erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Exploring Export Potential of Turkish Fresh Cut Flower Industry

Hüseyin Özgür (Adnan Menderes University)
Fuat Erdal (Adnan Menderes University)

Abstract  

Turkey is not currently among the major exporters of fresh cut flowers despite its advantages with respect to climate, soil, long-term domestic market experience, proximity to European market and developing supporting industries. This paper intends to explore possible competitive advantages and export potential of Turkish fresh cut flower industry in international markets. Characteristics of the industry is analyzed and the degree of competitiveness is determined by relying on Michael Porter’s "diamond model", which has four attributes: factor conditions, demand conditions, firm strategy, structure, and rivalry, and related and supporting industries. Examination of secondary data provided by Turkish Ministry of Agriculture, Center for Export Promotion and Research, producer cooperatives and COLEACP; and also field interviews with some growers, exporters and cooperative officials in Izmir Province suggested the following results: The source of competitiveness of fresh cut flowers is determined by interaction of factor conditions such as agro-climatic conditions, large area under production for cut flowers, low labor costs, proximity to European market; and market conditions such as increasing demand for higher quality and varieties by florists and final consumers. However, inadequacy of related and supporting industries such as sterilization facilities, availability of refrigerated cargo space, cold storage, and post-harvest facilities seems to be main disadvantages of the industry in competing in international markets. On the other hand, the existence of two rival producer cooperatives and well-operating auction system appear to be two important features of the industry in promoting innovation and encouraging higher quality and variety. Improving packaging, storing, post-harvest treatment, and adaptation of international regulations and standards in the exports of fresh cut flowers can be offered to be possible strategy options.

Economic Research Center
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