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In the first three months of 2022, Turkey increased its exports in the categories of grains, legumes, and oilseeds. In the world, which started 2022 with the war crisis between Russia and Ukraine, the supply of grains and legumes began to be disrupted. However, Turkey did not have any problems in terms of product supply and increased its production compared to the previous year. So, what are the sectoral data in the first three months of 2022? Then what are the possible sectoral developments in the coming months?

What are Legumes and Cereal Products Produced in Turkey?

Grain group is grown quite a lot in Turkey because it is the basic food as well as being nutritious. Wheat, barley, oats, and corn are the most grown cereals in Turkey. Turkey is one of the most important flour producers in the world and holds the majority of the market. Legume production also gained momentum in Turkey, especially after the 1980s. Beans, broad beans, lentils, chickpeas, and soybeans are among the most produced legumes. Especially Southeast Anatolia, the Mediterranean, and Marmara regions are the regions that come to the fore in legumes production. In terms of grain, the Central and Southeastern Anatolia regions take the lead.

Exports Approached 3 Billion Dollars in the First Three Months of the Year

The 3-month exports of the cereals, legumes, oilseeds and their derivatives sector reached 2 billion 832 million 940 thousand dollars. This increase is equal to 40 percent compared to the same period of the previous year. According to the Southeastern Anatolian Exporters' Association data, Turkey exported to 206 countries and free zones in 3 months. Turkey earned 2 billion 832 million 940 thousand dollars in return for the 3 million 180 thousand 242 tons of products it sent.

When we looked at it proportionally, the export amount increased by 34.21% compared to last year. Moreover, the value increase was around 40%. The total target by the end of the year is to generate $11 billion in revenue.

Why is the Demand for Legumes and Cereals Increasing?

Especially in the last 20 years, the demand for legumes and grains has increased with the increasing population. Countries have turned to legumes to feed the increasing populations. Countries such as the USA and Canada have brought high-quality product standards to the legumes they call "special crops". This attitude has created a new market for Turkey, which produces the world's best quality legumes and grains. In Turkey, the added value of legumes and grains is increasing every year, with the increase in yield per hectare and government incentives.

Export Target was Met in 2021

Sector representatives, who set out with an export target of 9 billion dollars at the beginning of 2021, reached their target. Last year, 9 billion 156 million 524 thousand dollars of grain and pulses exports were realized. The sector, which entered 2022 very successfully, seems to be able to meet its target with an export figure of 3 billion dollars in the first three months.

The Region with the Most Exports was the Middle East

Turkey made the most exports to the Middle Eastern countries. Total exports to the Middle East amounted to 1 billion 118 million 94 thousand dollars. After the Middle East, most exports were made to the African continent. Total exports to Africa were at the level of 702 million 130 thousand dollars. The continent of America came in third place. Total exports to the Americas amounted to 276 million 792 thousand dollars.

Most Exports by Country were Made to Iraq

In the country-based exports of the sector, Iraq ranked first with 585 million 708 thousand dollars. The USA followed Iraq with 191 million 567 thousand dollars. Syria ranked third with exports of 159 million 76 thousand dollars. With the emergence of new market areas in recent years, an increase in the number of exporting countries is expected.

Sectoral Exports will Continue to Increase

Quality legumes and grains are grown in Anatolia, especially in the Southeastern Anatolia Region, and are in high demand. This can be easily understood from the export data. Turkey's place in this sector is also known by the whole world and its exports are increasing gradually every year. Especially exports to the USA have increased recently. Companies in the sector are expanding their market network and thus sending their products all over the world.

The digitalization experienced in the industry with the Covid-19 pandemic has enabled orders to be received faster. With the acceleration of communication processes, their market shares also increased. Sector representatives aim for the market to reach 11 billion dollars in exports by the end of the year.

If you want to reach the best quality cereals and legumes in the world, you can contact Turkish Goods.

The textile is one of the most fascinating, useful art forms, with a history as long as the known civilizations examined by researchers. Textiles play an important role in our daily lives. Textiles are present in everything from the clothes we wear to the furniture we sit on to the carpeting in our homes. There are many fabrics, each with its own set of applications. You can find textiles in everything from your clothes to your shoes. From silk to wool, there is a material for every occasion. Textiles are adaptable and come in a variety of colors and textures. As a result, textiles constitute an essential component of our daily lives.

The textile and raw materials sector broke the first-quarter export record of all time. Turkey reached 2 billion 650 million dollars of foreign sales in January-March 2022. It's an increase of 13.1% compared to the same period of the previous year.

Exports Surged by 19.8%

According to the data of TIM, Turkey's exports increased by 19.8 percent in March compared to 2021 March. Exports amounted to 22.7 billion dollars. With the said value, Turkey reached the highest March exports of all time. In the first quarter of this year, exports increased by 20.8 percent to 60.3 billion dollars. The annualized export value increased to 235.6 billion dollars.

The textile and raw materials sector exported more than 868 million dollars in March last year. The sector reached an export of 953 million dollars with an increase of 9.7 percent in the same period of this year.

The textile and raw materials sector reached an export of 2 billion 650 million dollars in January-March 2022. It's an increase of 13.1% compared to the same period of the previous year. Thus, the sector made the highest export of all time in the first quarter.

Istanbul made the sector's most sales in the textile sector. A part of 346 million dollars of the sector's exports last month were Istanbul's sales. Gaziantep followed Istanbul with 172 million dollars and Bursa with 114 million dollars.

Textile Sector Exported to Italy the Most

In the textile and raw materials sector, Italy was the country with the highest export sales last month, with 106 million dollars. The USA followed Italy with 53 million dollars and Spain with 51 million dollars.

EU countries ranked first with 425 million dollars. African countries followed with 146 million dollars. Middle East countries came last with 73 million dollars. With Turkish textile's historical peaks, we can observe that the increase will continue. Especially Europe turned its eyes to Turkey's Textile sector. With the decreasing demand in China's market, Europe tries to find a new market. It seems they've already found it. Also, African and Middle Eastern countries want to trade with Turkey more than before.

Turkey exported to 167 countries and regions in March. The textile and raw materials sector received a 4.2% share of the country's total exports.

Turkey is Receiving Extra Supply Requests

Turkey is receiving extra supply requests, especially from the EU, the USA, and other geographies. Thus, Turkey's textile exports continued to show high performance in 2022. After 2021, despite the adverse conditions caused by the epidemic, success continued.

Importers turned their routes to Turkey for reserve security and diversification in textiles. The orders of customers who have textile production in Turkey are increasing day by day. Many brands who preferred Turkish textile production returned to the country for production. Furthermore, many new clients and companies are looking for Turkish textile supplies these days. If you are one of those importers, you can get in touch with Turkish Goods to get the best Turkish textiles.

Some foreign companies started to open new purchasing offices in Turkey. Those who already have offices here are expanding their existing structures. With the effect of the acceleration from 2021, the textile industry continued its growth trend. In particular, Turkey received extra supply requests from the EU, the USA, and other geographies. With the orders received in the first 3 months of the year, textile manufacturers broke the record of all time in exports. To double this, Turkey continues to work and negotiate abroad.

Supplies from Ukraine and Belarus will shift to Turkey

Turkey foresees that the Turkish textile industry will be positively affected by this process. Exports to the Russian market will likely increase gradually. Production/exports to brands withdrawn from the Russian market will be limited to a certain extent, and then rebalanced. There is a high probability that supplies from Belarus will also shift to Turkey.

With the increasing demand from both countries, Turkey will probably reach a new all-time high record. Not just both countries, but also the demand from the USA, EU, and other countries are on the rise. Turkey broke the historical record of the republic in exports to the European, American, Asian, and African Continents. Also, Turkey is the EU's largest supplier in the knitted fabric industry.

The European Union is an important export market for Turkey. While the European Union was experiencing economic difficulties, Turkey's exports to the EU continued to increase by more than 20%.

Turkish Exporters Assembly (TIM) shared data on Turkey's exports to Europe. Exports increased by 20.8 percent in January-March 2022 and reached 60 billion 287 million dollars. The first quarter was quite productive for exporters. Thus, many sectors made great gains during this period. Turkey's exports to EU countries increased by 21% in the first quarter of 2022 compared to the same period of 2021. Exports rose to $23 billion 780 million 323 thousand.

Rise in Automotive and Ready Wear Sectors

In the first quarter of 2022, the share of some sectors in exports to the EU countries came to the fore. These sectors were the automotive industry, ready-made clothing and apparel, chemicals, ferrous and non-ferrous metals, and steel. The share of these sectors in exports in the first quarter was 65%.

In this period, especially the automotive industry showed great success. Automotive industry exporters gained $4 billion 883 million 737 thousand from exports to the EU. Ready-to-wear exporters made an export of $3 billion 412 million 44 thousand.

Chairman of the Istanbul Ready-to-Wear Clothing and Apparel Exporters' Association (İHKİB), Mustafa Gültepe, evaluated textile exports. The chairman pointed out that exports to the EU had increased in the first quarter of this year.

“There is significant competition in the ready-made clothing industry around the world. In the past period, Turkey gained a significant advantage with the impact of the pandemic. Turkey's production capacity and power are also important factors in this. There were significant increases in exports to other countries, as well as to the EU. In value per kilogram, the EU is well above the general unit price. We expect this increase to continue throughout this year. Also, we expect the export value per kg to the EU to exceed 17 euros.”

Share of the EU Countries in Exports

The share of the EU countries in Turkey's exports was 39.44 percent in the first quarter. Moreover, Turkey made the most exports to Germany among the EU countries. Exports to this country reached a record level. 78 cities in Turkey exported to Germany. Thus, in the first quarter, exports to Germany increased by 16.13%. As a result, exporters earned $4 billion 888 million 408 thousand.

Unsurprisingly, Istanbul was the province that exported the most to Germany. The exports of companies located in Istanbul to Germany increased by 19% in this period. Thus, Istanbul’s exports to Germany leaped to $2 billion 202 million 240 thousand.

European Green Deal, Supply Chain, and Innovation

The EU is the biggest market for exporters this year. İsmail Gülle stated that they had started exporting to the EU quickly in 2022. "Turkey has many advantages in this regard. Product and sector diversity in industrial production, advanced sub-industry, flexible and fast production structure make the country stand out. Moreover, standards compliance with the EU, logistics services, high port, and transportation capacity, and advanced export financing make Turkey advantageous.

Furthermore, Turkey is a stable and reliable trade partner for the EU in the economic field. According to Gülle, the Green Deal, supply chain creation, and innovation will be the most significant topics in trade for the EU. “Innovativeness and innovation are essential for stability and prosperity. The EU will proceed through this formula. We must follow the same path. When we put these into action, I hope our exports to our biggest market, the EU, will increase even more.”

"This is a program we have implemented for the first time in Turkey. We started the first of the programs with our Marmara Region, which makes the largest contribution to our exports. We will implement our training program in the other 6 regions. Thus, we will contribute to the development of the sustainability ecosystem in exports. Moreover, we are carrying out studies within the scope of the TIM Sustainability Action Plan. In this context, we held a Green Transformation Oriented Access to Finance Meeting.”

The action plan has 12 main objectives. Among them, there are targets such as zero waste in exports, circularity, and advanced gain in the industry.

Historical Step with 1915 Çanakkale Bridge

İsmail Gülle reminded that their 2022 target was to reach 250 billion dollars of exports. Turkish exporters offer what is needed when global supply chains are disrupted. Chairman noted that Turkey stood out as a security blanket in global trade. With these features, Turkey promises lucrative commercial partnerships with the EU countries.

Gülle noted that the 1915 Çanakkale Bridge, which had opened last month, was a historic step. Bringing the exports of the Aegean and the Mediterranean regions to Europe is an important development. "With the 1915 March Çanakkale Bridge, our logistics competence will increase more. We will gain a significant advantage in exports to Europe.”

Turkey broke a record in exports in 17 months of 19 months.

Turkey continues to grow economically. The biggest impact on this growth is, of course, exports. Looking back from 2022, there is a long-lasting record streak. Many countries fell behind in both export and import valuation during the pandemic. This situation followed a different path in Turkey. Import rates from Turkey increased both in terms of hygiene and resource adequacy.

In the period from the post-September 2020 period, which is described as post-pandemic, to March 2022, the increase in exports is quite high. According to the newly announced data, the export record in 17 months of the 19-month period stands out.

In March 2022, exports amounted to 22.7 billion dollars with an increase of 19.8% compared to the previous year. In addition, in the first quarter of 2022, exports increased by 20.8% compared to last year and reached 60.3 billion dollars. Both on a monthly basis and in the first quarter evaluation, these rates are the best export records in the History of the Republic.

According to the data from the Ministry of Trade and the Turkish Exporters Assembly, the period from September 2020 to March 2022 was productive. It is a great success to reach the high data of 17 months in 19 months. Although it is normal to increase exports on a monthly basis, maintaining that success for 17 months is a great success. It was also noteworthy that 12-month exports reached 235.6 billion dollars.

The Special Power of the Economy: Export

The fluctuations in export values in the pandemic shook the whole world. In addition to this process, the war between Russia and Ukraine also caused discussions on export and import routes. Among all these negativities, Turkey undertook a great task in becoming a supply base. Turkey, which is described as a supply base, has gained great momentum in exports. Moreover, the progress of the industrial sector has a great impact on this export rate. While a record was broken in exports every month, this situation also affected the industry.

According to the data of the Turkish Statistical Institute, there was an increase of 4.4 percent on a monthly basis in the industry in February. In addition to this rate, it increased by 13.3% annually. The industrial sector, which has become the locomotive of export in a way, also provided an opportunity for economic development. Turkey ranked first among the G20 countries in terms of the monthly increase in industrial production in February. Ranking second in the annual framework, Turkey also increased expectations.

Export in the Industry Sector

In January-March 2022, the industrial sector increased its exports by 21.8 percent compared to the same period of the previous year. It reached 45 billion 247 million dollars. It was the highest first-quarter report in the history of the Republic. The share of the sector in Turkey's exports was 75.1%. The increase in the importance given to the industrial sector day by day indicates that the share in exports will increase. The exports of 12 out of 16 sectors within the industry broke a record in the first quarter. The highest demand for sub-sectors within the industry came from European countries.

Air Conditioning Industry Gained Great Acceleration

Although the industrial sector is generally in a rising atmosphere, the increase observed in the air conditioning industry has left its mark. In the first quarter of this year, the air conditioning industry made an export of 1 billion 613 million dollars. It increased by 16 percent compared to the same period of 2021. Thus, the all-time high first-quarter exports have been reached. The increasing supply and demand balance in this area seems to have a major impact on the industrial sector. Therefore, it will also affect the record increases in exports.

In the first quarter of this year, the air-conditioning industry exported the most to Germany, with 174 million dollars. Italy ranked second with $115 million, while the United Kingdom ranked third with $103 million.

In the general evaluation of exports, a record was broken in exports to 33 countries, including the USA, Israel, and Germany. The unit export value increased by 13 percent compared to the same period of the previous year and rose to $1.45. Many industrial branches, especially the air conditioning industry, received full marks in exports.

Support Will Increase within the Scope of the Strategic Transformation Program

Export Credit Bank of Turkey, which plays a major role in Turkey's export-oriented growth, touched upon the diversity of funds. It follows the rise in exports and developments around the world closely. The bank is also preparing for innovations within the scope of its Strategic Transformation program. Developments will be announced with the support of the Ministry of Trade in order to increase accessibility in the export sector and facilitate financial issues.

As a result, Turkey's export progress on a monthly basis will continue to be supported in terms of both manufacturers and supply chains. As the expectations are high, the works continue at full speed.

The Turkish Exporters Assembly (TİM) evaluated Turkey's export performance, which has gained momentum in recent years.

TİM President İsmail Gülle stated that in terms of Turkey's exports, 2021 would be a year they would never forget in their lives.

For 14 years, Turkey struggled to increase its exports to over 200 billion dollars in order to reach double figures. The moment they got close, the economic crisis broke out in America. After recovering from the crisis, the Far East crisis broke out. Despite many problems, as of last July, for the first time in its history, Turkey exceeded 200 billion dollars in exports in a 12-month period. In September, the country achieved an export of 212.2 billion dollars in the last 12 months and exceeded its annual export target of 211 billion dollars. Again in September, for the first time, Turkish exporters exceeded 20 billion dollars of exports on a monthly basis. Finally, the country reached its target of $225 billion for 2021.

Turkish Exporters Broke a Monthly Export Record in 16 of the Last 18 Months

Turkey broke the monthly export record in 16 of the last 18 months with the intensive efforts of exporters and government support. In 2021, Turkey reached the highest export figures in the history of the Republic in 25 of 27 sectors. It broke records in employment, production, and growth. Despite many negative news and indicators in the world, the export family has become the pride of the country. The Turkish export family has managed to deliver good news to the country at the end of each month by continuing to produce and export at all times. And the exports went far beyond the target Turkey set at the beginning of last year and realized 225 billion dollars of exports.

"We all have big orders, we are preparing to do big jobs"

TİM Chairman İsmail Gülle, who said that the expectation of financing was always in the first place before, stated that the need for personnel and workers was the top priority.

Gülle said, “This is because we all have large orders in our hands. We are getting ready to do big things. We are moving to economies of scale. As in previous years, we are returning to larger-scale works instead of the logic of whether it is small and safe businesses. Because things like this happen to us now. We get big business. We miss out on jobs we can't get. That's why we see mergers and big investments in the sector. We are also proud of that.”

Turkey Is Expecting Historical Records in the Coming Months Too

Gülle added, “All of our industries are vibrant and active. Of course, there will be complications. 

If you work, it's natural to have problems. As an export family, we choose to work through these issues. Because working and battling are fairly straightforward ways to overcome these problems. It is our responsibility to solve these issues and look forward with confidence. This is something I believe in. Our exporters give me this impression.

We see that we are going much higher on this road that we set as a 2 billion difference every month. We hope that we will see that we are running to a historical record in foreign trade figures in the following months.”

2022 Exports Are Expected to Go Above and Beyond the Set Target

The Turkish government has set a target of 250 billion dollars in exports for 2022, and the country is on track to meet that goal this year. But TİM President Gülle said, “2022 exports will exceed 250 billion dollars” and talked about raising the target to 300 billion dollars.

"The export family is our greatest asset. Our exporters are the ones who bring us to our goals, set export targets of hundreds of billions of dollars, achieve them and raise our country to the level of a prosperous society. We have underground wealth and surface wealth. But it is our entrepreneurs and businesses that put their souls into what they do that are our most essential and precious assets. This is our most important asset.

We are achieving our goals with technology, know-how, investment, growth, production, and employment. It will be a very important and meaningful year for us. I hope we will pay our debt to this republic and those who sacrificed their blood and lives while founding the republic, by realizing the 300 billion dollar target, in a way that will benefit their children and generations. And we all do this as an export family. We are proud of our exporters."

Istanbul Chamber of Industry (ICI) measured the operating conditions of the Turkish manufacturing sector in the main export markets. Turkish Manufacturing Industry Export Climate Index was 53.9 in March. It showed that the improvement in the export climate of manufacturers continues.

Some of the main export markets loosened the COVID-19 measures. Accordingly, the improvement in the export climate of Turkish manufacturers continued at the end of the first quarter. In March, disruptions caused by the Covid-19 outbreak were relatively reduced. As a result, production growth accelerated in some main export markets. 

Growth rates hit an eight-month high in the US and a nine-month high in the UK. In France, the increase in production accelerated. However, the conflict in Ukraine affected production. There was a loss of momentum in the production increase of Germany, Italy, Spain, and the Netherlands. In Russia, where production fell sharply, the three-month growth period came to an end. The growth rate of non-oil economic activity in the UAE remained strong. On the other hand, the most significant slowdown among the countries happened in Hong Kong.

ICI Turkey Climate Index

The Turkish Manufacturing Sector Export Climate Index uses national PMI surveys for calculations. PMI makes calculations by bringing together and weighting production indices. The weights are created using statistics on the share of export markets in Turkish manufacturing exports. This index is a preliminary indicator. Thanks to the index, the development and potential of Turkey's main export markets can be monitored. It also contains tips on which markets to focus on.

Istanbul Chamber of Industry and IHS Markit are working on this index. Their aim is to evaluate the global environment surrounding the Turkish industry. The index draws on data from surveys regularly conducted in more than 40 countries by IHS Markit. Istanbul Chamber of Industry (ICI) measures the operating conditions of the Turkish manufacturing sector in the main export markets. announced the results of the Turkish Manufacturing Industry Export Climate Index for the period of March 2022. 

All figures measured above the threshold value of 50.0 in the index point to an improvement in the export climate. On the other hand, values ​​below 50 indicate deterioration. The index showed that the improvement in the export climate of manufacturers continues. Thus, export demand strengthened for the fourteenth month in a row.

Improvement Continues

Turkish Manufacturing Industry Export Climate Index became 53.9 in March. This showed that the improvement in the export climate of the manufacturers continued. Thus, export demand strengthened for fourteen months in a row. However, the decrease in the index, which was 55.2 in February, indicated that the improvement was more limited.

The index continued its recovery, which started after 19.1 in April 2020, the lowest level in data history. In July 2020, it exceeded the threshold of 50 for the first time. After that, it continued to stay above the threshold value.

Growth in the Middle East 

Last December, some Middle Eastern countries gave their growth signals. The UAE had the highest increase in nearly two and a half years. But, unlike March, December was more difficult for other countries. Economic activity in Egypt and Lebanon continued to shrink. However, March brought more positive developments. The growth rate of non-oil economic activity in the United Arab Emirates remained strong in March. Besides, it did not show a significant change compared to February. 

The data pointed out that the growth in Qatar has also gained momentum. In the Middle East, the ongoing decrease in production in Egypt reached the highest rate in the last 21 months. The most significant slowdown among the countries tracked in March was Hong Kong. The restrictions imposed due to the severe Covid-19 wave in this country led to widespread production losses. A similar situation occurred in China, albeit at a lower intensity. Production in this country recorded the sharpest decrease in more than two years.

Andrew Harker, Global Economy Director at S&P, commented on the index:

“Export demand conditions remained resilient at the end of the first quarter. But, the wide-ranging effects of the war in Ukraine, such as loss of confidence in the business world, price increases, and supply chain disruptions, have the potential to limit manufacturers' export opportunities in the second quarter of the year.”

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