A Spatial Equilibrium Analysis for the Possible Regional Impacts of the European Union Full Membership on the Turkey's Dairy Industry

Abstract

In the study, the potential regional imp acts of the European Union full memberships on the Turkey's dairy sector were analysed using a Spatial Equilibrium Model with 12 NUTS 1 regions as well as the European Union as being another region. According to the results, Turkey starts importing butter mainly to the Istanbul region and powder milk to the Black Sea regions, while exporting white cheese from Istanbul and plain yoghurt from the Central Anatolia and the North-eastern Anatolian regions. In the process of the European Union full membership, agricultural policies must focus on the enhancement of milk productivity to decrease the cost and to improve hygiene to meet the European Union standards for a smooth accession.