Under the Global Competition Conditions, Effect of the Development of Licenced Storage System in Turkey on the Competition Strength of Turkish Agricultural Products

Prices of Turkish agricultural products include a high volatility from year to year because of the characteristics of these products which are easily being affected from climate conditions, environmental conditions and storage problems as well as speculation. This basic property of agricultural products associated with supply side causes domestic prices to fluctuate and also negatively influence the international competitive strength of our products. That reality causes a situation which decreases market efficiency of Turkish agricultural industry in current globalisation era. Instability at the prices increases risk perception both for buyers and sellers and this process generally end up with high volatility at agricultural goods markets. Licenced storage system that has still being established in Turkey will certainly contribute to get a common standardization criteria for agricultural products and by this way buyers and suppliers can quote a price for the goods according to their actual quality standarts and real market value. By means of a developed licenced storage system, agricultural products can be introduced to financial markets and agricultural goods exchange. Giving a licence receipt to banks as a guaranty will help farmers to get credits. All these developments will contribute to agricultural sector improvement and help both farmers and wholesalers to compete with global market conditions