Turkish exchange to launch livestock bourse
Istanbul, August 27, 2011
The Turkish Derivatives Exchange (TurkDex) is working toward the launch of a livestock bourse in Istanbul in mid-September to help secure transparency and fair prices for cattle in the market, its chairman said.
Delivery will take place during Eid al-Adha in November. "This will be the first derivatives contract with a maturity of a religious feast," TurkDex Chairman Cetin Ali Donmez told Reuters in a telephone interview.
Cattle sold on the bourse will be male, more than 2 years old, an average of 500 kg and born in Turkey.
"Cattle will be delivered to owners during the four days of Eid in Tuzla near Istanbul, and the market will be attractive for wholesalers, supermarkets and voluntary organisations as well as individual consumers," Donmez said.
"It's too early to set a market size for the bourse, we have to wait and see. But the cattle market in the United States has an annual volume of $2.5 billion. Reaching 5 per cent of that size would be significant," he said.
The bourse is expected to decrease the number of street bazaars during the cattle sacrificing season and help shield children from scenes of animal slaughter.
Streets traditionally turn red with slaughtered animal blood during Eid al-Adha.-Reuters