ANKARA: Turkey will diversify its trade with the Philippines following the slump the past two years. Esra Cankorur, Ambassador of Turkey to the Philippines, said bilateral trade of the two countries is down since 2014 due to lower imports by the latter of wheat flour, is the main export of the former to the country the last 10 years. The lower imports was due to the imposition by the Philippines of anti-dumping duty on Turkish flour in 2014. Most of the flour imports are slapped with an additional 3 percent dumping duty. “Hopefully that (lower trade) can be remedied soon,” said Cankorur in an interview last week.
Total bilateral trade in 2014 fell to $242 million from $314 million in 2013. About 60 percent of Philippine imports from Turkey is flour. “We are eyeing new products for trade. We need to diversify trade,” Cankorur added. She said Turkey hopes to export more textile and confectionery to the Philippines. She stressed the Philippines could tap Turkey for its construction needs.
“Turkish construction is ranked two (worldwide) after China. Turkish companies are in infrastructure all around the world, in Central Asia, Middle East and the Balkans,” the ambassador said. Turkey is recovering quickly after the recent failed coup attempt and its economic relations with the Philippines remains strong.
A nine-man mission representing five of Turkey’s biggest producers and traders of flour was in Manila last week to attend the World Food Expo in the country. The mission was led by Turgay Unlu, chairman of the Turkish Flour Yeast & Ingredients Promotion Group to explore business opportunities in the country
Unlu’s local counterpart, Ernesto Chua who is the president of flour importer Malabon Longlife Trading Corp., said Turkish floor imports are down 30 percent due to lower price of locally-milled flour. Chua said this is due to the lower price of wheat in the world market.
Chua said flour prices in the market have gone down to their lowest in 10 years “and we (importers of flour) have to compete against local millers based on their cost.” From a range of P850 to P920, prices are now at P660 to P840. Chua said the price war in previous years has prompted the local millers to come up with the so-called fighting brand, a lower priced variant, to compete with import. Wheat cost is now at about $200 to $250 per metric ton, depending on the country source.
Chua said low wheat cost has offset the higher duties slapped on Turkish flour, creating a balance on the cost of locally-milled flour and imports. Anti-dumping duty will be enforced for three more years.
Chua added that some importers are also sourcing hard floor from Vietnam and Indonesia. Locally milled flour is now about P660 per bag (hard used in pandesal). But according to Bien Enrico Ah, president of the Filipino-Chinese Bakers Association Inc. consumption of bread has been flat and flour demand has shifted to noodles and pasta. Ah said flour mills are expanding: San Miguel Foods, Foremost Flour Mills, URC and even a relatively new mill Atlantic Grains. A new player, Sojitz Corp., is setting up one in Subic.
Ah said these expansions are mean to address growing demand for flour used jn noodle and pasta making. Ah also said bakers see a new trend in breafa as Filipinos switch to healthier alternatives such as high fiber and wheat bread and bread products with no sugar added.
