Turkey struggles with citrus overproduction
Despite high inflation and the country’s struggle with high yields, Turkish citrus production is projected to be up 90% for the 2023-24 season. However, quality concerns and fruit size issues have pushed profit margins down, a recent USDA report says.
Favorable weather conditions are set to push volumes up to 7 million MT. this season, with newly planted orchards going into production as well. Yet, low rainfall during the spring affected size and quality, forcing producers to lower prices.
Orange volumes are estimated up 31%, with Antalya province leading production. The 2023-24 harvest started Oct. 20 with early varieties such as Navelina and Fukomato. Exports are expected to increase by almost 40% year-on-year.
Overall tangerine production is forecast to increase 55%, with farmgate prices still unable to compensate for high production costs. The Satsuma is the most widely produced variety in the region and is crucial for both domestic consumption and exports.
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Turkey reportedly loses around 10-15% of its crop due to a lack of adequate cold chain logistics. Higher production costs, economic uncertainties in export markets, and yield increases in competing markets such as Spain, Egypt, and Morocco leading to lower export prices have strained harvests, Turkish citrus producers say.
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.
Export subsidies have been requested from the Government of Türkiye (GoT) to overcome surplus production compete with other exporting countries, and rising export costs.
With the Russia-Ukraine war, the devaluation of the Russian ruble, increasing export costs, rejected fruits due to pesticide levels, and difficulties reaching export credits, Turkish exports continue to face export difficulties.
Nevertheless, Turkish exporters remain hopeful that they can increase their exports to Russia, since there are still export sanctions from some European countries, the report states.