BAYRAKTAR: IRAQ'S IMPORT BAN AFFECTS THE POULTRY SECTOR VERY BADLY

Press release...

Ankara - 12.07.2019

Turkey Chambers of Agriculture Union (TZOB) Chairman Şemsi Bayraktar said that the poultry sector incurred serious difficulties because of the interruption of exporting eggs to Iraq.

Bayraktar held a press conference and said, "The industry can maintain its current production, to be able to continue to provide employment, losing its added value to the continued export connected. Just one market-weighted export, as in Iraq, causes problems."

"In May, egg production increased by 1.2 percent compared to the same month of the previous year 1 billion 603 million units, 1 billion 622 million units rose, but chicken meat production decreased by 3.3 percent from 200 thousand tons to 193 thousand tons" Bayraktar said.

Despite the increase in the export of poultry meat and products, Bayraktar noted that exports of eggs and egg products have declined.

"Poultry meat and meat exports increased by 27.1 percent in May compared to the same month of the previous year and rose from dollars 49.4 million to dollars 62.8 million. Exports increased by 4.9 percent in the five-month period compared to the same period last year, from 210.7 million dollars to 238.7 million dollars.

However there exists a problem in the export of eggs and egg products. Exports of eggs and egg products decreased by 41.2 percent in May when compared to the same month of the previous year decreased from 30.7 million dollars to 18.1 million dollars. Exports in the five-month period decreased by 15.2 percent compared to the same period of the previous year and decreased from 177.8 million dollars to 150.7 million dollars" he added.

Iraq's import ban has affected the sector very negatively...

Emphasizing that Iraq's ban on imports that violates international trade rules affects the egg sector, which exports about one third of production, Bayraktar told: “Because 85 percent of exports are made to Iraq. Eggs, which have a 28-day waiting period when export stops, inevitably fall rapidly in the domestic market. The sector is trying to sell below the cost. This situation cannot be sustained. Our manufacturer is waiting for the problem to be solved."

One of the most important issues is planning...

Bayraktar pointed out that one of the most important issues of our Turkish agriculture is planning and stated:

“The sector is not well planned. There's supply surplus. The poultry sector has an unplanned structure that does not take into account the country's population, consumption growth and exports. When the domestic consumption, which is already largely saturated, is insufficient according to the supply, the sector is trying to export. When there is a problem in exports, the sector is entering a crisis."

The sector has a cost problem...

"Supply and demand imbalance is not the only problem in the sector. There's a cost problem. Electricity prices, import-dependent feed prices increased well above inflation. The sector's profit margin fell remarkably. The producer became unable to receive the money for his investment in a reasonable time. With the current structure, the producer cannot see his future, he has difficulty in maintaining production and staying in the sector. In addition to the Iraqi problem, which must be solved first and foremost, the only way out in this environment is to form a strategy that includes short, medium and long-term production, consumption and foreign trade planning." Bayraktar concluded...