Economical efficiency in sugar industry: European-Turkey comparison

This study has been carried out in order to determine whether the sugar industry in Turkey is capable of being in competition with the sugar industry of the Union within the integration period of Turkey which is a candidate member for European Union. For this reason, the production activities and total efficiencies of the sugar industries of EU and Turkey have all been analyzed. First of all, the production activities of the sugar industry within EU and Turkey have been obtained with the method of Data Enveloping Analysis (DEA). Obtained activities have then been investigated with Malmquist Index in respect to dynamics and Total Factor Productivity Changes (TFPC) have been calculated. It was seen as a result of these calculations that Turkey has an efficient production and, has the potential to protect this efficiency level obtained in time. The production activities of 30 sugar factories in Turkey have been analyzed. It was seen that the most productive of these factories exist in Çorum, Kütahya, Kars, Konya and Eregli. Potential Amendment Analysis has been carried out in order to define how to direct the inputs of the factories which are not productive enough. Reference factories for the latter ones have been determined. As a result of the analyses stated above, It was stated that the sugar industry in Turkey has a competitive structure in production within the EU market and has the potential to be directly involved in this Market with its production activities.