Water along the Food Chain: Turkey

196 Pages·2016·6.27 MB·English

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Investment Centre Division
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www.fao.org/investment/en 01. Rep
Report No. 27 – August 2016 I4318/1/ ort No. 27

turkey
Water along the food chain
Towards water-smart agrifood policies:
the case of red meat processing
Nuno Santos
economist, investment centre division, Fao
Prof. Dr. Sebastian Hess
agricultural economist, christian-albrechts university Kiel
Dr. Tinoush Jamali Jaghdani
Water Policy specialist, georg-august university göttingen, germany
with contributions from:
Prof. Dr. Harun Uçak
economist, alaaddin Keykubat university, turkey
Arianna Carita
economist, investment centre division, Fao
Genevieve Theodorakis
economist, investment centre division, Fao
Maria Ricci
Project Officer, Investment Centre Division, FAO
country highlights
prepared under the Fao/eBrd cooperation
Food and agriculture organization oF the united nations
rome, 2016
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ISBN 978-92-5-109360-3 (FAO)
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Cover photo: © Photomyeye | Dreamstime.com
TABLE OF CONTENTS
Foreword v
acknowledgements vii
acronyms and abbreviations ix
executive summary xi
1 introduction 1
Turkey’s water resources 2
Structure of water use and water demand in Turkey 9
The issue of groundwater depletion 13
The predicted effect of climate change on water resources in Turkey 17
2 turkey’s agriculture sector and water use 21
Turkey’s agriculture sector: the recent past and current trends 21
Water use in agriculture in Turkey: Past evolution and trends 46
Water saving technologies in Turkey’s food chains 60
3 Policy environment for food sector water use efficiency 75
Turkish institutions for the management of water resources 75
Water resource management policies 97
A comparison of government support measures for Turkish agriculture 109
4 red meat case study 121
Dynamics and efficiency of the red meat processing value chain 121
Water use in the red meat processing value chain 143
Policies and development of the red meat processing value chain
in Turkey 150
5 Conclusions 157
Main findings 157
Key policy options and potential priorities for public-private
policy dialogue 160
Annex 1 – The trade intensity index 165
References 167

Foreword
In 2013, the EBRD and FAO launched a multi-country project to improve water
efficiency in selected agricultural value chains. The project aimed at providing
analytical support to improve the environmental impact of EBRD agribusiness
investments and inform policy-makers on sustainable paths for specific value
chains in Turkey, Jordan, Ukraine and the Kyrgyz Republic.
Although Turkey has more water resources than many of its neighbors in the
Middle East and North Africa, it is expected to face shortages in the near future.
Climate change, rapidly rising demand and inefficient practices are contributing
to the overexploitation of groundwater resources. This is particularly problematic
for agriculture, an important sector in the Turkish economy that is also a
major water consumer and highly sensitive to water shortages. By 2023, the
agricultural use of water – especially for irrigation – is expected to be the single
most important source of domestic water use, accounting for 64 percent of
total national water consumption.
This study elaborates on current and projected trends – as well as institutional
and policy issues – related to water use in Turkey’s agriculture sector. It builds
on quantitative and qualitative evidence gathered through literature review,
data analysis as well as substantial field work carried out during the course of
2014 and 2015. The objective of the latter was to gain a better understanding of
water-related issues in the country and identify the most important food value
chains in terms of water use and potential for improvement. The red meat value
chain was selected for more in-depth analysis given its economic importance
and also because it constituted an interesting example of the impact of policies
on water use efficiency in the agrifood sector. The report provides a value
chain and water-use efficiency analysis for the red meat sector, building on
available research and secondary statistics. It also includes information on key
market players as well as sector dynamics and structural characteristics. Finally,
this review identifies key constraints and opportunities for a “water-smart”
development of the red meat sector and suggestions in terms of policy.
As a result of heavy subsidization and growing purchasing power, domestic red
meat demand and production in Turkey have grown steadily in the past decade.
This trend is expected to continue, with an estimated 34 percent growth in total
beef consumption between 2014 and 2024. Water consumption in the Turkish
red meat production chain is significant, especially for irrigation purposes at the
primary production level. Partly due to the provision of specific input subsidies
for the production of forage crops, a significant share of irrigated land in the
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country - c. 24 percent - is dedicated to the production of maize silage used as
fodder. With high production costs, red meat in Turkey ends up being a major
water consumer while not being very competitive. Developing “water-smart”
policies would therefore require Turkey to pay close attention to the appropriate
design of incentives around water use, especially in primary agriculture.
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Acknowledgements
This review was conducted in the context of the cooperation between FAO
and the EBRD. It was financed by FAO and EBRD’s Southern and Eastern
Mediterranean Multi-Donor Account, supported by Australia, Finland, France,
Germany, Italy, the Netherlands, Norway, Sweden, Taipei China and the United
Kingdom.
The analysis was carried out by FAO’s Investment Centre, under the supervision
of Nuno Santos, Economist, Europe, Central Asia, Near East, North Africa, Latin
America and the Caribbean Service (TCIC), FAO. The main authors of the study
are Sebastian Hess, Agricultural Economist, Christian Albrechts, University of Kiel,
Tinoush Jamali Jaghdani, Water Policy Specialist, Georg-August, University of
Göttingen, and Nuno Santos. Genevieve Theodorakis, Economist, Arianna Carita,
Economist, and Maria Ricci, Project Officer, all from TCIC, also contributed to the
report. Harun Uçak, Economist, carried out background research, data gathering
and analysis and contributed to drafting sections of the report. Cuneyt and Nedret
Okan, Water Sector Specialists, helped draft the scoping report through data
gathering, research and analysis. Giovanni Muñoz, Land and Water Officer, TCIC,
provided useful insights on water availability indicators.
Nadia Petkova, Regional Head of Agribusiness at EBRD’s Resident Office in
Istanbul, and Iride Ceccacci, Principal Economist, EBRD, provided leadership
and coordination on behalf of the Bank as well as comments on the draft
version of the study.
The authors would like to thank Aysegul Akin, Assistant FAO Representative in
Turkey, for the numerous interactions on the study and kind implementation
support. The authors would finally like to thank Mohamed Manssouri, Chief,
TCIC, and Emmanuel Hidier, Senior Economist, TCIC, for their overall support
and guidance. The authors are also grateful to Claire Tarrin, Genevieve Joy and
Adriana Brunetti for editing and formatting the report. They also wish to thank
Sarah Mercadante, Project and Communications Officer, TCIC, for coordinating
the publication process. Thanks are also extended to the entire TCIC General
Service team for their assistance during the implementation of the study.
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