Turkish Agricultural Economics

Turkish Agricultural Economics written by Anıl Sural in Italy, Trieste for Agricultural Eonomics Class.
Review for Proffessor Cosmina who is member of University of Trieste.

Today, nearly 1/3  rd of the population live in agricultural or rural areas. Agriculture’s place in the national income is only at the 8 – 10 % percent level.  In developed countries this situation is much more different, the population’s 3 – 5 %  percent part works in agriculture. During the process of The European Union membership, agriculture and industry’s political policies need to be applied in harmony and in Turkey, agriculture’s problems can be solved with only excessive accumulation and investment. The disintegration seen in the agricultural sector, causes unqualified labor force to head towards cities and especially western cities and this process accelerates social problems as well as the unemployment rate.  

Agriculture is one of the basic sectors Turkish economy. Although the contribution of exports in terms  added value and employment. The labor force and provides are living for the population of our country occupies an important position in terms of volume. Agricultural policies implemented in Turkey, it has been widely discussed over the past decade. "Economic denounces the traditional agricultural policies and political events that are open to abuse is no longer lost" jurisdiction, creating a common denominator of the discussions, recommendations for new policies are different.

Agricultural policies, it creates one of the most important constraints that appear in front of policy makers in the public finance deficit. On the other hand, and largely dominated by political concerns of the 1990s turned into duty losses of agricultural support programs fostering public financing deficits.
However, without financial constraints, a common and continuous government support to the agricultural sector of the market mechanism insensitive, competitive conditions and prevent the formation of agricultural holdings should be noted that an effective and powerful. Outward-oriented growth strategy since the early 1980s in Turkey, creating the international policies and developments in agricultural policies can not be considered to remain indifferent. In a world that has the economic globalization process, these developments, as required to be reckoned with at every stage becomes a constraint.

Related to the agricultural sector as the most important development in recent years in the world, which comes into effect in 1995. The World Trade Organization (WTO) "Agriculture Agreement" . This agreement is also important for Turkey, agricultural policies and support for government intervention in agricultural production are minimized as possible and has adopted as a general trend of change in the release of the orientation of the market mechanism. On the other hand, the European Union (EU) implemented in 1996 within the framework of full membership in the Customs Union (GB) Agreement to cover agricultural products, the Turkish agricultural policies, "the Common Agricultural Policy" (CAP) is consistent with. CAP’s compliance, in fact, the WTO, "Agriculture Agreement" with the policy changes to raise the same direction. These two constraints in most developing countries like Turkey, which appeared outside the external constraint in the other, establishing a framework for agricultural liberalization in the International Monetary Fund (IMF) and the structural adjustment programs signed.


Economic size of agricultural production in Turkey

4 million to 18 million hectares of farm land is in crop production. This is the number of farms in three million to 12 million hectares of meadows and pasture at the same time 15 million cattle, 60 million small ruminants feeds. 92 percent of the producers are very small producers, they have an average total of 65 acres of agricultural land in parts 2-6. Small businesses all over the classical method and yield of 14 million hectares of land has low agricultural operations.

The number of medium-sized agricultural holdings is 680 thousand units, the sum of their average 500-100 acres of agricultural land in parts 2-3 / acre varies. 2.1 million hectares, is operated on the part of modern agriculture.  Up to 40 thousand is a large number of holdings of 2.2 million hectares of land is on the efficient management of a farm.
U.S. and EU agricultural producers of the country, 2.5 times the size of the land to produce agricultural products, animal feeds, and Turkey to more than twice the presence of animals.

Exports of Turkish Agricultural Products

Mainly exported to Turkey markets, the appropriate species / breeds does not make production. Countries' agricultural export markets, the basic measure of a leader "by producing more than 20 percent of the population need to export the product that they caught the target.
Measure of exports  agricultural products produced in the standard one-fifth of the quantity and quality is protected.
2 percent of the cereal crop is exported to Turkey. Market instead of being prescriptive, law-abiding country. Average of 50 countries that export fruit and vegetables in 60 countries, the focal point of the problem for Turkey, product quality and less quantity ratio.

Use of the soils in Turkey according to the intended use of the territory of our country is divided as follows:

Cultivated land is planted area: 174,480,000 acres
Fallow land: 36,551,000 acres
Forestry: 192,376,000 acres
Bearing: 113,403,000 acres
Grassland: an unused area of ​​123,776,000 acres: 662,195,000 acres.

Surface area of ​​cultivated land by Region Plantation area Rates:

1. Marmara Region: 30%
2. Central Anatolia Region: 27%
3. Aegean Region: 24%
4. South Eastern Anatolia Region: 20%
5. Mediterranean Region: 18%
6. Black Sea Region: 16%
7. Eastern Anatolia Region: 10%


Overview of Agriculture Sector in Turkey

Turkey, its geographical location, climate, facilities, mostly young, on the 70 million population, increasing purchasing power and expanding domestic market due to a very advantageous position compared to many countries.

Local Benefits

- Geographically, the most suitable climate, a country with enough natural resources.
- Increasing population and buying power with the capacity to support the agricultural sector.

Foreign Market Advantage

- European countries are having problems of climate.
- Middle East and North Africa, climate and available water problem.
- Russia and the Turkic Republics in agriculture due to climate problems are just in need of foreign purchase.
- Increasing the purchasing power of oil every day throughout this country have.
- Especially in the emerging manufacturing technologies and the advantages of the climate of our country in many agricultural products year-round to produce the specific standards and has the potential to marketing these products.


Advantages of the product

- Overseas demand for economic production of many products that can be done in our country.
- Turkey is located in the world in the production of agricultural products grown a lot.

Impact of Economy  Agriculture in Turkey

Agricultural exports surpassed U.S. $ 15 billion at the end of 2010, but there is still a very big potential.

- The population is 1 / 3 of the third agricultural activities provide livelihood.
- One out of every 4 Employees working in agriculture.
- Agricultural production has exceeded the annual 62 billion dollars.
- The majority of uses of agricultural materials as raw materials in industrial plants in Turkey. This situation is of great importance in the development of the industry.
- Agricultural exports in total exports with 15 billion dollars has a significant share of 13.2%. Exports, nuts, citrus, cotton, tobacco, oil crops, olive and agricultural products like tea occupies an important place.


The future of agriculture in Turkey

Ministry of Agriculture and Rural Affairs, agricultural production, $ 150 billion in 2023, provides for exports would be 30 billion dollars.

Ministry of Agriculture and Rural Affairs last 5 years, significant amounts of agricultural production increased, the agricultural production in 2002 of $ 23.7 billion by the year 2010 reached $ 62 billion announced. The Ministry is managing the development process on behalf of the plan concentrates on the control and recording systems. Easy integration of these systems are common uses of the technology production sectors. In other words, instead of the traditional methods of agricultural production, focuses on high-capacity models of agricultural production.

In these circumstances, and under cover of Dairy Cattle farming practices that will gain importance in the adaptation capability in the future. Both domestic production and exports of both agricultural activity will be a major force in increasing our share.

All of these applications and the development process will be an important criterion business size. Because of the high cost of these investments will bring. Capital structure of the available capacity of non-small businesses that are inevitable in the long term, non-system will inevitably fail to fulfill the conditions. As a result, agricultural, educated, informed, investors who take care of the economies of scale will be needed.

Target 2023 to 150 billion US Dollar of agricultural production!

- Quality standards will be important in agriculture and food security. For this reason, the capacity and quality will increase the number of businesses declined.
- Products able to compete in foreign markets will increase with the planned arrangements. Will be important, especially fresh fruits and vegetables.
- Organized livestock zones will be established.
- Contract production and organic agriculture will come to the fore.
- Research & Development ( R & D ) investments will increase its support of the State.
- The majority of investors in high-tech agricultural activities will be managed.