Turkey: depressed prices sparking farmers protests

In 2006, Turkey’s total hazelnut production was 650,000 tonnes, and this year it is expected to reach 750,000 tonnes. While exports amount to 400,000-450,000, domestic consumption stands at 60,000 tonnes, thanks to extensive national promotion. Nevertheless, excess production in 2007 is expected to top 200,000 tonnes.

As part of an ongoing IMF-backed austerity programme launched in 2003, the Turkish government has phased out subsidies to agricultural unions and cooperatives—including Fiskobirlik (the Agricultural Sales Cooperative for Hazelnut), the production union of 70 hazelnut cooperatives covering more than 230,000 growers. These organisations face increasing financial difficulties and are unable to cope with the huge price fluctuations of the world markets. The government, as well as the World Bank and the IMF, cynically calls this deliberate policy of liquidation “giving financial independence and administrative autonomy to agricultural unions and cooperatives”!

In accordance with the Agricultural Reform Implementation Project, supported by the World Bank in conjunction with the IMF-backed austerity programme and European Union (EU) reforms, the government has also phased out the system of price support and input subsidies and replaced it with a system of direct income payment.

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http://wsws.org/articles/2007/mar2007/turk-m12.shtml