Turkish flour millers optimistic on tariff removal

ISTANBUL – Turkish flour millers are optimistic the Philippine Tariff Commission would rule in favor of removing the temporary safeguard measure imposed on imported Turkish flour.

In a briefing with visiting Philippine journalists Turgay Unlu, chairman of the board of the Turkish Flour, Yeast & Ingredients Promotion Group said that members of the Tariff Commission are set to visit Turkey  next month and conduct an independent investigation on allegations of unfair trade and dumping of Turkish flour to the Philippines.

Unlu and legal counsel Ozlem Canbeldek also denied charges made by the Philippine Association of Flour Millers (PAFMIL) and the US Wheat Association (USWA) that the Turkish flour millers are dumping their produce in the Philippine market.

Dumping occurs when flour is sold in another country at prices lower than that sold in the country of origin.

Unlu said, Turkish flour millers are able to produce flour at extremely low cost and are thus able to keep their selling price low.

He said Turkish flour millers, limit their profit margin to between one to five percent only, allowing them to lower their prices as compared to Philippine flour millers whose profit margins are significantly higher.

Turkish flour production is lower as the country also produces wheat unlike the Philippines which has to import wheat.

Turkey does not export wheat as it prefers the value-added export of flour.

Unlu, likewise emphasized that Turkish flour millers are able to sell lower priced flour because of “low profit margins and higher quality production.”

Because of Turkey’s huge flour production capacity of 30 million tons per year, it is able to fill the domestic flour requirement and export to its Europe, Mr. Unlu explained.

In the Philippines he pointed out Turkish flour only has a minimal market share of seven percent.

However, despite its small market share, Unlu stressed that Turkish flour millers still want to maintain their presence and would prefer an open competitive market with PAFMIL and the USWA.

Citing 2012 trade figures, Unlu said Turkey’s exports to the Philippines amounted to around $63 million, of which flour imports accounted for around 42.7 percent.

In 2013, Unlu said Turkey’s exports to the Philippines rose slightly to $65 million.