Agri-tech market in Türkiye
Executive summary
Türkiye is one of the most advantageous countries in terms of agricultural production. The share of agriculture in total trade in Türkiye is around 10%. Considering the agricultural gross domestic product (GDP) ratios of Türkiye, it is in the top 10 in the world. Türkiye's revenue from agriculture is 51.7 billion dollars, and the share of agriculture in total production is 6.08%.
In addition, Türkiye has approximately 20 million hectares of cultivated land, in other words, 25% of the territory is suited for agricultural activities. Around 60% of these fields are used for grain production; 20 % are cultivated for fruits & vegetables and the remaining 20% is reserved for forage plants and oleaginous seeds.
Considering the needs of Canadian companies, we focused on 5 agri-tech sub-sectors in Türkiye which are:
- controlled environment agriculture
- precision farming
- high-tech farming equipment
- crop protection and nutrition inputs
- livestock & animal farming technologies
We provided project examples of these sub-sector that are already actively used in Türkiye. We provided key companies, key industry associations, conferences and trade shows in the agri-tech ecosystem in Türkiye. Moreover, we analyzed opportunities, gaps and challenges in the sector.
Current and planned Agri-tech projects in Türkiye
A project idea for the preparation of the National E-Agriculture Strategy was developed by the Ministry of Agriculture and Forestry of the Republic of Türkiye and was initiated to conclude on 9 June 2020 in cooperation with the Food and agriculture Organization (FAO).
The Ministry of Agriculture and Forestry has allocated a resource of $900 million TL and plans to double this support in the coming period. For example:
- The Animal Tracking System project is supported by Türkiye's Ministry of Agriculture's International Center for Livestock Research and Training, and Aselsan.net
- An Automatic Steering System in the tractors, developed by collaboration of ASELSAN and Türkiye's Ministry of Agriculture's Field Crops Central Research Institute
Other than these governmental projects, private entrepreneurs’ projects are widely active in Türkiye. For example:
- Filiz project by Turkcell
- Smart Village project supported by Vodafone Türkiye, Teta and Tabit
- Central Grain Loss Monitoring and Tracking System developed by the collaboration of METU Teknokent and Geosys - an agritech company in Türkiye
Opportunities, gaps and challenges in Agri-tech sector in Türkiye
Based on our research, the most promising agri-tech sub-sectors in Türkiye are high-tech farming equipment, protective agricultural technologies and data driven agricultural production methodologies. As a result, we observed that data collection-based solutions providing companies have the potential to grow in the market in Türkiye.
Still, there are certain gaps and challenges in the Turkish agri-tech sector. These mainly are:
- The multi-part and divided structure in agricultural enterprises cause problems in the establishment of technological applications
- There are problems experienced in data reading and interpretation due to the limited technical knowledge of farmers
- There is certain level of pollution in soil and water resources, mainly due to unsustainable agricultural policies
Conclusions and recommendations
In spite of the challenges, it is obvious that the agri-tech sector in Türkiye is growing, posing opportunities for technological companies offering innovative solutions and addressing the gaps in the market. Specifically, areas like high-tech farming equipment, protective agricultural technologies and data driven agricultural production technologies are gaining importance.
Turkish agricultural companies are open to innovation and are interested in original and advanced agricultural technologies. As such, overseas companies providing these technologies can definitely benefit from the existing opportunities in the Turkish agri-tech market. These companies include:
- producers of highly specialized sensors utilized in the farms or greenhouses
- companies collecting data through hyperspectral imagery
- in general, companies offering solutions to increase the efficiency of the farmer
No doubt, Türkiye has a vast agricultural potential. In order to realize this potential and grow the market, the use of innovative agri-tech solutions is imperative. Companies offering these solutions will definitely gain a competitive edge in the sector and benefit in the long-run.
