THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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Dear Friends,
We are going through a period in which global food and agricultural policies are being reshaped and trade balances are rapidly changing. Geopolitical risks, the climate crisis and increasing protectionist tendencies have made food not only an economic issue but also a strategic one. For Türkiye, this situation necessitates tackling high inflation on the one hand and positioning itself correctly in global competition on the other. The food and drink industry is at the centre of this multi-layered transformation, and the impact of decisions taken is felt directly by both producers and consumers.
While the Turkish economy has been battling inflation for a long time, food prices remain one of the most sensitive areas of this struggle with the highest social impact. Recently, the common market and free trade agreements signed by the European Union with Mercosur countries and India have added a global dimension to this debate. Türkiye’s high level of trade and customs integration with the EU means that Europe’s reshaped trade architecture directly affects the competitive conditions of the Turkish food and agriculture industry. The new global trade order makes quality, traceability and sustainability standards even more decisive, alongside price competition. Türkiye being confined to a position where it competes solely on price does not create a healthy balance. New supplier countries with broader access to the European market are increasing competition in agricultural raw materials and processed food products; this situation has become an issue of both trade and supply security for Turkish producers and industrialists operating under cost pressure. Our goal is a food industry that competes on the basis of efficiency, technology and regulatory compliance, with high added value.
Speaking of transformation in industry, I would like to touch upon another hot topic, food inflation. The high cost of food is not an issue that can be explained solely by domestic market dynamics. It must be addressed within a multi-layered framework spanning from production to industry, logistics to finance, foreign trade regimes to regulatory compliance. Input costs remain the most vulnerable area of the sector. Spikes in fertilisers, feed, energy, packaging and logistics, combined with exchange rate volatility, make costs unpredictable. The gap between the exchange rate and input inflation erodes competitiveness; declining profitability accelerates production exits, and any weakness on the supply side is reflected more sharply in consumer prices.
The food industry is also directly affected by price hikes. Rising prices reduce demand, damage brands and encourage informality. Therefore, the sector’s fundamental expectation is predictability: a rule-based trade regime, transparent data sharing, stable financing conditions and planned production mechanisms.
Türkiye has a strong potential to generate wealth from agriculture. The food industry is a natural partner in this potential. The way to consolidate the country’s place in the reshaped trade map of Europe and the world is to implement policies that reduce costs and increase efficiency, rather than suppressing prices. It is of great importance to establish a predictable economic and policy framework based on trust so that the food and agriculture industry can continue to play its strategic role in a healthy manner. As Federation of Food and Drink Industry Associations of Türkiye (TGDF), we declare that we will support every constructive step taken in this direction.
It is now clear that food inflation and competitiveness are not independent issues. The lasting solution lies in structural steps that reduce costs, enhance efficiency and strengthen the industry, rather than short-term price suppression. Strengthening agriculture-industry integration, predictable regulations and a production approach aligned with international standards are critical for the country to maintain balance in its domestic market and position itself as a strong player in global trade. As TGDF, we will continue to support every constructive policy and collaboration that will sustain the sector’s growth and ensure its long-term competitiveness…
By Demir Şarman,
Chair of TGDF
