Turkish exporters see profit from Russian ban on Western foods (updated)

Banvit Bandirma Vitaminli Yem Sanayi AS

12/08/2014 17:14

* Turkish exporters see increased demand from Russia 
    * Economy Minister says Turkey must seize opportunity 
    * Greece says Turkey exploiting trade war 
 
 (Adds Economy Minister, Greek comment) 
    By Nevzat Devranoglu and Ceyda Caglayan 
    ISTANBUL, Aug 12 (Reuters) - Turkish companies are enjoying 
a rise in orders from Russia as their government eyes a 
lucrative long-term opportunity from Moscow's ban on imported 
Western foods. 
    Mehmet Buyukeksi, head of the Turkish Exporters Assembly 
(TIM), said he expected a significant increase in poultry and 
seafood exports to Russia, and that Turkey could also meet 
increased Russian demand for fruit and vegetables. 
    "Demand from Russia for Turkish products increased after 
limits to trade with the U.S. and EU were introduced," Buyukeksi 
said in written answers to questions from Reuters. Turkey was 
the 5th leading supplier of food to Russia with $1.68 billion 
worth of trade in 2013. 
    Economy Minister Nihat Zeybekci said Moscow's ban - a 
response to Western sanctions over the Ukraine crisis - provided 
an opportunity for Turkey to bolster its exports not only of 
food, but also consumer goods. 
    "I see Russia as an opportunity for Turkey, I don't think 
the problems between Russia and the West are long-term and 
sustainable," Zeybekci told Reuters in an interview on Monday. 
    "We should make this opportunity a strong, long-term, 
permanent and corporate one ... We are in talks to meet their 
needs and make the most of this opportunity," he said.  
    Turkey and Latin American nations like Brazil look likely to 
emerge as key winners from Russia's decision to ban most EU and 
U.S. food imports. 
    Russian Prime Minister Dmitry Medvedev announced the 
one-year ban on Thursday on meat, fish, dairy, fruit and 
vegetables from the United States, the EU's 28 member states, 
Norway - a major exporter of salmon - Canada and Australia. 
     
    POULTRY SUPPLIERS 
    Zeybekci said Turkey had been in talks with Russia on 
deepening trade long before the ban, including on Turkey's 
possible involvement in a customs union between Russia and 
Central Asian states including Kazakhstan and Kyrgyzstan. 
    Buyukeksi said his organisation was working closely with the 
economy and agriculture ministries to simplify procedures for 
exporting to Russia. 
    "We expect a Russian delegation to visit Turkey next week 
within this framework," he said. 
    Russia has become the world's biggest consumer of EU fruit 
and vegetables by far, the second biggest buyer of U.S. poultry 
and a major global consumer of fish, meat and dairy products, so 
the ban opens up big opportunities for others.  ID:nL6N0QE2HD  
    Analysts said last week Turkish poultry companies such as 
Banvit  BNVT.IS  and Pinar Et  PETUN.IS  would benefit from the 
start of processed white meat imports to Russia from Turkey. 
    Long-time rival Greece accuses Turkey, an EU candidate 
nation and member of the NATO military alliance, of seeking to 
exploit the situation and of behaviour that does not befit a 
country seeking membership of the European Union. 
    "The foreign ministry has been clear that it is not possible 
for partners in NATO and the European Union or candidate 
countries for the EU, Turkey among them, to be exploiting this 
trade war and to not follow the policy of the EU," Greek Deputy 
Foreign Minister Dimitris Kourkoulas told Greek Skai TV. 
 
 (Additional reporting by George Georgiopoulos in Athens and 
Asli Kandemir in Ankara; Writing by Daren Butler and Ece 
Toksabay; Editing by Nick Tattersall and Mark Trevelyan) 
 ((daren.butler@thomsonreuters.com; +90-212-350 7122; Reuters 
Messaging: daren.butler.thomsonreuters.com@reuters.net)) 
 
Keywords: UKRAINE CRISIS/SANCTIONS TURKEY