Fluctuations in the Russian economy and the impact of negative developments in the Middle East cause concern for citrus exporters in the 2015-2016 season.
The citrus industry’s export season, which is expected to open this month, has an average of 3.6 million tons of production annually, an economic value in excess of 1 billion dollars, and provides livelihood for a lot of people, especially in the Mediterranean and Aegean regions.
Several varieties in the sector are gradually transitioning to harvest; to avoid approaching the opening of the season unprepared, packaging companies are working intensively. Packaged citrus products are stored, whilst the Ministry officials’ commission quickly gives permission for the product to be exported to the destination country.
Despite the activity in the sector, exporters are waiting nervously due to the economic crisis in Russia and negative developments in the Middle East.
Mediterranean Fresh Fruit and Vegetable Exporters Association board member, Atay Isimtekin, stated the need to export lemons as well as mandarins in the 2015-2016 season, and said they expect to begin later this month.
Citrus occupies a 45% share of Turkey’s fresh fruit and vegetable exports, points out Isimtekin. In recent years, the sector has been reasonably stable, explains Isimtekin, compared to the previous year exports have increased 16%, but revenue by just 1%.
Stating that Russia is the most important market, Isimtekin said the following:
“But the economic crisis in this country had a very negative effect on us. The value of the rouble against the dollar meant a drop in the buying power of Russian citizens. An increase in exports in the sector last year was not paralleled by an increase in revenue. Normally a decrease in buying power means a decrease in the amount of purchases of goods by a country. The Middle East’s buying power was already not good, on top of which the dollar rate also rose. We are anxious how it will be this year. 80% of exports in the sector are seriously problematic.”
Seyhan Chamber of Agriculture’s vice president Cahit Incefik also said the citrus yields are normal, but there are problems in the market.
If exports fall, the entire sector will be adversely affected, Incefik stated, “If goods are not exported, what will happen? They will be put on the domestic market. Turkey is already a country which does not consume a lot of citrus. If exports are cut and goods are piled on the domestic market, prices will hit rock bottom. Soon, producers not earning money will start to uproot their trees.”
Source: yenisafak.com
