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Management of The Production and Marketing of Fresh Fruit and Vegetables: A Case Study of Antalya Province in Turkey

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Acta Hortic. 1132. ISHS 2016. DOI 10.17660/ActaHortic.2016.1132.7
Proc. XVIII Int. Symp. on Horticultural Economics and Management
Eds.: L. Ekelund and F. Fernqvist
49
Management of the production and marketing of fresh
fruit and vegetables: a case study of Antalya province
in Turkey
B.Ozkan1,a,E.Ilbasmıs1,bandR.G.Brumfield2,c
1AkdenizUniversity,FacultyofAgriculture,Department of Agricultural Economics, Dumlupinar Boulevard,TR-
07058Campus,Antalya,Turkey;2DepartmentofAgriculture,FoodandResourceEconomics,Rutgers, TheState
UniversityofNewJersey,55DudleyRoad,NewBrunswick,NJ08901-8520,USA.
Abstract
Turkeyhasacrucialshareoftheworldmarketforfreshfruitandvegetables,
exportingfreshfruitatavalueof2.393milliondollarsin2014.Antalyaprovincehasa
significantshareoftheproductionandexportsoffreshfruitandvegetablesinTurkey,
withamajorityofthefreshfruitandvegetablesproducedintheprovincebeing
orientedtowardstheexportmarket,particularlytotheEUcountries,theRussian
Federat ion,andtheMiddleEast.Inadditiontotheproducers,otheractorsalsoplay
animportantroleintheproductionandmarketingoffreshfruitsandvegetables,as
dothoseresponsibleforthemarketingoftheproduce.Toprovidesustainable
developmentintheproductionandexportoffreshfruitandvegetables,both
productionandmarketinghavetobemanagedandsupportedinanefficientway.In
thisstudy,theproductionandmarketingoffreshfruitandvegetableswillbe
examined,withAntalyaprovinceservingasatypicalexample.Withthepublicationof
thisstudy,itisouraimtoputforwardsuggestionswhichcanbeofvaluetothe
sustainableandefficientmarketingandmanagementofTurkishfreshfruitand
vegetableproduction.
Keywords:exports,marketing,produce,fruits,vegetables,casestudy
INTRODUCTION
Turkeyisoneoftheleadingcountriesintheproductionoffreshfruitandvegetables.
Freshfruitandvegetablesalsohavealargedevelopmentalpotential and represents a
significantshareoftheagriculturalexports.Thetradeinfreshfruitandvegetablesinvolves
producers, cooperatives, producers’ organizations, brokers, wholesale and retail traders,
importersandexporters,relatedpublicinstitutions,andconsumers(Albayrak,2009).
Fresh fruit and vegetables is a production group which creates added value in both
plantproductionandagricultureintermsofemploymentopportunities,andtheprovisionof
raw materials to industry and for export. Depending on the suitability of the existing
ecological conditions, different varieties of fruits and vegetables are produced. To place
theseproductsin the globalmarket,it isnecessaryfirst of alltoprovideforfoodsecurity,
and then to put forward market strategies at the appropriate timeandplace(Albayrak,
2009).
Themarketingof fresh fruit andvegetablesis as importantas their production,and
themarketingstructurechangesaccordingtotheproductandcountry.Thusfreshfruitsand
vegetables are also marketed directly to consumers through wholesale and food markets,
brokers, cooperatives, producers’ organizations, commodity exchanges, boards, importers
andexporters,andexporters’organizations.Anyweaknessamongproducers’organizations
increasesdependency onintermediaries, and any rise in the numberof brokersincreases
the marketing margin, due to their marketing power. In the case of unorganized small
aE-mail: bozkan@akdeniz.edu.tr
bE-mail: edailbasmis@akdeniz.edu.tr
cE-mail: brumfield@aesop.rutgers.edu
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enterpriseswemustnotforgetthatanumberofmarketingfunctions, such as thesupply,
transport, storage, packing, labelling, standardization, and pricing of fresh fruit and
vegetables,arecarriedoutbyintermediaries(Albayrak,2009).
MATERIALSANDMETHODS
The data provided from national and international statistical institutes (FAOSTAT,
TUIK)whichdealwiththefreshfruitandvegetablessectorsandisanalyzedaspartofthe
study,isexplainedwiththehelpofcharts.
Theinformationcollectedfromscientificstudies(papers,articles,thesesandsectorial
reports)isused in thesections in whichtheproduction offreshfruitsand vegetablesand
themarketingstructuresusedinAntalyaareexamined.
The secondary data, and information collected during the investigation of the
managementofproductionandmarketingoffreshfruitandvegetables(whichistheaimof
thestudy),isexaminedfromamutualviewpointandtheexistingsituationisanalyzed.
RESULTSANDDISCUSSION
Theproductionoffreshfruitsandvegetables
In2012, Turkeyproduced 260,000tons ofvegetableson 12,500ha ofland. Antalya
accounts for 15% of vegetable production in Turkey, and 50% of vegetable production in
Antalyatakesplaceunderprotectivecover(FAOSTAT,2015;TUIK,2015).
ProductioninAntalyatakesplaceintwoways:underprotectivecoverandintheopen.
Openarea growingis usedintensivelyin the inland districts. Production under protective
coverisappliedintwowaysingreenhousesinthecoastalregion:singleplantingordouble
planting.Singleplantingistheproductionofasingleproductinthesamegreenhouseinone
calendaryear,whiledoubleplantingistheplantingoftwoofthesameordifferentproducts
inthesamegreenhousetwiceinasinglecalendaryear(Ozkan,2008;Ozkanetal.,2005).
Greenhousecultivationtakesplaceintwodifferenttypesofgreenhouse,oneofwhich
isglassandotherisplasticaccordingtorequirementsandexisting resources. In a glass
greenhousetheinitialcostofthestructureishigh,whileplasticgreenhouseshavealower
initial cost of construction than glass greenhouses. Because ofthelowersetupcostsand
recent developments in the technology of plastic production, anincreaseintheareaof
plastic greenhouses has been observed. There are differences in terms of structural and
cultivationtechniquesofproductionunderprotectivecoverbetweenmodernandtraditional
greenhousesinAntalya.Modernenterprisesarecharacterizedbyproductionbycompanies
while in traditional greenhouses, production is done by family businesses. There are also
companies which specialize in vegetable production in soilless culture in greenhouses in
Antalya.Alloftheproductionbythesecompaniesgoestoexport(Ozkan,2008;Ozkanetal.,
2005).
Information about cultivated area, and details of agricultural enterprises using a
systemofprotectivecoverforcultivationinTurkeyandAntalyaareshownin Table1.The
totalnumberoftheenterprisesengagedinagricultureunderprotectivecoveris40,287,and
40%oftheproductionareaunderprotectivecoverisinAntalya(TUIK,2015).
Table1. Numberofholdingsandagriculturalareaoflandunderprotectivecoverbytypeof
structure(RepublicofTurkeyMinistryofFood,AgricultureandLivestock,2015).
Type of structure Number of holdings Area (ha)
Low tunnel 412 64,070
High tunnel 3,225 173,150
Plastic greenhouse 22,208 1,018,870
Glass greenhouse 9,444 251,180
Glass and plastic greenhouse 2,876 95,340
Total 38,165 1,602,610
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Themost commonlyproduced vegetables underprotectivecoverin Antalyain 2009
weretomatoes(67%),cucumbers(17%),peppers(7%),eggplants(4%) and pumpkins
(1%). The most important vegetables produced in the open were melons (41%), and
tomatoes(26%). Mostof this vegetableproductionis directedtowards the export market
(TUIK,2015).
Turkey’svegetableexportswerevaluedat710billiondollarsin2014,and61%ofthis
figurerepresentsthe exportof tomatoes.This is followedby pepperswith11%,andthen
cucumbers (11%). In Antalya 90% of all exports of agricultural productsismadeupof
tomatoes,followedbypeppersandcucumbersrespectively(FAOSTAT,2015;TUIK,2015).
NinetypercentofAntalya’svegetableexportwenttotheRussianFederation.Thenext
largestexportmarketsareEUandMiddleEasterncountries.Thefactorseffectingvegetable
exportarethequalityoftheproduct,marketprice,andthekindoftheproduct.Themajority
of Turkey’s produce export involves fresh fruits and vegetablesexportedbyproducer-
exportercompanies.41%oftheexportcompaniesinwholesalemarket exportyearround
(Ozkanetal.,2014;Sayinetal.,2010).
In2012,327,000 metrictonsoffruitswereproducedin35,000hainTurkey.Various
fruit production is possible with the help of the climate, and thisfulfillstheTurkeys
domesticneedsaswellasexports.ThevalueofTurkey’sfreshfruitandvegetableexportin
2014areshowninTable2.Citrusincludingtangerines,lemonsand oranges, constitutes
39%ofthetotalexport.TurkeyexportscitrustotheRussianFederation,Iraq,Ukraineand
SaudiArabia, respectively.Fruits representing thelargest areof production in Antalya are
oranges,apples,olives,bananas,lemonsandpomegranates.About30%ofthetotalorange
productioninTurkeyisinAntalya(Ozkanetal.,2014;FAOSTAT,2015;TUIK,2015).
Table2.FreshfruitsandvegetablesexportofTurkeyin2014.
Quantity (kg) Value ($)
Citrus 1 585 469 868 942 212 767 19
Fresh fruits 774 407 548 720 446 032 30
Fresh vegetables 1 166 584 109 710 183 663 13
Tot al 3 531 680 598 2 393 534 500 88
Marketingstructureandadministration
Agricultural marketing examines the flow of agricultural productsfromproducerto
consumerandtheactivitiesinvolvedinthisflow.Thenumberofresellersandthecostsand
marketmargins increase when the marketingchannel extends. This causes anincrease in
consumerpriceandadecreasedemandand,thus,inproducerincome.Becauseofthis,the
market channel is important. In the fresh fruit and vegetable trade, products reach
consumersthroughdirectorviawholesalemarketingchannelsincludingvariousresellers.
Inindirectmarketingsystems,theproductismarketedviatheresellers such as brokers,
merchants and wholesalers, see Figure 1 (Ozkan et al., 2014; Sayin et al., 2010; Albayrak,
2009).
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Figure1.Thechannelsofmarketingfreshfruitandvegetables.
Marketing channels change accordingtotheproduct,organizational level, and the
producing country’s competition and trade policy. Internationally, various marketing
systemsexistforfreshfruitand vegetable trade. Products reachtheconsumersdirectlyor
via marketing channels including various resellers. In this study, marketing systems are
presentedaccordingtotheabovementioneddistinctions.Inthedirectmarketingsystem,the
produceristhesellerinthemarket.Inthissystem,theproducer markets his/her product
directly via methods such as a producer market, district bazaar, organic product bazaar,
streetselling,sellingonroad/garden/field,electronictradeandopenwholesaletrade.
Producermarketsaredefinedastheplacesinwhichretailsalesofrawfruitand
vegetablestakeplace,andwhicharesetupbythemunicipalities.Theyarealsodefinedin
legislation dealing with the Regulation of Trade in Raw Fruit andVegetables,andof
WholesaleFoodMarkets.Producerscanselltheproductswhichtheyhaveproduceddirectly
toconsumers without the need tomeet the entrance requirementsimposedbywholesale
markets,particularlywithregardtotheregulationsdealingwithquantities offeredforsale
as determined by the municipalities. Open wholesale centres designated as markets are
wholesalecentresinwhichthetradeinrawfruitandvegetables is conducted without
needingtoberegistered.Inthesecentres,thetradeinrawfruitandvegetablesisconducted
by brokers or the producers themselves without any obligation tomakeanykindof
declaration to the wholesale markets inraw fruit and vegetables.Legalregulationswhich
dealwiththismethodofunrecorded trading should be written insuchawaythatthey
encouragethe tradeinrawfruitandvegetables.Localmarketscontinuetobeimportantto
consumers for the advantages they provide, including ease of transport, close proximity,
convenience,productfreshnessandreasonableprices(Ozkanetal.,2014;Sayinetal.,2010;
Albayrak,2009).
Theindirectmarketingsystemwhichusesvariousresellersordistributionchannelsto
53
distribute products is called a “marketingsystemviareseller.Inthissystem,thereare
differentresellers,contractualagricultureagreements,producer’sunions,exporter’sunion,
co-ops,wholesale markets, stock markets,district bazaars, organicproductmarkets,open
wholesale trade (Yurdakul and Koç, 1997; Emeksiz et al., 2005) and huge retailers.
Internationally,therearemarketingboardsandauctionsdifferentfromthesystemsoffresh
fruit and vegetable marketing in Turkey (Yurdakul, 2007). Contractual production is the
production activity which requires an agreement to be made for the purchase of the
productsbythe receiverbefore productionstarts. The contractualproduction of rawfruit
andvegetableshasbecomewidespread,especiallyforproductswhichproviderawmaterials
toindustry,becauseitguaranteesthattheproducerwillhaveamarketfortheproduct,and
also guarantees that the receiver will get the quality and quantity of products required
withintheagreedtimeframe.Retailtraderspassontheproductswhichtheypurchasefrom
theproducertotheconsumer,withanobligationtoinformonlytherawfruitandvegetable
wholesalemarket,andafterpayingthenecessarycosts(withoutmakinganypaymentto
otherwholesalemarkets)andenjoythebenefits.Smallscalemarketsandgreengrocerscan
alsobeinvolvedintheretailsector.ProducerUnionsaretheorganisationsofproducersof
rawfruitandvegetables,theformationofwhichwerepermittedbytheLawofAgricultural
Producer Unions No. 5200, which came into force in 2004. Exporters and Unions of
Exporterswerefoundedtocontributetotheincreaseinexternalsalesandtofindsolutions
toproblems,andhavebeenleadingthewaysince1937.Theseunions are essential in
solvingproblemsassociatedwithimage,branding,publicityandothermarketingstrategies
inrelationtoexternalmarkets.Exportersareabletoselltheproductsthey havepurchased
fromtheproducerstoothercountriesbyworkingcooperativelywiththe exporterunions.
Cooperativeshelpproducerstobesuccessfulintheiractivitiesinbothinternalandexternal
markets,inwhichtheycanbemoresuccessfulthroughorganising themselves in a
cooperativemanner.Forthisreason,itcanbe seenthatcooperativesinparticularcanhave
considerablesuccessinmarketingrawfruitandvegetables.Traditional practices and the
development of cooperatives in Turkey have encouraged the producers of raw fruit and
vegetablestoformcooperatives.Weakeconomicstructuresandanumberofmembersthat
werenotabletoexpandhavehamperedthedevelopmentofcooperativeinfrastructures,and
restrictedanyincreaseinmarketshareorexpansionofthecompetitive power of
cooperativesinthemarket.Also,intermediariesareabletooperatemoreeffectivelybecause
the cooperatives fail make their presence felt sufficiently (Ozkan et al., 2014; Sayin et al.,
2010;Albayrak,2009).
InTurkey,therearetwokindsofsystemsformarketingfreshfruitsand vegetables.
Ignoringsemi-processedproducts,freshfruitsandvegetablesreachconsumersviaresellers
suchas takers, brokers,middlemenand merchants.Inthis system,thebrokershavemore
powerotheractors.Thisindirectmarketingsystemismanagedbybrokerswhotakeahigh
profitforthemselves.Itisthemainproblemofthissystem.But, on the other hand, the
Turkishproducerorganizations and cooperatives for selling fresh fruitsand vegetableare
notstrongenoughforthismarketingchanneltoexpand.Apolicyrecommendationisforthe
governmenttoarrangethesystemtobefairforallactors,thusprovidingeffectiveproducer
andconsumercooperativesandorganizations.Currently,thepricethatproducersreceiveis
muchlowerthanthepricethatconsumerspay.Afternewgovernment
regulations/managementofthesystem,thepriceforconsumerswillbenormalandincome
forproducerstheotheractorswillbehigherwithoutbrokers(Ozkanetal.,2014;Sayinetal.,
2010;Albayrak,2009).
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Article
Full-text available
Thirty cut flower businesses were surveyed in 1997 to examine the production structure and main problems of export-oriented contract growing in Turkey. The survey was conducted in Antalya province, which is the center of export-oriented cut flower production in Turkey. The results of the research provided insight into how Turkish cut flower-contracted growers were managing some of the key areas of their operations. The study also provided the opportunity for growers to highlight their concerns about contract growing for export-oriented cut flower production. The survey showed that contract growers do not use specific performance indicators relevant to cut flower production. The product price received by the contract growers was determined by the export companies. These export companies receive flowers from growers mainly on consignment. After exporting the products, exporters periodically pay the grower, subtracting a commission for their services and other marketing expenses. Contract growers are essentially price takers in the transactions. The business procedure from production to price setting and marketing was not in the hands of the contract growers. Therefore, the trading risks are essentially borne by the contract growers. The main concerns raised by contract growers were the current consignment system, cost of the plant materials, and the late payment for the sold products.
Fresh Fruit and Vegetables Marketing Centers Structure and Systems: Wholesale Markets-Bazaars: World
  • M Albayrak
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  • Tkb Turkey
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Albayrak, M. 2009. Fresh Fruit and Vegetables Marketing Centers Structure and Systems: Wholesale Markets-Bazaars: World, EU and Turkey TKB TEAE (177):1-70, Ankara, Turkey (in Turkish).
Agricultural Products Marketing Channel and Factors Analyses. VI. Technical Symposium
  • F Emeksiz
  • M Albayrak
  • E Günes
  • A Ozçelik
  • O O Ozer
  • K Ve Tasdan
Emeksiz,F., Albayrak,M., Günes,E., Ozçelik,A., Ozer,O.O. ve Tasdan,K. 2005. Agricultural Products Marketing Channel and Factors Analyses. VI. Technical Symposium. 3-7 January 2005: 1155-1171. Ankara, Turkey (in Turkish).
International market orientation level for fresh fruit and vegetable products: a sample of wholesalers in Antalya
  • B Ozkan
  • M G Akpinar
  • E Gulcan
Ozkan, B., Akpinar, M.G., I lbasmıs, E., and Gulcan, S. (2014). International market orientation level for fresh fruit and vegetable products: a sample of wholesalers in Antalya. Paper presented at: National Agricultural Economics Conferences (Samsun, Turkey) (in Turkish). Republic of Turkey Ministry of Food, Agriculture and Livestock. (2015).
Fresh fruit and vegetable marketing: issues and suggestions
  • B Ozkan
Ozkan, B. (2008). Fresh fruit and vegetable marketing: issues and suggestions (Antalya, Turkey: Kumluca City Hall Press), p.239-246. (in Turkish).
Fresh Fruit and Vegetable Marketing Systems at Wholesale market: Issues and Suggestions
  • B Ozkan
  • I Yilmaz
  • C Sayin
Ozkan, B., Yilmaz, I., and Sayin, C. (2005). Fresh Fruit and Vegetable Marketing Systems at Wholesale market: Issues and Suggestions (Antalya: ATSO) (in Turkish).
FAOSTAT online databases
FAOSTAT, 2015. FAOSTAT online databases. http://faostat3.fao.org/home/E (Accessed: 16.03.2015).
What is the conclusion of this study? Açıklamalı
  • Açıklamalı
Açıklamalı [LE18]: What is the conclusion of this study? Açıklamalı [u19R18]: Refreshed.