Agriculture 

With its favorable geographical conditions and climate, Turkey is considered to be one of the leading countries in the world in the field of agriculture and related industries. This impressive position is best attested by rising exports in almost every kind of agricultural products, placing the country amongst the world’s largest producers.

The restructuring efforts that began in the early 1980s, alongside a series of reforms such as privatizations and the reduction of trade barriers in the agriculture sector, resulted in a domestic market that is an integral part of the world economy today. Subsequently, agricultural exports, excluding processed food, increased to USD 5 billion in 2010, up from USD 1.7 billion in 2002.

As of 2010, the share of the agricultural sector in Turkey’s GDP is 8.4 percent, down from 10.1 percent in 2000, and the sector recruits around 25 percent of the total workforce in the country.

Around 40 percent of Turkey’s land area is arable and this ample potential offers a large range of products such as grains, pulses, oil seeds, fruits and vegetables, cut flowers, poultry, milk and dairy products, fishery, honey and tobacco. Crop production, livestock and fishery/forestry account for 67 percent, 26 percent and 7 percent of the total agricultural production respectively.

Internationally, Turkey has a strong dominance in production and exportation of many agricultural products such as hazelnuts, dried apricots, sultanas and dried figs. In addition, Turkey’s food industry is much better developed than that of the neighboring countries. Given these factors, the country is one of the largest exporters of agricultural products in the Eastern Europe, Middle East and North Africa (EMEA) region, while its trade balance is significantly positive.

Turkey has a population of 74 million people and is growing with a rising income. This makes Turkey one of the largest markets in its region, and the changing consumer habits of the younger generation boost domestic consumption. 

Turkey offers a fertile agricultural investment environment to the entrepreneurs on the back of the following:

• Strong geographical location, e.g. favorable climate conditions and proximity to major markets
• Competitive labor force which is particularly important for labor-intensive food producing activities
• Availability of almost all raw materials for the industry
• Continued government investments in the form of major irrigation projects, infrastructure improvements and consolidation of small-sized farm lands
• Government support for agricultural investments
• Increasing production efficiency due to progressive automation

Key figures about Turkish agribusiness:

• Turkey is the world leader in the production of dried figs, hazelnuts, sultanas/raisins and dried apricots.
• The total exports of agricultural products (including processed foods) reached USD 12 billion in 2010.
• Turkey has the largest milk and dairy production in its region.
• Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500.
• The agricultural production in 2010 was USD 62 billion, up from USD 24 billion in 2002.

Turkey’s ambitious vision of 2023, the centennial celebration of the Republic, envisages grandiose targets for the agriculture sector in Turkey. These targets include: 

Strengths Suitable ecological conditions and good climate for agricultural production Government support for investments in agriculture Turkey’s increased importance in the region due to the size of its population: 73 million people as of December 2009 Turkey has a more developed agricultural production industry than neighboring countries, signaling important export opportunities Increased interest in Turkish agriculture in recent years from investors from the Middle East and elsewhere Increasing production efficiency due to progressive automation		Weaknesses Highly fragmented structure with a large number of small businesses which are highly dependent on government subsidies for their survival Since the harmonization process with the EU is still in progress, Turkey’s ability to export livestock to EU countries is an unresolved issue High cost of machinery prevents small-scale farms from increasing their production efficiency The increase in feed prices positively affects feed producers (i.e. corn), but negatively affects the livestock sector

Opportunities Turkey’s strategic geographical position offers significant opportunities for trade Turkey’s likely EU membership could introduce significant new export opportunities Competitive labor prices Increased interest in organic farming due to the rising focus on health issues		Threats Weather conditions like droughts or flooding threaten agricultural production Unstable feedstock prices Pressure on the government to reduce agricultural subsidies