Privatization in agro-food sector: the case of Turkish dairy industry

Abstract

Purpose - This article aims to focus on the issue of privatization movement in the agro-food sector, in the light of the Turkish Dairy Industry Enterprises (TSEK) case, and the effects on the sector following privatization. In order to make an appropriate evaluation, the background of the privatization movement and the general structure of the dairy sector in Turkey are examined first. Design/methodology/approach - After a brief evaluation, the privatization process of TSEK and its effects on the sector are discussed in the light of the results of empirical data that obtain from the ANOVA model. Findings - It has been concluded that the liberalization process has been adopted without the setting up of market regulatory policies, thus, the price balance in the dairy sector has changed to the disadvantage of both producers and consumers, while market concentration has increased and regional differentials have become more apparent. Originality/value - This article may be relevant for other countries where privatization or liberalization movement in the agro-food sector is in process.