Agriculture

Agricultural Structure and Policy

Historically, the agriculture sector has been Turkey's largest employer and a major contributor to the country's GDP, exports and industrial growth. However, as the country has developed, agriculture has declined in importance relative to the rapidly growing industry and service sectors.

Although agriculture has become a less significant sector in the Turkish economy over a period of several decades, it still accounts for a relatively larger share of total output and employment than in many other countries. However, this share has tended to fall over time. Agriculture's share of GDP declined from 35% in 1970 to 22% in 1980 and to 16.4% in 1995. Crops represent 55% of the agricultural sector, livestock represents 34% and the rest comprises forestry and aquaculture.

Turkey is the largest producer and exporter of agriculture products in the Near East and North African region. Export of agricultural commodities (excluding agroindustry) were valued at $2.3 billion in 1995 and accounted for 10.7% of Turkey's total export earnings.

Turkey has a vast agricultural resource base with significant potential to expand output, particularly through increased crop yields. In the past, the government has intervened heavily in its agricultural sector through price supports, input subsidies, import protection, marketing monopolies and export subsidies and taxes. To increase food self-sufficiency and rural development, stabilise farmers incomes, provide adequate nutrition and affordable food and promote exports have been adopted among government objectives.

Since implementing its first structural adjustment program in 1980, Turkey has developed ongoing series of agricultural policy reforms designed to privatise markets, to reduce agricultural subsidies, to remove trade barriers and to integrate Turkey into the global economy. Measures adopted under the program included currency devaluation, price and trade liberalisation and the opening of financial markets.

Turkey's structural adjustment program improved agricultural export competitiveness and increased output and trade, from 1980 to 1994 overall volume of agricultural production rose by an average of 3% per year. Output and yields of the major agricultural production rose by an average of 3% per year. Output and yields of the major agricultural products increased steadily.

During this period a number of changes occurred. Cultivated land area rose by an estimated 2.4 million hectares, approximately 14.5%. The most intense change occurred in 1982, when fallow area dropped by 1.6 million hectares compared to the previous year, as a result of large input imports, particularly seed and fertiliser. Also, a strong push in the production and export of pulses tripled the area devoted to those crops. While over-ally yields have risen, there were regional differences in fertility. Field crop yields are usually two to three times higher in the milder coastal areas (Aegean and Mediterranean regions) than in the colder and generally drier areas of central and eastern Turkey.

Despite the overall trade deficit of Turkey, the agriculture trade balance is significantly positive, providing some relief to external accounts. Trade liberalisation and rising demand in the region resulted in agricultural product exports rising to a value of $2.3 billion in 1995.

A long-standing goal of the Turkish Government and one of the main components of the five-year development plan is to provide an adequate and balanced diet for a growing population and, in particular, to increase per capita consumption of animal proteins. As economic development increases dietary diversity, the country's caloric intake is approaching European levels.

Over the last three decades, Turkey's population has been migrating not only to urban areas but also to other countries. In 1950 the rural population represented 75% of the total; four decades later, it had dropped to 40%. In the 1980s, urbanisation grew at an annual rate of 6%. Rural-urban migration is largely an inevitable consequence of industrialisation.

Resources and Environment

There are economic disparities between rural and urban areas. However, the government is strengthening infrastructure, communications, and the agriculture resource base and expanding employment opportunities by upgrading local enterprises and attracting new industries. The focus of the policy is the development of the Southeastern Anatolia Project (GAP).

Irrigation is a means of reducing weather-induced production variations. Therefore, Turkey is giving high priority to improving land and water resources and expanding irrigation. It has designated about two-thirds of total public agricultural investment for land and water improvement.

Environmental degradation and resource conservation are of increasing concern to the Turkish agricultural sector. Intensifying production, especially by using chemical fertilisers, pesticides and irrigation, puts further emphasis on the environment.

Source: State Institute of Statistics

Vegetal Products

Vegetal production is mainly made up of cereals, pulses, industrial plants, perishables and fodder crops. Turkey has a major role among the important producing countries of pulses and has the means to dominate the world trade in pulses. The number of countries importing Turkish pulses in the last five years is over 40.

Cereals are of great importance in Turkish agriculture. Wheat, barley, oats, rye, spelt, maize, millet and rice are the main species of cereals produced in Turkey.

Wheat is the major grain produced in Turkey. Although its output stagnated in the early 1980s, it has recently expanded because of increased fertiliser and irrigation use.

Turkey is the main producer of oriental type tobacco in the world. Among the main industrial crops produced in Turkey, tobacco is a traditional agricultural export item of the country.

In vegetal production, perishables constitute the backbone of the sector. The country produces 80 types of fresh fruits and vegetables out of 140 products grown in the world. Out of 80 types of fresh produce, 50 kinds are exported. 

Source: Undersecretariat for Foreign Trade

Edible Nuts and Dried Fruits

Turkish edible nuts and dried fruits production is considerable and dominates the world markets. Among edible nuts and dried fruits, hazelnut, pistachios, sultanas, dried apricots and dried figs are of significant importance for Turkish agricultural export. Due to this importance, they are called traditional agricultural export products of Turkey.

Historical documents reveal that hazelnut has been grown along the Black Sea Coast in northern Turkey since 300 BC. With its prominent position among hazelnut producing countries, Turkey leads the field.

Fig cultivation is believed to belong to the Mediterranean basin, especially to Anatolia. Accordingly, the local fig species (Ficus carica) derives its botanical name from the historical district, Caira, in the western part of Turkey. Producing 36% of the world's total fig production, Turkey has a 70-75% share of the total world exports.

Sultanas and apricots are also among the traditional agricultural export products of Turkey. Production levels are high and Turkish dried sultanas and apricots dominate the world markets.

Livestock

Turkey is one of top countries in the world as fas as the number of animals is concerned. Sheep, the common goat, the Angora goat whose homeland is Turkey and cattle constitute 60%, 17%, 3% and 18% of the existing animal total in Turkey respectively. The figures above clearly elucidate that sheep constitute the most significant area of animal husbandry in Turkey Climate and geography also have an important bearing on the location and type of animal husbandry carried out in the country. Intensive animal husbandry is carried out in the regions of Western Anatolia and Thrace. Milk is produced throughout the country.

Over the past decade, the government has initiated measures to raise the productivity of its livestock sector. Among these are genetic improvement of meat and dairy herds through dairy cattle and bull semen imports and improved nutrition and veterinary service. Special emphasis has been placed on developing animal husbandry in the eastern and southern Anatolia regions and expanding fodder crop production.

However, domestic animal output is below domestic demand, thus animal slaughter has tended to exceed animal birth rates; animal and meat imports are on the rise and exports of live animals and meat products have declined.

Domestic poultry consumption has grown most quickly, largely displacing traditional meats such as lamb, mutton and goat.

Fishery

Turkey has been known as a country of fishery products since ancient times. Surrounded by seas on three sides, Turkey also boasts numerous lakes and rivers where a wide variety of fish live.

Agroindustry

Rapid growth occurred throughout the 1980s, led by manufacturing but also by agroindustry and a resurgence of both domestic and foreign investment in Turkey. Reform of the foreign exchange system left exporters largely free of restrictions in international transactions. Trade policies, which included tax rebates, export credits and credit subsidies, also enhanced the export performance of the sector.

Turkish agroindustry brings together producers of varying status and size. They range from small individual units, large and small cooperatives, to multinational organisations who run their own research and development. Also important are the small to modest-sized specialist and craft businesses which offer limited but high quality products, often using traditional methods and recipes.

Turkey has an age-old tradition of preserving food, which for a long period of time was based on salting and drying methods. Nowadays, the plants situated in the different food-producing areas employ advanced preservation techniques and use the most sophisticated and attractive types of packaging.

The nature of Turkey's fruit and vegetable production means that an extensive range of fruits, such as grapes, figs, olives, apricots, sour cherries, strawberries; and vegetables such as potatoes, tomatoes, leeks, peppers, onions can be preserved by different methods and presented in a variety of ways. One of the infant but rapidly growing agroindustry sectors of Turkey is the frozen fruit and vegetable industry which has existed for about 25 years. In this sector more than 90% of the production is exported. The dehydrated vegetable industry is yet another minor branch of the Turkish agroindustry. One of the most developed branches of Turkish agroindustry is the fruit juice and concentrates industry. But, in general, the biggest share in the exports of processed vegetables and fruits belongs to tomato paste and today its quality is known worldwide to all importers.

Processing of milk and dairy products on a commercial basis and in modern plants dates back 35 years. Despite its fragmented structure, Turkey is the largest producer of milk and dairy products in the region. Domestic dairy product consumption has grown most quickly. Overall milk production has stagnated, output of cow's milk has increased but milk from other sources has decreased.

Possessing suitable climatic and ecological conditions, Turkey has an important place among other countries in the world regarding oilseed production. Several vegetable oils such as olive oil, sunflower oil, corn oil, cottonseed oil, soybean oil, daphne oil and hazelnut oil are produced in Turkey.

Recently, the sugar confectionery, chocolate and cocoa products industry has become one of the most advanced food sectors in Turkey, as a consequence of modernisation in the production plants and new investments made in the sector. The type of products is widely diversified.

Due to high volume of raw material, pastry and milling industry products account for approximately half of the agroindustrial output in terms of value. Major products of this sector are wheat flour, semolina, cracked wheat, bread, macaroni and biscuits.

Agricultural Trade Policy

Turkey's proximity to Europe, the Middle East and North Africa gives it easy access to large markets through the Black Sea to the north, the Aegean Sea to the west and the Mediterranean Sea to the south. Likewise, Turkey's internal market, which is characterised by high population growth rates and growing incomes, should also experience rapid growth in demand for more food of higher quality.

Thus, agriculture in Turkey holds the promise of making a major contribution to Turkey's economic development. The principal objectives of the Turkish agricultural policy are set out in successive five year development plans. These are to stabilise agriculturel prices; to provide adequate and stable incomes for those working in agriculture; to meet the nutritional needs of the growing population; to increase yields and outputs; to reduce the vulnerability of production to weather conditions; to develop rural areas; to promote the application of modern agricultural techniques and to develop the export potential of agriculture. As a result of the latter, agricultural exports have expanded rapidly over the last decade.

Since its initial reform efforts in the early 1980s, Turkey has made significant strides in opening up its borders to imports and reducing controls on exports. Turkey has made moves to harmonise its trade policies with those of the European Union and the European Free Trade Association and has entered into new regional trading arrangements.

As of January 1, 1996 -the date of the entry into force of the Customs Union with the EU- Turkey has eliminated all custom duties and charges having equivalent effect on imports of industrial products from the EU. The Custom Union initially covers only processed agricultural products containing cereals, sugar and milk along with industrial products. Free circulation of traditional agricultural products between Turkey and the EU will become possible to the extent that Turkey approximates its agricultural policy to the Common Agricultural Policy of the EU.

Agricultural potential has not been fully realised nationwide. Despite agriculture's diminished role in the Turkish economy, it still accounts for a large share of total output and employment. However, farm size and land fragmentation are major obstacles to agricultural progress and efficiency.

Source: Undersecretariat for Foreign Trade
Source : IGEME Export Promotion Center of Turkey publication Turkey 95, Turkey 96
Prime Ministry
Undersecretariat for Foreign Trade