Turkey is a dynamic and emerging economy across the globe. The major industries in the country include food processing, textile, and automobile. The country’s food processing industry is diverse and emerging; however, the economic recession significantly affects the operations of this sector. As per the Turkish Statistical Institute (TSI), in 2017, there were 595 beverage producing and 47,617 food processing enterprises in the country. The country has an established and advanced food processing industry, which accounts for 16% of all production in Turkey. In 2018, there were 611 foreign direct investments (FDIs) in the food and beverage production, which includes German, Dutch, French, the US, Italy, Russia, Iran, and Switzerland.

Turkey is one of the exporters of processed food products to the US and across the globe. Food processing is a developed industry in the country with good quality products and competitive pricing than the US and Europe. Despite the potential base of agricultural production, Turkish companies import food additives, including artificial sweeteners and coloring additives. These food additives are sold as mixes with the original brands or under a Turkish brand. The major food processing companies in the country include Anadolu Efes, Ülker Bisküvi, Et ve Balik Kurumu, and Türkiye ?eker Fabrikalar?. These food processing companies are currently facing the concern of low production output owing to the government restrictions to limit the spread of COVID-19. 

The Turkish government is under pressure to impose complete lockdown in the country owing to the surging cases of COVID-19 in the country. On 1st April 2020, Turkish Health Minister said that there are 2,704 new incidences of coronavirus reported in the country and 214 people lost their lives with the disease. As a result, most of the food companies operating in the country will likely suffer from financial problems which can affect their production capability. As the whole world is facing this crisis, the country’s FDI for food processing sector will be affected which in turn, is expected to affect the growth of Turkish food processing industry in 2020. 

Food processing companies are applying for loans to meet their needs in this difficult situation. For instance, on 2nd April 2020, Ulker Biskuvi, one of the largest food companies obtained a $455 million syndicated loan for three years with an interest payment every six months. The financing is planned for the company’s strategic investment projects. Further, the Turkish government is taking measures to reduce the impact of coronavirus on the economy. On 18th March 2020, the government declared relief package, which comprises tax cuts across several sectors and debt payment delays, following a meeting regarding the measures to deal with the pandemic held in Ankara. 

Value-added tax (VAT) on domestic airline flights has been declined from 18% to 1% for three months. In addition, VAT deductions and social security premiums have been halted for six months across several sectors, such as automotive, malls, retail, iron-steel, textile, and logistics. The credit payments for firms suffering from cash flow disruptions amid COVID-19 will be postponed for three months. The country has doubled the limit of credit guarantee fund from $3.3 billion to $7.7 billion. These initiatives will likely support to minimize the risk of unemployment and business shutdown.

The study on the effect of COVID-19 on Turkey economy is classified based on industries, including textile, food and beverage, automobile, electronics, and others. The textile industry has been significantly impacted by COVID-19 outbreak. For instance, as per the Federation of Medical Devices Manufacturers and Suppliers Association (TUMDEF), in February 2020, Turkey was receiving weekly orders for 50 million masks from China and 30 million masks from Europe. The country also highlighted a significant demand for products, including gloves and shoe covers, thermometers, and disinfectants. However, with a surge in cases of coronavirus in Turkey, several textile manufacturers have stopped their production for a week or month amid COVID-19 effect. For instance, Mendered Tekstile, Sikel Tekstile, Gökhan Textile, and Sanko Tekstil halted their production temporarily to minimize the COVID-19 impact. Due to the temporary closure of several firms, some companies have laid off their workers. 

The operations of some crucial companies getting affected by COVID-19 outbreak include ASELSAN A.?., TEMSA, Menderes Tekstil, Arçelik A.?., and Otokar Otomotiv ve Savunma Sanayi A.?. The automobile companies in the country temporarily shut down production in the country due to the coronavirus effect. For instance, on 4th week of March 2020, Turkish automobile companies, including Karsan, Anadolu Isuzu, Otokar, Temsa, and Türk Traktör, declared production stoppages due to the concerns regarding the spread of COVID-19. 

Further, the electronic firms have also stopped their production facilities amid COVID-19. For instance, on 31st March 2020, Arçelik, a manufacturer of home appliances, has temporarily halted production and sales activities in four overseas plants, including Russia, South Africa, Pakistan, and Bangladesh, as these countries have imposed lockdown to limit the spread of the virus. However, Arçelik is working along with Baykar, a Turkish drone maker, Aselsan, a defense electronics firm to produce 5,000 ventilators for the treatment of COVID-19 patients. These companies are racing to deliver 1,000 ventilators to Turkey’s Health Ministry by mid-April 2020.

Research Methodology

OMR global recently published a report addressing the impact of COVID-19 on Turkey economy. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various players, laws and policies, consumer behavior and macro-economic factors. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.

Sources Include

• Financial reports of companies involved in the market
• Whitepapers, research-papers, and news blogs
• Company websites and their product catalog
• Government Organizations Reports

The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers

• Comprehensive research methodology of the pre and post-COVID-19 impact on Turkey economy.
• This report also includes a detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regulations and other government policies impacting the Turkey economy.
• Insights about market determinants which are stimulating the Turkey economy.
• Detailed and extensive market segments with regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.