Turkey is one of the few countries of the world which is self-sufficient in food. At present Turkey is the largest producer and exporter of agricultural products in the Near East and North Africa. In fact, Turkey has traditionally been described as the world's food storehouse by many analysts. Such a huge agricultural sector has resulted in a strong agricultural machinery sector in Turkey.

Overall, 35% of Turkey's population is engaged in agriculture and livestock production. About 15% of total income in Turkey is obtained from agriculture. Together with the agro-industry and agriculture-based services sector, the ratio is about 40% of GDP.

The agricultural machinery production industry is a branch of the industrial sector, which produces investment goods. All of the agricultural machinery and almost all of the tractors manufacutured in the sector are used in agricultural production activities (a very small percentage of tractors are used in other activities, mostly in the construction sector). These products, which are also called "Agricultural Mechanization Tools/Devices" are very important agricultural inputs which increase the efficiency of employment in agricultural production, decrease costs and support product quality and productivity by ensuring the use of modern production technologies and by having agricultural operations done on time and in accordance with agrotechnical demands.

At present the following products are in the product range of the Turkish agricultural machinery industry: Farm tractors; engined single-axe hoes; engined mower machines; soil preparing/earth moving and seed bed preparing machinery and equipment; seed drilling, sowing, seeding, transplanting machinery and equipment; manuring machines; plant protection and irrigation/sprinkling tools and equipment; harvesting/reaping machines; threshing, drying, throwing, cleaning, classifying, processing etc. machinery; machinery and equipment for animal products; other machinery and equipment for field and garden agricultural production.

The Agricultural machinery industry has two main categories: tractors and agricultural machinery. Six main companies are operational in the tractor sector while the agricultural machinery industry is comprised of more than a thousand manufacturers countrywide. About 320 manufacturers organised under The Turkish Association of Agricultural Machinery and Equipment Manufacturers-TARMAKBIR. Companies manufacturing agricultural machinery and equipment except tractors are, with the exception of a number of medium-scale enterprises, mostly small size companies. All six tractor manufacturers are large-scale companies. Major cities in agricultural machinery production are: Istanbul , Bursa , Manisa , Aydin , Konya, Ankara , Balikesir and Izmir.

(Value: Billion Turkish Liras-with 1998 prices)

Agricultural Tractors 77,865 106,051 42.529

*Estimated (Annual average exchange rate: 1 US$ = 261.293 TL; 1998)

Source: The State Planning Organization

(Value: Billion Turkish Liras-with 1998 prices)

Agricultural Machinery and Parts and

Components 31,628 40,800 30,471

Agricultural Tractors 77,865 106,051 42,529

Total (Agri-machinery + Tractors) 109,493 146,851 73,000

*Estimated (Annual average exchange rate: 1 US$ = 261.293 TL; 1998)

Source: The State Planning Organization

The Turkish agricultural machinery industry largely meets domestic demand and exports the surplus. Exports in the sector have an incresing trend. While exporting $8.5 million in 1995, the value of agricultural machinery and spare parts exports reached $ 77 million in 2002. This remarkably high increase in export values has undoubtedly been achieved due to the recent modernisation and technological improvements realized in the sector.

Quality is another aim of the sector, together with exports, and it surely supports exports. Many of the agrimachinery manufacturers which have exports to the EU have affixed the CE Mark to their products. At the beginning of 2002, it became obligatory to fulfill CE Mark requirements in order to sell products in the Turkish domestic market. Agricultural machinery manufacturers are aware of the importance of ISO series total quality certificates. Most of the manufacturers are conducting programs for these certificates.

Tractors

(CBU+SKD+CKD)* 30,727 52,431 36,681 50,606

Source: Undersecretariat of Foreign Trade

Export of farm tractors increased 38 % in 2002 compared with the year before. On the other hand, exports of agricultural machinery (except tractors) decreased 7 % in 2002.