POULTRY SECTOR SUMMARY REPORT

2006  

1. CURRENT SITUATION

Poultry sector has reached to a production level of 1.032.000 tons while it was 752 thousand tons in year 2000 and 217 thousand tons in year 1990. In 2006, 946 thousand tons of chicken meat, 46 thousand tons of turkey meat, 40 thousand tons of spent hens and other poultry meat has been produced. The production amount of poultry meat has exceeded the red meat production amount and poultry meat sector becomes the primary protein resource of the country. Chicken meat and turkey meat production is the most effective solution so as to close the animal protein gap. Poultry meat has a strategic importance for our public to eat a balanced diet.

1.1. Chicken meat production

Regarding the production size in year 2004, Turkey is at the 14 th place among all other countries in the world with a production amount of 943 thousand tons of chicken meat.

The increase in chicken meat production has contributed to close the animal protein gap due to the continuous decrease in the red meat production. In 1990, the chicken meat consumption amount per capita was 3.8 kg while it has increased up to 14 kg per capita in 2005 and still stays at the same level, currently. However, the chicken meat consumption amount per capita in EU is over 26 kg.

1.2. Economic contribution and employment

In the sector, there are approximately 12.650 broiler and 2.800 egg poultry houses. Over 500 thousand people (including producers, farmers, mercantile related with the sector, feed, medicine, related industry, transportation and marketing) are employed in the sector and around 2 million people (assuming that those 500 thousand people have families of 4 people) are making a living from this sector. Annual turnover of the sector is around 3 billion USD.

1.3. Capacity utilization

The poultry meat production capacity of Turkey (with double shift) is 4.000 tons per day and 1.250.000 tons annually.

The capacity utilization rate at the slaughter houses and breeding poultry houses is approximately %80.

1.4. Production quality at the poultry meat

The technological level in poultry meat production has reached to the EU standards. In September 2003 the technical mission from EU has realized an inspection at six slaughter houses in Turkey and gave a report of approval regarding the compatible standards. In this report, it has been clearly indicated that Turkey could be admitted to the list of third countries authorized to import chicken meat to EU.

In January 2005, another technical mission has come to Turkey and has inspected the application of “Residue Monitoring Plan” in our country submitted by the Ministry of Agriculture and Rural Affairs to EU. Inspections have been performed at the laboratories and holdings and in order to determine any veterinary medicine, hormone and heavy metal residue and the compatibility of the current applications of the Ministry and “Residue Monitoring Plan” submitted to EU has been studied. The EU mission has admired the Ministry for the progress it has achieved at the “Residue Monitoring Plan” applications. The inspection mission has indicated their positive view at the final report that they had issued in April 2005 by saying “ A framework for residue controls generally in line with EU requirements is now in place .”

Regarding to the authority’s comment of EU Commission SANCO (General Directorate of Health and Consumer Protection) it has been indicated that; “the amendment in the list of third countries whose residue monitoring plans has been accepted was in the agenda of the meeting dated 24 January 2006 of the Food Chain and Animal Health Standing Committee consisting of Member State representatives and regarding the “milk and milk products” and “poultry meat and products” it has been appropriate that “Turkey could be admitted to the list of third countries whose residue monitoring plans had been accepted” The decision has enter into force after being published at the official gazette of EU. However, the exportation has stopped due to the Avian Influenza cases occurred in October 2005 and after this date in Turkey and it created a standup position for Turkey before realizing any improvement by being taken into the list.

After The Ministry of Agriculture and Rural Affairs had made an application for the imports of poultry meat subject to heat treatment to EU, another EU inspection mission came to our country in the second half of April 2007. The FVO mission performed inspections in 10 days and inspected the further process departments of 8 slaughter houses and the laboratory registrations and the measures taken related with the Avian Influenza cases happened-occurred in our country. The efficiency of the inspections of Agriculture Organization over the poultry slaughter houses and the functions of laboratories for food control and disease determination have been considered. In the report which has been issued by the mission, it has been indicated that the inspected subjects are in accordance with EU norms in general and Ministry guarantee could be sufficient to overcome some deficiencies which had been detected.

After the final report of FVO mission submitted to SANCO, the necessary decision will be taken to complete the procedure so that the list of the Turkish companies from which the related products could be imported and the health certificate information to which will be entitled could be published at the official gazette of EU.

1.5 Situation of the Foreign Trade

Although we are at the 14 th place in the world, we could say that we are at a position to consume almost all the products that we are producing and must not produce more.

CHICKEN MEAT - OFFAL MEAT AND PAW EXPORTS (TONS)

 

EXPORT ITEMS OF POULTRY MEAT AND OFFALS  

YEARS

Chicken Meat and Offal (tons)

Turkey Meat and Offal (tons)

Other Poultry Meat and Offal (tons)

Total Poultry

Meat and Offal

(tons)

Chicken Paw

(tons)

1997

4.699

2

10

11.012

6.301

1998

5.463

14

4

12.481

7.000

1999

2.409

0,3

0

9.886

7.477

2000

1.817

33

5

10.527

8.672

2001

12.342

285

0

24.417

11.790

2002

6.252

695

0

19.642

12.695

2003

8.547

805

0

25.170

15.818

2004

11.096

615

0

29.050

17.339

2005

27.278

1.929

0

44.974

15.767

2006

17.508

319

6

38.130

20.297

Source : Undersecretary of Foreign Trade

The poultry meat exports of our country which has continued for 9 months due to the Avian Influenza occurred in October 2005 and the exports has reached to an amount of 45 thousand tons with an increase of %55 compared with the previous year. In 2005 27.278 tons of chicken meat, 1.929 tons of turkey meat and 15.767 tons of chicken paw were exported.

In 2006 again due to the prohibitions related with the Avian Influenza, exportation has continued for 7 months and 17.500 tons of chicken meat and 20 thousand tons of chicken paws were exported. The total amount of exports in 2006 has reached to 38 thousand tons.

There is no considerable amount of poultry meat imports.

2- PROBLEMS OF THE SECTOR AND THE SOLUTION PROPOSALS

2.1 High costs of raw materials

The 70% of our total cost is due to feed and 55% of the feed consists of corn. In the domestic market one kg of corn costs 0.40 YTL (285 USD/ton) while at the international market one ton of corn costs 160 USD. The custom tariff rate applied for the imports of corn is %130

95% of the soybean and soy pulp have been imported. These feed are used in the poultry feed at a rate of 30%. At the date of 11.03.2006, 10% customs tax has been levied on soybean which was zero before and the customs tax of soybean pulp has been increased from %8 to %13.

The most important reason of our high costs is that the domestic market prices of corn and soy bean which are the raw materials of feed are much higher than the prices at the foreign markets. It is possible to solve this problem by applying a refunding policy so as to balance the domestic market prices and the prices of the foreign markets.

2.2 Insufficient Export Refund

The biggest obstacle in front of the exports is the exports refunds amount which is net USD 26/ton. USA and EU give a refund of USD 600/ton and Euro 430/ton, consequently for chicken meat exports. At this aspect it is not possible for Turkey to compete with the countries who are applying such very high subsidies. Although Turkey is located just in the middle of the market of Middle East and Russian Federation to where the 1/3 of the poultry meat trade is realized, we could not use this advantage due to the high costs and insufficient exports subsidies.

2.3 High rate of VAT

When the 8% VAT rate over live chicken, turkey, day old chick and raw poultry meat, further processed poultry meat, feed and feed raw materials will be decreased to 1%, the costs will decrease and it will have a positive effect on the consumption.

3- CURRENT SITUATION AND DEVELOPMENT TARGETS

  • %70 of the chicken meat sales consists of whole chicken sales. The rest of the sales which is %30 consist of parts of chicken like whole leg, breast and wings which are not primarily heat treated. Every day more products like floured, marinated, or further processed are being sold in the market.
  • After Avian Influenza cases, the sales of bulk chicken have decreased around 25% and the sales of packed products have increased at a satisfying point. Unpacked poultry meat sales should have to be prohibited by applying inspection measures.
  • It should have to be focused on products which have more value added and investments in this area should have been accelerated.
  • Controls should be strengthened at sales places.
  • Sales which could not be traced backwards should be prohibited.
  • Although there are positive achievements in food safety, food safety should have to be wide spread and sufficient.
  • Necessary measures to decrease our production costs should have to taken in order to access into the near chicken meat markets and exports refunds should have to be increased at such a level that we could compete with other competitor exporter countries.
  • Supporting policies should have to be applied in order to balance the domestic and foreign market prices of corn which is the highest cost item in production costs and speculative price increases should be prohibited.

4- POLICIES

  • Investments to increase capacity should be realized considering both domestic consumption and exports.
  • It should be planned that the consumption per capita should be 25 kg/year in year 2020.
  • Currently, it is accepted that 7 holdings are in conformity with EU norms and it is planned that 13 more holdings will reach to the same norms as in EU until 2012. When those holdings will be in conformity with EU norms in 2012, 80% of the chicken meat production will reach to EU standards.
  • The slaughter houses which will not be in conformity with minimum standards should be closed by The Ministry of Agriculture and Rural Affairs and unfair competition should be prohibited.
  • Unpack sales should be decreased to a minimum level, maximum attention should be given to food safety and deficiencies should be corrected immediately.
  • Continuous official controls should be performed at the slaughter houses, live production poultry houses and hatcheries and registers should be kept to allow backward monitoring.
  • Food production and sales places should be inspected excellently; places which do not obey the laws and regulations should be immediately penalized while places which operate according to laws and regulation should be awarded. Besides public should be informed about all these activities regularly.

5- CONCLUSION

Poultry sector has developed between 1990 and 2006 at a very considerable rate accept the crises years of 1994 and 2001. 2005 and 2006 years are the years of recession for the sector. The reason of this recession is the stress that the consumers have lived due to Avian Influenza cases. However, this big problem has been overcome without realizing extreme decrease in the production and it could be considered as a successful result to live a recession without major negative effects.

We believe that poultry sector will keep its curial position to be the most important animal protein source in our country for many more years and we do not have any doubt that Turkish poultry meat with its naturally religious slaughtering will be consumed at a maximum level not only in our country but all around the world.

BESD-BİR

POULTRY MEAT PRODUCERS & BREEDERS ASSOCIATION


 
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