As the logistical situation goes from bad to worse and costs keep rising, Turkey’s citrus suppliers are relieved to be approaching the end of the season
Given the global turmoil, perhaps the best luck a producer can have at present is to be newly out of season. Those nearing the end of the campaign can at least see a glimmer of light at the end of the tunnel.
The Turkish citrus season has almost finished, while summer crops across the country have not yet begun. “At least we did not get caught at the peak time of our season,” said Ayşe Özler, marketing and sales director at Özler Ziraat. “Had that been the case, we would have been more severely affected by the negative consequences of this war.”
The ongoing conflict has had a profound impact on both the production and commercial sides of the business, she said. “Across the entire value chain, from farming to sales, we have experienced significant cost increases,” explained Özler. “Disruptions in oil and natural gas supply have driven energy prices sharply upward, leading to substantial cost pressures in agricultural production, packaging and logistics.”
In Turkey, fertiliser prices alone have risen by approximately 30-50 per cent, she revealed. “Plastic packaging materials are now being quoted on a weekly basis due to volatility,” she continued. “The rise in oil prices has affected nearly every input used at each stage of production.”
These most recent issues come on the heels of more than two years of disruptions in the Red Sea. “Until roughly two and a half years ago, container shipping services from Turkish ports to destinations in the Middle East were regular, fast and cost-effective,” Özler recalled. “However, the rise of the Israel-Hamas conflict and attacks on vessels in the Red Sea have severely disrupted transit through this critical route.”
As a result, both the number of service providers and the frequency of services had already declined. “Meanwhile, transit times and costs had increased significantly,” she went on. “So, to mitigate delays for our Dubai clients, we had begun using overland trucking routes via Iran for certain sensitive, short shelf-life products.”
And since the outbreak of the İran conflict? “Both the Iran trucking route and maritime services to key Gulf destinations, including Dubai, Oman, Qatar and Bahrain, have been completely halted,” Özler lamented.
But there is a positive side, she said. An alternative overland route via Syria has recently emerged and is developing rapidly. “While transportation costs remain significantly higher,” she cautioned, “it provides an important logistical option. Notably, exporters in Turkey are still able to reach Dubai by truck within approximately eight days.”
Airfreight has also been affected, mostly due to reprisals on Gulf infrastructure by Iran. “Our primary carrier, Turkish Airlines, has suspended regular cargo flights to Dubai,” explained Özler. “Furthermore, we anticipate that rising oil prices will lead to increased airfreight costs across other markets as well. In summary, transportation costs across all modes – land, sea and air – have been significantly impacted.”
On the consumption side, Özler believes consumers have become increasingly price-sensitive, creating strong downward pressure on prices. “How markets will absorb these rising costs remains a major concern,” she said. “However, Turkish agricultural production this season may offer some relief. Over the past two years, adverse weather conditions during winter and spring have caused significant yield losses. If climatic conditions remain favourable this year and a strong harvest is achieved, it may help offset some of the cost increases. While it is still too early to assess crop yields, there is at least some optimism for a better season ahead.”
