27/01/14: British grain co-operative exports oilseed rape to Turkey

British grain co-operative Openfield
recently announced the export of
6000 tonnes of oilseed rape to Turkey
from Bristol’s Portbury Dock, UK. 

A shortage of GM-free oilseed rape amongst the exporters surrounding the Baltic Sea has forced Turkey to come to the United Kingdom in search of supplies.

Loading of the MV Palmali Confidence with 6,000 tonnes of oilseed rape from farms across the south west of England began last Friday at the Portbury Grain Terminal, which is operated exclusively by British grain co-operative Openfield. This is understood to be the first export of its kind to Turkey from the UK. Loading would have commenced sooner, but the high winds that resulted in widespread flooding across the region delayed its entry into the port.

Turkey is one of the few countries to have a stricter policy on the permissible inclusion of genetically modified organisms (GMOs) than the European Union and as such, in times of shortage it can make securing compliant supplies difficult.

Whereas the European Union has a permissible level of 0.1%, Turkey adheres to a zero-tolerance policy. Meeting this requirement is further complicated by a shortage of shippers able to give the necessary reassurances that their vessels can meet its zero-tolerance rule.  As such, it is being forced to look to suppliers in western Europe where shippers rarely encounter GM material.

John Thorpe, head of oilseed rape at Openfield - who handled the sale - said he was pleased to see this as a new destination for UK oilseed rape.

Openfield is the UK’s leading farmer-owned
grain marketing business handling around
 4.6 million tonnes of grain every year.

“Turkey has also bought cargoes from France and Germany this season, but with feed mills located in these ports it faces stiff competition for supplies. This has helped to support the UK’s position as has the competitive value of Sterling prior to Christmas, despite being significantly further away,” said Thorpe.

Recent news of the improving economy however, has strengthened Sterling against the euro and is likely to mean this is a short-lived marketing opportunity.

“UK oilseed rape is recognised as a quality product and buyers appreciate the traceability it carries, but it has to be price competitive too. Given the shipping fees associated with such an export the recent improvement in the value of Sterling means there is unlikely to many more cargoes heading to Turkey again in the near future,” he added.