Vine Fruit Market Report, Turkiye
2021 Crop raw material quantity
2021 crop registration of raw materials at the Bourse reached 298k tons as of the end of June, 6% lower than the 2020 crop of 315k tons. The Ministry of agriculture is carrying on the field studies for the 2022 yield forecast. While historically, the estimation was announced around mid-August, last season, the estimation figure was not announced by the Ministry. Even though it is unclear whether the Ministry will make an announcement this season, the industry expects the yield to be higher than the 2020 crop. The quality of the fruit for the new crop also is expected to be better than the current crop.
2021 Crop Exports
Vine fruit exports from Turkey have reached 222k metric tons with an average export price of USD 1.765 MT. Turkey has exported 23k tons more than last year, while the average price dropped by USD 166/MT. More than 80% of total 2021 crop exports are shipped to top countries: The UK (57k tons), Germany (31K tons), the Netherlands (20K tons), Italy (18k tons), Australia (16k tons), France (14k tons), Canada (7k tons), Japan (5k tons), and Poland (5k tons). Compared to the 2020 season, UK shipments are down by 4% and France by 3%. There is a significant increase of 20% for Germany, 17% for Italy, 56% for Australia, 23% for Canada, 24% for Spain, 17% for Japan, and 28% for Poland, respectively.
Price level and Market
After a weeklong religious holiday in turkey, the Market is now calm with no transactions at the Bourse. The sales were strong over the last month, with weekly shipments reaching over 5k tons per week. As we are reaching the end of the season, there is no available raw material left other than TMO, causing a rise in the raw material prices. In any case, the demand is also low due to the summer holiday season. TMO (Turkish Grain Board) stopped sales at the end of June. After a 3% price in early June, TMO sold around 7-8k tons of their stocks. TMO may be holding nearly 30k tons of raw material in their hands in total. The markets in Turkiye are concerned about the financial turmoil. The bank's USD-denominated loan rates increased from 4-6% to 11-15% pa levels in the last weeks. TRL rates are anywhere from 40-50% pa levels. Keeping in mind the officially announced consumer prices index of 78%, TRL loan rates may be thoughts to be still low.
The vineyards are in a berry development stage and progressing well despite the unstable weather conditions, which do not generally occur during this month. The on and off showers will continue for a while. Therefore, necessary precautions are taken against the diseases that may be observed due to rains. Soil tillage and irrigation operations continue while the branches are lifted upward to provide airflow through the clusters.