HAL Id: hal-02815551
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Submitted on 6 Jun 2020
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Market restructuring and small farmer exclusion: lessons from the tomato market in Turkey
Celine Bignebat, Ahmet Ali Koç
To cite this version:
Celine Bignebat, Ahmet Ali Koç. Market restructuring and small farmer exclusion: lessons from the tomato market in Turkey. 12. EAAE Congress, European Association of Agricultural Economists (EAAE). INT., Jun 2008, Ghent, Belgium. 14 p. �hal-02815551�
Market restructuring and small
farmer exclusion:
the tomato market in Turkey
Céline Bignebat, INRA-Moisa
EAAE Congress 28 August 2008
Motivation of the presentation
•
Supermarket development
•
Marketing channel restructuring
•
Impact on small producers
Î Challenging results from Turkey
•
Regoverning market report
•
Collateral papers
Summary of a collaboration bet. 2 teams
Moisa (INRA Montpellier)
Outline
1)
FFV sector in Turkey
2)
Producer level: adaptation/exclusion
3)
Move along the marketing channel
FFV sector in Turkey
• Development of modern retail: intermediate level; however lower for FFV (20%)
• Consumer demand: share of the budget spent on FFV is more
than 25%; demand for quality; preference for traditional street markets (pazar, with a large range of varieties, less segmentation via safety – organic)
• Regulation: the wholesale market law (1995)
9 Centralisation of transactions on wholesale markets
(establishment controlled by public authorities); produce is handled by commissioners remunerated according to total sales (5-8%)
Questions
•
Producer level:
¾ Adaptation/exclusion
¾ If adaptation, do they benefit from modern retail development
•
Marketing channel level:
¾ Adaptation/exclusionData
•
Fresh tomato for the domestic market
¾ Industrial tomato: structure and strategies are not
comparable with fresh; and doesn’t fit to the RM question ¾ No specific data on exports
•
Two data sets :
¾ Producers: 212 fresh tomato producers – dec 06-jan 07 (random sampling, stratification: size) (see Map)
¾
205 wholesale market agents (exhaustive collection) feb 07 ¾ Matched data (no direct sales reported)Producer level
•
RM methodology, comparative view
¾ Participation stage: is the producer engaged in a modern marketing channel or not? Definition of modern: indirectly probably selling to a supermarket (commissioners procure produce in bulk, no tracability of lots)
¾ If yes, does it affect the gross income from tomato production
•
Exogenous variables
¾ Individual and farm characteristics, land and non land assets, technical assistance, role of coops
Producer level - results
•
Participation to the modern marketing channel
•
is related to individual characteristics (age and experience), and to farm location• No impact of land assets, and some non-land assets
(glasshouses-irrigation methods); no impact of getting a loan (investment)
• Negative effect of coops
Producer level – marketing channel
•
Producers don’t know who is the final buyer
•
Intermediation as a key determinant:
¾ Are the commissioners adapting to the supermarkets’ requirements instead of the producers?
¾ Investment in specific practices: sorting, grading, large range of varieties
Wholesale market level – results
•
Who are the commissioners selling to
supermarkets?
¾ Antalya region (180), 30% of them are selling to
supermarkets, not dedicated, price is higher/requirements too ¾ Either large or small (niche), not speciliazed in tomato, exposed to other requiring marketing channel (hotels)
•
Does this relationship imply specific practices?
¾ Assumption: delayed investment¾ But, wholemarket firms that engaged recently with
supermarkets invest more Î evolution of business model? Fear of a modification of the law
What about producer unions?
•
Traditional village cooperatives
¾ often don’t meet the requirements to be recognized as producer unions
¾ don’t aim at marketing (credit supply, network…) ¾ inheritance from the socialist period
•
But an evolution …
¾ … towards modern marketing coops (change in the legislation)
¾ Members, large producers (exporters)
Î The second type should theoretically dominate the commissioner system
Conclusion and perspectives
• Turkey – intermediate level of the supermarkets growth
• A highly regulated FFV market: a slow market restructuring
• Trends are demonstrating an accelerated mouvement of the intermediaries (wholesale markets and producer unions)
• Questions the notion of market transition (managment)
• Perspectives
• Have a look at the short term evolution
• Exports are totally absent of the analysis
References
“Restructuring of agrifood chains in Turkey. Turkey national, local meso-study and micro report”, with Koç, A.A.; Bignebat, C, ; Codron, J.M. ; Tekelioglu, Y. ;
Lemeilleur, S. ; Tozanli, S. ; Aksoy, S. ; Demirer, R. , avril 2008
Bignebat, Codron, Lemeilleur, “Delayed adoption of specific practices in uncertain environments: The case of the fresh fruit and vegetables in Turkey“, ISNIE 2007 Lemeilleur, Bignebat, Codron, “Marketing Cooperative vs. Commission Agent: The Turkish dilemma on the Modern Fresh Fruit and Vegetables Market”, EAAE 2007
Aksoy, Bignebat, « “Intermediation choice for tomato producers in Turkey: Merchants vs. Wholesale market agents“, mimeo
Lemeilleur, S. ; Tozanli, S. “A Win-Win Relationship between Producers' Unions and Supermarket Chains in Turkish Fresh Fruits and Vegetables Sector“, Innovative
