compound feed production in turkey: targets and potential ... · compound feed production in...

Compound Feed Production in Turkey:

Targets and Potential Problems

M.ÜLKÜ KARAKUŞ

President of Türkiyem-Bir

Important Poultry Diseases: Epidemiology and Control-2

22 FEBRUARY 2017 / ANKARA

WORLD COMPOUND FEED PRODUCTION RANK ORDER (2016)

Ranking Country Million Ton

1 China 187

2 USA 170

3 Brazil 69

4 Mexico 34

5 Spain 32

6 India 31

7 Russia 29

8 Germany 24

9 Japan 24

10 France 23

11 Canada 20

12 Türkiye 20*

13 Kore 19

14 Thailand 18

15 Indonesia 17

* 23 million tons with their own feed producers

0

100

200

300

400

500

600

1960 1970 1980 1990 2000 2005 2010 2013 2014 2015 2016

The number of compound feed mill in Turkey

Source: GKGM

*Double shift

Source: GKGM

0

10

20

30

40

50

60

70

80

90

100

1960 1970 1980 1990 2000 2005 2010 2013 2014 2015 2016

The Capacity Utilization Rate* (%)

Turkey's mixed feed production is around 23 million tons with its own feed producers

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

1960 1970 1980 1990 2000 2010 2011 2012 2013 2014 2015 2016

Compound feed production of Turkey

Toplam Büyük-küçükbaş yemleri Kanatlı yemleri Diğer yemler Poultry feeds Other feeds

Source: GKGM

Total

Big-small ruminant feed

Distribution of ruminant mixed feed production by region and shares in total feed production

1,2 Million ton, %10,5

2,8 Million ton, %24,2 0,4 Million ton, %3,3





Source: GKGM

Distribution of poultry mixed feed production by region and shares in total feed production







Source: GKGM

Distribution of total mixed feed production by region and shares in total feed production






Kaynak: GKGM

Source: TUİK

0

5

10

15

20

25

Turkish grain production (mio. ton)

Buğday

Arpa

Mısır

Çavdar

Yulaf

Wheat Barley

Corn

Rye

Oat

0

0

0

1

1

1

1

1

2

2

Turkish oilseed crop production (million ton)

Ayçiçeği

Çiğit

Soya

Kolza

Source: TUİK

Sunflower

Cottonseed Soy

Rapeseed

8,8 million ton

3,0 billion $

0

1

2

3

4

5

6

7

8

9

10

2010 2011 2012 2013 2014 2015 2016

Feed raw material import (million ton) and value (billion $)

Miktar

Değer

Source: TUİK

Quantity

Value

Raw material Quantity (Ton) Value ($)

Soy Bean 2.175.392 885.297.004

Soy Bean Meal 664.401 254.557.541

Corn 531.246 110.847.539

Barley 3 772

Bran 1.510.361 239.384.608

Sunflower Seed Meal 781.671 168.995.921

Rape Seed 238.840 105.533.286

Palm Meal 61.362 6.975.992

Other vegetable oil industry residues 32.958 2.416.521

Corn Derivatives 489.010 90.668.650

Molasses 281.887 35.510.285

Sugar Beat Pulp 174.639 27.738.688

DDGS 1.013.592 211.363.811

Feed Additives 312.841 526.262.617

Others 493.717 384.123.729

Total 8.761.920 3.049.676.964

Feed raw material import quantity and value for 2016

Source: TUİK

IMPORTS FROM UKRAINE (000 ton) 2012 2013 2014 2015 2016

Soy Bean 129 139 376 933 683

Soy Bean Meal - - 2 61 54

Imports from Ukraine is increasing

2007-2017 Price Increase 228%

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1000

1200

1400

1600

1800

2000

Domestic prices of Full Fat soy and soybean meal (TL/ton)

FULL FAT SOYA SOYA KÜSPESİ

Source: Türkiyem-Bir

FULL FAT SOY SOYBEAN MEAL

2007-2017 Price increase %243

0

200

400

600

800

1000

1200

SSM (28 Protein) SSM (36 Protein) and DDGS domestic prices (TL/ton)

ATK (28 PROTEIN) ATK (36 PROTEIN) DDGS


SSM = Sunflower Seed Meal

SSM (28 Protein)

SSM (36 Protein)


0

100

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400

500

600

700

800

900

Domestic prices for corn and barley (TL/ton)

MISIR ARPA


CORN

BARLEY



0

100

200

300

400

500

600

700

800

Domestic prices of cereal by-products (TL/ton)

BUĞDAY KEPEĞİ RAZMOL KIRIK BUĞDAY WHEAT BRAN

BROKEN WHEAT

2007-2017 Price increase of mixed feed %138

2007-2017 Average price increase of feed raw material %185

0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Domestic prices of mixed feed (TL/ton)

Etlik Piliç Yemi

Yum. Tav.Yemi

Süt Yemi

Besi Yemi


Broiler Feed

Layer Feed Dairy Cattle Feed

Fattening Cattle Feed

0

50

100

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450

500

Turkey and World corn prices ($/ton)

MISIR TÜRKİYE MISIR DÜNYA

Source: Türkiyem-Bir, IGC

CORN TURKEY CORN WORLD

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500

01/0

7

05/0

7

09/0

7

01/0

8

05/0

8

09/0

8

01/0

9

05/0

9

09/0

9

01/1

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05/1

0

09/1

0

01/1

1

05/1

1

09/1

1

01/1

2

05/1

2

09/1

2

01/1

3

05/1

3

09/1

3

01/1

4

05/1

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09/1

4

01/1

5

05/1

5

09/1

5

01/1

6

05/1

6

09/1

6

01/1

7

Turkey and World barley prices ($/ton)

ARPA DÜNYA ARPA TÜRKİYE

Source: Türkiyem-Bir, IGC

BARLEY WORLD BARLEY TURKEY

Problems of Compound Feed Sector

´  Feed raw material supply and application of IPR** ´  Biosafety regulation ´  Application of feed regulations and control

´  Laboratory analyses ´  Rendering products regulations*

´  Unfair competition ´  Import of red meat and butchery animals

IPR = Inward Processing Regime

*Animal by-products regulation

Feed raw material supply

�  Crop production is not sufficient for the feed sector, �  Custom duties of feedstuffs are high,

�  There are big differences in the quality of feed ingredients, �  Transport rates, analysis fees and costs for custom operations are

very high.

Biosafety regulation

�  Regardless of intent and negligence, the law has very severe penalties,

�  There are provisions in the legislation that are incompatible with the EU,

�  Biotech companies do not apply for GM products due to existing law.

Laboratory analyzes

�  There are some mistakes in the analyzes and some differences between the different laboratory results are exist,

�  Laboratory fees in the import phase analysis are too high and there are also delays.

Legislation for rendering products

´  As of 2017, intra-species animal by-products usage is prohibited,

´  The fact that these products are not used in our country which is already in deficit for protein, brings serious burdens both in terms of material and environment,

´  Slaughterhouses, public and municipalities are not prepared for the consequences of the implementation of this legislation.

Importation of red meat and butchery animals

´  Importation of red meat and butchery animals negatively affects the Turkish livestock industry.

�  In order for the feed prices to be lowered, the feed sector must be able to supply feed materials at a more favorable price,

�  The production of oil seeds should be increased and the production of alternative feedstuffs should be encouraged,

�  The basin-based production model should be rushed in practice, �  The infrastructure needs to be developed in order to be able to use the

railways for feed and feed raw material transportation, �  Discrepancies and disruptions in IPR (Inward Processing Regime)

implementation should be eliminated,

RECOMMENDATIONS

�  Biosafety legislation should be rearranged by taking into account the opinions of all concerned parties and harmonized with the EU,

�  The implementation of feed legislation should be guided primarily, not

punitive, �  Trainings for the implementation of feed legislation should be

increased, �  Laboratory mistakes on analysis and analytical differences between

laboratories should be eliminated,

RECOMMENDATIONS

�  Red meat and butchery animals should not be imported, �  Custom rates on the importation of fattening cattle should be

organized so that the farmers engaged in fattening to be protected and the private sector must be functioned,

�  All feedstuffs must be zeroed in VAT and unfair competition should be

avoided.

RECOMMENDATIONS

�  Implementation of rendering legislation should be changed,

WHY ?

RECOMMENDATIONS

University of Ankara Faculty of Agriculture Dept. Of Animal Husbandry Scientific Opinion – Page 1

University of Ankara Faculty of Veterinary Medicine

Dept. Of Animal Nutrition & Nutritional Diseases

Scientific Opinion – Page 1

University of Ankara Institute of Food Safety Scientific Opinion – Page 1

Zootechnics Federation Scientific Opinion – Page 1

TURKIYEM-BIR Reports on Poultry Rendering Products

Page 1


Page 2


Page 3


Page 4


Page 5


Page 6


Page 7


Page 8

´  Because of the scientific considerations above;

´  Completely remove the in-species use ban on the poultry nutrition,

´  Recognition of a transitional period of 4-5 years, such as in Poland, for in-species use even in the case of approval of full membership to the EU,

´  Obtaining a declaration from companies that will export poultry products to the EU that they will not use rendering products in exported products,

´  It is recommended to take precautions to prevent the unsubstantiated scientific news in the media.

THANKS FOR THE ATTENTION…

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