Agriculture
From The Report: Turkey 2013
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A favourable climate and proximity to affluent Europe and the dry Middle East make Turkey a global breadbasket and a natural destination for investors. Foreign direct investment is at unprecedented levels, reaching a total of $2.1bn by October 2012. Major government infrastructure projects are also set to boost the agriculture industry in the coming years. The sector is hampered by high levels of protection, inadequate irrigation, fragmented farms and limited access to capital to fund technological improvements. Although consolidation and mechanisation of the farming sector has resulted in fewer farm jobs, unemployment can be offset by the creation of new job in related industries such as food manufacturing. Turkey wants to see agricultural exports more than triple to $40bn over the next decade. Ideal ecological conditions, a well-developed industry, rising global demand and government support for investment make this a realistic target.

Articles from this Chapter

Overview

Seeds of success: Record foreign investment is propelling modernisation of the sector
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A favourable climate and proximity to both affluent Europe and the dry Middle East make Turkey a global breadbasket and a natural destination for investment. Foreign direct investment in the agriculture sector reached a record high of $2.1bn by October 2012, a 150-fold increase from a decade ago, according to the Ministry of Food, Agriculture and Livestock (MFAL). Incentives for private-sector investment, including low-interest loans, have helped attract considerable interest to Turkey. A competitive…

Analysis

A thermal injection: Greenhouse expansion to boost agricultural investment
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A drive to restructure Turkey’s agricultural sector includes ambitious plans to expand fruit and vegetable production and is set to open the door for foreign investors looking to meet demand back home. Buoyed by favourable geographic conditions and abundant rainfall, Turkey’s agricultural sector contributed $62bn to the economy in 2012, after growing steadily over the previous three years on the back of government investment in irrigation and infrastructure projects. Bridging The Gap The South-eastern…

Analysis

Eating well: The domestic market is projecting significant growth
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The expanding population, at about 1.3% per year, and changing demographics have helped Turkey’s food and beverage sector outpace global growth and make it a key market for investment. According to state statistics, a quarter of household spending goes to food, drinks and tobacco. Worldwide, the food and beverage market is estimated to be growing at about 3% a year, but the forecasted rate in Turkey is much higher, at around 6%, according to a report by Deloitte. Supported by the Turkish agriculture…

Analysis

The cutting edge: New technological advances are helping to produce and harvest crops
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Robot tractors, geothermal greenhouses and cloned trees are part of the farming sector’s push to modernise, but more innovation is needed. The hot trend in the automotive industry may be self-driving cars, but a more practical and productive application has quietly taken place for years: driverless tractors. Turkey’s farmers can already turn to unmanned tractors guided by GPS and sensors while sowing and harvesting. New Tech A key player in this trend is John Deere, the world’s largest tractor…