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MONTHLY BULLETIN │ NAFTC TURKEY
INSIDE THIS ISSUE
EU to update Customs Union deal 1
The Turkish agriculture in 2016 2
Turkey to launch a new tender 2
The Government restricts raw milk sales 3
Banvit Poultry sold to Brazil 3
Rendering ban came into force 4
Botanical EXPO 2021 will be held in Hatay 4
UPCOMING EVENTS
14 February – “Business Forum Turkey – Upcoming mega projects” – Consulate General of the Netherlands, Istanbul
FEBRUARY 2017
ISSUE: 4
Address: NAFTC Turkey Representative Office (operated by the NXT Group of Companies) Kore Sehitleri Cad. Mithat Ulu Unlu Sok. No:21 Kat:2 D:10 Zincirlikuyu, Istanbul Turkey
Website: www.naftc-turkey.com Phone: +90 (0)212 274 01 53 E-mail: [email protected] / [email protected]
EU to update Customs Union deal The European Commission asked the Council for a mandate to launch talks with Turkey to update the Customs Union agreement which does not include agriculture, services and public procurement sectors. Turkey and the EU will now discuss how to expand the deal and to cover agriculture and services sectors.
Analyzing four different alternatives, the Turkish Economy Minister, Mr. Nihat Zeybekci said that the EU and Turkey have independent institutions to make impact assessment analyses on this subject, and the results of the second alternative are positive for both sides. The second alternative is updating the agreement with a full scope of agriculture and services sectors. Moreover, this option includes taking a seat in the decision-making mechanism of the EU which makes Turkey a party to the free trade agreements signed with third countries.
It is worth mentioning that Turkey is the EU’s fifth biggest partner in trade, while the EU is the most important trading partner for Turkey.
MONTHLY BULLETIN │ NAFTC TURKEY
The Turkish agriculture sector in 2016
2
2016 statistics on agriculture in Turkey is published by the Turkish Statistical Institute (TUIK). In 2016, Turkey produced 18.5 million tons of milk, 1.15 million tons of red meat, 2 million tons of poultry meat and 17 billion eggs.
With regards to annual statistics on agriculture, Mr. Ibrahim Ozcan, the Deputy Director General of the Ministry of Food, Agriculture and Livestock reported that Turkey exported 730 different types of agricultural products (namely fruits, vegetables, grains) to 186
countries which amounted to USD 18 billion (EUR 16.7 billion). He further emphasized the corresponding value of total agricultural output was USD 60 billion (EUR 55.8 billion).
The agricultural sector has been the major contributor to the country’s exports, GDP and overall economic growth.
Turkey to launch new tender for 2017 The Turkish Meat and Milk Authority (ESK)* has announced that the tender for importing cattle will be launched after 3 February 2017
Currently the ESK is collecting demands from stockbreeders. Claims will be filed till 3 February 2017.
Based on the received demand, the ESK will import animals through a tender. As in previous years, animals are expected to be imported from Europe and South America.
In 2016, the ESK imported 400,000 heads of cattle in total. Half of the imports were made from the European Union countries and the other half from the South American countries. The preferred breeds were Angus, Brangus, Brown Swiss, Charolais and Hereford.
* ESK: The state-run institution which has the sole authority
to import livestock.
MONTHLY BULLETIN │ NAFTC TURKEY
3
According to the communique, raw milk can only be sold by packs or through containers provided by the consumer. The packages will include the name of the product, the type of milk, the name and surname of the manufacturer, milking date and time, date of last consumption and a “boil before using” warning.
“We have prepared this communique for our citizens’ health. From now on, raw milk will only be sold to free farms and enterprises. No action is needed by the producer except for cooling.”, said the Minister, Mr. Faruk Celik.
In Turkey, for about half of the total market is made up of raw milk sales in the streets without supervision. The communique is expected to affect organized farms and enterprises positively.
Banvit announced that 79.48% shares of the company is sold to Brazillian-based chicken producer BRF S.A. for TRY 915 million (EUR 227 million).
According to the Banvit’s statement made to the Public Disclosure Platform (KAP), BRF and Qatar Holding LLC, which is a subsidiary of Qatar Investment Authority, will establish a new partnership. While BRF S.A. will have 60% of the total shares, the remaining 40% will be owned by Qatar Holding. This partnership will have 79.48% of the shares of the Banvit.
The Government restricts raw milk sales The Ministry of Food, Agriculture and Livestock (MinFAL) has banned the sale of raw milk on the streets with a new communique
Banvit Poultry sold to Brazil One of Turkey’s one of the leading poultry products companies, Banvit is sold for TRY 915 million
Competing with Australia and China, Hatay is nominated to hold 2021 Botanical Expo with their “the Civilizations Garden” project.
In this framework, 300-acre botanical garden will be prepared together with the gardens of other countries. The organization is expected to attract an investment of USD 300 million (EUR 278 million). The estimated number of visitors is 2.5 million people.
Hatay is one of the most affected area since the start of the Syrian conflict. The city with 1.5 million inhabitants welcomed approximately 500,000 Syrians. Economic and social problems of the city are big and therefore the Expo nomination is mostly welcomed.
MONTHLY BULLETIN │ NAFTC TURKEY
Rendering ban came into force MinFAL announced that the use of animal protein for poultry feed is banned as of 1 January 2017
Botanical EXPO 2021 will be held in Hatay
4
Rendering is a practice that converts animal waste into animal fats and bone meal and is being re-used as a source of animal protein in feed production. Majority of the poultry industry used rendering for a long time. However, through enforcement of the new regulation, the method can no longer be used to produce chicken feed.
“We banned rendering feed as of 1 January 2017. Our priority is human health. We will inspect the producers closely. In case of a disobedience, severe penalties will be given. ” said the Minister, Mr. Faruk Çelik.
On the other hand, industrialists claim that this regulation will cause USD 240 million (EUR 233 million) loss annually. The President of the Turkish Poultry Meat Producers and Breeders Association (BESD-BIR), Mr. Sait Koca stated that rendering products are a very valuable source of energy. According to his estimation, the poultry industry will need at least 80,000 tons of fat which will increase the cost of chicken production. In addition to cost considerations, producers are also worried about what to do with animal waste after the production.
NAFTC TURKEY
Michael WESTENBERG, Director (Turkey)
+31(0)20 491 7173 / +31 (0) 6 1455 55 00
Benno Op ten Berg, Director (Iran)
+31(0)20 491 7173 / +31 (0)6 1159 37 49
Melis Akcan, Cluster Manager (Turkey & Iran)
[email protected] / [email protected]
+90 (0) 212 274 0153
CONTACT US
Address: NAFTC Turkey Representative Office (operated by the NXT Group of Companies)
Kore Sehitleri Cad. Mithat Ulu Unlu Sok. No:21 Kat:2 D:10 Zincirlikuyu, Istanbul Turkey
Website: www.naftc-turkey.com
Phone: +90 (0)212 274 01 53
E-mail: [email protected] / [email protected]