Overview of Turkish Agricultural Sector

PROF. DR. SEDEF AKGÜNGÖR

ECN 3204Week 2

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.

THE STRUCTURE OF TURKISH AGRICULTURE

Agriculture’s Contribution to the Economy: Some Numbers

1. Agriculture’s Contribution to Population and Labor

Census Years

Total Population

Population in Villages

% Urban Population

% Population Growth Rate

1927 13685270 10342391 75,8 3305879 24,2 1935 16158018 12355376 76,5 3383642 23,5 2,11 1940 17820950 13474701 75,6 4346249 24,4 1,96 1945 18790174 14103072 75,1 4687102 24,9 1,06 1950 20947188 15702851 75,0 5244337 25,0 2,17 1955 24064753 17137420 71,2 6927343 28,0 2,78 1960 27754820 18895089 68,1 8859731 31,9 2,85 1965 31391421 20585604 65,6 10805817 34,4 2,46 1970 35605176 21914075 61,6 13691101 38,4 2,52 1975 40347719 23478651 58,2 16869068 41,8 2,50 1980 44736957 25091950 56,1 19645007 43,9 2,07 1985 50664458 23798701 47,0 26865757 53,0 2,49 1990 56473035 23146684 41,0 33326315 59,0 2,17 1995 62526000 25635660 41,0 36890340 59,0 1,85 2000 69694000 28574540 41,0 41119460 59,0 - 2009 70571000 21811000 30,9 48760000 69,1 1,41

Table 1: Population

Source: Turkish Statistical Institute

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

Table 2: Sectoral Distribution of Active Population

19551965 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

1. Agriculture’s Contribution to Population and Labor

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 the Economy: Some Numbers

Products1980 1996 1997 1998 1999 2000

Wheat 16 500 18 500 18 650 21 000 18 000 21 000

Barley 5 300 8 000 8 200 9 000 7 700 8 000

Corn 1 240 2 000 2 080 2 300 2 297 2 300

Rye 525 245 235 232 233 260

Oat 355 275 280 310 290 314

Rice 143 168 165 189 204 210

Table 3: Production of Cereals (1000 Ton)

Source: Turkish Statistical Institute

2. Agriculture’s Contribution to Production

2. Agriculture’s Contribution to Production

Agriculture’s Contribution to the Economy: Some Numbers

Table 4:Production of Industrial Products (1000 Ton)

Source: Turkish Statistical Institute

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 25 23 20

Other 50 27 26 29 25 -

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 -30,6 -32,3

Source: Turkish Statistical Institute

3. Agriculture’s Contribution to Nutrition

Agriculture’s Contribution to the Economy: Some Numbers

Meat and dairy product consumption is lower than industrialized countries.

Cereals Basic nutrition item.

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 2,4 6,2 2,1

Eggs 14,2 11,5 11,4 6,2

Oil NA NA 14,9 1,8

Source: Eurostat

Table 6: Per Capita Food Consumption (1992-2000) (kg)

3. Agriculture’s Contribution to Industry

Agriculture’s Contribution to the Economy: Some Numbers

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)

3. Agriculture’s Contribution to Industry

Agriculture’s Contribution to the Economy: Some Numbers

Table 7: Production of Processed Ag. Products

ProductsUnit 1990 2003 % Change

Sugar ton 1579078 1881237 19,1

Flour ton 1364844 1916263 40,4

Margarine ton 483831 570062 17,8

Sunflower Oil ton 386863 305652 -20,9

Olive Oil ton 20323 40003 96,8

Rakı 1000 liters 61648 57160 -7,28

Beer 1000 liters 370232 601910 62,5

Cotton Weaving 1000 meters 690065 701426 1,64

Wool weaving 1000 meters 24360 31959 31,19

Cotton thread ton 337657 580394 71,8

Wool thread ton 59542 36044 -39,46

3. Agriculture’s Contribution to National Income

Agriculture’s Contribution to the Economy: Some Numbers

Table 8: Sectoral Distribution of GNP

Share of Agriculture (%)

Share of Industry (%) Share of Services (%)

1980 24,2 20,5 55,4 1981 22,6 21,5 55,9 1982 22,7 21,9 55,4 1983 21,6 22,4 56 1984 20,3 23,1 56,6 1985 19,4 23,6 57 1986 18,8 25 56,2 1987 17,2 24,9 57,9 1988 18,3 25,1 56,7 1989 16,6 25,9 57,5 1990 16,3 25,9 57,9 1991 16,1 26,5 57,4 1992 15,8 26,5 57,8 1993 14,5 26,5 59 1994 15,3 26,6 58,1 1995 14,4 27,7 57,9 1996 14 27,7 58,3 1997 12,7 28,1 59,2 1998 13,4 27,6 59 1999 13,4 27,9 58,7 2000 13,1 27,8 59 2001 13,7 28,5 57,8 2002 13,7 29,3 56,9 2003 12,6 29,9 57,5

European Commission Agriculture and Rural Development

Turkey’sAgriculture 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

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.

Sectors

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 CustomsUnion, 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.