Turkish Pulses Sector has faced many difficulties in 2008

• Decline of seeded area

• Reduction in production and export

• Sharp increase in red lentil imports

• Soaring domestic prices for all lentils especially red lentils

• Instability in domestic markets

Decrease of seeded area is continuing

Seeded Area(ha)

Chickpeas Dry Beans Red Lentils Green Lentils

2002-2003 660.000 180.000 420.000 72.000

2006-2007 524.367 129.050 378.707 45.462

2007-2008 503.674 109.250 357.233 26.803

Source: Turkish Statistics Institution

Pulse Production – In Decline

• Green Lentil production has almost disappeared.

• Drop in dry beans seeded area is accelerating to alarming levels.

• Chickpea and red lentil seeded area is steadily decreasing

Fall in Pulse Production

Pulse Production Quantities(Tons)

Chickpeas Dry Beans Red Lentils Green Lentils

2002-2003 650.000 250.000 500.000 65.000

2006-2007 552.000 196.000 580.000 42.000

2007-2008 535.000 156.000 110.000 26.000

Source: Turkish Statistics Institution

Reduction in Pulse Production

• Declining trend in pulse production continued in 2008.

• Red lentil production declined by 78 percent due to drought in main production regions. Shocking blow to the industry.

Last Year’s Drought Map of Turkey

Reasons for decreases in pulse production in last years

• Govermental support favouring production of feed crops and forages at the expense of pulses crops

• 2008 Drought in red lentil production regions

GOOD NEWS - 2009

• Goverment has noticed the dangers

• Cooperation between governmental and sectoral institutions is increasing

• Pulses crops included in the new govermental support programs

• Level of domestic price for pulses is encouraging production

• Rainfall level is ideal for production

This Year’s Rainfall Map of Turkey

Government Support for pulse crops

Type of support Level of support

Usage of certified seed 5,4 TL / Da

Production of certified seed 0,45 TL / Kg

Fuel oil 2,9 TL / Da

Agro-Chemicals 3,8 TL / Da

Price Support 90 TL / 1000 Kg

Increase in Domestic PricesWholesale Prices

TL/KG

 

Red Lentils (0+0)

Chickpeas(8 mm)

Dry Beans (Sıra)

April 2007 0.81 1.27 1.38

April 2008 1.63 1.28 2.00

March 2009 2.15 1.20 1.80

Overall inflation rate : 8.11 %

Decrease in Exports

Pulses Exports (Tons)

Chickpeas Dry Beans Red Lentils

2003 190.488 42.281 213.438

2007 69.695 2.295 182.710

2008 88.157 3.558 76.086

Source: Exporters Union

Fall in ExportsBecause of

• Drop in production quantities

• High domestic prices

• Low quality

• Emergence of global production in other origins i.e. Canada and USA

Exports are declining

Increasing Trend in ImportsDue to • Supply deficit and high domestic prices• İncreasing demand from nearby markets to use

Turkey as Gateway i.e. Iraq and Iran

İmports have upward trend• In 2008, about 25.000 tons dry beans and

20.000 tons green lentis are imported. • First time in its history, Turkey imported 165 000

tons red lentils from Aug 2008 to Feb 2009

We hope that 2009 will be a recovery year for red lentil production.

In 2009,

chickpea production is expected to remain stable

National Pulses Council• National Pulses Council is establishing.

• Producers,traders,processors,exporters and R&D institutions will come together and try to find solutions for problems of the sector.

• Slow start but this initiative has great promise.

First Pulses Spot Market

Turkey’s first and unique pulses spot market complex is opening in this summer at the Mersin Commodity Exchange. Building infrastructure is complete.

CICILS 2009

Wish all of you good luck and profitable business in 2009

Huseyin Arslan

arbel@arbel.com.tr