The recent exit of the United Kingdom from the EU could present an opportunity for Turkey’s food sector, according to a report by Egeli&Co. Asset Management Research Strategy Director Güldem Atabay Sanli. The report analyses the effect of Brexit on the agricultural and food sectors of the UK, EU and Turkey.
According to the report, the EU provides 70% of food exports to the UK; is it expected that as a result of Brexit, food prices in the UK will now rise and sales volumes will drop. This is where Turkey comes in.
The report states that England’s agricultural sector can provide food for almost two thirds of the country’s 65 million population (by including fishing). In short, England is a country which imports its food.
The demand for organic produce in the country is also increasing.
Turkey currently provides less than 1% of food imports to the UK. But there is potential to increase this.
High tariffs are currently hindering fruit and vegetable exports. The report suggests that as the UK renegotiates with the EU, Turkey should also quickly take advantage of the break in relations to renegotiate better tariffs for its exports.
Fresh and dried fruit, as well as nuts, frozen and canned fruit and vegetables are exported from Turkey to the UK. 15% of Britain's imported fresh and dried grapes come from Turkey. 2.5% of fresh and dried citrus fruit is also imported from Turkey.
According to the report, improvements in the packaging and labeling of Turkish products will improve their chances in the UK market.
The report concludes that although Brexit has created uncertainty in Europe, for Turkey, it presents a golden opportunity for the agricultural sector.
Source: bloomberght.com