AN OVERVIEW ON FOREST INDUSTRY SECTOR IN TURKEY: CONSTRAINTS, PROBLEMS AND SOLUTIONS

In this study, the effects on forest industry sector, price determination policies and past and present conditions of wood raw materials supplied from national forest resources to forest industry sector were examined in Turkey. The data which is obtained from literature review, legislation and applications are analysed using data analysis method, and then the subject is evaluated. With the establishment of the Republic of Turkey, it is accepted that the principle of operation and management of national forests is given to General Directorate of Forestry (GDF) which is state institution. Until the privatization of state-owned enterprises, Forest Products Industry Corporation (ORUS) and Turkey Pulp and Paper Factories (SEKA), a large part of the wood raw material produced from national forest resources supplied subsidy to these institutions by the GDF. At the end of the 20th century, forest industry sector in Turkey began to be represented by factories, plant and businesses established by private sector entrepreneurs. The GDF has lagged behind in new forest industry structure composed of private sector entrepreneurs; it reduced the cost of wood raw material production and prevented the real price from being produced in the wood raw material market, since GDF is a monopoly. Due to both the growth of the sector and the high prices of wood raw materials produced by the GDF, companies had to import wood raw materials. The GDF is the monopoly of wood raw materials; it is still on the market to present to estimated price with high costs of the wood raw material for buyers that have to buy. The GDF, which accepts high costs on the formation of wood raw material prices, declared that due to both high labor costs of production of the wood raw material and supporting the development of the forest village. But this high costs is still paid by forest industry firms who still receive wood raw materials from GDF. It is understood that raw material supply and pricing policies implemented by GDF constitute a major obstacle to the development of the sector.  Nowadays, Turkey is structurally developed positively; both the sector and rural areas have been affected positively by this development. The change in the size and scope of rural development altered the concept of poor and poor forest villagers. The Law design to ensure the real prices of wood raw materials produced by GDF were accepted the Grand National Assembly of Turkey (TBMM) on April 19, 2018. This draft law introduces changes in 30 and 40 articles of the Forest Law 6831. With the amendment of this legislation, it is believed that GDF will eliminate unnecessary burden on wood raw materials costs and contribute to the development of private sector businesses operating in the forest industry sector. Thus, after privatization of ORUS, OGM will establish positive relationships with the forest industry sector in Turkey.

AN OVERVIEW ON FOREST INDUSTRY SECTOR IN TURKEY: CONSTRAINTS, PROBLEMS AND SOLUTIONS

In this study, the effects on forest industry sector, price determination policies and past and present conditions of wood raw materials supplied from national forest resources to forest industry sector were examined in Turkey. The data which is obtained from literature review, legislation and applications are analysed using data analysis method, and then the subject is evaluated. With the establishment of the Republic of Turkey, it is accepted that the principle of operation and management of national forests is given to General Directorate of Forestry (GDF) which is state institution. Until the privatization of state-owned enterprises, Forest Products Industry Corporation (ORUS) and Turkey Pulp and Paper Factories (SEKA), a large part of the wood raw material produced from national forest resources supplied subsidy to these institutions by the GDF. At the end of the 20th century, forest industry sector in Turkey began to be represented by factories, plant and businesses established by private sector entrepreneurs. The GDF has lagged behind in new forest industry structure composed of private sector entrepreneurs; it reduced the cost of wood raw material production and prevented the real price from being produced in the wood raw material market, since GDF is a monopoly. Due to both the growth of the sector and the high prices of wood raw materials produced by the GDF, companies had to import wood raw materials. The GDF is the monopoly of wood raw materials; it is still on the market to present to estimated price with high costs of the wood raw material for buyers that have to buy. The GDF, which accepts high costs on the formation of wood raw material prices, declared that due to both high labor costs of production of the wood raw material and supporting the development of the forest village. But this high costs is still paid by forest industry firms who still receive wood raw materials from GDF. It is understood that raw material supply and pricing policies implemented by GDF constitute a major obstacle to the development of the sector.  Nowadays, Turkey is structurally developed positively; both the sector and rural areas have been affected positively by this development. The change in the size and scope of rural development altered the concept of poor and poor forest villagers. The Law design to ensure the real prices of wood raw materials produced by GDF were accepted the Grand National Assembly of Turkey (TBMM) on April 19, 2018. This draft law introduces changes in 30 and 40 articles of the Forest Law 6831. With the amendment of this legislation, it is believed that GDF will eliminate unnecessary burden on wood raw materials costs and contribute to the development of private sector businesses operating in the forest industry sector. Thus, after privatization of ORUS, OGM will establish positive relationships with the forest industry sector in Turkey.

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