Ukraine stands to benefit from Russian boycott of Turkish food shipments
THE Russian trade boycott against Turkish food stands to give the Ukraine a chance to regain its position in the Turkish food market, says food analyst UkrAgroConsult, Reuters reports.
Russian Prime Minister Dmitry Medvedev has approved sanctions against Turkey in retaliation for the downing of a Russian warplane over Turkish airspace, a diplomatic crisis likely to result in a Turkish ban on food imports from Russia.
Ukrainian Agriculture Minister Oleksiy Pavlenko has already proposed that Turkey replace Russian food with Ukrainian, saying Kiev could double its export of sunflower oil, wheat and maize [corn] to Turkey.
UkrAgroConsult said the share of Ukrainian wheat in the Turkish market has declined by 50 per cent over the last five years to only 2.7 per cent in the 2014/15 season.
"The similar situation has developed in the maize market. Turkey has cut imports of Ukrainian maize by 75 per cent since season 2010/11 preferring supplies from Russia,", the consultancy said in a report.
The fact that Turkish government has no plans to reduce imports due to the low quality of their own grain may be beneficial to Ukraine. Turkey needs high-quality wheat to produce flour, which it used to ship abroad, the consultancy added.
The Ukraine has harvested 28 million tonnes of wheat this year and plans to export 16.6 million tonnes in the 2015/16 season. It has already exported about nine million tonnes.