Turkey's Monthly Cereal Exports Exceed 1 Billion Dollars

The Covid-19 pandemic has caused nation-states to experience events they have never faced before. These events had unforeseen negative consequences on the global trade network and financial markets. After the Covid-19 pandemic eased, the war between Russia and Ukraine shook the international agenda once again. The area most affected by these two consecutive events is undoubtedly the food sector. Today, the biggest cause of problems in the global supply chain is the pandemic and war.

Cereal, which constitutes the staple food of humanity, has been the sector that has suffered the most from these adverse developments. In this period of the food crisis, Turkey has achieved significant success in cereal production and exports. In this way, Turkey has become a country that is both self-sufficient and meets the cereal needs of other countries. Turkey increased its cereal exports by 16.5% in October 2022 compared to the same month last year. Cereal exports from Turkey exceeded one billion dollars in October. Turkey has obtained 1 billion 45 million dollars of foreign exchange from this export.

Significant Developments in Turkey's Cereal Exports

The cereal sector is one of the most essential items of Turkey's exports. As one of the leading countries in world production and exports in this sector, Turkey increases its exports every year. Istanbul Cereal, Pulses, Oil Seeds and Products Exporters' Association published the latest data on Turkey's cereals exports. 

According to these data, Turkey's cereal exports increased by 16.5% in October 2022 compared to last year. Turkey exported 1 billion 45 million dollars worth of cereals this month, generating significant revenues. In addition, Turkey increased its exports in the cereals sector by 27.8% in January-October 2022 compared to the same period last year. During these ten months, Turkey exported $261.8 million in cereals to different parts of the world. 

Turkey's Top Cereals Export Countries

Iraq, the USA, and Syria were the countries that imported the most grains from Turkey in October 2022. Besides, the top export countries of Istanbul Cereals, Pulses, Oil Seeds, and Products Exporters' Association in October were the USA, Iraq, and Algeria, respectively. 

Kazım Taycı, Chairman of the Board of Directors of İHBİR, made statements about Turkey's grain exports. Taycı stated that there are fairs to be organized in Israel, Dubai, and Germany in the coming period. Taycı emphasized the importance of these fairs for Turkey's grain exports and added that the work for the fairs continues uninterruptedly.

Sugar and Sugar Products Top the List

The cereals sector has a wide range of commodity groups. Among cereals commodities, the product group that İHBİR exported the most was sugar and sugar products. In October 2022, İHBİR exported $62.7 million worth of sugar and sugar products to different countries around the world. Food preparations came second with exports worth 52.07 million dollars. Finally, 48.8 million dollars worth of goods were exported in pastry products. 

When the data are analyzed across Turkey, pastry products were in the first place. Turkey exported 246.9 million dollars worth of pastry products. Vegetable oils were in second place on the list with 205.8 million dollars. Finally, Turkey exported milling products worth $174.15. 

Turkey's Target is 13 Billion Dollars

According to the statements of Taycı, Turkey has reached outstanding levels in the grain sector in terms of exports, nationwide diversity, and numerical growth. In this way, Turkey aims to end the 2022 agricultural season with a cereal export of 13 billion dollars. Taycı emphasized that this goal can be easily achieved and that Turkey is a powerful actor in the cereal industry's exports.

Strategic Importance of Grain Corridor and Turkey's Position

In the previous days, Russia's decision to withdraw from the Grain Corridor caused an increase in wheat prices by about 7.5%. However, Russia's return to the Grain Corridor and Ukraine's making some commitments helped to ease the tension. President Taycı made the following statements on the subject: “It is pleasing that the Grain Corridor has become functional again with the initiatives of President Erdoğan and our diplomats. We are pleased to ensure the continuity of grain export. Also, it is extremely important and pleasing that the prices, which have risen immediately due to the cessation of the Grain Corridor for a certain period, are restored. In the absence of a possible crisis, grain prices are predicted to be at normal levels.”

Strategic Role of Turkey

Taycı compiled the current developments in the grain sector and his predictions as follows: "There will not be any major problems with supply in the grain sector in the next one-year period. The main reasons for the record prices in the cereals sector were the pandemic, drought, change in supply chains, and logistics costs. However, it is observed that these problems have been overcome to a significant extent today. In this way, there is a gradual normalization in the prices of grain industry products."

Turkey is one of the significant countries enabling the Grain Corridor to run smoothly. In this way, Turkey supports the functioning of supply chains, production, and exports in the grain sector.