Trade Talk

April 17, 2024

Turkey’s lentil and chickpea markets in 2024:

Luke Wilkinson

Reporter

At a glance


  • “I see the younger generation starting to take a more active role in the pulses market, and the goal is to represent them in the best way possible on the GPC Board of Directors, enabling younger people to take a more active role in the confederation.”
  • “Compared with previous years, there is a definite drop in our re-export business. In terms of prices, I believe we'll see stable market levels and I don't expect significant changes in values over the coming year.”
  • “It is fair to say that the Red Sea crisis we are currently experiencing has had an extra cost impact of approximately US$50 per MT on Turkey's imports and exports”

Yusuf Memis, Foreign Trade Director of Bashan Agro

 

Tell us about the last year for Bashan Agro. What have been some of the successes and challenges?

At Bashan Agro, we have invested in the business every year, from the first day of our establishment until today and we want to continue our business as one of the largest pulse producers in processing facilities in Turkey. Bashan and its 1250 employees aim to be a permanent fixture in the global pulses market and in 2023 we grew around 20% in global trade – both in turnover and tonnage.

On the other hand, we have had some difficulties with food protection policies post-pandemic on certain imports and exports. There's been a couple of examples in Turkey of quota systems which limit the amount we are able to export, for some items there is an export ban. For example, Turkish red lentils and Turkish chickpeas both have a quota system to protect local consumption.

Has there been any growth in import/export markets over the last year? 

To briefly summarize the past season, we can say that we experienced a decrease in import products overall and we are experiencing a slight contraction in our export markets. As an example of the changes in the sector, we can give the serious shrinkage of markets in 2023 compared to 2022, such as Iraq, which had previously bought large amounts of pulses from Turkey over recent years.

We can also say that one of the reasons for the reduction in imports is the yield of the Turkish red lentil harvest, which was around 150,000 MT higher than the expected. However, chickpea production in Turkey changed significantly this year as it was much lower than the previous market year, falling by around 200,000 MT due to climate conditions.

Why has Iraq reduced its imports from Turkey?

This is because the government’s food distribution schemes that distribute pulses have started to decrease the amount of food they give out. 

Congratulations on joining the board of the GPC! Tell us about your plans now you have become a board member. What are your hopes for the role?

Firstly, I would like to say what a pleasure it is to join the board of the GPC. On a global scale, the GPC represents all our sector stakeholders, from the smallest to the largest, and responds to the needs and problems. We all need to take action to increase the consumption and production of pulses around the world.

Regarding our hopes and plans for the future, I am determined to provide whatever contribution is needed for Turkey. I hope that the Turkish authorities will contribute to industry events and meetings to increase the recognition and attendance of the GPC among the smaller industry stakeholders. 

In general, I see the younger generation starting to take a more active role in the pulses market, and the goal is to represent them in the best way possible on the GPC Board of Directors, enabling younger people to take a more active role in the confederation.

What kind of chickpeas and lentil production are you expecting this year in Turkey? 

We can say for certain there is no contraction in lentil planting areas in Turkey for the 2024 season, so it's possible we'll see a similar result in terms of yield to that of 2023 at around 350,000 MT. Chickpea planting areas are currently being prepared – according to our research there will be chickpea planting close to the amount we saw in 2023. The increase in chickpea prices has been encouraging for farmers.

What kind of numbers are you expecting for Turkish white bean production this year?

Based on our research, Turkish white bean production looks as if it’s going to be around 90,000-110,000 MT in 2024.

Between 2022 and 2023, Turkey stopped importing large quantities of white beans from Ethiopia, but this appears to have changed in recent years. Where is Turkey currently importing its white beans from?

The only reason we import Ethiopian beans is for use in the canning sector, but we also import a lot of white beans from Argentina and Egypt, as well as using beans grown domestically here in Turkey.

Turkey imports large quantities of chickpeas from both Russia and Mexico – where did they tend to be re-exported to?

From Mexico we import mostly large caliber chickpeas, some of the volume goes to the domestic market while the rest is re-exported – mostly to Iraq. Russian chickpeas come in smaller sizes and are mostly sent to be used in crushing facilities.

How many red lentils do you expect to import and re-export this year from Canada, Russia, Kazakhstan etc? How do you see global lentil demand/prices behaving this year?

Before the new season, 200,000 MT of lentils – from all different origins – have arrived in Turkey in the 2023-2024 market year. From now on, I expect at most 100,000 tons more will be imported. Compared with previous years, there is a definite drop in our re-export business. In terms of prices, I believe we'll see stable market levels and I don't expect significant changes in values over the coming year.

Could you talk to me about the shipping situation in the Red Sea — what is the current status of shipping? How has the decreased security on those routes affected the Turkish pulse industry and shipping prices for Turkish exporters?

It is fair to say that the Red Sea crisis we are currently experiencing has had an extra cost impact of approximately US$50 per MT on Turkey's imports and exports, and I think if this continues for a long time it will negatively affect the pulse trade in Turkey.

Are there any new plans for Bashan Agro this year? What changes are you expecting to see in 2024?

Our main goal for 2024 is to achieve sustainable growth in our global trade – we want to further consolidate our position as an indispensable supplier to our final buyers, and create a stronger supply chain by increasing presence in trade in the Black Sea region. 

We have also started to invest in the use of renewable energy, taking into account our environmental responsibilities to the world. We are set to make a 15 Megawatt investment in biogas and solar energy, and begin implementing the European green consensus.

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