Turkish feed industry sags amid tough times
February 01, 2002
by Chrystal Shannon
Currency devaluation and resulting difficult economic conditions are taking their toll on Turkey’s feed and poultry industry, according to a recent report from the U.S. agricultural attache’s office in Ankara. Feed production in 2001 is thought to have dropped 25% from the previous year, and two of the 10 largest poultry processors have closed.
The problems first started in November 2000 but worsened last February when the Turkish lira began a steep devaluation.
Turkey’s poultry sector experienced rapid, continuous growth during the last two decades, the report said. Many processors expanded or modernized their plants in an effort to meet rising demand and expand their market share. Most of these companies are heavily in debt, the report said, and have relied on foreign currency credits to purchase feed ingredients since most feed ingredients, including soybeans, soybean meal, maize, minerals and feed additives, are imported. The cost of feed is estimated at about 80% of the cost of a broiler.
According to the report, total feed production in Turkey decreased significantly in 2001. Total feed production, including registered and non-registered, was estimated to be about 9 million tonnes in 2000. Feed production estimates in 2001 are not yet available, but output is projected to have declined by 25%, which would put feed production at about 6.75 million tonnes.