In 2000, with the Agricultural Reform Implementation Project (arip) initiated by the World Bank in Turkey, the agricultural market entered a liberalization process. However, the arip policies were not implemented as envisaged. By means of a case study approach, this paper analyses the reasons for the failure of the arip policies in the hazelnut market. The technical reforms introduced by international institutions disregard local lives, as well as the impact of these reforms on the local people. The legislative changes, including the controversies and crises, have met strong resistance at the local level. In light of the local configurations of power and exchange relations, the locality creates the conflict and controversy surrounding the liberalization policies. This study examines the process of liberalization, focusing on the hazelnut market characteristics, the politics of market relations, policy-making, and pricing between 2001 and 2009 in Turkey.
ApeldoornB.BeilerA.MortonA. D.The Struggle over European Order: Transnational Class Agency in the making of Embedded Neo-LiberalismSocial Forces in the making of New Europe: The Restructuring of European Social Relations in the Global Political Economy2001BasingstokePalgrave7089
20063Conference ProceedingsGiresunMilli Findik Surasi [3rd National Hazelnut Conference 10-14 October 2004 Proceeding Book]
ÇalışkanK.AdamanF.KarapınarB.AdamanF.OzertanG.The Logic of Neoliberal Agricultural Reform Initiatives: Perspectives and ConsequencesRethinking Structural Reform in Turkish Agriculture: Beyond the World Bank’s Strategy2010Nova Science Publishers87103
FerreroThe Ferrero Group continues investing in Turkey and in the hazelnut sector2014accessed on November 06, 2014Ferrero Official Website: http://www.ferrero.com/group-news/The-Ferrero-Group-continues-investing-in-Turkey-and-in-the-hazelnut-sector
İslamoğluH.Yeni Düzenlemeler ve Ekonomi Politik: imf Kaynaklı Kurumsal. Reformlar ve Tütün Yasası [New Regulations and Political Economy: imf-based institutional reforms and Tobacco Law]20021582027Birikim
LundellMarkLampiettiJulianPertevRashidPohlmeierLorenzAkderHalisOcekEbruJhaShreyasiTurkey: A Review of the Impact of the Reform of Agricultural Sector Subsidization. Environmentally and Socially Sustainable Development Unit Europe and Central Asia Region2004Washington D.C.The World Bank
In2012, Ferrero founded a company in Turkey to buy and store hazelnuts against price volatilities. It also plans to build a production plant, to be completed in 2013, in Manisa, in the immediate vicinity of the Izmir port, in west Turkey (Ferrero, 2011). Therefore, there are attempts by global market actors (i.e. Ferrero) to enter the local market directly. In 2014, Ferrero acquired Oltan Group, the largest hazelnut exporter in Turkey (Ferrero, 2014).
Until2001, the government had subsidized agricultural credit and Agricultural Credit Cooperatives through the Ziraat Bank (a state bank of Turkey). However, in the period of 2000-2002, higher interest rates and low debt carrying capacity resulted in debt delinquency and debt write-offs to farmers, which led to a restructuring of the credit system financed by the Ziraat Bank. Law No. 4876 on the Restructuring Farmers’ Debts Law and Agricultural Credit Cooperatives (accs) was initiated in order to restructure the credits provided by Ziraat Bank.
Until1994, unregistered hazelnut producers were able to give their hazelnuts to Fiskobirlik, but after 1994 only Fiskobirlik members could do so.