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4 Ocak 2013 Cuma

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.

6 Ocak 2012 Cuma

World Market Assessment 29th December 2011


Asian markets also continued to decline in the third day. Policies of central banks in Asian countries seem annoyed by the market players. Decisions will interest rate cuts from the players concerned about weak growth forecasts. In fact in the entire world market professionals were not satisfied with the policy of central banks stress. Environment is quite a record level increases the vulnerability of the ECB balance sheet of the euro. European banks, the ECB overnight deposits displaying a record of interest in the risk appetite is quite reduced. Tension in Iran for now static. Today will be Italy's long-term bond auction. According to analysts, short-term bond auctions may change the long-term status even if the tender for the high demand and if banks take their money from ECB, stock markets can be increase.
Today's CPI figures in Germany and the U.S. unemployment claims also to be followed closely. Almost all analysts agree is entered or a year filled and coming news from Central Bank of the Turkish Republic (CBRT) it demoralize. Yesterday the Central Bank President Erdem Başçı told inflation to 10% on the might, foreign currency contracts as described previously said it will continue. According the Erdem Başçı, Extremely difficult to demonstrate a strong performance against the Dollar in the Turkish Lira(TL). But Turkish Lira(TL) can cope with the weakening Euro. Minister of Finance-Turkey, Mehmet Şimşek said in December could be budget deficit. Explanations aren't be good result for Turkish Econmy. Istanbul Stock Exchange(ISE) closed yesterday with falling. USD / TL, 1.91 's beginning to the sun set over. Over 11% interest.

Negative hard to move and release of yesterday's markets of Asia nowadays pessimistic trend began to decline. Per day which is not a busy agenda from Germany 10 bps lower than expected inflation figure in Europe turn its slightly positive sales trends continued to watch the factor although the domestic market. From U.S. and over the expected weekly un employment data did sellers stronger. At 5 o' clock explained and much better then expected ''U.S. Pending Home Sales'' data effected Istanbul Stock Exchange (ISE) has been positive. In a very short period of time by over 1% premium spirits markets managed to enter the last day of the year. ISE-30 Index has increased 675 points and it closed with 62,599. Maturity is 1 day remaining VOBIX030-Ara11 1.58% recorded an increase of index warrants are used as the underlying asset rather than that from tomorrow, February-12-term promissory notes to be accepted as a basis VOBIX030 stock. The ECB's recent record-level extend credit to banks and the balance sheet was a record level. Italy is in the sales can be made up to the maximum amount the auction made ​​the long-term debt, interest rates declined according to a previous tender. In addition, loans in euro-zone M3 money supply growth slowed in the observed slowing down. Domestic market is closed at the time DAX 0.80%, The CAC is coming the 1.23% premium. From US datas are satisfactory. These are S&P500 0.81 premium 1.260% , DJ with a 98-point increase in it trades on the level of 12.250. Euro / dollar parity, days in the last 1-year low of 1.2858 level to try and close the day of the level of 1,292. Euro 1.30 's today under the circulating, the Dollar / TL parity at the peak of the history. During the day with a record-breaking U.S. $ 1923, day of 1916 from closed. Commodities is going down hardly and oil the lowest level of the week lastly the gold and silver also continued to decrease. Brent, $ 107.2, Gold $ 1.537, Silver is $ 26.92 from trades on. Cumhuriyet gold (coin) 3.06% losing value and it is 633 Turkish Lira(TL).

18 Ekim 2011 Salı

Global Financial Markets and Turkey Market of Capital Investment


Global Financial Markets and Developments in Post - Crisis

* Post-crisis recovery process

- The increasing role of governments (to inject liquidity into the markets)
- Interest rates to come down to the lowest levels in history
- Liquidity turn to the abundance of the stock markets

* Increased budget deficits

- EU support packages

* The high volatility of financial markets

* More stringent regulation and surveillance

- Close cooperation between international institutions more rapid recovery in emerging markets.

Turkey: Post-Crisis Economy Emerging period

-Strong banking sector.
-Effective working in the presence of the regulatory supervisory authorities.
-High capital adequacy ratios.
-The public deficit to GDP ratio of Maastricht Criteria to be below.
-Structured products and derivatives have a limited number.

Conjuncture of Turkey

- S & P, Moody's and Fitch upgraded the credit rating of Turkey.
-  Organisation for Economic Co-operation and Development (OECD) Report of 2010 growth forecast to 8.2 % in Turkey and also in the future of the G-20 countries is expected to take place at the beginning of the fastest-growing economies.
- Turkey 2 of 2010 quarter grew by 10.3 % over the same period the previous year, had taken first place in the world.


Turkey Capital Markets Overview

* Funds would be free movement

* Transparent Markets

* Electronic Public Disclosure Platform

- Accounting and general arrangement of regulations in international perspective
- IFRS since 2005.
- Corporate Governance Index from August of 2007.
- The envisaged changes in the Turkish Commercial Code.

* Advanced Market Infrastructure

- International standards-compliant legislation
- A strong and competitive in a technological infrastructure.

Important developments in the Istanbul Stock Exchange (ISE)

- The best performance in public offerings since 2000.
- As of November 30th, 2010 the number of shares in the Initial Public Offering (IPO) of the company in 2010 is 19.
- As a result of public offerings in 2010: 2 billion Turkish Lira contributed to the Turkish economy and company.
- On the other hand, 10 pieces in 2010 by issuing bonds and notes, provided the source is the amount of 740.5 million Turkish Lira.


Other important developments in the Istanbul Stock Exchange

* The National

- The restructuring of the market and the markets.
- Market maker system and the application of the single price.
- Opening session application
- Public Disclosure Platform
- Warrant and other structured products
- City index (9 cities)

* Regional

- In common with Athens Stock Exchange index: GT-30 (28 September 2009)
- FEAS Indexes (3 June 2009)
- Continuing work on establishing a new index within the OIC.


Istanbul Stock Exchange New Market Areas

* Corporate Products Market

- Continuous auction market maker.
- Auction and the "One-Price Method".
- ETF' s venture capital and real estate investment trusts and other structured products.

* Emerging Business Markets

- Recorded by Capital Markets Board, but the companies that our Stock Exchange listing requirements.
- One price and market making.
- The mechanism of the market consultant.

* Qualified Investors Export Market

- Equity securities traded companies, and representatives borrow Bonds and Bills Market.

International Activities

- "Eurasian Union of Stock Exchanges" (Federation of Euro-Asian Stock Exchanges - FEAS) Presidency

- "The World Association of Stock Exchanges" (The World Federation of Exchanges - WFE) Executive Board Member.
- "The European Federation of Stock Exchanges" (Federation of European Securities Exchanges FESE) noble membership (06/23/2010)
- "Economic and Commercial Cooperation of the Organization of Islamic Conference Standing Committee - the COMCEC," which is implemented under the leadership of studies undertaken within the framework of the "Islamic Stock Exchanges Forum Countries" in Istanbul is home to the meetings since 2005.
- Greece Stock Exchange and launched ETFs axis of cooperation, notably Russia and the Gulf countries in the region and also planned.


21 Şubat 2011 Pazartesi

Turkish Car Brand


Turkey has not got its own car brand. Large foreign companies have factories in Turkey. We are doing offshoring. Offshoring simply means having the outsourced business functions done in another country. Namely, taking job sending outside work, sent people for work there.
We have got many different car factory but we are producing foreign brands. Yes we earn money and make profit. However this is not our brand we are intermediately. We work for the other country corporations. We have manufactured for the other countries, at least we should have a one Turkish brand. Last months Prime Minister Recep Tayyip Erdogan met with businessmen in Turkish Manufacturers and Businessmen of Association. The purpose of the meeting: 41th General Assembly. Prime Minister Erdogan talked about very important issue. He said: ‘’ In Turkey, we have not our car brand. You are important and rich business man. I want at least Turkish car brand, for this reason you should begin this subject and establish our car brand. Government will be supportive and encouraging your company’’. And then some companies start the create Turkish car brand. They have started research.


Now, we can do SWOT analysis for 
‘’Turkish Car brand’’

Firstly what is SWOT analysis?
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. This analysis leads to production and business.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.


SWOT stands for the word:

Strengths: characteristics of the business or team that give it an advantage over others in the industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
Opportunities: external chances to make greater sales or profits in the environment.
Threats: external elements in the environment that could cause trouble for the business.


Letters meaning:

S-O strategies : pursue opportunities that are a good fit to the company’s strengths.
W-O strategies : overcome weaknesses to pursue opportunities.
S-T strategies : idenify ways that the firm can use its strengths to reduce its vulnerabilty to external threats.
W-T strategies : establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats.


Let’s do SWOT analysis for ‘’Turkish Car brand’’


*Strengths Aspects and Opportunities

- The European Union and the Customs Union and the harmonization of global technical regulations.
- Proximity to the European market
- Turkey has got lower cost labor force than Europe
- Competitive costs, flexible manufacturing capability
- Competitive supply chain
- High quality standards
- Well-trained skilled workforce
- Partnerships with foreign firms and advanced sub-industry . And ‘’know-how’’ level.
- Potential will be an international production center in the advantage of geographicallocation  
- The Potential of Research & Development design center
- Domestic market potential
- After the global crisis, production centers changed location
- The country has become attractive for new investments
- Research & Development investment incentives and advantages provided by new
- The development of logistics
- Export potential to the global market
- The new vehicle project, at the beginning of the project supply industry will be common


*Weaknesses Aspects and Threats

- Not given sufficient resources to Research & Development
- Lack of sufficient testing center
- The relationship between the main and sub-industry failure at the same time lack of sufficient synergy
- Common design failure  with the lack of firm
- Motor vehicles and parts and components to the low share of local content
- Capacity building and technology decision-makers delay in investment decisions
- High production costs caused by low capacity utilization rate
- Eastern Europe, China and India to take part in new projects with high added value parts perfect
- Qualified human power imbalance of supply and demand
- Problems in foreign markets
- In Turkey import and export procedures have got many bureaucratic procedures
- Technical regulations and related administrative deficiencies
- The height of the tax sale of motor vehicles
- Reduction of tax on motor vehicles, depending on the age of the vehicle
- Fuel oil tax burden
- Second-hand cars in the European Union free movement
- Energy efficiency and environmental law studies and the uncertainties about the new legislation
- Lack of logistics infrastructure
- High inputs
- Inability to obtain necessary raw materials indigenous

Turkey's total capacity above 1.5 million

Now, Let’s look the car sector in Turkey

* Organization name: A.I.O.S
Production site: Kocaeli
In production: Lorry, Van, Minibus
2010 capacity: 13.155
The share of domestic capital(%): 70.6 %

* Organization name: B.M.C.
Production site: İzmir
In production: Lorry, Van, Minibus, Medium-Size Bus, Bus
2010 capacity: 20.00
The share of domestic capital(%): 100 %

* Organization name: Ford Otosan
Production site: Eskişehir
In production: Lorry, Van, Minibus
2010 capacity: 330.000
The share of domestic capital(%): 59 %

* Organization name: Honda Turkey
Production site: Kocaeli
In production: Car
2010 capacity: 50.000
The share of domestic capital(%): 0 %

* Organization name: Hyundai Assan
Production site: Kocaeli
In production: Car, Van, Minibus
2010 capacity: 125.000
The share of domestic capital(%): 30 %

* Organization name: Karsan
Production site: Bursa
In production: Lorry, Van, Minibus, Medium-Size Bus
2010 capacity: 28.000
The share of domestic capital(%): 100 %

* Organization name: M.A.N Turkey
Production site: Ankara
In production: Lorry, Bus
2010 capacity: 1.700
The share of domestic capital(%): 0.1 %

* Organization name: Mercedes-Benz Turk
Production site: Istanbul/ Aksaray
In production: Lorry, Bus
2010 capacity: 18.500
The share of domestic capital(%): 15 %

* Organization name: Otokar
Production site: Sakarya
In production: Lorry, Minibus, Medium-Size Bus
2010 capacity: 8.800
The share of domestic capital(%): 100 %

* Organization name: Oyak Renault
Production site: Bursa
In production: Car
2010 capacity: 360.000
The share of domestic capital(%): 49 %

* Organization name: Temsa
Production site: Adana
In production: Lorry, Van, Minibus, Medium-Size Bus,
2010 capacity: 10.500
The share of domestic capital(%): 100 %

* Organization name: Tofaş
Production site: Bursa
In production: Car, Van
2010 capacity: 400.000
The share of domestic capital(%): 62.2 %

* Organization name: Toyota
Production site: Bursa
In production: Car
2010 capacity: 150.000
The share of domestic capital(%): 0 %
















Bibliography*
- This web sites used for SWOT Analysis Definition
http://www.quickmba.com/strategy/swot/
http://en.wikipedia.org/wiki/SWOT_analysis