Evaluation of hazelnut economy for Turkey: Policy proposals regarding international competitiveness
Özet
Hazelnut is the one of most strategical crops for Turkey as the country is responsible for about 70% of world's hazelnut trade and two-thirds of world's hazelnut production in recent years. Moreover, the crop is the only source of living for about 400.000 farmers in the country. Especially, the economy of Black Sea region is contingent upon hazelnut. Due to soil structure and land conditions of high lands on Eastern Black Sea, any other crop cultivation is almost impossible, so it can be stated that Eastern Black Sea region is totally subject to hazelnut. When calculated in terms of producers, traders, industrialists and exporters hazelnut economy bears upon around 8 million people in Turkey. Due to great importance of hazelnut sector for Turkish economy, governments encouraged hazelnut production for a long time in the country. Price support and guaranteed purchases were the chief policies implemented for a long time, however these policies brought adverse outcomes such as the expansion of hazelnut land. The expansion caused excess supply, moreover, the expansion overreached the main production region and spread over the flat land. By virtue of the high yields in flat land, significant supply surplusses were performed and the hazelnut stocks were used uneconomically. Substantial economic losses came in sight and furthermore the expansion of hazelnut in flat land caused the alleviation concerning the production of other economically substantial crops. Later on, the governments enacted laws aspiring to restrict hazelnut cultivation areas by giving compensation for uprooting hazelnut, however all the attempts failed. In other words, policies implemented in Turkey in the past has been insufficient in solving the problems of hazelnut sector. It is clear that hazelnut policy of Turkey has important effects not only on country's internal markets but also on world hazelnut markets due to the country's major role in hazelnut production. As many scientific studies verify, a decrease or increase in hazelnut production of Turkey has influence in price determination. Therefore, a comprehensive hazelnut policy is a necessity for Turkey. The purpose of this study is to determine the latest global trends in hazelnut production and trade, to unearth the importance of hazelnut economy for Turkey, to observe the current situation of hazelnut production and trade in Turkey, and to emphasize the problems of the sector in the country. Statistics used in the study was acquired from Food and Agriculture Organization, Turkish Statistical Institute, Black Sea Exporters Union and Turkish Exporters Assembly. Relevant literature was also appealed. The study not only reveals the present state of hazelnut sector but also proposes policies both for reconstructing the hazelnut sector of Turkey and for competitive trade. A new support system, acceptable compensation for uprooting, new production methods increasing yield, enlarging hazelnut processing industry by government incentives and subsidies, diversification hazelnut products, effective marketing, going beyond classical markets by exploring new ones and increasing organic hazelnut production are the prescribed policies of the study which will give way to reconstruction and competitive trade. © Peter Lang GmbH. Internationaler Verlag der Wissenschaften. Frankfurt am Main 2017. All rights reserved.
