What is means for you as a customer is major shortages in both Turkish goods (16 products) and all other goods transiting through Turkish ports. We have already run out of millet, flax and red split lentils for example.
In the last couple weeks, Turkey has imposed temporary export bans on select agricultural products to stabilize local market conditions and keep prices from running higher. The Ministry of Trade recently halted shipments of grains, oilseeds, cooking oil, and a few other agricultural commodities – sourced from third countries – that are currently being held in bonded warehouses at Turkish seaports. Meantime, in a separate move, the Ministry of Agriculture & Forest (MinAF) stopped direct exports of cooking oil, bulk olive oil shipments, margarine, red lentils, and dry beans from Turkey. MinAF may block exports of other agricultural exports at any time.
The exact volume of the restricted products, which were originally sourced from third countries, is unknown, but is considered sizeable for the government to intervene and stop exports.
Turkish traders commonly use bonded warehouses at major seaports, such as Mersin, to store grain, oilseeds, and other agricultural commodities sourced from third countries. Traders decide whether to sell these commodities to buyers in Turkey or ship the product to third markets, depending on offered prices in these respective locations.
Products Banned for Export from Bonded Warehouses:
- Dry beans
- Sunflower seed
- Safflower seed
- Sunflower Oil
- Soybean Oil
- Palm Oil
- Colza Oil
- Meals & Brans
This latest move to temporarily suspend exports from bonded warehouses follows a separate action by the Ministry of Agriculture & Forestry’s (MinAF) to temporarily ban direct exports of cooking oil, bulk olive oil shipments, margarine, red lentils, and dry beans from Turkey. MinAF may, at any time, may decide to temporarily restrict other agricultural export items.
The ban on bulk olive oil (containers larger than 5kg) covers all export destinations, including the United States. The United States was the single largest destination by value for Turkish olive oil in 2021, accounting for 28 percent of Turkey’s total olive oil exports.
These export restrictions come at a time when food inflation is running high and there is growing concern about disruptions to domestic agricultural supply chains resulting from the war in Ukraine. Turkey is heavily dependent on grain, oilseeds, and sunflower oil from Ukraine and Russia. The government expects these latest export restrictions as well as the zeroing out of import duties on certain commodities will take the edge of rising food inflation.
Ukraine needs our help. We encourage you to donate to the Canadian Red Cross https://www.redcross.ca/
Source: USDA Website