Wheat export and import companies were completely disbanded after the war with Russia and Ukraine. Only Russian or Ukrainian origin wheat is used in Europe, Africa and the Middle East. Wheat, which has various uses, is generally preferred to make white flour. More than 30 percent of the world wheat and corn supply was met from Ukraine and Russia. Wheat exports have come to a complete standstill, as the Black Sea is not safe because of the mines and Ukraine is still at war. The future of Europe, which is experiencing both energy and grain crises, is in Turkey’s hands.
Turkey is on the line for Ukrainian wheat exporters!
Some time after the pandemic started in Turkey, grain exports were subject to permission. Wheat imports in Turkey have almost completely stopped. Domestic wheat, on the other hand, does not meet Turkey’s demand. Companies that import wheat cannot import due to the Russia-Ukraine war. President of Turkey, Recep Tayyip Erdogan, is making diplomatic traffic in order to export about 30 million tons of wheat in Ukraine. If the grain in Ukraine can be exported after the agreement with Putin, the grain crisis will end not only in Turkey but also all over the world.
Wheat exports and imports will gain speed
The number of companies exporting wheat does not exceed one finger today. Some prerequisites are now required by the sellers for wheat buyers. It used to be possible to buy and sell, but now you need to have a license to buy wheat in bulk. Entrepreneurs need to work with licensed companies in order to export wheat. Wheat export prices had already increased by 9% due to the pandemic. We will see together what the net price of Ukrainian and Russian wheat will be due to the war. After July 18, 2022, Turkey’s efforts to purchase Russian and Ukrainian wheat will gain momentum.
Turkey’s wheat export success
According to the statement made by the United Nations Food and Agriculture Organization (FAO), the world’s wheat production was 777 million tons in 2021 despite the pandemic. The export of Turkey, which is among the wheat exporting countries, was indexed to imports. Due to the wheat export ban set by the government in Turkey, which cannot export without importing, prices have increased on a global basis. After India’s ban on wheat exports, all eyes were on Ukraine and Russia. If Turkey’s diplomatic talks are positive, Turkey’s wheat export will increase its success. Wheat export, which is close to 10 million tons per year, may exceed 10 million in the last quarter of 2022.
Wheat Producers Disappear
Due to the exchange rate and oil prices, agriculture and animal husbandry in Turkey have come to a standstill in recent years. The number of farmers producing wheat in Turkey started to decrease. According to TUIK data, wheat production was 22 million tons in 2015; It was announced as 20 million 500 thousand tons in 2020 and 17 million 650 thousand tons in 2021. Considering planting, maintenance, harvesting, storage and other costs, farmers stopped production altogether. Wheat production in Turkey is expected to be below 15 million tons in 2022. In order to export wheat, it is necessary to import fertilizers first. With the prices of urea fertilizer and transportation costs, the farmer’s lands remained empty.
Unable to plant for wholesale wheat export
Farmers in Turkey no longer plant wheat. In addition to being difficult to maintain, water resources must be continuous in order to grow wheat. Wheat is no longer cultivated on approximately 2.5 million hectares of land. Farmers no longer want to plant wheat because even the costs cannot be covered. Nation states announced that they will give more support to farmers who plant wheat. Wholesale wheat purchase prices increased in Turkey as well. Turkey was also supplying the fertilizers necessary for wheat production from Russia at a very affordable price. Since the price of Russian fertilizers has almost quadrupled, Turkey can wait until 2023 to export wheat.Turkey attack for 30 million tons of wheat export
While the total wheat import of Turkey in the last 20 years was 68.9 million tons, the export was 76.8 million tons. Turkey stepped in for the wholesale of Ukrainian and Russian wheat. If diplomacy is positive, the world’s grain crisis will be resolved thanks to Turkey. Wheat, which has not been brought to Turkey in the last 20 years, will come. Turkey will be the central point for the distribution of approximately 30 million tons of wheat.
If you want to export or import wheat, you can contact GloballyPort.com. Our efforts to wholesale wheat are continuing rapidly.
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