Forecast Indicates Increase in Turkish Oilseeds Output

In a recent report unveiled by the Foreign Agricultural Service (FAS) of the US Department of Agriculture, a promising outlook awaits Turkish oilseeds production for the marketing year 2024-25. This projection suggests a noteworthy increase compared to the previous year, driven by anticipated larger harvests of key crops such as soybean, sunflowerseed, and cottonseed, bolstered by favorable growing conditions.

The report, compiled from data sourced from the Global Agricultural Information Network, paints a positive picture for Turkey's oilseeds sector, with a projected 12% rise in total production. This surge is estimated to reach an impressive 3.1 million tonnes, indicating a substantial expansion in output. Such optimistic projections are underpinned by several factors contributing to the upward trajectory, including robust domestic demand for oilseeds and their derivatives, consistent governmental support to farmers, and an assumption of favorable weather conditions throughout the crop year.

In line with its commitment to bolster agricultural productivity, the Turkish government continues to implement measures aimed at incentivizing oilseed production. Among these initiatives are various payments extended to farmers, including a production premium linked to output quantity and a separate area-based payment structured to offset the escalating costs of fuel and fertilizer inputs. Such support mechanisms play a pivotal role in encouraging farmers to enhance their cultivation practices and contribute to the overall growth of the sector.

A significant highlight of the report revolves around the anticipated surge in sunflowerseed production, expected to spike by 8% to reach approximately 1.675 million tonnes. This surge is in direct response to escalating consumption demands, with anticipated levels set to rise to 2.4 million tonnes, reflecting an increment of 300,000 tonnes compared to the preceding year. Moreover, imports are forecasted to witness a notable increase of 175,000 tonnes, reaching a cumulative total of 775,000 tonnes. Such projections underscore the pivotal role of sunflowerseed in meeting the evolving demands of the domestic market.

While soybean output is projected to experience a slight uptick, with an estimated increase of 10,000 tonnes reaching a record high of 150,000 tonnes, Turkey's reliance on soybean imports remains substantial. This is primarily due to the country's consumption demands, forecasted to escalate to 3.2 million tonnes during the 2024-25 period. Despite efforts to bolster domestic production, Turkey continues to depend on imports to bridge the demand-supply gap and ensure a steady supply of soybean-based products to meet consumer needs.

The recent surge in sunflower oil imports is expected to persist into the forthcoming marketing year, as indicated by the FAS report. Notably, a significant portion of these imported oils is anticipated to undergo refining processes before being re-exported to neighboring markets. This highlights Turkey's role as a key player in the regional oilseeds trade, leveraging its refining capabilities to add value to imported commodities and cater to the diverse needs of neighboring markets.