AKAMİB/Kılıçer: While the Numbers Look Positive, Profitability Has Reached an Alarmingly Low Point

The Turkish furniture, paper, and forest products sector's exports in October reached 690.9 million dollars, marking a 2.2% increase compared to the same period last year. AKAMİB recorded an export of 79.4 million dollars in October, down by 2.8%.

Onur Kılıçer, the President of AKAMİB, emphasized that price competition negatively affects the profitability of companies and poses a serious threat to sustainable growth in the sector. He pointed out that many firms have had to sell at a loss and called for support to maintain competitiveness under the current conditions.

In October, the sector's exports amounted to 690 million 992 thousand dollars, reflecting a 2.2% increase compared to the same month last year. The Mediterranean Furniture, Paper, and Forest Products Exporters Association (AKAMİB), however, experienced a 2.8% decrease, with exports totaling 79 million 431 thousand dollars.

During the first ten months of this year, total sector exports across Turkey decreased by 1.5% to 6 billion 517 million 460 thousand dollars, while AKAMİB achieved an export revenue of 731 million 479 thousand dollars, representing a 1.2% increase.

Exports to neighboring countries are on the rise. In October, the top five markets for the sector's exports were Iraq, the United Kingdom, the United States, Germany, and Iran. Notable double-digit export increases were observed in Iraq, the United Kingdom, the United States, Georgia, and Romania among the top 10 markets.

In AKAMİB's October exports, Iraq ranked first, followed by Germany, Syria, Romania, and France. Double-digit export growth was recorded for the United States, the Turkish Republic of Northern Cyprus, and Georgia within the top 10 markets.

“While the figures appear positive, the drop in profitability has reached an alarming level,” stated Onur Kılıçer, evaluating the sector's October exports. He noted that although the sector's export performance has improved across Turkey, AKAMİB experienced a 2.8% decline. Kılıçer remarked that while the figures look positive in terms of value, the decline in profitability has reached a critical point in the sector and added:

“Our companies have significantly lost their competitiveness under the obligation to offer low prices, and many have resorted to selling at a loss. Under these conditions, sustainable growth becomes impossible. Our exporters are fighting with great determination even in such a challenging competitive environment, but we expect urgent supportive measures from the economic management for this effort to be sustainable under the current circumstances. If such support is provided, we will be able to regain our competitiveness and sustainably increase our exports.”