News

Wheat and Barley Production Continue to Surge

Wheat and barley are strategically important products as two basic consumption materials. Especially with the Covid-19 epidemic process, countries started to produce agricultural products to meet the needs of their domestic market. Turkey produces and trades cereals to meet the needs of both the domestic and foreign markets. As one of the world’s leading wheat and barley producers, Turkey also draws attention with its flour and pasta production. Although the Russia-Ukraine war affected the grain trade, Turkey has enough cultivation land and technology. Thus, what are the prominent points in Turkey’s barley and wheat production?

Will the Russia-Ukraine War Affect the Sector?

Turkey makes 24% of its global wheat trade with Russia and Ukraine. The country exported about 7.5 million tons of wheat last year, with Russia importing 66 percent of that wheat and Ukraine 18 percent. Turkey exported 3 million tons of flour in 2021 and generated $1.1 billion in revenue. Although this war affects the world market, Turkey will not be affected much.

According to industry representatives, there are some reasons for this. It will coincide with the period when the effects of the war diminish, as it is 50 days before the grain season starts in Turkey. Another important development is the heavy rainfall this year. There will be no water shortage and drought, especially in irrigation and other needs. In light of this information, although there are minor exceptions in cereal markets, there is no need for export measures in Turkey.

Yield Amounts by Years

According to TUIK data, Turkey produced 19 million tons of wheat in 2019 and 20.5 million tons in 2020. Turkey produced 17.7 million tons of wheat in 2021. The yield is expected to be high this season due to the rains. Relatively, the late start of the grain season in Turkey may coincide with the possible solution between Russia and Ukraine. Therefore, there will be no reduction in production and no stocking in Turkey.

High Yield Expected in Wheat and Barley in 2022

Turkey can achieve very high yields this year, especially in terms of wheat and barley. Turkey aims to produce more than 20 million tons of grain, with a maximum of 3.5-4 million tons for pasta. This easily meets Turkey’s needs. Both the transferred stocks and the stocks in the hands of the industrialists and traders are extremely sufficient. Therefore, Turkey will not experience any problems in the short and medium-term.

There is a Balance in the Markets

After the latest developments, the state started to take some measures to protect both producers and industrialists. The first of these is the support of industrialists. The Turkish Grain Board (TMO) has been subsidizing the system for months and providing affordable flour to industrialists. Despite the recent increase made by the Turkish Grain Board, flour prices are still well below the market. The real price in the market and the price announced by the Turkish Grain Board are still in favor of bakers and flour industrialists. There is a healthy pre-summer balance on the market. It is of great importance that the prices remain balanced in the last quarter of the year.

Some of the pulses needs in Turkey are met from local production in the country, and some of them are imported. Imported wheat is converted into flour and pasta and sold with high added value. After the COVID-19 epidemic, prices rise from time to time in connection with the position and climate of the producers in the world. Looking at the year in general, the season expectation is moving in a positive direction.

Producers and Private Sectors Cooperation Are Important

It is extremely important to produce quality grains for both producers and industrialists. In the improvement studies carried out with the support of the Ministry of Agriculture, there was a significant increase in the yield of wheat and barley. More efficient products are transformed into value-added products in the industry, making a serious contribution to the country’s economy. Especially during the pandemic period, Turkey produced enough products for both domestic and foreign markets with stable production.

Turkey Uses Wheat and Barley in Value Added Products

Turkey uses imported wheat in value-added products. This generates more income. Turkey processes all of the imported wheat and exports them without presenting them to the domestic market. Since 2002, Turkey has increased 11 times in flour exports, 30 times in pasta exports, 15 times in bulgur exports, 5 times in semolina exports, and 4 times in biscuit exports. In the last 19 years, Turkey has exported 89 million tons of wheat and its products, worth 35 billion dollars and 79 million tons of wheat imports totaling 22 billion dollars.  While Turkey is the country that exports the most flour and bulgur in the world, it ranks second after Italy in pasta export.

Leave a Reply

Your email address will not be published.

Contact Us Whatsapp contact gif for mobile Whatsapp Call Us