Cereals, pulses, oilseeds and products sector, which is one of the important export items of Turkey, realized an export of 11,5 billion dollars in 2022 with an increase of 25.4 percent. Kazım Taycı, President of Istanbul Cereals, Pulses, Oilseeds and Products Exporters’ Association (İHBİR), said, “With a 30% increase in 2023, the export target of 15 billion dollars can be attained.”

At the meeting held with the participation of Kazım Taycı, Chairman of the Board of Directors of Istanbul Cereals, Pulses, Oil Seeds and Products Exporters’ Association (İHBİR), and the Members of the Board of Directors; the activities carried out in 2022, the targets for 2023 and the new road map were discussed. Kazım Taycı, Chairman of the Board of İHBİR, underlined that exports could reach 15 billion dollars in 2023 with freight prices, equipment support and financial support and stated that they will be able to break records in exports in Turkey’s 100th anniversary by taking steps regarding fairs, purchasing committees, promotion of domestic products in Turkish TV series broadcast abroad and solutions to legal problems. Taycı stated that the exchange rate has been fixed for a long time and the increase in TRY costs poses a substantial problem. “In order to set off the costs, the exchange rates need to increase at the rate of inflation,” he said

Kazım Taycı, Chairman of the Board of Directors of İHBİR, stated that they participated in 12 exhibitions in 2022, including the exhibitions organized by İHBİR. “Our most important distinctive feature in these exhibitions is that we participated in these exhibitions with at least twice as many members compared to the previous periods. We are participating in the Moscow Exhibition, which was attended with 7 or 8 members at the beginning of 2022, with more than 40 companies this year. Prodexpo Moscow Exhibition, which will start on February 5, 2023, is the first organization of 2023. Moreover, we will participate in the Gulfood exhibition in Dubai on February 20-24 with more than 60 İHBİR members,” he said.

22.4 PERCENT INCREASE IN IHBIR’S EXPORTS

Taycı stated that in the first half of last year, there were significant problems especially in logistics and supply. He stated that as of the second half, many countries in the nearby geography, of which exports have decreased due to freight prices, various production and supply problems, have turned their face towards Turkey and this is a chance. Taycı stated that they left behind a year in which advantages and disadvantages were experienced together, and that there were significant increases in exports to European countries, Africa, the Middle East and the USA. Taycı said that 2021 was completed with an export of 9,140 million dollars, this figure reached 11.5 billion dollars in 2022 with an increase of 25.4 percent, and on the IHBIR side, an export of 3.3 billion dollars was realized with an increase of 22.4 percent.

GRAIN CORRIDOR CREATED AN OPPORTUNITY

Taylan said that 2022 was a challenging year, the global food crisis that started with the pandemic deepened further with the war between Russia and Ukraine, two critical agricultural countries. “Especially the deterioration in supply chains, cost increases, and rising prices with the effect of global inflation put the sector in trouble. While meeting the domestic demand during the global crisis, the Turkish grain industry continued its upward momentum in exports throughout 2022. Thanks to the Grain Corridor opened with the initiatives of our President and our diplomats, we undertook a very important task, a mission as the bridge of Ukraine’s grain and cereal products to the world. This was a very important job both for Turkey and for humanity in the world. Turkey pioneered the world at this point. As of 2022, over 15 million tons of grain and cereal products were supplied to the world markets through this corridor,” he said.

GRAIN AND PULSES EXPORTS TO 200 COUNTRIES 

Taycı stated that they had difficulty in controlling costs due to the increase in energy prices associated with the war. “In 2022, we were a popular country in the world markets, especially due to our production power, slightly more affordable costs and our quality products compared to the European Union countries. These are among the most important reasons for us to show this performance in exports. Along with all these, we held to a very proactive study. We participated in many exhibitions, invited purchasing committees from many countries to Turkey, made business visits and organized in-house workshops. We tried to identify what our problems were and explain them to the authority as best as possible we could tell. We tried to come up with a solution together. With our suitcase in one hand and samples of the products we produce in the other, we traveled to different countries in the world. We are one of the unions with the highest diversity of countries. We are currently actively realizing export to approximately 200 countries,” he said.

MOST EXPORTS WAS MADE TO IRAQ

Taycı, Chairman of the Board of İHBİR, said that the countries to which the grains, pulses, oilseeds and products sector exports the most are Iraq, Syria, Yemen whereas İHBİR exports the most to Iraq, the USA, the UK and Israel. He stated that the sales volumes are at high levels in the Istanbul Exporters’ Association both among all sectors and among the grain sectors. Taycı stated that the export unit price of Turkey in general is $1.36, while the unit export value of İHBİR is $1.80.

“MOST OF TURNOVER COMES FROM TOP 20%”

Taycı said that 80% of the turnover in İHBİR is realized by 20% of the members. “The top 20 percent companies are quite big and are well-known by the public. However, the remaining, 80 percent of companies, that make up 20 percent of the turnover and have excellent production but do not know exactly how to sell their goods abroad, are in search of what to do and where to start. We have many members who have exported to one or two neighboring countries and do not know exactly how to open up to other markets. As IHBIR Management, we have set these members as our target. In 2022, we took these SME-scale companies to as many important exhibitions abroad as possible by explaining the existing government incentives and exhibition incentives and making them benefit from them. In 2023, our target is to include at least 200 more companies that have never participated in such events until today, and to bring them together with the outer world,” he said.

“IF EXPECTATIONS ARE MET, WE WILL REACH OUR TARGET”

Taycı said that there is a recession that has been talked about for a long time throughout the world, and that despite this; the craving for the products they export did not decrease in the world markets. “We also faced some adversities in 2022. For example, we do not have any problems with raw materials at the moment. The problem experienced on the logistics side has turned back to normal. We believe that if we can get access to finance, freight prices and equipment support that we expect from the authority, we can bring our figures of 11.5 billion dollars up to 15 billion dollars level with a growth of 30 percent. We are planning a lot of organizations where we can bring the producer, distributor and customer together. We will hold many activities such as exhibitions, purchasing committees, business visits and so on.” Taycı stated that the exchange rate has been fixed for a long time and the increase in TRY costs poses a substantial problem. “In order to set off the costs, the exchange rates need to increase at the rate of inflation,” he said.

WHEAT INVENTORY IS SUFFICIENT FOR 2023

Şemsettin Memiş, Deputy Chairman of IHBIR, stated that there is a seasonal drought throughout Turkey and that no product has been harmed for the time being. “We don’t have any problem regarding the supply side. We have enough products in our stocks in cereals, grains and pulses products remembering the licensed warehousing system, producers, traders as well as TMO. Currently, there is a total of over 20 million tons of wheat our inventory. Indeed, the first need for wheat planting, which was done in October, received a certain amount of precipitation. Therefore, the rainfall needed by the wheat has been fulfilled. But, of course, rainfall is needed for the crop to develop. February, March and April are coming. Until then, we hope that the rain and snow we expect will fall,” he said.

PRICES STARTED TO DECREASE

Memiş said that the prices on the grains and pulses side are at very reasonable levels at the moment. “The price increases have stopped in Turkey as well as in the world. Currently, partial price reductions are being made rather than increases. Discounts began to be reflected in the market gradually. With the approach of Ramadan, we expect mobility both in the domestic market and on the export side. There is no shortage of supply or demand at the moment.” he concluded.