High Pasta Exports from Turkey, but Low Unit Price

Published 2019년 12월 10일

Turkey has increased its pasta exports, but its price-per-unit remains very low. As most pasta is sold in bulk without a brand name, the unit value of Turkish pasta is very low. With rising costs of raw materials, this is worrisome to Turkish exporters.

Unbeknownst to many, Turkey is one of the world’s largest pasta exporters. In 2018, it exported around 1.2 million tons of pasta products, the second-largest amount after Italy. However, in terms of exported value, Turkey is lagging behind countries such as Egypt and Iran. The value-per-unit is very low, making Turkey only the fourth-largest pasta exporter in terms of value, despite the considerable volume it exports. Turkish pasta is highly demanded by international buyers due to its low price and is mainly exported to Africa and the Middle East. So far in 2019, the Turkish pasta exports have increased, but the unit value has once again stayed behind.

2019 Export Increase, But Low Unit Value

Turkish pasta exports have increased by 8.3% between January and October this year compared to the same period last year, reaching 1.07 million tons. The total export value has increased by 11.1%, to USD 505 million, but the increase in unit price is quite low. Last year, 1 ton of pasta was sold for an average of USD 461, whereas this year it is sold for USD 473 per ton, an increase of only 2.6%.

Countries such as Iran and Egypt generate a lot more export value with significantly fewer exports. This is a cause for worry for the Turkish Pasta Producers and Industrialists Association (MÜSAD). Turkish pasta is known for its high quality but is mainly exported in bulk without a brand name, or under small private-labels. This brings volume to the Turkish pasta trade, but it also means that the value stays behind.

High Price for Durum Wheat

Another reason why MÜSAD is not happy about the low unit value of Turkish pasta exports is that the raw material costs have been rising. The production of durum wheat, used to make pasta, fell this year in Turkey. The domestic quantity could no longer meet the demand from the pasta industry, so durum wheat imports increased by over 40% between January and July 2019 compared to the same period in 2018. This caused the domestic prices of durum wheat to rise by 66%, leading to high raw materials costs for pasta producers.

Recommendations for the Turkish Pasta Industry

Turkish exporters often choose to not raise the price of their pasta, as cheap pasta ensures a lot of export. Nevertheless, the high prices for raw materials make the low unit prices concerning for Turkish pasta exporters. The low profit margins should be addressed by the industry, states MÜSAD. Their main recommendation is to decrease the export of unlabeled and private-label pasta. Marketing strategies are vital, as well as controlled selling of the product.