18/06/2025

Agribusiness and Food Processing in Turkey

Agribusiness and Food Processing in Turkey

As of 2025, agribusiness in Turkey is entering a transformation phase, combining sustainability, technology, and value-added production. For those seeking long-term, resilient investments in a strategic and essential sector, Turkish agriculture is a fertile ground.

With its fertile soil, strategic climate, and centuries-old farming tradition, Turkey stands as one of the leading agricultural nations in the world. Its agribusiness and food processing sector not only supports domestic consumption but also drives billions of dollars in exports every year. For investors, this sector presents vast opportunities—ranging from traditional crop cultivation to high-tech food processing and agro-export operations.


A Strategic Agribusiness Profile in Turkey

Turkey ranks among the top 10 agricultural producers globally, benefiting from:

  • Diverse climate zones, allowing the cultivation of everything from tea in the Black Sea region to citrus fruits in the Mediterranean.
  • Over 24 million hectares of arable land.
  • Year-round production of vegetables, fruits, grains, and industrial crops.

In 2024, agriculture contributed 5.8% of Turkey’s GDP and employed nearly 18% of the workforce—a sign of both its socio-economic importance and growth potential.


Export Powerhouse

Turkey is a major exporter of:

  • Hazelnuts (world’s #1 exporter)
  • Dried fruits: Figs, apricots, and raisins
  • Fresh fruits and vegetables
  • Grains: Wheat and barley
  • Olive oil and sunflower oil

Turkish food products are in high demand across the EU, Middle East, Russia, and increasingly in Asia and Africa. The total value of agri-food exports surpassed $30 billion in 2023, with a strong focus on processed and packaged goods.


Food Processing Industry: Adding Value

Turkey’s food processing sector plays a critical role in turning raw agricultural products into consumer-ready items—an area with high potential for investment. Sub-segments include:

  • Packaged food: Ready meals, snacks, dairy, and frozen foods
  • Canned fruits and vegetables
  • Bakery and confectionery products
  • Meat and poultry processing
  • Juice, beverages, and bottled water

With changing consumer habits and rising middle-class demand for convenience, the food processing industry is expected to grow at a CAGR of 5–6% through 2030.


Key Investment Opportunities

1. Greenhouse Farming and Controlled Environment Agriculture (CEA)

Greenhouse farming in Turkey is expanding rapidly, especially in provinces like Antalya, Mersin, and İzmir. Investors can enter the market through:

  • High-tech greenhouses: Automated irrigation, climate control, LED lighting
  • Hydroponic and aquaponic systems for water efficiency and rapid growth
  • Export-oriented production of tomatoes, cucumbers, and herbs

The potential ROI is high, especially when targeting export markets during off-season months in Europe.

2. Organic Farming and Sustainable Agriculture

Global demand for organic products is rising—and Turkey is well positioned to meet it. Organic farmland in Turkey has tripled in the past decade, supported by:

  • Government subsidies and EU alignment
  • Organic certification programs (TR & EU organic standards)
  • A wide range of exportable crops: dried fruits, pulses, and herbs

Investing in organic farms or supply chains offers a high-value niche with strong export potential.

3. Agri-Tech and Smart Farming

Digitization and IoT-based solutions are transforming Turkish agriculture. Key areas for agri-tech investment include:

  • Drone technology for crop surveillance
  • Satellite-assisted irrigation and fertilization
  • Blockchain-based supply chain traceability
  • Mobile apps for farmers (market prices, weather forecasts, soil analysis)

Startups and technology providers can partner with local cooperatives or enter via public-private partnerships.

4. Food Packaging and Cold Chain Logistics

As food safety and export requirements tighten, Turkey is investing in cold storage, refrigerated transportation, and modern packaging solutions.

  • Cold chain logistics are essential for preserving produce and meat across long distances.
  • Sustainable packaging (biodegradable, recyclable) is becoming mandatory for EU exports.

Investing in this infrastructure not only supports the value chain but also qualifies for state-backed incentives.

5. Halal and Specialty Foods

Turkey is an ideal base for halal-certified food production targeting the Middle East, North Africa, and Southeast Asia. There’s also growth in:

  • Gluten-free and allergen-free products
  • Vegan and plant-based alternatives
  • Kosher-certified goods for niche markets

Producers who align with specialty food trends can build highly profitable, export-oriented brands.


Government Support and Incentives

The Turkish government provides robust support to agribusiness investors through:

  • Agricultural subsidies (input support, fuel discounts, irrigation grants)
  • Land allocation and lease programs in development regions
  • Investment incentives: Tax reductions, customs exemptions, and interest support for machinery
  • Export facilitation: Through Trade Ministry-backed fairs, credits, and logistics subsidies

Additionally, the Development and Investment Bank of Turkey (TKYB) offers tailored financing packages for agriculture and food enterprises.


Legal and Investment Framework

Foreigners are allowed to invest in Turkey’s agricultural and food processing sector with full ownership rights. However, there are a few points to note:

  • Land purchase limitations may apply to foreigners in border or military-sensitive areas.
  • Environmental permits and food safety compliance are required for processing units.
  • EU food safety standards must be met for export-oriented operations.

Legal advisors familiar with Turkish agribusiness law can streamline market entry and operations.


Regional Highlights

Each region in Turkey offers specific investment advantages:

  • Aegean Region: Olives, figs, grapes, and dried fruit processing
  • Mediterranean Region: Citrus, greenhouse production, and organic farming
  • Central Anatolia: Cereal crops, pulses, and large-scale livestock
  • Southeast Anatolia (GAP Project): Irrigated farmland with high cotton and wheat yields

Investors may also benefit from free zones and organized industrial zones (OIZs) tailored to food manufacturing.


Risk Factors and Mitigation

While the sector is promising, investors should consider:

  • Climate variability and drought: Investing in drip irrigation and smart water management is key.
  • Fluctuating commodity prices: Diversification and vertical integration reduce exposure.
  • Regulatory changes: Stay informed on EU alignment and food traceability rules.
  • Currency volatility: Operating in export markets or USD-linked contracts can hedge this risk.

Partnering with experienced local stakeholders helps navigate these challenges effectively.


Future Outlook

The future of Turkish agribusiness is increasingly tied to sustainability, exports, and innovation:

  • Climate-resilient agriculture will be a top priority.
  • Agri-export strategies will focus more on processed and branded goods.
  • AI and data analytics will transform farm management.
  • EU Green Deal compliance will drive environmental upgrades in food production and packaging.

By 2030, Turkey aims to be among the top 5 agri-food exporters globally, creating enormous space for private sector growth.

Agribusiness and food processing sector in Turkey combines tradition, scale, and modern potential. From organic fruit orchards in the Aegean to automated greenhouses in Antalya, the country offers a diversified and promising environment for investors.

With a growing export market, favorable geography, and government-backed infrastructure, the Agribusiness sector in Turkey is well suited for long-term, impact-oriented investment. For those seeking resilience, sustainability, and profit in one package, Turkey’s agricultural powerhouse is ripe for cultivation.