GAP: A Grain of Hope in the Agricultural Sector of Turkey

Istanbul, Turkey | June 29, 2009 by D-8 Secretariat

The GAP project is the fourth-largest regional development programme in the world

In its recent publication, the Oxford Business Group talks to Sadrettin Karahocagil, President of the Turkish South-eastern Anatolia Project (GAP). Karahocagil talks about the importance of agriculture growth for economic development in the south eastern area of Turkey, as well as effort to sustain food security within the country and region. D-8 Secretary General, Dipo Alam, said that the GAP project - being an integrated project with its own economic, social, infrastructural and institutional dimension, is a literal study case for member countries in D-8, to strengthen their food security and boost domestic and foreign investment.

D-8 acknowledged the importance of food security to D-8 economies and reaffirm their commitment to enhance collaborative efforts to increase food production and ensure food security, which came into being as a joint action plan known as “KL-Statement: Initiatives to Address Food Security by D-8 countries”. Alam said a working group on public-private sector partnership in food security was expected to be set up to maintain and develop cooperation among members in order to identify joint-investment potentials in fields such as fertilisers, animal feed, seed and fisheries.

Still quoting Alam, he said, “The GAP project is a good model for our member countries, since it channels the government investment and focuses on the right path that could lead to more jobs opportunities for the people.”

Below is the excerpt of the interview.

By how much has GAP increased agricultural land?
KARAHOCAGIL: The GAP project is the fourth-largest regional development programme in the world. Around 44% of the land in south-eastern Anatolia can be cultivated for agriculture, and the region accounts for more than 10% of the country’s total land. Upon completion, we will have irrigated 1.8m ha of land. We are in the process of irrigating one-seventh of this amount - 272,972 ha - so we still have a lot to do. Half the country’s cotton production comes from there, and other crops, including lentil, soy beans, pistachios and vegetable oils, are being cultivated in this newly irrigated region. At the end of the project the region will account for a huge amount of total agricultural production.

To which areas will the $20bn of government funding be channelled in the coming five years?
KARAHOCAGIL: The action plan announced in 2008 aims to bring greater investment to the physical dimensions of the project. At the end of five years we may be able to irrigate more than lm ha of land. This will be a crucial time and 42.4% of the $20bn invested will go towards irrigation schemes. GAP is an integrated project and it has economic, social, infrastructural and institutional dimensions. A large proportion of the money will go towards health and education projects, including vocational training. We hope to create more than 1 m job opportunities in the region, so we have to invest in human resources. There are 73 main actions including more than 300 sub-actions in the CAP action plan.

How will can agriculture help tackle inflation?
KARAHOCAGIL: In the short term, the high expenditure of the project will push inflation up. In the medium term, we are expecting to help reduce inflation by boosting food supply. The food crisis is a problem affecting the world and especially Turkey’s neighbours. Middle Eastern and North African countries are expected to face serious drought and food shortages in the future. GAP will make the area a food export base for the region. The project is also a powerful tool in tackling the region’s unemployment problem and will increase energy supply through the construction of hydroelectric dams.

What is the government’s strategy for land consolidation and efficient farming practices?
KARAHOCAGIL: In addition to irrigation, the govern¬ment is undertaking land consolidation projects to cre¬ate optimum land sizes. This is dealt with by a separate government institution. We are going to the farmers and deciding together with them. We also have incen¬tives for the region. Investors may receive exemptions from social security premiums on labourers and up to a 50% reduction in energy costs. In addition, it is pos¬sible to get free land for a period of up to 49 years. We are not targeting a particular sector - there are opportunities for agribusinesses of all sizes. For example. Sanliurfa  produces 70% of Turkey’s organic cotton, so there is potential for the organic textile industry.

The project is also a powerful tool in tackling the region's unemployment problem and will increase energy supply through the construction of hydroelectric dams

The completion of the GAP project will provide a favourable investment climate for both domestic and foreign investors. We have already received more than $lbn in foreign direct investment in the past two years and more than 100 foreign companies have entered the region from Germany and neighbouring countries. In addition, we have two free zones and 12 organisec industrial zones, and at the beginning of 2009 we expect to see a new set of incentives to attract investors.

What infrastructural improvements are needed?
KARAHOCAGIL:The region is well prepared for export: activities. There are seven airports, including GAP International Airport, which was built in Sanliurfa City, which and has a 4-km runway for cargo planes. We expect to develop cold stores around the airport so it is suit¬able for the export of added-value produce. A six-lane highway connects Sanliurfa to the most important port in the country, will be completed at the end of 2007. and there are plans to improve rail links to the south.

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