years ahead

14 July 20234 min reading
The global population is increasing daily, leading to a clearer recognition of the value of food. According to the majority of scientists, wheat played a pivotal role in the establishment of settled societies worldwide. It appears that wheat will continue to be a significant topic of concern in the years to come.


Hasan Hacıhaliloğlu
Taban Gıda / CEO


Not only population growth but also various other factors contribute to the current threat to food availability. Among these factors, drought plays a significant role.

The increasing global temperatures present a major challenge to agricultural production. While the current production levels may be satisfactory, future prospects raise concerns. The European Union, a prominent global exporter, is likely to be severely affected by drought. Similarly, India, with its substantial population, is also experiencing the consequences of drought. It is projected that within the next decade, around 200 million individuals may be compelled to migrate from high-population countries like Pakistan and India due to drought. 


While certain developed and developing nations are implementing measures to address global warming, it is essential for other countries and each one of us as individuals to make our contributions towards tackling this matter.
The challenges to food availability extend beyond that. The ongoing Russia-Ukraine war, which has been a major focus of attention, presents a significant obstacle in this context. It is widely acknowledged that Russia has been responsible for approximately 20 percent of global wheat trade in recent years. Prior to the war, Ukraine accounted for nearly 10 percent of this portion. 



“SIGNIFICANT BENEFITS OFFERED BY THE GRAIN CORRIDOR TO OUR COUNTRY “
The continuation of the war will not only result in the inefficient use of arable land, but will also make it impossible to transport the harvested crops. The grain corridor, in which our government plays a major role, will also not be able to continue in a healthy way. In fact, in recent months there has been a serious slowdown in the inspection process by the inspection teams. In other words, the grain corridor has not been used effectively for about 4 months. To give an example; while a ship in the inspection queue in Marmara was able to pick up its cargo and set off to its discharge destination within 1 month 6 months ago, this process has exceeded 3 months for a ship of the same tonnage in recent months. 



The grain corridor presents significant benefits to our nation. We rank third, following China and Spain, in terms of deriving the greatest advantages from this trade. This positions us favorably for exporting finished goods.
Ukraine is currently encountering logistical challenges, whereas Russia is grappling with reduced selling destinations and collection difficulties. I think this situation will positively influence Turkey’s exports of finished goods. The rise in Russian wheat prices enhances our competitiveness.

“WE MUST CULTIVATE ALL AVAILABLE LAND”
As known, wheat harvest continues in our country with a production of nearly 20 million tons nationwide. In recent years, our country had lost self-sufficiency in wheat, but this year our production will meet our consumption again. Imports will be used for exporting finished goods thanks to the procurement policies implemented by TMO. Until last year, wheat cultivation areas had decreased by about 25 percent since 2005, but this year there has been a 7 percent increase compared to the previous year. These practices should be continued, and no land should be left uncultivated.

However, despite the satisfactory purchase price announced this year (8250 + 1000 TRY), TMO is not buying enough, which keeps the market prices low. Despite a base price of 8250 TRY, the market hovers around 6500-7000 TRY. Urgent action is needed to address this issue. 



With these concerns, the entire world must focus on improving production and storage conditions and adopting a more sustainable agricultural policy. Wheat production has increased by over 150 million tons in the past 20 years, and consumption continues to rise. However, there has not been a significant increase in cultivated areas alongside this growth. It is not feasible for production to consistently increase at such high rates every year. Therefore, we must exercise greater caution regarding production and consumption. It is highly likely that the storage demands of countries will also increase each year. 



“WE ARE BECOMING A GLOBAL PLAYER”
As Taban Gıda, one of Turkey’s major wheat suppliers, we are confident that we will not face wheat shortages in the foreseeable future. Our logistics capabilities are continuously improving, and we believe that by leveraging the advantages of our region, we will soon establish ourselves as a global player. Our goal is to become an essential supplier by showcasing the artisan culture of our country to the world.

We remain hopeful for brighter days ahead, both for our country and the world.







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