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INTERVIEW-UPDATE 1-Turkey sees no wheat import tender in 2009

Published 05/07/2009, 04:10 AM
Updated 05/07/2009, 04:16 AM
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By Selcuk Gokoluk and Zerin Elci

ANKARA, May 7 (Reuters) - Turkey's state grain board TMO said on Thursday it did not forsee a tender this year to import wheat as it expects the country's wheat output to rise to 20 million tonnes from the previous year's 17.8 million tonnes.

TMO Chairman Mesut Kose told Reuters in an interview that the board may consider export tenders for surplus wheat and barley, and it may also import up to 49,000 tonnes of rice this year.

"We do not envisage a tender by the TMO this year for importing wheat, barring extraordinary developments," Kose told Reuters in an interview.

Turkey, traditionally self-sufficient in food, saw its grain crop hit by drought last year, prompting it to heavily import grain in a series of international tenders.

Total grain output is expected to top 35 million tonnes this year from 30 million tonnes last year, Kose said, due to favourable weather conditions.

Barley output is expected to top 7.5 million tonnes, up from last year's 5.9 million tonnes.

The TMO is considering a ban on wheat imports by private sector firms in an effort to prevent steep price falls that will hurt local farmers, Kose said.

The TMO may sell surplus wheat and barley output if the government allocates funds for the board to make purchases from farmers, he said.

"Exports can be considered if the TMO purchases surplus output and this increases the stocks significantly, because not all countries in the world expect a rise in production," Kose said, mentioning Russia as a possible buyer.

The government is expected to decide in the coming days whether the TMO will purchase grain from farmers this year.

HAZELNUT, RICE

Kose also said the country expects to generate $1.3 billion from exports of its top farm export product, hazelnuts, this year.

Turkey is the world's top hazelnut producer, meeting 500,000 tonnes of total world consumption at 800,000 tonnes, and generates export revenues between $800 million and $1.9 billion.

Exports of hazelnuts, often used in confectionary, have risen 13 percent since August to 189,000 tonnes as the global crisis did not reduce chocolate consumption. The European Union is the top hazelnut market for Turkey.

"Chocolate is not a product which is much affected by the crisis," Kose said. Hazelnuts now sell at $6 per kilogram.

The country has also imported 51,000 tonnes rice in recent months, and has agreed to buy 20,000 tonnes of rice from Egypt, and 10,000 tonnes of this has been shipped to Turkey, Kose said.

The government has given permission to the TMO to import up to 100,000 tonnes of rice by August to help cool domestic consumer prices.

(Editing by Keiron Henderson)

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