Slayt 1

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Agriculture Status Reform Opportunities Ahmet
Bayaner Ministry of Agriculture and Rural
Affairs, APK August 23, 2005
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Turkey 769 604 km2 as large as Texas population
is around 70 million one forth of the USA
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• Agricultural Sector
• from 38 of GNP 1963
• to 11.6 in the year 2004
• endowed with a rich natural and human reseouces
• unrealized potential
• agricultural-led growth
• slower growth rate due to high inefficiencies in
  the agricultural and rural policies in last two
  decades.
• characterized with a hidden unemployment

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More facts High rate of population growth Low
agricultural income Migration from rural to urban
areas 35 of total labor force in agriculture
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Arable land 14.8 million hectares in 1940 26.5
million hectares in 2000, the limit 17 Irrigated
(nearly, 4.5mil. ha) 69.1 field crops 18
fallow land, a quarter of cultivated land 3.2
vegetable 5.4 fruit 2.3 olive orchard 2
vineyards
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Agricultural Structure small family enterprises
3.1 million 65 less than 5 hectares 83 less
than 10 hectares 6 larger than 20 hectares in
size one million, crop production 140.000, animal
husbandry rest, mixed production. land size, 6.1
hectares on average number of plots, 6 on average
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Agricultural VA Plant production 69 Livestock
produciton 25 Fishery 3 Forestry 3 47 of
total plant production consist of field crops17
cereals, 3 legumes, 27 industrial crops and,
29 fruits, 16 vegetables, 8 others and
flower.
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By international standards, Turkey is a major
agricultural producer top five of world
producer chickpea, chillies and peppers, cotton,
cucumbers, eggplants, lentil, onion, sugar beet,
tobacco, tomatoes, watermelon, apples, grapes,
pistachios, chestnuts, walnuts, olives, and sheep
milk top ten wheat, barley, rye, almonds,
grapefruits, lemon, tea, goat meat, and sheep
meat. largest producer of apricots, hazelnuts,
and figs
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Foreign Trade Export share 9.4 Import share
4.5 Still trade surplus in agriculture
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Major export crops hazelnuts, dried figs,
raisins, pistachios, dried apricots, tobacco,
olive oil, cotton, legumes, fresh fruits and
vegetables Imported crops wheat, maize, rice,
oil seeds, cotton
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ARIP in the picture Remove all the
subsidies Replace with DIS Privatize SEEs
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• The aim
• ASCUs, restructure
• Farmer transition, alternative crops
• DIS
• Village Based Participaroty Rural Inv.
• Land Consolidation
• Environmental-Set-Aside (ÇATAK)
• FRS

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• Legal Arrangements 1.
• Laws enacted
• Sugar
• Tobacco
• Pasture
• Agricultural Sales Cooperatives and Unions,
• Food
• Breeders Right,
• Producer Union,
• Soil protection and land use,
• Agricultural insurance

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• Legal Arrangements 2.
• Laws to be enacted
• MARA re-organisation,
• Organic agriculture,
• Seed

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• Support policies currently in place
• Premium (defficiency payment)
• (olive oil, cotton, soybean, kanola, sunflower,
  wheat, barley, maize)
• DIS
• Farmer transition
• Livestock

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Livestock support with more emphasis Fodder
crops Artificial insemination Breeder
incentive Milk premium Risk-free livestock
region Bee-keeping Fisheries
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Policy Paper 2006-2010 Objective to help made
decisions to develop the sector in accordance
with the development plans and strategies, taking
into account the EU integration 2006-2010
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• Strategic Objectives
• Sustainable growth of agricultural production
• Improving product quality
• Improving the food security and safety
• Strengthening the competitive capacities of farms
• Improving agricultural markets and strengthening
  farm-market linkages
• Increasing rural incomes
• Strengthening farmer organizations

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• Turkeys Advantages in Agriculture
• Favorable climate conditions
• Vast agricultural land
• Geographical location
• Relatively small use of chemicals and pesticides
• Dynamic and improving food industry

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Areas with comparative advantages Fresh fruit
and vegetables Dried fruits Tobacco Olive
oil Legumes Sheep meat
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Agricultural trade
2002 2003 2004
Export 232.953.350 281.421.442 321.479.879
Import 559.221.457 670.511.239 530.258.686
Trade balance (-) 326.268.107 389.089.797 208.778.807
Trade volume 792.174.807 951.932.681 851.738.565
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• Organic food
• increasingly important for American comsumers
• Turkey big potential and comperative advantage
• US demand for organic food, 3
• US imports thyme, rosemary, dill, koriander,
  opium seed, lentil, chickpea, bean

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• Fields of Cooperation
• U.S. investment in Turkish animal husbandry
  sector
• U.S. investment in Turkish food processing
  industry
• Exchange of views and experiences on agricultural
  insurance system
• Benefit from U.S. experience in agricultural
  economic research, especially in impact analysis
• State owned farms opened up for investment
• Technological investment in GAP

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