Although Turkey has significant potential and export opportunities in agriculture, it cannot make use of it sufficiently. Due to high input costs, which has become one of the most important problems in agricultural production, farmers have difficulties in producing. Agricultural supports are insufficient in the face of high input prices. In addition, supports are announced too late and paid too late. If Turkey gives the necessary support and importance to agriculture, it can become the most important producer and exporter in the world.
There are opportunities brought by the COVID-19 pandemic. Due to the embargo imposed on Russia due to the war between Russia and Ukraine, there are important advantages brought by this country’s turning to Turkey. There are opportunities to be exploited in the European market, which will experience serious problems in agricultural production due to drought this year. None of these can be evaluated. Import of animals is allowed. With the export ban on some products, the dream of lowering food prices is being dreamed of. However, agricultural production can be increased with the right policies. Quality, value-added products can be obtained. We have enough potential to both domestic market and export.
Drought raises red alert in Europe
The drought ravaging Europe is threatening life. It also causes great damage to agricultural products. Especially in Europe, there are problems in transportation from big ports to inland parts by rivers, while transportation costs are increasing rapidly. All these negativities create great opportunities as Turkey is both close to Europe and an important exporter in agriculture and food. However, Turkey cannot benefit from them sufficiently.
According to the August 2022 Report of the European Union Drought Observatory, the severe drought that has affected many parts of Europe since the beginning of the year has been getting wider and worse since the beginning of August. With the decrease in precipitation, there was a serious drop in water levels in rivers across Europe. Due to the decrease in water energy There are also significant problems in production.
According to the report, 47 percent of the European Union is under the threat of drought and 17 percent is at the “red alert” level. About half of the lands have serious drought that needs attention.
Water and heat stress significantly reduced the yield of summer crops. The most affected crops are cereals, corn, soybeans and sunflowers. Although the last rains in August partially alleviated the drought conditions in some regions, in some regions the storms caused serious damage, losses and lessened the positive effects of the precipitation.
Most affected countries
In the Western Euro-Mediterranean region, warmer-than-normal and drought conditions are expected to continue in the coming months until November 2022.
The regions where the drought is most effective and where the risk continues are listed as follows: Italy, Spain, Portugal, France, Germany, Netherlands, Belgium, Luxembourg, Romania, Hungary, northern Serbia, Ukraine, Moldova, Ireland and the United Kingdom.
Local recovery is observed in limited areas of Southern Czech Republic, Northern Austria and Central France. Regions already affected by drought in the spring of 2022, for example, some regions in northern Italy, southeastern France, Hungary and Romania stand out as the worst conditions.
In Italy, the Po River basin is facing the highest drought severity. A state of emergency has been declared in 5 regions in Italy. In many cities in this country, restrictions on water use have been made.
Yield declines in corn, soybean and sunflower
According to the August 2022 issue of the Joint Research Center for Agricultural Resources Monitoring in Europe (JRC MARS) Crop Monitoring Bulletin, exceptional water stress and heat stress have significantly reduced yields of major crops. Among the crops most affected were corn, soybeans and sunflowers. According to the European Union’s average of the last 5 years, corn yield is expected to decrease by 16%, soybean yield by 15% and sunflower yield by 12%.
Large yield losses are expected in agricultural production as the water level in lakes and rivers has decreased drastically in much of Italy. Producers in Tuscany, Italy, which is famous for its wine and olive oil production, are struggling to avoid product loss.
While olive and grape production is damaged in Spain, Portugal is one of the most negatively affected countries.
New opportunities for Turkey
Cemil Gökçen, Chairman of the Food Professional Committee of the Izmir Chamber of Commerce, stated that Spain had problems with olives and fresh grapes this year due to the drought: “Spain is the dominator of the world market in the seedless confit olives. Russia is demanding olives from us since the product will be low this year. It is a very important opportunity for Turkey. Moreover, Turkey’s olive harvest looks good this year. Again, the demand for olive oil may increase. We export fresh grapes. Demand for wine grapes or direct wine will come. If Turkey evaluates the drought in Europe, it can create a market for itself. But it is necessary to work and foresee them in the long term. We cannot seize the opportunities that come our way.” gave the information.
The energy crisis is growing
Pointing out that the development that is more dangerous than drought in Europe is the energy crisis, Gökçen said that in some areas, Europe may have to withdraw from production. Italy may consider exporting chickpeas directly in sacks instead of canned chickpeas. Because it takes energy to make canned food. Natural gas, which was 20 cents last year 2 EuroWhen you go above , it becomes impossible to produce in some areas. The energy crisis in Germany is growing. They say to their citizens who come to Turkey in the summer, stay there and let us pay you half of the cost of the natural gas you will burn. This winter, Antalya hotels will probably be filled with German tourists like a timeshare. Turkey can meet the products that cannot be produced due to drought and energy crisis in food. But how prepared is Turkey for this?”
In summary, the COVID-19 epidemic, the Russia-Ukraine war, the drought in Europe, the energy crisis bring important opportunities to Turkey in agriculture and food. However, these opportunities cannot be exploited due to wrong agricultural policies, lack of foresight and lack of planning. Instead of chasing empty dreams in Sudan, Venezuela and Niger, if the country’s lands were used in a planned and productive manner, we would be self-sufficient and feed at least a part of the world.
There is a great demand for agricultural and food products from Russia
Western countries impose sanctions and embargo on Russia due to the war that started with Russia’s invasion of Ukraine. Many food companies withdrew from Russia. Some have shifted their production to Turkey. Russia, on the other hand, is getting more food and food from Turkey than ever before. Agriculture demands the product.
In our conversation with Cemil Gökçen, Chairman of the Food Professional Committee of the Izmir Chamber of Commerce, who monitors the food market very closely, he explained Russia’s demands with these words: “As always, there is a serious demand for frozen fruits and vegetables. Although Turkey is more expensive than Egypt and China due to its quality products, it is a supplier that has no alternative due to the embargo imposed by Spain, Serbia and Poland due to the war. In addition to these products, there are serious demands for frozen potatoes, canned vegetables, pickles and jams. However, there are some issues that worry Turkish exporters. It is not clear whether the demand is periodic due to the war or a definite demand that will be valid for the coming years. If the war and embargo ends, it is not clear whether Russia will return to the European Union countries as in the past.”
Stating that China, Egypt and Iran stand out as alternative markets to Turkey in the current situation, Gökçen: logistics has a problem. There is a general distrust of quality in Egypt. Iran, on the other hand, does not have enough industry in processed food products. Turkey seems to be the only alternative on the sea route in its current situation; Arkas, Akkon and Admiral lines continue to operate regularly.”
Opportunities cannot be evaluated
Explaining that just as Turkey could not foresee and manage the agricultural export opportunities that emerged with the pandemic, it also missed the serious supply opportunities that emerged in the war between Russia and Ukraine, Gökçen continued as follows: “The biggest difference that separates food exports from agricultural raw material exports is our packaging industry. Unfortunately, we cannot produce enough agricultural raw materials for ourselves and export in terms of quantity and price, and we cannot produce food packaging at competitive prices. Glass, tin, pet, jar, lid, label, carton box, pouche etc. We are not sufficient in terms of quantity and pricing in packages. We have built food exports to Russia on purely fresh fruit and vegetables, we have made the beautiful Antalya, Finike and Kumluca geography a greenhouse area, and we have not been able to get the desired profitable yield for years due to drug residues and political reasons. As long as these trade wars exist, other opportunities will come to us, but if we can’t take advantage of them, they are of no use to us. The quantity demanded by Russian markets for only one type of jam (for example, strawberry) is 1.5 million jars and above. For years, Turkey has focused on the export of Turkish type mixed pickles for the expatriates living in the world.
However, the real big business in the canned business is canned pepper and canned gherkin (not cucumber) pickles. These issues have not been given due weight. We did not produce or sell these goods, except for a few large supermarket chains in Germany. Since last year, demands for canned pepper (jalapeno) started to come from other big countries. The figures are in 2 million units. Egypt is a serious competitor here, but Turkey has serious advantages in terms of quality and logistics. Our climate is still suitable for producing peppers. Since the products do not feel as hot as corn, they mature softly and taste difference occurs. Although corn gets 3-4 crops a year, extreme temperatures do not produce the desired maturity in the plant, but the prices are very reasonable.”