The reform of hazelnut policy in Turkey

Abstract

The hazelnut policies applied by Turkey, the world's largest producer and exporter, have a major influence upon the world market. The aims of this paper are to briefly outline Turkish hazelnut policy reform and to explain its probable effects. New policy instruments for the hazelnut sector are part of the Agricultural Reform Implementation Programme financed by the World Bank. Within this scope, the previous price support system has been gradually phased out and it has been substituted by a direct income payment system. Compensation of $2000 per hectare has been awarded to farmers who voluntarily replace their hazelnuts with alternative crops in flat areas. On the other hand, the government has given financial independence and administrative autonomy to the Union of Hazelnut Sales Cooperatives. Under the new policy arrangements, hazelnut price and producer income have fallen and the effects of the FISKOBIRLIK on the domestic market have been limited. However, the reform program is not expected to provide a complete solution to the problems currently affecting the hazelnut market.