How the collapse of the Turkish Lira will affect the vegetable, fruit, and nut markets in Eastern Europe and Central Asia

Fruits

Vegetables

Turkiye

Published Dec 23, 2021

Tridge summary

EastFruit analysts draw attention to the most important factor of recent weeks for the fruit and vegetable business in the region - sharp jumps in the exchange rate of the Turkish currency - the lira. Since the beginning of 2021, the Turkish Lira exchange rate has more than halved. Moreover, the sharpest collapse of the exchange rate occurred in the last three weeks. At the same time, quite often, following the collapse of the exchange rate, a sharp rise in the value of this currency began, as the Turkish government tried in every possible way to stop the rapid devaluation.

Original content

Naturally, a decrease in the exchange rate of any country stimulates exports, while strengthening, on the contrary, worsens the position of this country's goods in foreign markets. Thus, Turkish vegetables and fruits are now becoming more competitive in foreign markets. In this regard, EastFruit analysts decided to consider the structure and geography of Turkey's fruit and vegetable exports in order to show how and who will be most affected by the situation in Turkey. First of all, it should be noted that vegetables, fruits and nuts, and indeed food and agricultural products, are not the most important export items of Turkey. Only nuts are among the 25 largest export items. At the same time, fresh fruits and vegetables, nuts, as well as dried fruits and frozen fruits and vegetables brought Turkey $ 5.7 billion in export earnings in 2020. For comparison, Uzbekistan exported 8 times less fruits and vegetables, and Ukraine and Moldova - about 20 times less than Turkey. In the global ...

Source: Eastfruit