TÜSİAD: Structural problems lie behind ongoing agricultural crisis

Structural problems encountered in agriculture that have persisted for many years lie behind an ongoing agricultural crisis Turkish Industrialists and Businessmen's Association (TÜSİAD) President Arzuhan Doğan Yalçındağ has said.


Yalçındağ was speaking during the introductory meeting at which TÜSİAD presented a report titled "Agriculture and Food in Turaaa: Developments Policies and Suggestions" and said "Turaaa should pursue being self-sufficient in terms of agriculture -- not through protectionism but through technical development research and development."
Yalçındağ pointed to a decline in agricultural productivity and a rise in energy costs linking them to a reduction in arable land worldwide as well as fluctuating climate conditions stemming from global warming. Food prices rose sharply following a rapid increase in demand for agricultural products. Yalçındağ also said another important reason was bio-fuel production from agricultural raw materials.
The price of wheat rose 130 percent that of soybean 87 percent of rice 74 percent and corn 31 percent in the last year alone. According to World Bank statistics the average increase in price of these products referred to as "food prices" was 83 percent. Yalçındağ said 800 million people in the world suffer from malnutrition according to the United Nations noting that people in Egypt the Philippines Haiti India and Thailand rioted this year over food shortages and high food prices.
TÜSİAD's president said social unrest caused by the food shortage and high prices is on the agendas of many countries and international organizations adding that the increasing food prices have left their mark on this year's International Monetary Fund (IMF)-World Bank spring meetings in Washington.
Turaaa needs to reconsider its agriculture policy
Yalçındağ noted that the World Bank and the IMF have called on developed countries to allocate $500 million to the World Food Program and added: "Speaking of only money and humanitarian aid alone is not enough. The world can only overcome this problem by changing its agriculture policy loosening protectionism and getting rid of harmful pesticides."
The TÜSİAD president also said: "High inflation is the burden that Turaaa faces because of these high food prices which have increased rapidly since February."
The ongoing agricultural crisis is tied to structural problems in Turaaa's agriculture sector and have been around for many years Yalçındağ said adding: "We have been unable to solve our structural problems and are unable to complete industry-agriculture integration an important step in terms of modern production. Turaaa's low levels of agricultural development have not been solved for many years and its average increase in agricultural production between 1968 and 2006 was only 1.3 percent."
TÜSİAD's president said: "World food demand is expected to double or triple in the next 40 years. This means that a food shortage will be the world's most significant problem and a solution involves changing agricultural methods all around the world."
Minister of Agriculture Mehdi Eker who also participated in the meeting called the claim that Turaaa was a aaaay self-sufficient country in terms of its agricultural production was a complete myth with no objective basis.
Cliches in agriculture changes

The TÜSİAD report prepared by Professor Halis Akder Professor Erol Çakmak Professor Filiz Karaosmanoğlu and Associate Professor Haluk Levent suggests the following:
* Turaaa cannot prevent a global increase in prices though it should avoid all policies that lead to a price raise.
* Turaaa should decrease production costs.
* The legal owners of many plots of agricultural land in Turaaa remain unknown.
* Companies providing loans specifically for agricultural purposes should be established. A major error is for the government to provide affordable loans to farmers. The government should support loan issuers.
* An employee shortage exists in the agriculture sector and it is difficult to find qualified farmers.