Photo: AFP/Anadolu Agency/Davut Genc
Eurasia
16/01/2024 07:00
In terms of value, exports declined by 9 percent compared with 2022, while the increase in volume was 7 percent.
Europe was once again the largest export market for the Turkish hazelnut.
The province of Trabzon on the Black Sea coast accounted for 28 percent of all hazelnuts exported last year. Shipments from the city to foreign countries amounted to 82,392 tons, generating $531 million in revenues. But the city’s export revenues were down 4 percent from the previous year.
Orders from the main markets, especially from Europe, declined due to elevated inflation, said Sebahattin Arslantürk from the Eastern Black Sea Exporters’ Association.
“Apart from the weak foreign demand, higher energy and labor costs, problems with accessing loans, impacted hazelnut exporters,” he said, adding that despite all those global and local challenges, companies showed a strong performance.
They anticipate a partial recovery in the European markets this year, and buyers will continue to act very cautiously, Arslantürk said. “The expected recovery can only be felt in the second half of 2024.”
Arslantürk also voiced concern over low productivity, saying, “Although production is carried out on an area of 750,000 hectares, the yield amount is below 700,000 tons. The average production is 85 kilograms per decare… We are the country with the most inefficient production in the world.”
Considering the adverse impacts of global warming, if work is not carried out to improve the current situation, the sector will suffer large losses, according to Arslantürk.
As Washington aims to decrease its trade deficit and strengthen domestic production, global value chains are facing new pressures to restructure. This change poses significant challenges for both European and Chinese producers as the flow of decade-long input and final good channels is disrupted. Is this a new opportunity for the two economic zones to further strengthen their relationship thereby mitigating some of the negative effects of US trade policy?
For the first time, a Hungary–New Zealand Business Forum was held in Budapest in late May, organised by the Hungarian Export Promotion Agency (HEPA). On the margins of the event, Eurasia spoke with Simon Bridges, CEO of the Auckland Business Chamber.