Cool chain on a grand scale
A thriving segment in Turkey; bulkers piling up in the Sea of Marmara. Turkey’s agricultural sector accounts for approximately 20% of GDP – and depends heavily on logisticians offering international controlled-temperature operations. The cool chain is growing strongly – while Ukrainian grain exports to the region are faltering.
27 July was a proud day for Istanbul. The opening of a new ‘joint coordination centre for grain exports’ (JCC) followed directly on the heels of an agreement that Ukraine and Russia concluded, through UN and Turkish mediation.
Since 1 August bulkers have left the Ukrainian Black Sea ports of Odesa, Pivdennyi (formerly Yuzhnyi) and Chornomorsk (formerly Illichivsk), on their way through the agreed corridor. Around 20 million t of grain was waiting for export in Ukraine.
According to the latest information from the JCC, Ukraine has exported approximately 8.5 million t of grain so far, on 359 vessels. However, inspections that five representatives of each of the four contractual parties carry out on each ship in Istanbul stand between cargo and the world market, causing delays.
About 150 ships were waiting in the Sea of Marmara for their inspection at the end of October. Negotiations are underway to continue the agreement, which expires on 19 November.
Food imports and exports
But what about Turkey’s own food imports and exports? The country cultivates approximately 38.2 million ha of land with agricultural produce, is one of the world’s top ten agricultural exporters and exports USD 17.7 billion worth of food annually. At the same time, it imports approximately USD 5 billion worth of food annually. Turkey was the fourth most important buyer of Ukrainian wheat in 2021, acquiring around 1.19 million t.
The Turkish cold storage market has exploded recently. Mordor Intelligence has calculated that the space available in the segment has increased from 6.8 million m3 in 2014 to 16.85 million m3 in 2020. Annual growth of 7.5% is expected through to 2027.