Middle East > Turkey > Turkey Agriculture Profile 2012

Turkey: Turkey Agriculture Profile 2012

2012/04/05

 

 

Turkey Agriculture Profile 2012

Reference Date: 20-May-2011
FOOD SECURITY SNAPSHOT
  1. Promising outlook for 2011 winter crops for harvest from June
  2. Wheat exports are expected to decline in 2010/11 (July/June) compared to the previous year
  3. Food prices continue to decline since last November

Favourable prospects for 2011 winter crops in key growing areas

Harvesting of 2011 winter cereals is expected to start in June and production prospects are favourable. Based on satellite images, harvest outlook is currently very promising in main producing regions of Central Anatolia, Aegean and Cukurova. The positive result is essentially due to adequate rainfall from February to April that, despite a 10-day dry spell at the end of March, benefited crop development. In the rest of the country, yields are expected to be about average.

Planting of the 2011 first season maize crop is well advanced and planted area is expected to decline due to the very high prices of cotton that are expected to induce some maize farmers to switch to cotton. Most of the switch is likely to take place in traditional maize growing areas of Cukurova and South-east Anatolia regions that are also suitable to cotton production.

Overall, the early forecast of the 2011 cereal production is put at 33.3 million tonnes, slightly more than the good output obtained in 2010.

External trade in wheat and wheat flour expected to decline in 2010/11 compared to 2009/10

Cereal imports in the current marketing year 2010/11 (July/June) are forecast at about 3.5 million tonnes, slightly less than in 2009/10, but well above the last five years average. This includes 2.8 million tonnes of wheat (mainly high quality wheat from Kazakhstan and the US) plus minor quantities of maize, barley and rice.

High local prices are expected to lower exports of wheat and wheat flour, especially to Iraq, Indonesia, the Philippines and some North African countries such as Sudan and Egypt. Aggregate cereal exports in marketing year 2010/11 (July/June) are forecast at 3.2 million tonnes, still above average, but well below the 4.5 million tonnes exported in 2009/10.

Food inflation continues to decline

Food prices, which were increasing since the summer months of 2010, peaked in October 2010 by 17 % year-on-year, but steadily declined since reaching 2.8 % in April 2011.

According to the Turkish Statistical Institute, the annual rate of the aggregate price index for food and non-alcoholic beverages stood at 7 % in 2010, compared to 9.3 % in 2009 and 11.9 % in 2008.

Reference Date: 07-April-2011
 
FOOD SECURITY SNAPSHOT
  1. Promising outlook for 2011 winter crops to be harvested from June
  2. Wheat exports are expected to decline in 2010/11 compared to last year
  3. Food prices continue to decline since last November

Favourable prospects for 2011 winter crops in key growing areas

Planting of the 2011 first season maize crop is about to start. Planted area is expected to decline due to the very high prices of cotton that are expected to induce some maize farmers to switch to cotton. Most of the switch is likely to take place in traditional maize growing areas of Cukurova and South-east Anatolia regions that are also suitable to cotton production.

Imports and exports of wheat and wheat flour expected to decline in 2010/11 compared to 2009/10

Early forecast of cereal import requirements for marketing year 2010/11 (July/June) is put at about 3.5 million tonnes, slightly less than in 2009/10, but well above the last five years average. This includes 2.8 million tonnes of wheat (mainly high quality wheat from Kazakhstan and the US) plus minor quantities of maize, barley and rice.
 
High local prices are expected to result in lower exports of wheat and wheat flour, especially to Iraq, Indonesia, the Philippines and some African countries such as Sudan and Egypt. Aggregate cereal exports in marketing year 2010/11 (July/June) are forecast at 3.2 million tonnes, still above average, but well below the 4.5 million tonnes exported in 2009/10.

Food inflation continue to decline

According to the Turkish Statistical Institute, the annual rate of change of aggregate price index for food and non-alcoholic beverages stood at 7 % in 2010, compared to 9.3 % in 2009 and 11.9 % in 2008. Food prices increased sharply in October 2010, with an increase of 17 % year-on-year and steadily declined in the following months reaching 3.5 % in March 2011.

06/12/2010  Yellow rust and excessive rains at harvest reduced 2010 winter wheat production
Sowing of 2011 winter crops has just started under normal weather conditions.

Production of the 2010 wheat crop is estimated at average 19.5 million tonnes, about 1 million tonnes less than the previous optimistic forecast. In fact, following a positive start to the rainy season from October 2009 to March 2010, a widespread infestation of yellow rust affected yields, in particular in South-East Anatolia region, close to the Syrian and Iraqi border. In addition, heavy rainfall in Central Anatolia and the Thrace region just before and during harvest time affected crops, especially the durum wheat. Production of barley is estimated at 7.5 million tonnes, slightly below average.

Harvesting of the 2010 maize crop is well underway in main growing areas of Aegean, Cukurova and south-east Anatolia regions and production is forecast at an average level of 4 million tonnes.

Harvesting of 2010 paddy crop is also underway in main producing areas of the Marmara and Thrace regions. Paddy production is forecast at an above average 770 000 tonnes, due to favourable weather conditions and increased water levels in main reservoirs that induced farmers to augment planted area by about 10 % and had a general positive effect on yields.

Imports and exports of wheat expected to decline in 2010/11
Preliminary forecast of cereal import requirements for marketing year 2010/11 (July/June) is put at about 3.5 million tonnes, slightly less than in 2009, but still well above the last five years average. This includes 2.8 million tonnes of wheat (mainly high quality used for wheat flour) plus minor quantities of maize, barley and rice. High wheat prices (for local and imported durum and milling wheat prices) that followed the wheat export ban in Russia, the main wheat exporter to Turkey, are expected to result in lower Turkish wheat exports, especially to Indonesia, Philippines and some African countries. Aggregate cereal exports in marketing year 2010/11 (July/June) are forecast at 3.1 million tonnes, still above average, but well below the 4 million tonnes exported in 2009/10.
 

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 1980’s, alongside a series of reforms such as privatizations and reduction of trade barriers in the agriculture sector, resulted in a domestic market that is today an integral part of the world economy. Subsequently, agricultural exports increased to USD 4 billion in 2008 up from the level of USD 1.7 billion in 2002. As of 2008, the share of the agricultural sector in Turkey’s GDP is 7.8 % and the sector recruits around 24 % of the total employed population in the country.

 

Around 40 % 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 %, 26 % and 7 % of the total agricultural production respectively.

In the international arena, 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, 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 72 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 young generation fuel 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.

Key figures about Turkish agribusiness:

o Turkey is the world leader in the production of dried figs, hazelnuts, sultanas/raisins and dried apricots.
o Total exports of agricultural products (including processed foods) reached USD 10 billion in 2008.
o Turkey has the largest milk and dairy production in its region.
o Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500.
o In 2008, the total area of organic farm lands has reached 141,752 hectares, while the total production increased to 415,380 mt in 247 crops.