Voluntary Report - public distribution

**Date:** 8/27/2004

**GAIN Report Number:** TU4030

TU4030

**Turkey**

**Oilseeds and Products**

**Sunflower seed and Products Update**

**2004**

**Approved by:**

![](media/image1.wmf)Jim Higgiston, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Ibrahim Sirtioglu, Agriculture Marketing Specialist

**Report Highlights:**

MY 2004 sunflower seed production is now estimated at about 650,000 MT,
slightly higher than earlier projections. Optimum weather conditions
helped to increase yields although total area declined. Sunflower seed
imports are expected to reach 600,000 MT due to insufficient domestic
supplies. Sunflower seed meal imports increased significantly in MY 2003
due to abundant regional supplies and lower prices compared to soybean
meal. The Turkish government recently increased sunflower seed duties to
27 percent to promote the use of local seeds.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Ankara \[TU1\]

\[TU\]

**GENERAL SUMMARY**

Turkey's MY 2004 sunflower seed crop is expected to reach 650,000 MT,
slightly higher than earlier projections despite a decrease in planted
area. Optimum weather conditions and timely rains during the year helped
to increase yields while area declined due to increased planting of
confectionery pumpkin seed and sorghum in the Thrace region where
seventy percent of sunflower seeds are grown. MY 2003 and 2004 sunflower
seed imports are expected to reach 600,000 MT the highest in recent
years. Neighboring Black Sea countries are the leading suppliers.

While a large crop is expected, Trakya Birlik and Karadeniz Birlik,
(farmers' coops), have not announced purchase prices. Last year, these
coops procured 420,000 MT of sunflower seed, which was about seventy
percent of the crop. Coops paid 485,000 TL per kilo in 2003, or about
US\$ 330 per MT. Due to higher costs, particularly for fuel, Turkish
prices are higher than Bulgarian sunflower seed that is quoted at US\$
250 per ton C&F Turkey. Large sunflower seed production is also expected
in Bulgaria this year, of which half may be exported. In order to
discourage imports of low cost imported sunflower seed, the government
of Turkey (GOT) increased the tariff on sunflower seeds from 20 to 27
percent for a period of four months.

The GOT has not paid production bonuses for last year's crop and no
schedule has been announced for the 2004 crop. It is also not known what
bonus the GOT will announce for MY 2004 crop. Industry sources commented
that it is crucial for the future of Turkish sunflower seed production
that coops and the GOT announce appropriate purchase prices and bonus
payments and that these are paid in a timely manner.

Sunflower seed and meal imports increased in MY 2003 due to abundant
supplies in the region and lower world prices compared to soybeans and
soybean meal. MY 2003 imports are expected to be about 600,000 MT for
sunflower seed and 280,000 MT for sunflower seed meal. Sunflower seed
meal consumption also increased significantly during MY 2003 due to an
increase in total feed production and higher utilization in poultry
rations. Sunflower seed meal replaced soy meal in rations due to the
relative costs.

Turkish sun oil production increased last year due to higher crushing.
However, sun oil imports and exports declined due to increased domestic
oil production and increased crushing in export markets. Domestic
consumption increased about fifteen percent benefiting from declines in
imports of corn and soy oil due to higher prices.

# Policy

This past week, the GOT increased tariffs for sunflower seed, for both
crushing and confectionary use, to 27 percent from 20 percent. The new
tariff for sunflower seed for crushing will be effective until January
2005, but the increase will be permanent for confectionary sunflower
seed. The decree also increased tariffs for palm oil from 12 to 31.2
percent. However, if the importer can prove that imported oil will be
used to produce export items, the tariff will only be 15 percent. The
GOT hopes to stop illegal mixing of palm oil with other oils. The new
tariff is the maximum allowed under Turkey's WTO commitments.

+-------------------+------+------+------+------+------+------+--------+
| **Turkey**        |      |      |      |      |      |      |        |
|                   |      |      |      |      |      |      |        |
| **Oilseed,        |      |      |      |      |      |      |        |
| Sunflower seed**  |      |      |      |      |      |      |        |
|                   |      |      |      |      |      |      |        |
| **(1000 HA)(1000  |      |      |      |      |      |      |        |
| MT)**             |      |      |      |      |      |      |        |
+-------------------+------+------+------+------+------+------+--------+
|                   | **20 | **R  | **20 | **Es | **20 | **Fo | *      |
|                   | 02** | evis | 03** | tima | 04** | reca | *UOM** |
|                   |      | ed** |      | te** |      | st** |        |
+-------------------+------+------+------+------+------+------+--------+
|                   | **   | **   | **   | **   | **   | **   |        |
|                   | USDA | Post | USDA | Post | USDA | Post |        |
|                   | Offi | Esti | Offi | Esti | Offi | Esti |        |
|                   | cial | mate | cial | mate | cial | mate |        |
|                   | \    | \    | \    | \    | \    | \    |        |
|                   | [Old | [New | [Old | [New | [Old | [New |        |
|                   | \]** | \]** | \]** | \]** | \]** | \]** |        |
+-------------------+------+------+------+------+------+------+--------+
| **Market Year     |      | 09.  |      | 09.  |      | 09.  | M      |
| Begin**           |      | 2002 |      | 2003 |      | 2004 | M/YYYY |
+-------------------+------+------+------+------+------+------+--------+
| **Area Planted**  | 0    | 0    | 0    | 0    | 520  | 0    | (1000  |
|                   |      |      |      |      |      |      | HA)    |
+-------------------+------+------+------+------+------+------+--------+
| **Area            | 550  | 550  | 500  | 500  | 520  | 480  | (1000  |
| Harvested**       |      |      |      |      |      |      | HA)    |
+-------------------+------+------+------+------+------+------+--------+
| **Beginning       | 10   | 10   | 10   | 10   | 20   | 20   | (1000  |
| Stocks**          |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Production**    | 820  | 820  | 600  | 600  | 625  | 650  | (1000  |
|                   |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **MY Imports**    | 350  | 225  | 450  | 600  | 415  | 600  | (1000  |
|                   |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **MY Imp. from    | 0    | 4    | 0    | 0    | 8    | 0    | (1000  |
| U.S.**            |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **MY Imp. from    | 0    | 0    | 0    | 0    | 0    | 0    | (1000  |
| the EC**          |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **TOTAL SUPPLY**  | 1180 | 1055 | 1060 | 1210 | 1060 | 1270 | (1000  |
|                   |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **MY Exports**    | 0    | 0    | 0    | 0    | 0    | 0    | (1000  |
|                   |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **MY Exp. to the  | 0    | 0    | 0    | 0    | 0    | 0    | (1000  |
| EC**              |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Crush Dom.      | 1159 | 1035 | 1030 | 1180 | 1030 | 1240 | (1000  |
| Consumption**     |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Food Use Dom.   | 6    | 8    | 6    | 6    | 6    | 6    | (1000  |
| Consump.**        |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Feed,Seed,Waste | 5    | 2    | 4    | 4    | 4    | 4    | (1000  |
| Dm.Cn.**          |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **TOTAL Dom.      | 1170 | 1045 | 1040 | 1190 | 1040 | 1250 | (1000  |
| Consumption**     |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Ending Stocks** | 10   | 10   | 20   | 20   | 20   | 20   | (1000  |
|                   |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **TOTAL           | 1180 | 1055 | 1060 | 1210 | 1060 | 1270 | (1000  |
| DISTRIBUTION**    |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Calendar Year   | 250  | 129  | 300  | 484  | 300  | 550  | (1000  |
| Imports**         |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Calendar Yr     | 3    | 9    | 0    | 0    | 0    | 0    | (1000  |
| Imp. U.S.**       |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Calendar Year   | 0    | 0    | 0    | 0    | 0    | 0    | (1000  |
| Exports**         |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+
| **Calndr Yr Exp.  | 0    | 0    | 0    | 0    | 0    | 0    | (1000  |
| to U.S.**         |      |      |      |      |      |      | MT)    |
+-------------------+------+------+------+------+------+------+--------+

+------------------------+-------------+----------------+--------------+
| **Import Trade         |             |                |              |
| Matrix**               |             |                |              |
+------------------------+-------------+----------------+--------------+
| **Country**            | Turkey      |                |              |
+------------------------+-------------+----------------+--------------+
| **Commodity**          | Oilseed,    |                |              |
|                        | Su          |                |              |
|                        | nflowerseed |                |              |
+------------------------+-------------+----------------+--------------+
| Time Period            | CY 2003     | Units:         | CY 2004      |
+------------------------+-------------+----------------+--------------+
| Imports for:           | Jan/Dec     |                | #####        |
|                        |             |                | ### Jan/June |
+------------------------+-------------+----------------+--------------+
| U.S.                   | 7117        | U.S.           | 4468         |
+------------------------+-------------+----------------+--------------+
| Others                 |             | Others         |              |
+------------------------+-------------+----------------+--------------+
| Ukraine                | 169474      | Ukraine        | 127573       |
+------------------------+-------------+----------------+--------------+
| Bulgaria               | 151701      | Bulgaria       | 83004        |
+------------------------+-------------+----------------+--------------+
| Russia                 | 83258       | Russia         | 49728        |
+------------------------+-------------+----------------+--------------+
| Uruguay                | 67325       | Moldova        | 17750        |
+------------------------+-------------+----------------+--------------+
| Romania                | 35230       | Romania        | 7904         |
+------------------------+-------------+----------------+--------------+
| Makedonia              | 2071        | Kyrgyzstan     | 2132         |
+------------------------+-------------+----------------+--------------+
| Moldova                | 1739        | Kazakhstan     | 1288         |
+------------------------+-------------+----------------+--------------+
| Argentina              | 745         | Syria          | 904          |
+------------------------+-------------+----------------+--------------+
| Kazakhstan             | 411         | Uzbekistan     | 624          |
+------------------------+-------------+----------------+--------------+
| Canada                 | 375         | Canada         | 440          |
+------------------------+-------------+----------------+--------------+
| Total for Others       | 512329      |                | 291347       |
+------------------------+-------------+----------------+--------------+
| Others not Listed      | 294         |                | 196          |
+------------------------+-------------+----------------+--------------+
| Grand Total            | 512623      |                | 296011       |
+------------------------+-------------+----------------+--------------+

+--------------------+-----+------+----+------+----+------+------+---+
| **Turkey**         |     |      |    |      |    |      |      |   |
|                    |     |      |    |      |    |      |      |   |
| ###### **Mea       |     |      |    |      |    |      |      |   |
| l, Sunflowerseed** |     |      |    |      |    |      |      |   |
|                    |     |      |    |      |    |      |      |   |
| **(1000            |     |      |    |      |    |      |      |   |
| MT)(PERCENT)**     |     |      |    |      |    |      |      |   |
+--------------------+-----+------+----+------+----+------+------+---+
|                    | **  | **R  | ** | **Es | ** | **Fo | **U  |   |
|                    | 200 | evis | 20 | tima | 20 | reca | OM** |   |
|                    | 2** | ed** | 03 | te** | 04 | st** |      |   |
|                    |     |      | ** |      | ** |      |      |   |
+--------------------+-----+------+----+------+----+------+------+---+
|                    | **U | **   | ** | **   | ** | **   |      |   |
|                    | SDA | Post | US | Post | US | Post |      |   |
|                    | Of  | Esti | DA | Esti | DA | Esti |      |   |
|                    | fic | mate | Of | mate | Of | mate |      |   |
|                    | ial | \    | fi | \    | fi | \    |      |   |
|                    | \[O | [New | ci | [New | ci | [New |      |   |
|                    | ld\ | \]** | al | \]** | al | \]** |      |   |
|                    | ]** |      | \  |      | \  |      |      |   |
|                    |     |      | [O |      | [O |      |      |   |
|                    |     |      | ld |      | ld |      |      |   |
|                    |     |      | \] |      | \] |      |      |   |
|                    |     |      | ** |      | ** |      |      |   |
+--------------------+-----+------+----+------+----+------+------+---+
| #######            |     | 09.  |    | 09.  |    | 09.  | MM/  |   |
|  Market Year Begin |     | 2002 |    | 2003 |    | 2004 | YYYY |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Crush**          | 1   | 1035 | 10 | 1180 | 10 | 1240 | (    |   |
|                    | 159 |      | 30 |      | 30 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Extr. Rate,      | 0,3 | 0,   | 0, | 0,   | 0, | 0,   | (    |   |
| 999.9999**         | 805 | 3816 | 38 | 3813 | 38 | 3790 | PERC |   |
|                    |     |      | 15 |      | 15 |      | ENT) |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Beginning        | 0   | 0    | 0  | 0    | 0  | 50   | (    |   |
| Stocks**           |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Production**     | 441 | 395  | 3  | 450  | 3  | 470  | (    |   |
|                    |     |      | 93 |      | 93 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **MY Imports**     | 100 | 64   | 1  | 280  | 1  | 285  | (    |   |
|                    |     |      | 10 |      | 10 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **MY Imp. from     | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| U.S.**             |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **MY Imp. from the | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| EC**               |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **TOTAL SUPPLY**   | 541 | 459  | 5  | 730  | 5  | 805  | (    |   |
|                    |     |      | 03 |      | 03 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **MY Exports**     | 5   | 5    | 5  | 0    | 5  | 10   | (    |   |
|                    |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **MY Exp. to the   | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| EC**               |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Industrial Dom.  | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| Consum**           |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Food Use Dom.    | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| Consump.**         |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Feed Waste Dom.  | 536 | 454  | 4  | 680  | 4  | 745  | (    |   |
| Consum**           |     |      | 98 |      | 98 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **TOTAL Dom.       | 536 | 454  | 4  | 680  | 4  | 745  | (    |   |
| Consumption**      |     |      | 98 |      | 98 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Ending Stocks**  | 0   | 0    | 0  | 50   | 0  | 50   | (    |   |
|                    |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **TOTAL            | 541 | 459  | 5  | 730  | 5  | 805  | (    |   |
| DISTRIBUTION**     |     |      | 03 |      | 03 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Calendar Year    | 100 | 50   | 1  | 113  | 1  | 250  | (    |   |
| Imports**          |     |      | 50 |      | 50 |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Calendar Yr Imp. | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| U.S.**             |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Calendar Year    | 5   | 5    | 5  | 0    | 5  | 0    | (    |   |
| Exports**          |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+
| **Calndr Yr Exp.   | 0   | 0    | 0  | 0    | 0  | 0    | (    |   |
| to U.S.**          |     |      |    |      |    |      | 1000 |   |
|                    |     |      |    |      |    |      | MT)  |   |
+--------------------+-----+------+----+------+----+------+------+---+

  -------------------------- --------------- -------------- --------------
  **Import Trade Matrix**                                   

  **Country**                Turkey                         

  **Commodity**              Meal,                          
                             Sunflowerseed                  

  Time Period                CY 2003         Units:         CY 2004

  Imports for:               Jan/Dec                        Jan/June

  U.S.                                       U.S.            

  Others                                     Others         

  Russia                     45657           Russia         120198

  Ukraine                    37131           Ukraine        60088

  Bulgaria                   12929           Romania        11393

  Moldova                    8352            Moldova        10280

  Romania                    6642            Bulgaria       6117

  Belarus                    2829                            

                                                             

                                                             

                                                             

                                                             

  Total for Others           262047                         208078

  Others not Listed                                          

  Grand Total                262047                         208078
  -------------------------- --------------- -------------- --------------