Published On: Sat, Jan 13th, 2018

A brief note about poultry and ruminant markets in Turkey in 2017




A brief note about poultry and ruminant markets in Turkey in 2017

Turkish Poultry Sector faced challenges in 2017 – BusinessTurkeyToday.com

Despite the record breaking growth in economy in 2017 it is difficult to say the poultry and ruminant sectors had a fruitful last year with promising prospects for the future. This was mainly due to the challenges Turkey had to face in different walks of life to include political developments in the region as well.

If we should take a general look at the Turkish market we can see the following;

Poultry and ruminant companies had to cope with tough competition in the market as well as the fluctuation in the foreign currencies and devaluation of Turkish Lira. The prices in red meat supply sky rocketed in 2017 with a negative impact on consumer demand.



The situation was not very different for poultry sector either and profit margins kept dropping day by day whereas it was not possible to reflect cost increases originating from fluctuation in currency rates to sales prices on one-on-one basis.

Producers preferred to bypass products which were easiest for them to quit, cutting down on their additional costs originating from sudden/fast fluctuation of value of Turkish lira against foreign currencies. In particular, Broiler integrated companies preferred to use low quality domestic products in areas such as terminal disinfection etc.

On the other hand, the majority of the poultry and ruminant exports from Turkey are realized to Middle East countries. The instability and turmoil in such countries (closing of border gates etc.) painted a fragile picture for export opportunities, causing a surplus of supply in domestic market and causing companies to face cash flow (shortage) problems.

As a result of major challenges in the sector some large integrated production companies (broiler) were sold to global firms (such as BRF of Brazil and Nippon of Japan) or management of some companies is taken over by Banks or government.

To recap 2017 was not a very enjoyable year for said sectors and 2018 has not arrived with very promising prospects either.

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