As the crisis between US and China continues to escalate with ever increasing taxes imposed on products from both countries, Turkish growers are looking to use this crisis and turn it into an opportunity. The tax wars between both countries pushed China to explore alternative sourcing points for dried fruits which are mainly imported from the US. Turkey, as one of the important actors in the global dried fruit trade, is trying to enter the picture at this point.
Upon the request of dried fruit exporters in Turkey, The Ministry of Food, Agriculture and Livestock started to prepare an action plan to open up the gateways for exports of dried fruits to China. The Ministry was covering 70 % of the expenses for Turkish companies participating in trade fairs in the target export countries. Now the ministry is considering adding further incentives for freight rates or tax breaks per exported tons of dried fruit.
Another important opportunity arose amidst these discussions. US growers export annually 50 million USD worth of cranberries to China. This figure is almost 15 % of US cranberry exports. These exports are from the state of Wisconsin which produces half of all cranberries produced in the US.
On the other hand, according to the most recent figures announced by the Turkey Statistical Institute, the grape production in Turkey is nearly 42 % more than the local consumption which signifies an important opportunity for exporting. The production numbers for grapes keep increasing as well, displaying a 5 % increase compared to the previous year.
The Aegean region Fruit and Fruit related Products Exporters Association Board Member Mehmet Ali Isık: “The current disagreement between China and US is a big opportunity for Turkish growers. We need to act very quickly to make good use of this opportunity. We need to organize marketing and sales activities to promote our products in China and to fill the gaps in the market as soon as possible. We, as the association, are ready to do our part to enter into this market, which represents enormous potential due to big population.
Right now everywhere in China and South Korea, there are cranberries and American dried fruits. We could compete with these products. Our locally grown grapes can easily compete with American cranberries.”
Source: Aksam