by Márk Horváth
The Turkish agricultural industry is a major player not only in Europe, but on the international field as well. In the top export products, we can find commodities such as Flour of Wheat, Pastry products and Fruits like Tangerine, Orange, Lemon, Olives, and the list continues. The Turkish agricultural export set a record last year in 2022 with almost 255 billion dollars with an increase of 12.9 percent compared to the previous year. The EU is the most important commercial partner of Türkiye and accounts for 29,7 percent of its total agricultural exports and Türkiye is the second most popular Foreign Direct Investment destination, securing 16 percent of shares of the EU’s FDI.
The implementation of EUs green deal, the “From Farm to Fork” initiative targets the creation of a fair, healthy, environmentally friendly food system. The deal aims to promote sustainable production practices, which could result in increased regulations and standards for the agricultural industry. This may lead to increased costs for Turkish Agricultural companies, as they would need to invest in new technologies and processes to meet the new standards.
However, the Green Deal may provide an excellent opportunity for Turkish Agricultural companies who not only wish to keep but want to improve their competitiveness in the global market, through adopting more sustainable and organic means of production. For example, companies could focus on reducing the overall use and risk of chemical pesticides, reducing sales of anti-microbials for farm animals and in aquaculture and reducing nutrient losses while ensuring no deterioration in soil fertility, which will cut down the use of fertilizers.
The Green Deal may provide an excellent opportunity for Turkish agricultural companies to access new markets, cut down on fertilizer and pesticide costs while investing in new technologies which ensures a better quality of food. This could further elevate the Turkish prestige of agriculture in the global market, leading to new partners and increased competitiveness.
To adapt to the Green Deal, Turkish companies in the Agricultural industry should consider the following initiatives:
- Reduce Pesticides: Companies should focus on Reducing the overall use and risk of chemical pesticides by 50% and the use of more hazardous pesticides by 50%.
- Reduce Anti-Microbials: Companies should reduce sales and usage of anti-microbials for farm animals and in aquaculture by 50%.
- Reduce Nutrient Loss: Companies should reduce nutrient losses by at least 50% while ensuring no deterioration in soil fertility, which will cut down the use of fertilizers by at least 20%,
- Improve Labelling: Companies should implement new, safer ways of labelling in order to meet better the consumers’ needs for information about healthy and sustainable food.
- Recreate Diversity: Companies should invest into bringing back at least 10% of agricultural area under high diversity landscape features., thus enabling for a healthier environment in Turkish landscape.
- Get Environmental Certification: Companies may need to obtain certain certifications to prove that their products have been made in accordance with regulations. So, they become green, bio, healthy and environmentally friendly products.
These initiatives will help Turkish companies to improve their environmental performance, reduce their costs, and increase their competitiveness in the global market. It is important for companies to take a proactive approach and embrace sustainability principles to succeed in the long term.
In conclusion, the Green Deal will likely have a significant impact on the Turkish agriculture industry, but it also presents opportunities for innovation, cost savings, and increased competitiveness. Companies that are proactive in adapting to the Green Deal’s requirements and embracing sustainability principles will be better positioned to succeed in the future.
As Corpera and Ace Consulting, we are providing our services to guide the agriculture companies for this transformation process that Turkish companies will have to enter eventually. For more information and to review our consultancy services, you can visit our website and contact us.