TURKEY : ESTIMATES OF SUPPORT TO AGRICULTURE

 

Contact person: Luis Portugal

Email: luis.portugal@oecd.org

Tel :

(33-1) 45 24 95 34

Fax :

(33-1) 44 30 61 02

DEFINITIONS AND SOURCES

 

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, sunflower, sugar, potatoes, tomatoes, tobacco, grapes, apples, cotton, milk, beef and veal, poultry meat, sheep meat, and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, and eggs), provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

 

Abbreviations:

ASCUs: Unions of Agricultural Sales Co-operatives - TSKB

DPT: State Planning Organisation.

EBK: General Directorate for the Meat and Fish Organisation

GDRS: General Directorate for Rural Services

MARA: Ministry of Agriculture and Rural Affairs

RUSF: Resource Utilisation Support Fund

SIS: State Institute of Statistics, Prime Ministry

SPSF: support and price stabilisation fund

TEKEL: General Directorate for Tobacco and Tobacco products

TMO: Turkish Grain Board

TRL: Turkish Lira

TSEK: Turkish Milk Industry Corporation

TSFAS: Turkish Sugar Factories Inc.

TSKB: Unions of Agricultural Sales Co-operatives - ASCUs

ZB: Agricultural Bank

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Cereals, sunflower, apples, tomatoes, potatoes and grapes: Volume of Production [1].

Sugar: white sugar: Volumes of sugar produced from sugar beet and processed by the TSFAS each year [1].

Cotton: Volume of production (lint) [1].

Tobacco: Volume of production (leaves) [1].

Milk: Total production of cow's milk, calendar year [1].

Beef and veal, poultrymeat and sheepmeat: Total production of meat, carcass weight, calendar year [1].

Eggs: Edible eggs produced by commercial farms plus edible eggs obtained from small, rural farms (0.055 kg per egg) [1].

II. Producer prices

Cereals: Average purchase price of TMO, all grades [1].

Sunflower and cotton: TSKB (ASCUs) average purchase prices [3].

Sugar: TSFAS average purchase prices for sugar beet [1].

Tobacco: TEKEL average purchase price [1].

Apples, tomatoes, potatoes and grapes: SIS unit value of production [1].

Milk: Average TSEK purchase prices for raw milk [1].

Meats: Average purchase prices of the EBK [1].

Eggs: Average prices used in the SIS Wholesale Price Index [1].

IV. Level of consumption

For all commodities:

Consumption = Production + imports - exports [- feed Ė seed + change in stocks]

Wheat

Imports: Turkish Foreign Trade statistics [1]. The Conversion factors used to calculate the wheat equivalent for foreign sales of the commodities are as follows:

Flour: x 100/70;

Pasta: x 100/84;

Cakes & biscuits: x 100/77

Stocks: The figures derived by subtracting total demand from total supply.

Feed: The figure used was double the amount of wheat used by the feed industry.

Seeds: It was estimated that 200 kg of seed are sown per hectare.

Exports: Turkish Foreign Trade statistics [1]. The conversion factors used in external purchases were used in the calculation of the wheat equivalents for the foreign sales of the commodity.

Sunflower: Seed equivalents for traded products are estimated by dividing the volume of sunflower oil by 0.40 [1].

Cotton: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the cotton derived products: (lint cotton x 1.00) + (cotton thread x 0.85) + (cotton cloth x 0.95 x 0.85) + (velvet x 0.66 x 0.95 x 0.85) + (fiberís knitted x 0.75 x 0.95 x 0.85) + (fiberís textile x 0.5 x 0.95 x 0.85) + (home textile 0.05 x 0.95 x 0.85) [1].

Tobacco: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the tobacco derived products: 1 cigarette = 1 gr. of tobacco and 1 cigar = 35 gr. of tobacco [1].

Apples: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the apple derived products: (juice / 0.70) + (concentrated / 0.50) + (puree / 0.20) + (dried / 0.25) + (canned / 0.80) [1].

Tomatoes: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the tomatoes derived products: (juice / 0.50) + (paste / 0.25) + (dried / 0.10) + (canned / 0.80) + (frozen / 0.70) + (ketchup / .040) [1].

Potatoes: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the potatoes derived products: (flour / 0.15) + (starch / 0.15) + (dried / 0.25) + (canned / 0.70) + (frozen / 0.70) [1].

Grapes: Volumes of imports and exports are calculated by adding the following shares of imports/exports of the grapes derived products: (raising / 0.25) + (wine / 0.60) + (juice / 0.80) + (concentrated / 0.50) [1].

Beef and veal: The meat equivalent of non-breeding live cattle imports/exports is estimated by using a yield conversion factor of 55 per cent and adding the resulting number to the meat export/import figures [1].

Poultry: The meat equivalent of live, non-breeding chicken imports/exports is estimated by applying a yield conversion factor of 75 per cent and adding the resulting number to the meat import/export figures [1].

Sheepmeat: Traded volumes include the sheepmeat equivalent of non-breeding livestock. Each kilogramme of live animal is assumed to yield 550 grammes of meat on a carcass-weight equivalent basis [1].

VII. Reference prices

Wheat: Weighted average c.i.f. price of Turkish wheat imports (15 per cent to hard wheat and 85 per cent to soft wheat, for bread), adjusted for handling and marketing used for the European Union. [1, 2]

Maize: European Union's average import price of USA Yellow corn Nr 3 (c.i.f. Rotterdam), adjusted by a handling and marketing margin, using the same margin used for the European Union. [2]

Barley: European Union's barley export price (f.o.b. French ports), adjusted for handling and marketing margin used for the European Union.[2]

Sunflower: European Union's import price for sunflower seeds, c.i.f. [2].

Sugar: Paris Stock Exchange white sugar price, minus handling and marketing margin based on the ratio of the TSFAS's wholesale price for granulated sugar to its average purchase price for sugar beet. [3]

Cotton, tobacco, apples, tomatoes, potatoes, and grapes: Unit value of Turkish exports [1].

Milk: Farm gate price of milk, calendar year, actual fat content (x%) in New Zealand, plus transport cost for butter and skimmed milk powder in milk equivalent (56kg and 82kg per tonne of milk, respectively) from New Zealand to the United Kingdom (Pnz), adjusted to fat content (y%) in Turkey (4), the reference price being (Pnz)*[ (x%)+(y%)] /2*(x%).[1,3]

Beef and veal: Unit export value in extra-EU trade of meat of bovine animal, fresh and chilled (code 0111, SITC, Rev. 3), in carcass weight equivalent, calendar year  [2].

Poultrymeat: European Union's f.o.b. unit export price of poultry meat.[2]

Sheepmeat: Average Turkish sheepmeat export price; adjusted for handling and marketing margin, obtained by the ratio between EBK's average sheepmeat purchase prices and its sheepmeat sales prices.[1]

Eggs: European Union's unit export value of poultry eggs in the shell, fresh or preserved, excluding eggs for hatching; adjusted for handling and marketing margin estimated by comparing the SIS's "Consumer Price Index" for eggs with the average of its "Wholesale Price Index" and index of "Prices Paid to Farmers" for eggs.[2,3]

Sources:

[1] All data are collected by MARA from different sources such as SIS, DPT, HDTM.

[2] EU PSE database

[3] NZ PSE database