Overview of Turkish Agricultural Sector PROF. DR. SEDEF AKGÜNGÖR ECN 3204 Week 2

THE STRUCTURE OF TURKISH AGRICULTURE

THE STRUCTURE OF TURKISH AGRICULTURE Turkey has a total population of 69 million people (2007) and a continental land area of 783.562 km². The country has been experiencing solid economic growth in recent years. The EU is Turkey's main economic partner: 60% of exports and 43% of imports in 2007.

Agriculture’s Contribution to the Economy: Some Numbers 1. Agriculture’s Contribution to Population and Labor Table 1: Population Source: Turkish Statistical Institute

Agriculture’s Contribution to the Economy: Some Numbers In 2007, agriculture represented 8.7% of GDP and 26.4% of employment, but these figures are decreasing. Social and economic development of rural areas is a major challenge for coming years.

Agriculture’s Contribution to the Economy: Some Numbers 1. Agriculture’s Contribution to Population and Labor Table 2: Sectoral Distribution of Active Population 1955 1965 1970 1980 1985 1990 2008 Agriculture 77,4 71,9 67,3 63,9 59,0 46,5 23,7 Industry 8,1 10,3 12,1 15,5 15,0 15,8 21,0 Services 14,5 17,8 20,6 24,5 26,0 38,1 49,5

Agriculture’s Contribution to the Economy: Some Numbers Turkey is a major world producer and exporter in some agricultural sectors (e.g. fruit and vegetables). Agriculture’s Contribution to Production Table 3: Production of Cereals (1000 Ton) Products 1980 1996 1997 1998 1999 2000 Wheat 16 500 18 500 18 650 21 000 18 000 Barley 5 300 8 000 8 200 9 000 7 700 Corn 1 240 2 000 2 080 2 300 2 297 Rye 525 245 235 232 233 260 Oat 355 275 280 310 290 314 Rice 143 168 165 189 204 210

Agriculture’s Contribution to the Economy: Some Numbers 2. Agriculture’s Contribution to Production Table 4:Production of Industrial Products (1000 Ton) Products 1980 1996 1997 1998 1999 2000 Sugarbeet 6 766 14 543 18 401 22 283 17 102 18 781 Cotton 500 784 832 882 791 880 Tobacco 228 225 286 251 243 208 Opium 14 5 11 28 31 12 Aniseed 25 19 21 23 20 Other 50 27 26 29 - Table 5: Number of Cows YILLAR 1980 1996 1997 1998 1999 2000 Number of Cows (1000 Adet) 15 894 11 886 11 185 11 031 11 054 10 761 Change (%) 100 -25,2 -29,6 -30,6 -32,3 Source: Turkish Statistical Institute

Agriculture’s Contribution to the Economy: Some Numbers 3. Agriculture’s Contribution to Nutrition Table 6: Per Capita Food Consumption (1992-2000) (kg) Food Germany Italy Sweden Turkey Cereals 68,1 120,8 74,0 208,8 Rice 2,4 5,1 4,7 6,5 Potatoes 73,6 41,1 44,9 59,9 Sugar 34,3 26,9 42,5 27,2 Vegetables 82,5 178,2 89,6 190,3 Wine 23,1 63 41,8 NA Meat (carcass) 85,6 74,5 67,9 20,7 Dairy products 93,3 63,8 121,2 87,6 Butter 6,8 6,2 2,1 Eggs 14,2 11,5 11,4 Oil 14,9 1,8 Meat and dairy product consumption is lower than industrialized countries. Cereals Basic nutrition item. Source: Eurostat

Agriculture’s Contribution to the Economy: Some Numbers 3. Agriculture’s Contribution to Industry Source of raw material Agribusiness Source of employment for the industry both for the input markets and the output markets (inputs: fertilizer industry, seed industry, automotive industry (tractors, etc), feed industry)

Agriculture’s Contribution to the Economy: Some Numbers 3. Agriculture’s Contribution to Industry Table 7: Production of Processed Ag. Products Products Unit 1990 2003 % Change Sugar ton 1579078 1881237 19,1 Flour 1364844 1916263 40,4 Margarine 483831 570062 17,8 Sunflower Oil 386863 305652 -20,9 Olive Oil 20323 40003 96,8 Rakı 1000 liters 61648 57160 -7,28 Beer 370232 601910 62,5 Cotton Weaving 1000 meters 690065 701426 1,64 Wool weaving 24360 31959 31,19 Cotton thread 337657 580394 71,8 Wool thread 59542 36044 -39,46

Agriculture’s Contribution to the Economy: Some Numbers 3. Agriculture’s Contribution to National Income Table 8: Sectoral Distribution of GNP

European Commission Agriculture and Rural Development Turkey’s Agriculture and Enlargement

Agricultural Sector - General Overview Economy and Structures About half of Turkey’s total land area is devoted to agriculture, which is slightly above the EU-27 average (41%). This would represent 22% of the EU-27 agricultural area if Turkey joined EU. In 2007 roughly 26% of the workforce was employed in agriculture, and in the same year the sector represented 9% of GDP. According to the 2001 census there are approximately 3 million agricultural holdings in Turkey and15 million in the EU-27. Holdings are smaller than EU average (6 ha, compared to an EU-25 average of 13 ha).

Agricultural Sector - General Overview Economy and Structures Subsistence and semi-subsistence farming is an important characteristic of Turkish agriculture. In the arable crops sector Turkey is a major producer. The production of cereals (not including rice) was 30 million tonnes, 11.4% of the EU-27 in 2007. Turkey is a major world producer and net exporter of fruit and vegetables: 41 million tonnes, 60% of EU-27 production of fruit and vegetables. As regards nuts, Turkey is a major world player and world’s largest exporter in hazelnuts. Sectors

Agricultural Sector - General Overview Sectors For other crops, Turkey is a competitive producer of certain grain legumes: Chickpeas and lentils Cotton Some qualities of sugar Tobacco Olive oil. For animals and animal products, Turkey has a highly protected market including import restrictions. Turkish meat consumption per head is about 1/5 of EU average.

Agricultural Sector - General Overview

Agricultural Sector - General Overview

Agricultural Sector - General Overview

Agricultural Sector - General Overview EU-27 Agricultural Trade with Turkey Turkey is a significant agricultural exporter. Turkey’s main trade partners are the EU-27 countries. Turkey has a high trade surplus with the EU-27: 1.5 billion euros in 2009. Turkey has important trade relations and a trade surplus with countries in the Mediterranean basin and the Gulf region.

Agricultural Sector - General Overview EU-27 Agricultural Trade with Turkey Bilateral trade liberalisation in agriculture is asymmetrical. EU grants Turkey preferential market access within the Customs Union, while Turkey grants relatively lower preferences on agricultural products. Turkey maintains an import ban on most live animals and animal products. Roughly 70% of Turkish agricultural exports to the EU enter duty free.

Agricultural Sector - General Overview

Agricultural Sector - General Overview

End of class, Have a Nice Weekend.