Turkey to be New Supply Base for European Buyers
In the first half of 2020, as many supply chains were affected by rapidly ongoing changes in particular countries, and the production process slowed down- it evoked a search for new manufacturing and export channels. Turkey happened to be one of the places benefiting from this seek for new trade destinations.
European buyers were in urgent need to find a new route to get into the Asian market, especially China. Many Turkish production facilities increased their capacity utilization rates, and as the pandemic was ongoing, they had to be reduced to 20%. Now as the circumctances changed, they are back to function at their 100% rates. From March 2020 many companies had to change their strategy regarding stock-wise matters. Many of the bigger firms decided to keep their stock on minimum levels to block the possibility of unwanted piling. Such a strategy happened to be beneficial for Turkish producers as they were able to remain compatible with ever-changing circumstances. As the sector representatives claim Turkey is the only country in Western Asia, able to keep up to the requirements of immediate orders while maintaining low stocks.
One of the sectors that are coping well despite economic collapse is the food industry which has also been slowly, yet firmly taking more part in the country’s overall foreign sales. It is significant for the dairy sector as Turkish dairy firms, solely in 2019 exported $364 million worth of products to the worldwide markets.