Higher Iraqi Taxes hit Turkish Poultry Exporters

By John Lee.

New taxes in force since the beginning of last week mean that Turkish producers exporting into Iraq now need to pay US$290 per ton of exported chicken meat, rather than $35 previously.

As a result, the Turkish poultry sector, which has the fourth largest share in the world’s poultry market, risks losing its biggest market, Iraq.

The Poultry Site quotes the head of the Turkish poultry meat producers and breeders association, Sait Koca, as saying:

“Turkish producers exported around 227,000 tons of poultry to Iraq in 2014 for around $443 million. Unless the new custom taxes are revoked, we are likely to lose our biggest export market to Brazilian exporters.”

Turkish exporters use the Habur Border Gate to enter the Iraqi market; Koca said they can also use the Iranian border gates but the Iranian side demands $100 from each truck.

Ömer Görener, chairman of Turkish poultry producer Banvit, told Hurryiat Daily News:

“Iraq asks for only $35 per ton at other border gates for poultry imports coming from Brazil or Iran. With the new taxes, our poultry’s price is $255 higher than others per ton, damaging our competitiveness.”

The Iraqi side has also begun implementing the same rise in taxes on egg imports from Turkey, which had been sending more than 250 trucks full of eggs to Iraq until recently, making over $410 million of contributions to exports to the Turkish economy annually. Around 90 per cent of Turkey''s egg exports are to Iraq.

(Source: The Poultry Site)

(Poultry image via Shutterstock)

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