Butter shortage in Europe boosts Turkey's export

By Yusuf Sahbaz

IZMIR, Turkey

Turkey's butter export has increased 344 percent in the first ten months of the current year after a major butter crisis in Europe, where prices are on the rise while stockpiles are running low.

According to the data gathered by Anadolu Agency from the Aegean Exporters' Association figures, the country's butter export hit $5.4 million in January-October compared to the same period of 2016 which was $1.2 million.

Russia ranked first Turkish butter importer, up to almost $2 million from only $20,000. Russia is followed by Iraq with $ 1.3 million and Qatar with $529,000, according to the data.

Speaking to Anadolu Agency, Burhan Sakkaoglu, general secretary of the Packaged Milk and Milk Products Industrialists Association (ASUD), said the demand for the Turkish butter increased after the butter shortage crisis in Europe.

"Countries that previously imported butter from the EU countries have turned towards Turkey because of the crisis there," he said.

According to official figures released by the UN Food and Agriculture Organization, butter prices in June surged 14 percent to hit all-time highs in Europe.

One measure of butter reserves had fallen to 1,396 tons by the end of May across the EU that marked a 99 percent fall from the 92,548 tons held in the same month in 2016, the EU said.

Sakkaoglu said Qatar could be a new and permanent market for Turkish milk and dairy products as the country is under blockade by Saudi Arabia, Egypt, the United Arab Emirates and Bahrain since June.

The countries accused Doha of supports terrorism. Qatar denies the accusations and contends the blockade violates international law.

"I think that Turkish products will be permanent in this market with their quality and price policy," Sakkaoglu said, adding that the normalization of the relations between Ankara and Moscow also healed Turkey's butter export to Russia.

According to Sakkaoglu, China is the biggest milk and dairy products importer of the world as dairy products found tainted with melamine in the country nearly a decade ago.

"The only obstacle to the export of milk and dairy products to China is issuance of health certificates by the Chinese government. If this is overcome, we would enter the world's most populous country that will directly lead to an increase in our exports", Sakkaoglu added.

The U.S. Department of Agriculture (USDA) said the Chinese demand for foreign milk products has surged in 2017 by 38 percent, with almost all of it supplied from the EU and New Zealand.