When Russia enacted an embargo on European goods, many Turkish exporters thought they could reap the benefits of a Russian market that would be starved of fresh produce. But with Russia enacting a ban on Turkish goods, Turkish exporters are struggling to find buyers. Though government officials deny it, many are smuggling goods into Russia, though even large illicit shipments aren't enough to salvage many exporters' seasons.
In the opinion of a Turkish exporter who preferred not to be named, the local government bears much of the responsibility for what exporters are currently dealing with. They have been slow to react and haven't done much in the way to help exporters, he noted. That's forcing many exporters to route their shipments through countries like Bulgaria and Georgia in order to reach Russia. Both Turkey and Russia officially deny that there's widespread smuggling going on, but, as the exporter we spoke with characterized it: it's not a truck here and there, it's entire ships. Many shipments get routed through neighboring countries, like Greece, and the papers mysteriously change or simply disappear.
“The government has had zero foresight in this situation,” said the exporter. “They're just using fruits and vegetables to manipulate inflation.” He added that the country's exporters have also played their part in the current mess. Russia was a big buyer of Turkish goods, and though many shippers were hopeful to divert a lot of what used to go to Russia to alternate European markets, those European markets already have ample supplies of fresh fruit. Many shippers aren't being upfront about the difficulties they're in, but those difficulties include scant markets abroad and an underdeveloped market at home.
The western part of the country is fairly saturated with fruit, but the eastern portion has been notoriously hard to penetrate. There are few retailers in that region who will carry the premium fruit that usually goes to the export market, but that region remains ripe for development.
“Everyone was optimistic last season, but the market collapsed just before the new year,” said the unnamed exporter. “Everyone is focusing on markets outside of Turkey, but many, myself included, have realized that there are 80 million people in this country, so we have a very big market at home. For me, I think the ideal mix of business would be 10 percent exports and 90 percent selling at home.”
