Turkey’s wheat imports from Ukraine hit record

Turkey’s wheat imports from Ukraine last year rose to a record high, as high export taxes imposed on Russian wheat shipments and macroeconomic woes pushed the country to seek alternatives.

Receipts of Ukrainian soft wheat by Turkey totalled 1.41mn t in 2021, up from 1.05mn t a year earlier and 1.06mn t in 2019, Turkish statistical institute Tuik data show. This was despite the country’s overall wheat imports falling to 7.82mn t from 8.58mn t a year earlier.

Ukraine remained the second-largest wheat supplier to Turkey after Russia, but the spread between volumes from both origins fell to a new low, with Russian wheat imports hitting a three-year low of 5.63mn t (see chart).

In contrast, arrivals from Ukraine have been robust since the start of the 2021-22 marketing year last July to hit 1.24mn t in July-December, up from just 568,000t a year earlier. Russian wheat imports fell to 3.17mn t at the same time from 3.87mn t in July-December 2020.

Turkey has stepped up imports from Ukraine as the Russian government’s tax on wheat exports has weighed on the origin’s competitiveness with other producers. This coincided with a bumper wheat harvest in Ukraine this marketing season, which has boosted the country’s exports of crop to all destinations.

Turkey’s wheat imports have also shifted patterns as the lira plunged to record lows against international currencies. The weaker lira has made the buyer more price-sensitive, despite its historic preference for Russian origin 12.5pc protein content wheat. In November, Turkey was heard to purchase Argentinian wheat — a first since at least the 2011-12 marketing year.

Turkey also turned to alternative origins in the Black Sea region, with imports from Moldova reaching a record 428,000t in July-December last year — 446,000t for the whole calendar year — from 0t at the same time in 2020.

Turkey this marketing season is expected to import 11mn t of wheat under US Department of Agriculture estimates, up from 8.08mn t a year earlier, as drought conditions last year weighed on its domestic output of crop.

Tags: Ukraine, Russia, Turkey, wheat