GENEVA: Turkey is set to export more flour this year as a surge in sales to Sudan adds to demand from conflict-hit neighbours Iraq and Syria in the Middle East, a Turkish milling company said.
Turkey, which vies with Kazakhstan to be the world’s largest wheat flour exporter, already equalled 2014 flour exports of 2.2 million tonnes in January-October this year and could see full-year shipments top 2.5 million tonnes, Erol Yahya, executive director of Intermil-Un, said.
Turkish official data showed flour exports to Sudan reached 350,000 tonnes in January-October, up from 50,000 tonnes in the same period last year, he said in a presentation.
“The general situation is that Turkey will continue to be a leader in this market,” he told the Global Grain conference. “Sudan is continuing to buy.” Sudan has liberalised its wheat import system this year, removing a special exchange rate that acted as a subsidy, but also allowing more traders to bring in foreign wheat. Supply of locally milled flour has also been hit by production problems.
Iraq remains Turkey’s biggest export market for flour, with about 1 million tonnes shipped annually, as the Middle Eastern country suffers from a depleted local industry after years of conflict.
“For the next five years this (import dependency) will continue because even if peace comes tomorrow it will take time to rebuild infrastructure,” Yahya said of Iraq. Turkey’s vast flour industry boasts some 700 mills but many operate below half capacity, and a consolidation process that is developing could see the number of plants fall to below 500 in the next five years, he forecast.
Turkey’s overseas sales, backed by an advantageous export licence scheme, have drawn accusations of dumping from other countries. Indonesia introduced special tariffs in 2013 that have curbed flows of Turkish flour.
Turkish millers receive licences to import foreign wheat, in parallel to their flour export licences, and they are able to sell on the import rights to grain traders who buy Russian wheat to complement lower-quality Turkish grain.
