Required Report - public distribution

**Date:** 11/29/2005

**GAIN Report Number:** TU5052

TU5052

**Turkey**

**Cotton and Products**

**Cotton update**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Ibrahim Sirtioglu, Agricultural Marketing Specialist

**Report Highlights:**

MY 2005 Turkish cotton area and production is expected to be about
580,000 hectares and 750,000 MT. Cotton production decreased more than
predicted in the Aegean and Cukurova regions. During MY 2004 Turkish
cotton consumption and imports reached record levels. US constituted
sixty-one percent of imports.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Quarterly Report

Ankara \[TU1\]

\[TU\]

Table of Contents

[Production 3](#production)

Cotton
PS&D**...............................................................................................................**3

[Consumption 4](#consumption)

[Trade 4](#trade)

Cotton Import Trade
Matrices.....................................................................................
5

#  Cotton Export Trade Matrices...................................................................................... 6 

# Production

Total area and production declined by 17 percent in MY 2005 compared
with a year ago. Other than some local areas in Diyarbakir in the
southeast, the harvest has been completed. Some farmers opted to grow
corn in the Cukurova region and corn, tomatoes, and sesame in the Aegean
region due to poor returns in previous years for cotton. Almost all
Turkish cotton fields are irrigated. Increased use of certified seeds
and availability of irrigation water during the growing season has
reportedly increased yields in most areas.

Turkish farmers are attempting to make domestic cotton more competitive
with imported cotton. Reportedly, an increased number of cotton
harvesters have been bought to lessen the dependence on hand picking and
decrease costs. About 130 various (new and used western and Uzbek)
cotton harvesters were used this season the majority of which were used
for the first time. Number of harvesters is expected to increase in
coming years. It is also reported that coops (Antbirlik, Taris) looking
to produce bio-diesel to cut fuel costs. Higher cotton prices in the
beginning of the year and lower returns from alternative crops i.e.,
corn, wheat may encourage farmers to plant more cotton next season.

# PSD Cotton

+------------------+-------+-------+-------+-------+-------+-------+
| Turkey           |       |       |       |       |       |       |
|                  |       |       |       |       |       |       |
| ###### Cotton    |       |       |       |       |       |       |
|                  |       |       |       |       |       |       |
| (HECTARES)(MT)   |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | > **2 | *     | **2   | **    | **2   | **    |
|                  | 003** | *Revi | 004** | Estim | 005** | Forec |
|                  |       | sed** |       | ate** |       | ast** |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | *     | *     | *     | *     | *     | *     |
|                  | *USDA | *Post | *USDA | *Post | *USDA | *Post |
|                  | Off   | Estim | Off   | Estim | Off   | Estim |
|                  | icial | ate** | icial | ate** | icial | ate** |
|                  | \[Ol  |       | \[Ol  |       | \[Ol  |       |
|                  | d\]** | *     | d\]** | *     | d\]** | *     |
|                  |       | *\[Ne |       | *\[Ne |       | *\[Ne |
|                  |       | w\]** |       | w\]** |       | w\]** |
+------------------+-------+-------+-------+-------+-------+-------+
| **Market Year    |       | 08    |       | 08    |       | 08    |
| Begin**          |       | /2003 |       | /2004 |       | /2005 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Area Planted** | 0     | 7     | 0     | 7     | 0     | 5     |
|                  |       | 10000 |       | 00000 |       | 80000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Area           | 7     | 7     | 7     | 7     | 6     | 5     |
| Harvested**      | 10000 | 10000 | 00000 | 00000 | 30000 | 80000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Beginning      | 2     | 1     | 2     | 2     | 3     | 2     |
| Stocks**         | 97197 | 93925 | 78255 | 16290 | 66869 | 51025 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Production**   | 8     | 9     | 9     | 9     | 8     | 7     |
|                  | 92679 | 00000 | 03565 | 00000 | 05588 | 50000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Imports**      | 5     | 4     | 7     | 7     | 7     | 7     |
|                  | 16012 | 99315 | 42230 | 42735 | 29384 | 50000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **MY Imp. from   | 0     | 3     | 0     | 4     | 0     | 4     |
| U.S.**           |       | 07440 |       | 55415 |       | 75000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL SUPPLY** | 17    | 15    | 19    | 18    | 19    | 17    |
|                  | 05888 | 93240 | 24050 | 59025 | 01841 | 51025 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Exports**      | 77728 | 76950 | 33094 | 33000 | 32659 | 25000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **USE Dom.       | 13    | 13    | 15    | 15    | 15    | 15    |
| Consumption**    | 49905 | 00000 | 24086 | 75000 | 34972 | 00000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Loss Dom.      | 0     | 0     | 0     | 0     | 0     | 0     |
| Consumption**    |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL Dom.     | 13    | 13    | 15    | 15    | 15    | 15    |
| Consumption**    | 49905 | 00000 | 24086 | 75000 | 34972 | 00000 |
+------------------+-------+-------+-------+-------+-------+-------+
| **Ending         | 2     | 2     | 3     | 2     | 3     | 2     |
| Stocks**         | 78255 | 16290 | 66869 | 51025 | 34210 | 26025 |
+------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL          | 17    | 15    | 19    | 18    | 19    | 17    |
| DISTRIBUTION**   | 05888 | 93240 | 24049 | 59025 | 01841 | 51025 |
+------------------+-------+-------+-------+-------+-------+-------+

##  

## Consumption

Turkey experienced the highest level of cotton utilization in MY 2004
despite the decrease in cotton yarn production during the summer months.
MY 2004 consumption is estimated

1.57 MMT. Turkish textile exports during the first half of the year
showed an increase but slowed in June and July. The over-valued Turkish
Lira is reportedly having a negative impact on textile and cotton yarn
exports. Total cotton consumption is expected to decline somewhat in
coming years due to competition with China in international textile
markets. Turkish yarn producers on the other hand are in competition
with India, Pakistan and Central Asian Countries for cotton yarn
exports. Turkey is supplying textile companies in Central Europe with
yarn. Should these facilities close, Turkish companies will be hurt.

# Trade

Turkish cotton imports were a record amount in MY 2004. Total imports
were 742 TMT during the marketing year, up about fifty percent compared
to MY 2003. Imports from the US also increased about fifty percent to
455,000 MT, accounting for sixty-one percent of the market. Greece
(158,000 MT) and Syria (48,000 MT) were the other leading exporters.
Turkey's import demand continued during the first two months of the MY
2005 and imports were 128,000 MT of which seventy-nine percent (101,000
MT) of was supplied by the US.

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

  **Country**            Turkey                              

  **Commodity**          Cotton                              Metric tons

  Time Period            MY 2003                             MY 2004

  Imports for:           Aug/July                            **Aug/July**

  U.S.                   307441       U.S.                   455414

  Others                              Others                 

  Greece                 77490        Greece                 158715

  Syria                  31388        Syria                  48780

  Turkmenistan           26411        Uzbekistan             15874

  Mersin Free Zone       14964        Turkmenistan           14478

  Iraq                   8554         Israel                 9009

  Israel                 7354         Egypt                  7718

  Azerbaijan             6028         Mersin Free Zone       4704

  Egypt                  5338         Azerbaijan             4186

  Uzbekistan             3141         Uganda                 3940

  Ethiopia               2600         Kazakhstan             2965

  Total for Others       183268                              270369

  Others not Listed      8604                                16952

  Grand Total            499313                              742735

                                                             

  Time Period            MY 2005                             

  Imports for:           Aug/Sept                            

  U.S.                   101249                              

  Others                                                     

  Syria                  7064                                

  Turkmenistan           3954                                

  Greece                 3630                                

  Uganda                 1904                                

  Egypt                  1635                                

  Uzbekistan             1478                                

  Azerbaijan             1250                                

  Brazil                 1141                                

  Israel                 926                                 

  Ghana                  756                                 

  Total for Others       23738                               

  Others not Listed      3298                                

  Grand Total            128285                              
  ---------------------- ------------ ---------------------- --------------

  ----------------------- ------------ ------------------- --------------
  **Export Trade Matrix**                                  

  **Country**             Turkey                           

  **Commodity**           Cotton                           Metric tons

  Time Period             MY 2003                          MY 2004

  Exports for:            Aug/July                         **Aug/July**

  U.S.                                 U.S.                 

  Others                               Others              

  Mersin Free Zone        19457        Mersin Free Z.      6770

  Italy                   12158        Italy               6478

  Germany                 4261         Netherlands         4000

  Bangladesh              4139         Kayseri Free Z.     2326

  Portugal                3868         Portugal            2004

  Netherlands             3754         Greece              1762

  France                  3611         France              1576

  China                   3541         Thailand            1445

  Kayseri Fee Z.          2729         Hungry              968

  Greece                  2080         Russia              717

  Total for Others        59598                            28046

  Others not Listed       17348                            4951

  Grand Total             76946                            32997

                                                           

  Time Period             MY 2005                          

  Exports for:            Aug-Sept                         

  U.S.                                                     

  Others                                                   

  Mersin Free Zone        885                              

  Italy                   641                              

  Netherlands             564                              

  Kayseri Free Zone       528                              

  France                  214                              

  Greece                  153                              

  Hungary                 145                              

  Poland                  142                              

  Ukraine                 107                              

  China                   86                               

  Total for Others        3466                             

  Others not Listed       328                              

  Grand Total             3794                             
  ----------------------- ------------ ------------------- --------------