AGRICULTURAL OVERVIEW
IN TURKEY
REPUBLIC OF TURKEY
MINISTRY OF FOOD AGRICULTURE
AND LIVESTOCK
“Improving Agricultural Market Performance:
Creation and Development of Market Institutions”
THE 10TH MEETING OF THE COMCEC AGRICULTURE WORKING GROUP
28 September 2017, Ankara, TURKEY
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INTRODUCTION
ABOUT TMO
DUTIES
FINANCIAL STRUCTURE
ORGANIZATIONAL STRUCTURE
PRODUCTS IN THE FIELD OF TMO’S ACTIVITY
STORAGE
CRITERIA FOR MARKET REGULATION
WHEN DOES TMO INTERVENE IN THE MARKET ?
MARKET REGULATION INSTRUMENTS
POPPY ACTIVITIES
SOCIAL PROGRAMMES
LICENCED WAREHOUSE SYSTEM
CONCLUSION
ABOUT TMO
Founded in 1938 as an
institution running on state
capital
Related with the Ministry
of Food Agriculture and
Livestock
Has administrative,
financial and decision-
making autonomy
Headquartered in Ankara
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DUTIES
• To regulate cereal markets.
• To produce morphine and its derivatives from opium poppy which is required by pharmaceutical industry.
• To keep extraordinary cereal stocks that can be used in the state of emergency.
• To carry out the duties for other agricultural products which is given by the Cabinet Decree.
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FINANCIAL STRUCTURE
• Capital is 2 billion 550 million TL
• Revised Programme Budget for 2017 is 6 billion 224 million TL (1.85 billion USD, 1.52 billion EUR)
• Profit for 2016 is 172 million TL (50.1 million USD, 42.0 million EUR)
Financial Resources;
• Capital
• Sales Revenue
• Internal and External Loans
• Treasury Loan
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ORGANISATIONAL STRUCTURE
Decision Making
Body
Board of Directors General Directorate
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Consists of 1 Chairman and 5 members:
• Chairman of the Board is the General Manager,
• Two members from Ministry of Food Agriculture
and Livestock,
• One member from Undersecretariat of Treasury,
• Two members from TMO Deputy General
Directors.
General Directorate consists of a General Director, 3 Deputy General Directors with headquarters and regional organisation.
Head Office;
• Inspection department,
• Legal advisory,
• 10 head offices
Regional Organisation;
• 33 Branches
• Afyon Opium Alkaloids Plant
• 116 Sub-Branches
• 71 Equipped Centers
Total: 221 permanent workplaces Total number of staff: 5.149
Executive
Body
PRODUCTS IN THE FIELD OF TMO’S ACTIVITY
Wheat
Barley
Rye
Triticale
Oat
Corn
Paddy Rice
CEREALS POPPY Other products
assigned by
Cabinet
Decision (Hazel
Nut-Raisin)
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CRITERIA FOR MARKET REGULATION
• Domestic and foreign market prices
• Product costs
• Output
• Sustainability of production
• Producer Price Index (PPI) - Consumer Price Index (CPI)
• Food price inflation
• Carryover stock
• Public expectations
9
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WHEN DOES TMO INTERVENE IN THE MARKET?
In the event of;
• The drop of producer prices below the level at which the
sustainability of production is ensured
• Enormous price increase to the detriment of the consumer
• Fluctuation in the market due to speculations
• The influence of fluctuations in the world market on domestic market
• Supply deficit in the market
MARKET REGULATION INSTRUMENTS
• Purchasing cereals from producers, producer organisations, merchants and cooperatives
• Providing advance payment for producers through depository purchasing
• Providing loan for producers, producer organisations, merchants and cooperatives through depository purchasing in return of warehouse receipt
• Importation and exportation
• Various product sales methods
• Strategic stock management
• Public disclosures
• Customs duty regulations
• Monitoring domestic and foreign market
• Consulting with non-governmental organisations (NGO) and private sector organisations
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POPPY ACTIVITIES
Giving permission for
opium poppy cultivation
and purchasing poppy
capsules are carried out
only by TMO.
Opium poppy production is
carried out in the framework
of annual planning for a
limit of 700,000 decares
given by United Nations.
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SOCIAL PROGRAMMES
• Pakistan; 50,000 tons of flour (2005),
• Palestine; 15,400 tons of flour (2006-2016) and 2,155 tons of rice (2016),
• Somali; 50,000 tons of wheat equivalent flour (2011-2016),
• Syria; 35,000 tons of flour (2012 - 2015) and 50,000 tons of wheat equivalent flour (2016)
Also in 2017, 86 thousand tons of wheat equivalent flour to be granted for Somalia, Syria, Palestine, Yemen and South Sudan has been tendered.
International Aids: TMO aids flour to needy countries due to natural disaster, drought etc. as well as aiming humanitarian aid with the Council of Ministers’ Decision.
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The Campaign for Preventing Bread Waste : It was initiated in 2013. The
Campaign was disclosed as a “model practice” to the world by FAO.
Raisin Distribution to the Schools: Our institution was assigned with providing
and distributing raisins to the students of preschools, practice classes, nursery
classes and first graders (elementary school) in 2016. Raisins are distrubuted to
5.7 million students throughout the country in 2016/17 education period.
LICENSED WAREHOUSE SYSTEM
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Agricultural Products Licensed Warehousing Act No. 5300 was published in 2005.
In order to make the system functional, TMO-TOBB LİDAŞ (50% TMO share - 50% TOBB share) was established in 2010.
TMO - TOBB LİDAŞ is the first company that got licence and started its activities in 2011.
3,26 million tons of licensed warehouse is being built by TMO with long term renting guarantee.
Presentation Content
• General information and statistics
• Marketing of Agricultural products and value chain
• Markets and price creation
• Market Regulators/Institutions affecting the Market
• Food and Agricultural Products Market Monitoring
and Evaluation Board
• Problems and solution suggestions
AGRICULTURE IN TURKEY
Total Population 79 Million
Rural Population 17 Million(22%)
Urban Population 63 Million(78%)
81 Province
941 City
40.000 Village
Land Usage Area Mha %
Agricultural Land 38,2 49,1
Farm (Cultivated) land 24,0 31,5
Natural grass land 14,6 18,8
Forest Land 21,5 27,6
Setlement and others 4,0 5.0
Total 77,8 100.0
AGRICULTURE IN TURKEY
As in the whole world, agriculture in our country
an increasing sector of importance
Agricultural sector is important
• feeds 79.5 million country and 350 million
tourists,
• $ 56 billion Agricultural Income
• $ 17 billion with Agricultural Export
• contains 23% of our population,
• provides 24% of employment,
• constitutes 8% of GNP,
• 12% of total exports are realized
• Supplies raw materials to industry
• And supplies food safety
IN EXPORT
Nut, Apricot, grapes,
fig and quince 1st
Wheat flour, cherry ,
Yoghurt, Macaroni,
Lentil, lemon,
Mandarin, Chickpea
(Nohut), Orange, Olive
and Tomatoes
2n
d-5
th
Grape, Tobacco, Chess
nut, Strawberry, Olive
oil, Egg, Aubergine and
Peach 6th
-10
th
IN PRODUCTION
Nut, Apricot and Cherry
1st
Melon, Water Melon,
Strawberry, Fig, Lentil,
Olive, Apple, Tomatoes,
Tea, Antep pistachio, Nut,
Walnut, Aubergine, Sheep
milk, sugar beet and honey 2
nd
-5th
Wheat, Barley, Grapes,
peach, Mandarin, Lemon,
Almond, Olive oil and
sheep meat. 6th
-10
th
TURKISH AGRICULTURAL ECONOMY IS A GLOBAL ACTOR The first Agricultural Economy in EU
Turkey is sufficient country in terms of food
1,707 agricultural and food products were exported in 190 countries in 2016.
DEVELOPMENTS IN AGRICULTURE (2003-2016)
Crop production increased;
from 98 million …... to 117 million ton
Livestock production;
12 million ton -----23,5 million ton
Value of agricultural production;
24 Billion $ ----- 56 Billion $
Agricultural export;
4 Billion $ -----17 Billion $
TURKEY in the World in 2014 Turkey has exported 1,681 varieties of agro-food products to 190 countries.
Living Area
(17 million)
Employment
(5 million)
Food
Production
Row Material For
Industry
Export İncome
TURKEY is the heart
of the Region
RUSSIAN
FEDERATION
TURKISH
REPUBLICS
NORTH AFRICA
MİDDLE EAST
TURKEY is up to 4 hours flight distance where have one third of world GDP and about one fifth of world population.
RICH BIODIVERSITY 12.054 Plant Species grown in Turkey. of these species, 3,906 are endemic.
Kaynak: FAO, DTÖ, BM
EU-27
7
AGRICULTURAL SECTOR IS REGIONAL POWER AND TRADE BRIDGE
In this Geography
Population 1,3 Billion Agricultural GNP 564 Billion $ Agricultural Export 578 Billion $ Agricultural Import 680 Billion $
WHAT HAPPENED? WHAT IS HAPPENİNG?
• 1) National Rural Development Strategy (2007-2013 / 2014-2020)
• 2) Rural Development Plan (2010-2013)
• 3) Rural Development Plan (2015-2018)
• 4) Yearly Programmes
• 5) Rural Development Plan Monitoring Committee
• (2015-2018)
• Rural Development Strategy and Action Plans; is prepared with
- Under the coordination of our Ministry (GTHB),
- Technical support of the Ministry of Development and
- the participation of relevant Ministries and Institutions
NATIONAL DOCUMENT(S) RELATED TO STRATEGIC
FRAMEWORK FOR AGRICULTURE
STRATEGİC PLAN (2013-2017)
Strategic Topics
1. Agricultural Production
2. Food Security
3. Phitosanitary, Animal health and
welfare
4. Agricultural Infrastructure and
Rural Development
5. Capacity building
• Agricultural Strategy
Document (2004)
• Agricultural Law (2005)
• MoFAL Strategic Plan
(2013 / 17 - 2018 / 22).
• There is very strong relationship between rural development and
agriculture
• Rural development includes multi-sectoral activities
Ministry Studies
All production sites and stakeholder are registered (ÇKS - TÜKAS -
TIKAS ...)
Farm Accounting Data Network established
Each kind of product is kind of;
- Which region?
- which provinces and districts?
- even in which parcel of the operator and how much inland is it
produced?
- production technique, production costs
- what production inputs are used?
- sales and revenues traceability provided
Marketing Information system was established and monitoring studies
started
- As a pilot study; the prices of the 35 products in 4 provinces, including
underground vegetable crops, are monitored on a daily basis.
What is a Marketing Information System? Cost information of agricultural products based on county /
business,
Input prices,
Seed,
Agricultural medicine,
Fertilizer,
Workmanship,
Mechanization,
Transport
Agricultural product income based on county / business;
The yields obtained from unit area /
The prices of the farmers,
Net income on business / district basis.
Integrating with the Wholesale Market Hall Information System
(based on district data via the database)
Product Quantities,
Prices,
Product entry dates
What is a Marketing Information System?
Monitoring the prices and quantities of agricultural products
from the producer to the last consumer;
Quantity of Production,
The quantity offered on the market,
The marketing costs from the production point to the last
consumption point,
Prices of production point, state, last consumption point
(such as local district bazaar, markets)
All imported agricultural products;
Prices,
Quantities,
Origin,
Product entry dates
Evaluate the compiled information to develop decisions for
the benefit of the producer and consumer
Why Marketing Information System?
Generally, the producer gives the production decision according to the
production conditions as well as the prices of the previous period. This
leads to significant fluctuations in the prices of agricultural products.
By Market information systems;
- Before deciding on production, it may be possible to know what
products will be added and the possible prices.
-Measures may be taken to reduce risk and uncertainty in
production,
-It will have the opportunity to make market-oriented production
planning that will increase its income.
2015
Agricultural Information System
• Spatial databases
• Agricultural meteorology and observation
stations
• On-line monitoring and evaluation
• Risk Management
Crisis Management Risk Management
AGRICULTURAL INFORMATION SYSTEM AND MARKET MANAGEMENT (Management Support with Best Decisions)
Agricultural Production Existence
Management
da m3
ad
Agricultural Production
PRODUCTIVITY Management
kg/da
Agricultural Production
QUALITY Management
₺/kg
SUSTAINABILTYManagement
±₺varlık
Agricultural ECONOMY Management
₺existence+ ₺product
Agricultural Information System: Agricultural observation, Registration, Integration of Information and Management Systems into a Common Economic Community
Paydaşlar: Bakanlık Üretici Tüketici Birimler Kooper. Finans Sigorta ………..
Agricultural Production
MARKETING Management
₺x%
₺
talep
TBS
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• All parcels will be recorded via TÜKAS .
• The current AGRICULTURAL INVENTORY will be created by TÜKAS.
Agricultural Production Registration System
Marketing Environments of Agricultural
Product
Licensed Warehousing
Product Specialized Stock Exchanges
Commodity Exchange
Live Stock Exchange
Auction Market
Wholesale Market Hall
Futures Market
Structuring of Foreign Trade
Cooperative, Producer Association roles
The marketing of agricultural
products in our country has a
complex structure.
• In very different market models,
• Multiactors
• Under the supervision of
different ministries and
institutions
Agricultural Product Markets, Organizations
and Marketing Actors
Producers
Agrıcultural
Products Marketplace, Organization Marketing Actors
Processor,
Wholesaler,
Retailer
Plant
Products
Livestock
Products
Fisheries and
Aquacultural
Products
public
bussines/economic
enterprise
Turkish Grain Board
Wholesale Market Hall
Auction Sale
District bazaar
Stock Exchange
Cooperatives
Supermarkets
Food stores
Others
Public
bussines/economic
enterprise;
Trader
Middleman/Broker
Producers
Bussinesman
Supermarkets
Greengrocer
İmporter and Exporter
Warehouseman
Restaurant, food
factory
Hotels, Hospitals,
Hostels
Other
Marketing Margin; product processing, transportation,
labor, tax, commission and so on. Depends on the
expenses.
-Not harvested
-Sold at the production stage,
-Unsufficent standard,
-Unpackaging, and unclassified
products.
-Producer prices; it is the lowest price on
the marketing channel.
-enwrapped
-Packed,
-Processed,
-Classified products.
-Market prices: it is the highest price on
the marketing channel.
PR
OD
UC
ER
Harvest
Transport Processing
Classifiying
Packing Transport
0.90 TL +0.20
+0.25 +0.16 +0.05
2,48 TL
Cherry Tomato High Tech. Glasshouse,
Selected seed,
Quality production,
Uniform product as
requested by the
consumer.
Bulk Tomatoes
2,65 TL. + 0.30
+ 0.10 +0. 61 +0.30 +0.32 +0.05
6.88 TL 4.28 TL
1,56 TL
Harvest
Transport
CO
MS
UM
ER
Factors Affecting Marketing Margin
1. Product variety and production system, Marketing channels - Direct sales, - Sales with intermediaries (single-lot) - sales through stores - ... 3. Operations and costs in marketing channels - product direct sale - product processing, packaging, packaging, - Transportation (distance between production and consumption centers) - Losses 4. Storage and stocking 5. Organization 6. Export and import 7. Taxes and commissions
The features of agricultural products, the length of marketing channels, the
surplus of intermediaries cause the margin to develop against the
producers.
100 kg. CHANGE OF SALES PRICE AT LOCAL DISTRICT MARKET
PRODUCT PRICE CHANGE SCALE *
DEGREE FOR PRODUCT PRICES (TL/kg.)
QUANTITY OF SALES (kg)
BEST PRICES SALES (THE MOST FRESH AND EXPENSIVE) 4,00 20
GOOD PRICES SALES (FRESH, EXPENSIVE) 3,50 20
AVERAGE PRICES SALES (NORMAL) 2,25 18
LOW PRICES SALES (UNFRESH PRODUCT) 1,75 17
VERY LOW PRICES SALES (WİZENED PRODUCT) 1,00 10
EVENING MARKET SALES 0,50 5
TOTAL 100
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Oranlar TÜİK üretici ve tüketici fiyat endeks grubu içerisindeki fiyatlar baz alınarak hesaplanmıştır.
Üretici Fiyatı
(TL/kg)
Tüketici Fiyatı
(TL/kg)
Üreticiden Tüketiciye
Fiyat Değişimi
(%)
Kiraz 3,6 6,5 80,6
Dometes 1,2 1,9 58,3
Elma 1,1 2,6 136,4
Kaynak: TÜİK, 2015 yılı ortalama ürün fiyatları
WHO HOW MUCH DOES TAKE PORTION FROM SHELF PRICES?
WHAT HAS BEEN DONE ? WHAT WILL BE DONE ?
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• The effectiveness of the marketing information system is being improved.
• Production planning according to the market demand
will be made. • Storage, packaging and processing facilities are being
developed. • Efforts are being made to ensure the integration of
agricultural subsidies with marketing. • Efforts are being made to increase the effectiveness of
producer organizations.
31/13
Coordination: Ministry of Food, Agriculture and Livestock
Secretariat: The Central Bank
Members:
Minister of Economy, Minister of Customs and Trade, Minister of
Finance, Minister of Development, Undersecretary of Treasury, Head
of Central Bank, President of TURKSTAT
Goal:
Food and agricultural products; to monitor and evaluate the short
and long term supply and demand, export-import and production-
consumption changes and the developments in these changes and
developments in the distribution chain, and to make
recommendations about the measures to be taken and the policy to
be implemented if necessary.
Food and Agricultural Product Monitoring and Evaluation Committee.
32/13
Duties of Food and Agricultural Product Monitoring and Evaluation Committee.
- To monitor and evaluate food and agricultural product markets.
- If necessary, make suggestions about the measures to be taken and the policy to
be implemented.
-To ensure cooperation and coordination among the institutions.
- To create subcommittees, advisory groups, temporary and permanent working
groups so that the activities of the committees can be carried out in an integrated
manner and in an efficient manner and coordination can be ensured.
-To evaluate the results of the subcommittees, advisory groups, and the results
submitted by the temporary and permanent working groups and to make a
decision.
- To analyze market regulations in harmony with the Government Plan,
Development Plan, Medium Term Plan, Strategic Plans and 2023 Vision.
- Report decisions to the Economic Coordination Board.
33/13
Marketing Margins in Agricultural Products.
The difference between producer prices and consumer prices
has always been a matter of debate and research in all
countries.
Goal
- Ensuring price stability.
- Prevent price fluctuations.
- To protect both the producer and the consumer.
www.icpcem.com
Islamic Countries Products Common Exchange & Market Web Portal for International Collobration and e-Trade for OIC member
countries producers
The project “Establishment of Database, Network Connection and Web Pages of
Smallholders/Family Farmer’s Agricultural Cooperatives between COMCEC Member
Countries”
and under project the establishing
The purpose of this project is to facilitate international trade and market
place among Organization of Islamic Cooperation Member countries.
Current Economic Cooperation with other Members of the OIC Countries:
37/13
• Each of OIC member country should be support
www.icpcem.com for expanding of members of portal.
• There should be established and kept each agricultural
product’s datas for database and digital records which have
been taken by member countries according to each production
session.