Fruit and vegetable prices in Turkey reached their highest point in 2023 due to both high inflation and the country’s struggle with high yield on citrus fruits. In MY 2023/24, citrus production in Turkey is expected to increase around 90 percent to 7 million metric tons (MMT) due to favorable weather conditions in the spring and newly planted orchards in recent years. However, it is reported by Turkish producers that there are quality and fruit size issues due to low rainfall in spring 2023. Producers and exporters note that the Support Price Stabilization Fund (DFIF), which needs to be $80 per ton, is critical to their future profitability related to surplus production.
Production costs in MY 2023/24 have risen substantially over the previous year due to increasing input prices. According to farmers, intensive efforts are required to maintain the trees through fertilization, pest mitigation, and irrigation. Higher energy, fuel, and electricity costs, as well as increasing labor costs, have become the main issues among citrus and orange juice producers. Fuel prices have increased 75.5 percent in 2023 when compared to the previous year. According to Turkish Statistical Institute (TurkStat), agricultural input prices increased 40.97 percent in September 2023, when compared with the same month of the previous year. On the other hand, minimum wage for workers has increased 220 percent in 2023.
Exporters note that their export capabilities and profit margins have been decreasing year after year against stable exchange rates, despite high domestic inflations in retail markets and producer prices. Also, it has been noted that export subsidies have been requested from the Government of Turkey (GoT) to overcome surplus production compete with other exporting countries, and rising export costs. Producers and exporters also note that the Support Price Stabilization Fund (DFIF), which needs to be $80 per ton, is critical to their future profitability related to surplus production. DFIF is a fund established within the budget framework in 1980, which aims to support sectors deemed important in terms of the country's economy, production, and employment in Turkey and to provide subsidies for agricultural inputs.
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Source: apps.fas.usda.gov