Farm Ireland
Independent.ie

Monday 23 October 2017

Turkish tender a tall order as exporters question viability

Payment for the cattle will be made after they have been delivered to Turkey, and successful bidders must lodge a bond with Turkish authorities equal to 3pc of the value
Payment for the cattle will be made after they have been delivered to Turkey, and successful bidders must lodge a bond with Turkish authorities equal to 3pc of the value

IRISH exporters have been examining the potential of shipping stock to Turkey amid questions over the viability of the business with batches of 10,000 head being sought.

It is unclear how many Irish firms tendered for contracts to export live cattle to Turkey ahead of yesterday’s deadline.

Completed tenders had to be submitted by 2pm local time by July 18, with the successful parties required to ship stock within 50 days of the signing of contracts.

The contracts are being handled by Turkey’s Meat and Milk Board which recently sought tenders from Europe for 50,000 cattle. A similar number are being sourced in South America.

The European stock must be delivered in five batches of 10,000 head. All stock have to be continental, be under 12 months and less than 300kg.

Payment for the cattle will be made after they have been delivered to Turkey, and successful bidders must lodge a bond with Turkish authorities equal to 3pc of the value.

One source in the export business said the tender requirements were “crazy”. He questioned whether a single Irish exporter would be able to purchase 10,000 cattle and meet quarantine requirements within the timeframe outlined.

Price could also be a real obstacle. Light continental weanlings suitable for the Turkish contract are currently making €2.60-3.00/kg in the marts.

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“You’d need a good price in Turkey to make the trade feasible at those levels,” an industry source said.

However, one shipper maintained that making a margin on the business would “not be an impossibility”. “It won’t be an exciting proposition but if the price is right then it could put a floor on the weanling trade this autumn,” he said.

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