Hay Market Research: Turkey

Delivered October 3rd, 2020. Contributors: Hillary O., Joseph M., Marvel I., Abhishek G., Sue M., George K., Mariana D. and

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Hay Market Research: Turkey, Part 1

Turkey produces over 20 million tons of hay per year. It exports more than 7,000 tons of hay to countries like the UAE, Jordan, Qatar, and Iraq. The market value of hay in the country could not be found or deduced. The requested data on this country has been entered into this spreadsheet. 
RESEARCH HIGHLIGHTSTurkey produces 25 million tons of hay annually. Hay livestock in the country consumes around 15 million tons. 
Turkey imports 9,525 tons of hay annually. The total value of hay imports in the country is less than $1 million. It mainly imports hay from Bulgaria and Switzerland.
The country exports 7,370 tons of hay per year to countries like the UAE, Jordan, and Qatar. 
RESEARCH STRATEGYIn order to gather the requested data on hay production and exports in Turkey, we first consulted government resources, such as the website of the Ministry of Agriculture in the country. The organization recently released a report titled "NON-FOUNDED CLAIMS AND FACTS RECOGNIZED IN THE PUBLIC." It discussed Turkey's production, importation, and exportation of several agricultural crops, including hay - which is sometimes called straw in Turkey - sugar beet, and wheat. This helped in finding the total hay produced in the country and its annual hay exportation. However, the total market value of hay production was not provided in this report. 

Next, we examined agriculture journals and publications in Turkey. These publications only referenced the data provided by Turkey's Ministry of Agriculture. There was no data offered on the market value of hay. We then tried triangulating this figure by finding information on the cost of hay per ton in the country. It appears the cost varies by season and year. It reportedly tends to be higher in the winter and could be lower in other seasons. As a result, there was no definitive figure that we could use. 

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Hay Market Research: Turkey, Part 2

In Turkey, over 2.6 million hectares are used for forage crops. The production of alfalfa takes up over 650,000 hectares of the land used to grow forage crops. A detailed overview of the research findings and research strategy follows below. The findings have been summarized in the attached spreadsheet.
Turley Hay Market OutlookIn Turkey, a total of 2,609,878 hectares are used for forage crops. Out of this land, only 652,259 hectares are devoted to the production of alfalfa.
The Eastern Anatolia Region is rich in forage and pasture plants. In this region, the most persistent grass species of the pastures are fescue and wheatgrass. 
In the Aegean Region, Annual ryegrass is recommended as a winter crop.
In 2017, a total of 661,017 hectares was used to produce clovers in Turkey. 
The country has a total of 1.4 million hectares of meadows. Additionally, in 2016, meadow fodder covered an area of 15,478 hectares in Turkey.
In 2017, the following area of land was covered by fodder crops: clover: 661,017 hectares
, trefoil: 196,297 hectares
, vetch: 493,297 hectares, maize: 1,125,309 hectares, and others: 211,820 hectares.
Research Strategy:After conducting an exhaustive search for the requested information, we were only able to find some information on the production of the crops used to make hay in Turkey. We were able to find relevant information for alfalfa, fescue grass, ryegrass, clover, meadow/pasture hay, and a combination of other fodder crops. However, information for bentgrass, bermudagrass, kleingrass, orchardgrass, sudangrass, timothy grass, and oaten grass hay remained highly unavailable in the public domain. We primarily focused our research on academic journals and government resources such as the Turkish Journal of Field Crops, the Turkish Journal of Agriculture and Forestry, and the Ministry of Agriculture and Forestry and even though we were able to find reports that were useful in research, some of the requested information remained unavailable. We attributed the lack of information to the specific nature of the targeted information as available information does not go into the specifics of hay production crops in Turkey. 

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Hay Market Research: Turkey, Part 3

Information on how much of the hay produced in Turkey becomes large bales, small bales, round bales, pellets, and wrapped is not publicly available as indicated in the attached spreadsheet. However, we were able to access some useful information on haymaking in Turkey.
Helpful FindingsThe OSM company indicates that they are a leading company in Turkey's animal feeds industry, including hay. The company reports that it has the capacity to produce alfalfa bales, straw bales, and silage. 
 OSM highlights that it has modern hay harvesting, loading, bailing machines, and equipment to offer customers quality and high nutrition products, including hay. 
 Source 
 
 Source 
 
 Ceads reports that it is among the top suppliers of alfalfa hay and Timothy hay in Turkey and globally. The company indicates that it is putting up a modern facility for manufacturing various sizes of alfalfa and timothy hay bales. Ceads highlights that it manufactures large bales of between 400 – 600 kg
, and small bales of between 30 and 120 kg. 
According to go4WorldBusiness, the top-rated hay manufacturers in Turkey include Ceads, Tarbigem, Cetin Gatda, and Utku Trading Company. The Alibaba website has information on the hay products supplied by various Turkish manufacturers and suppliers.
 Turkish Exporter provides a list of some hay manufacturers and exporters in Turkey, including Ceads Gida, Atlas Import Export Ltd, Alharam Trading company, and Five Star Group of Companies.
According to a report published by FAO, haymakers in Turkey usually make tight cylindrical bales tied with grass ropes and the bales weigh about 25-30 kg. The report indicates that this style of haymaking is popular in Turkey because the bales can easily be loaded on carts for ferrying, the hay does not shed leaf and the bales provide some protection against thunderstorms. 
Research StrategyTo determine how much of the hay produced in Turkey becomes large bales, small bales, round bales, and pellets and to determine the percentage of all bales that are wrapped, your research team made an in-depth study of various sources, including Turkey's Ministry of Food, Agriculture, and Livestock website, the websites of some leading hay manufacturers in and the websites of companies that report on the hay industry in Turkey. None of these sources had information on the amount of hay produced that becomes large bales, small bales, round bales, and pellets and the amount that is wrapped. We think this information is not available because studies on this subject have not been conducted in Turkey or the information is not publicly available.

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Hay Market Research: Turkey, Part 4

More than half of the hay produced in Turkey is consumed by livestock and used in the farm. These findings have been entered into the attached spreadsheet. 
RESEARCH HIGHLIGHTSOf the 25 million tons of hay produced in Turkey annually, 15 million tonnes are consumed by hay livestock. 
The remaining 10 million tonnes are sold. 
It appears hay is mainly made in bales by local farmers in Turkey. 
Turkey's "most important" agricultural centers for hay are Urfa, Konya, Trakya, Mardin, and Ankara Polatli.
RESEARCH STRATEGYTo find the requested data on how much produced hay in Turkey is used in the farm versus sold for other uses and how much hay is produced by local farmers versus commercial producers, we first consulted government resources, such as the website of the Ministry of Agriculture in the country. The organization recently released a report titled "NON-FOUNDED CLAIMS AND FACTS RECOGNIZED IN THE PUBLIC." It discussed Turkey's production, importation, and exportation of several agricultural crops, including hay - which is sometimes called straw in Turkey - sugar beet, and wheat. This helped in finding the total hay used in the farm and the total hay sold. However, it did not have any information on how much hay is produced by local farmers versus commercial producers. 


Our next step involved scouring agriculture journals and publications in Turkey. We came across reports that discussed the issues local farmers have when producing hay. These reports also implied that local farmers produce a lot of hay, but no specific numbers were mentioned. 


Next, we attempted expanding our scope to trusted databases that offer data on the production of different crops by country. Through this, we encountered OEC World and the Food and Agriculture Organization of the United Nations. Although these resources described the hay production process in Turkey, there was no specific information on how much hay is produced by local farmers versus commercial producers. 

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Hay Market Research: Turkey, Part 5

Dairy cows in Turkey consume 50,122,530 metric tons of hay per year. This and other details requested for the hay market in Turkey have been provided in row 16 of the attached spreadsheet. 


Hay Consumption of Dairy CowsTo calculate the amount of hay consumed by dairy cows per year, we first researched the average amount of hay a dairy cow consumes in a day and multiplied it by the number of days in a year. We then multiplied this by the number of heads of dairy cows. We used the same calculation for beef cows, sheep, and goats.

The average amount of hay consumed by a dairy cow in a day is equal to 30 pounds or 0.0135 metric tons per day [1 pound = 0.00045]. This is equivalent to 4.9275 metric tons per year [0.0135 metric tons x 365 days].
The total number of dairy cows in Turkey is 10,172,000.

Therefore, the total hay consumption of dairy cows in Turkey per year is:
 = hay consumption per dairy cow per year x the total number of dairy cows
 = 4.9275 metric tons x 10,172,000 cows
 = 50,122,530 metric tons of hay per year

Hay Consumption of Beef CowsThe average amount of hay consumed by a beef cow in a day is equal to 40 pounds or 0.018 metric tons per day [1 pound = 0.00045]. This is equivalent to 6.57 metric tons per year [0.018 metric tons x 365 days].
The total number of beef cows in Turkey is 2,177,000.

Therefore, the total hay consumption of beef cows in Turkey per year is:
 = hay consumption per beef cow per year x the total number of beef cows
 = 6.57 metric tons x 2,177,000 cows
 = 14,302,890 metric tons of hay per year

Hay Consumption of SheepThe average amount of hay consumed by a sheep in a day is equal to 5 pounds or 1,825 pounds per year [5 pounds x 365 days]. This is equivalent to 0.82125 metric tons per year [1 pound = 0.00045].
The total number of sheep in Turkey is 29,200,000.

Therefore, the total hay consumption of all sheep in Turkey per year is:
 = hay consumption per sheep per year x the total number of sheep 
 = 0.82125 metric tons x 29,200,000 sheep
 = 23,980,500 metric tons of hay per year

Hay Consumption of GoatsThe average amount of hay consumed by a goat in a day is equal to 3 pounds or 1,095 pounds per year [3 pounds x 365 days]. This is equivalent to 0.49275 metric tons per year [1 pound = 0.00045].
The total number of goats in Turkey is 9,200,000.

Therefore, the total hay consumption of all goats in Turkey per year is:
 = hay consumption per goat per year x the total number of goats 
 = 0.49275 metric tons x 9,200,000 goats
 = 4,533,300 metric tons of hay per year

Research Strategy:For this research, attaining the exact figures proved difficult, hence the following are the assumptions we have considered: (1) we assumed that all the cows were of average size, (2) we assumed that all the sheep and goats were of average size, and (3) we assumed that hay wastage during feeding was negligible. For horses and other pets, we were not able to find and triangulate their hay consumption after searching through credible sources since there was very limited information on horses in Turkey and the pets that consume hay. Hence, we were not able to form an estimate for horses and pets.

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Hay Market Research: Turkey, Part 6

The information surrounding the sale of hay in turkey is on the attached spreadsheet and is also available below.
Value of Hay when soldA report prepared for the European Bank by the Turkish Department of Agriculture, while not specific to hay, did provide some relevant information to hay.  
Much of the arable land in Turkey is composed of small farms.  
Low income and high input costs mean that many farmers cannot afford storage costs, which are high because the amount of available storage is insufficient. 
Storage costs are high because the amount of available storage is insufficient. 
The major challenges including sales at loss, and an increase in price seasonality/instability.
Involved in SaleThe Turkish government provides subsidies to growers of Wheat, Barley, Cotton, Maize, Soybean, and Sunflower.
Research shows there are only 5 agribusinesses in Turkey that export hay.
Common practicesBecause most of the sales are from small farms, the assumption has been made that each farmer negotiates their own practices with their customers.

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Hay Market Research: Turkey, Part 7

While there was no information regarding the characteristics or key trends of the market, the research team managed to provide some key information below. Additional information found in the spreadsheet.
The Turkish hay market is currently in a state of confusion as the Turkish government works to counter allegations by the media, stakeholders, and rival opposition factions that Turkey is dependent on hay imports. 
According to a 2017 report, Turkey started importing hay in 2017 after five years of self-reliance. The "Izmir Red Meat Producers Union" imported the first batch of hay from Bulgaria. Hay prices in Bulgaria increased as demand in Turkey soared, and a ton cost up to $120 after transportation. 
A more recent report accuses the government, especially the Ministry of Agriculture and Forestry for normalizing the importation of hay into the country. Truckloads of hay are still coming in from Bulgaria, and they are cheaper by the ton, 750 lira ($96.49) compared to 1000 lira ($128.66). The article explains that farmers are importing hay because local hay prices are inflated by Turkish hoarders. 
According to an August 2020 article, the President of the "Kayseri Red Meat Producers Association," said that hay prices in the Kayseri region climbed to 900 liras ($115.79) because of parties that purchase hay with the intention of hoarding for profit. He noted that hoarding is a major concern to hay buyers in the country, and that they intended to pressure the Ministry to find an urgent solution.
In response to these allegations, the Ministry of Agriculture and Forestry published a "33-page booklet" in 2019 stating, among other things, that Turkey was more self-sufficient when it comes to hay production. The Ministry claimed that Turkey produces about "25 million tons of hay" per year, and only 15 tons is fed to livestock with the rest being used in mushroom cultivation, the paper industry, and animal bedding. 
The Ministerial report also stated that Turkey exports up to 7,370 tons of hay annually, and that the country only imported 0.15 tons of hay in 2019. The booklet also states that the gross value of all hay imports is less than $1 million annually. This was later reiterated in the December 2019, budget meeting in Parliament. 
Members of the opposing CHP Party refuted the government's claims saying that the government was informing its citiens. The party also said that the government is importing hay while pasture lands were empty and in poor conditions. 
To prove how politicized the hay market is in Turkey, some media outlets such as EkoTrent and Sabah have supported the government's statistics, and even claimed that the opposition is responsible for the "straw politics."
In Turkey, hay is the staple food for ovine and cattle, and is "mixed with artificial feed, pulp and the like and used as animal feed."Larger cattle consume at least 150 bales 
Hay, which is known as the staple food of cattle and ovine. Average cattle in the country consumes about 150 bales annually, and a small one takes in 70 bales. 
Research StrategyTo find and provide a high level overview of the market including, but not limited to characteristics of the market (e.g. growth, competitors) or key trends, the research team began by searching for any market reports for the Turkish hay market; however, there was none. Additionally, we searched through government statistics and reports and through the websites of relevant government entities such as the Ministry of Agriculture and Forestry. We also searched through the public domain for any industry-specific reports from credible sources such as statistical sites and government publications. The research team also hoped to find media reports that would lead to more credible resources. Our search was conducted in both English and Turkish, in case the information was only available in the local language. While we managed to find many articles discussing the back-and-forth accusations and discussions regarding the hay industry in Turkey, there were no reports that directly dwell into the characteristics or key trends of the market. Notably, these articles could not really provide a clear picture of the hay market because we could not verify any any parts of the claims made by either the government or the opposition parties/media resources. Simply put, it was not possible to tell which party was telling the truth. For example, while the government provided statistics to counter allegations that the hay market is not self-sufficient, the opposition claims are backed by industry stake holders. Therefore, the research elected to provide all the available information on the subject. 

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Hay Market Research: Turkey, Part 8

Konya, a city in Turkey, is a major hay producer and hay machinery exporter. Hay lands in this country produce a vast amount of roughage needed in agriculture. The complete SWOT analysis for this market is provided below and in row 16, column AY, of the attached spreadsheet.
Turkey's Hay Market SWOT AnalysisStrengths
Konya, a city in Turkey, holds over 65% of the Turkish market in agricultural machinery and milling industries, with a 45% national exportation share. The city exports to 50 countries in the field of agricultural machinery, including hay-making machines. 
About 2.5 million tons of hay were expected to be produced in Konya in 2018, representing over 1 billion Liras. 
The seed market in the country has grown steadily in the past years. In 2018, Turkey produced 1,059,000 tons of seeds, compared to 1,049,000 tons in the previous year.
Alfalfa production also increased 11.15 times from 2002 to 2018, reaching 3,000 tons. 
Seed production's share of the private sector increased. In 2018, it represented 80.16% of the total production. 
Weaknesses
In Turkey, a "fully-standard animal feed production process has not yet been achieved in terms of the content of milling waste and oil industry waste." The high demand for these products, insufficient controls by government agencies, and lack of legislation on manufacturing represent weakness to the industry.
Grain loss in the harvest represents an average of 2% in Turkey. According to HTB President Hüseyin Çevik, a 1% loss would represent an economic loss of 400 million Liras and 350-400 thousand tons of products.
Opportunities
In the winter, 18.75 million tons of roughage is needed in this country. The total production from hay lands is about 13.3 million tons in Turkey. This represents an opportunity for the market, as it can cover a great percentage of the roughage needed during this season.
Turkey "aims to comply with international production standards and trade rules to evoke its potential, benefit its advantages, and have a voice in the global seed industry." This sector's "production capacity, R&D activities, technical infrastructure, rich biodiversity, ecological heritage, and geographical location, relations with international institutions, and legal infrastructure," gives Turkey great advantage in international markets. 
The market could have a big opportunity by investing in agricultural training, hence reducing the 2% grain loss. 
Threats
According to FAO, annual agricultural product loss caused by harmful organisms and diseases is about 40%, which represents a threat to this market. 
In this country,  fertilizer, fuel oil, seed, and similar inputs used by producers are imported and are "subjected to fluctuations in foreign exchange." 