In a study recently completed by Atid, EDI, Ltd., an authorized consultant to the Virginia Economic Development Partnership, research shows that the Turkish wood market offers export opportunities for Virginia companies. Although Turkey has the second largest forest area in the region after Russia and is the third largest producer of hardwood in the region after Russia and Romania, it cannot meet the demand for high quality saw and veneer logs.
Wood processing plays a significant role in Turkey’s economy, especially for rural employment, with industrial wood production mainly geared towards the manufacturing of wood-based panels (plywood, blockboard, particle board, medium density fiberboard, high density fiberboard and oriented strand board) and pulp. As consumption of wood products is extremely high in Turkey, domestic hardwood production has to be supplemented by imports. In terms of trade, the wood market sector is diverse and consists of a number of products including logs, sawn timber, veneers, panels, molding, doors and door frames, windows and window frames, flooring and other building components.
Turkish mills, wood panel and furniture industries have been using an increasing amount of U.S. logs, woodchips, hardwood and softwood lumber in recent years. U.S. forest products exports to Turkey reached $100.67 million during 2012. This was an increase of approximately 38% over the $72.3 million in sales for 2011. Turkey ranks eleventh in export value of wood products from the United States, representing 1.28% of market share. Virginia wood products exports to Turkey reached $2.3 million during 2012. This was an increase of approximately 156% over the $899,184 in sales for 2011. Turkey ranks eighteenth in export value of wood products from Virginia, representing 0.8% of market share. Virginia ranks sixth in export value of wood products from the United States, behind Georgia, North Carolina, Ohio, Louisiana, and New York.
The leading hardwoods export from the Virginia, as well as the United States, to Turkey is hardwood logs, as Turkey is unable to produce enough to meet its demand. Turkey is also an important market for American hardwood lumber with over $9.62 million worth of imports during 2012. Historically, the United States was Turkey’s main supplier of softwood logs, comprised mainly of southern yellow pine. Russia and Ukraine have become major sources for softwood logs for the Turkish wood products industry because of lower prices and, due to their proximity, lower shipping charges in smaller quantities in less time. Additionally, having nearby suppliers eliminates the need for storing large inventories in Turkey.
Opportunities for Virginia companies exist in Turkey for the higher quality grades of both hardwood and softwood lumber. Many Turkish companies interviewed by Atid, EDI, Ltd. have also expressed a growing interest in investigating U.S. sources of southern yellow pine. Should the euro continue to rise in value vis-à-vis the dollar, wood products from Virginia-based companies would then become increasingly attractive to Turkish importers.
The VEDP will be conducting a trade mission to Turkey from April 7 – 11, 2014. Click on the links below for more information:
Trade Mission to Turkey & NATO Seminar
April 7-11, 2014
Registration Deadline: February 7, 2014
Cost: $2,750
If you are interested in more information about the trade mission to Turkey, contact Jenee Andreev, Defense Initiative Manager at (703) 424-3887.
For more information about the Turkish wood products market, including a list of leading Turkish lumber importers, click on the following link for a copy of the detailed market report:
Virginia Opportunities in Turkey for Lumber and Wood Products
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