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African Journal of Agricultural Marketing ISSN 2375-1061 Vol. 8 (3), pp. 001-011, March, 2020. Available online at 
www.internationalscholarsjournals.org © International Scholars Journals 

 

Author(s) retain the copyright of this article. 
 

 

Full Length Research Paper 

 

Production and marketing structure of large 
scale forestry products industry enterprises in 

Turkey 
 

Baki Aksu1*, K. Hüseyin Koç2 and Ahmet Kurtoğlu2
 

 
1
Dr. Beykoz Vocational School of Logistics, Turkey. 

2
Department of Forest Products Industry, Faculty of Forestry, Dr. Istanbul University, 34473, Bahçeköy- 

Sarıyer/Istanbul/Turkey. 
 

Accepted 24 November, 2019 
 
In Turkey, a country with 21.2 million ha of forest land, it is evident that the processed forest products have 
not been able to be developed to realize their potential with regards to the exports possibilities. It is obvious 
that the situation is to the disadvantage of Turkey in terms of the trading equilibrium when the exports and 
imports figures are examined. According to the results of the research carried out locally with respect to the 
Turkish Forest Products Industry, the emphasized problems emerge as the misapplication of incentives, the 
disability to catch up with the technological innovations, problems regarding raw material quality, 
undercapitalization, lack of qualified personnel, etc. By the help of this study which had been planned to cover 
the whole Turkish Forest Products Industry; the target is to reveal the structural situations of the large scale 
businesses in Turkey in the first few years of the 20th century, where modern management principles are 
assumed to be applied. The research had been finalized with the comments made upon the results of the 
questionnaires gathered through mostly face-to-face interviews with 415 large scale forest product firms 
where it was assumed that contemporary management principles and technological developments were 
applied relatively easier. As the questionnaire study was applied by the researchers themselves directly, it 
was also supported through observations. 

 
Key words: Forest products, large scale enterprises, industry, marketing, production, technology. 

 
INTRODUCTION AND GENERAL INFORMATION 

 
The characteristic that forestry products’ are renewable 
natural sources does not require their unconscious 
utilization. Forestry products that have over 6000 (Gavcar 
et al., 1999) usage areas after being processed must be 
presented to the service of human kind at the right usage 
place and on the right time. While there are exactly 96 
timber and 2000 furniture enterprises in South Africa, 
having 1.3 million hectare forest area, there are 43.794 
(Rıce, 1998; Kurtoğlu, 2001; TURKSTAT, 1992) 
enterprises processing forestry products in Turkey. When 
this number is taken into consideration, the importance of 
the raw material of wood is obvious. Therefore, the  
 
 
 
*Corresponding author. E-mail: bakiaksu@beykoz.edu.tr. Tel: 
+90 216 4442569. Fax: +90 216 4139520. 

 
 
enterprises must process the raw material of wood in 
accordance with the quality and productivity requirements 
through the approach required for modern operations. On 
the other hand, the performed researches and 
observations indicate that 10.621.221 ha (OGM, 2010 
Internet Sources) productive forest areas have lost their 
qualities as a result of both fires and unconscious 
utilization. In order to meet the essential service and 
goods expected from the forests, a country must have 
30% productive forest area. However, this rate for Turkey 
is around 11.5% (İlter, 1993).  

There are some researches examining the forestry 
products industry as general or its sub-industries. Among 
these researches, especially the ones published after 
1990 are given briefly in this study.  

With a research performed by Ilter in 1990, source 
usage in forestry products industry and developments at 

file:///C:\Users\user\Documents\REPUBLICATION\AGRICULTURAL%20SCIENCES\AppData\Local\Temp\www.internationalscholarsjournals.org


 
 
 

 

productivity level have been studied and actual problems 
have been determined.  

The raw material resources and the problems faced by 
ORUS in Turkey had been determined by the studies by 
Gavcar et al. (996, 1997). First research is based on the 
evaluations of timber, plate, plywood, furniture, cutting 
plate, fiber plate and paper industry. And the second 
research has been carried out in 55 wood companies with 

yearly processing capacities over 5000 m
3
. As the result 

of both researches, the main problems was emphasized 
as; insufficient quality of raw material, not being in 
compliance with the standards, defectiveness, lack of 
capital and technology.  

In the master thesis by Ozkul, completed in 1997, the 
production policies in wood products industrial plants and 
the factors effecting production especially in furniture had 
been investigated in hardwood and parquet sectors.  

By the study done by Mistepe in 1998, titled as 
”Education, Technology and Production in Wood 
Products Industry”, how the productivity values of ORUS 
had been improved by education and technology in the 
period of 1943 to 1997 was examined.  

Researchers such as Kurtoğlu et al. (1998), Aksu and 
Koç (2001), Aksu et al. (2009), published their study on 
analyzing the forests products industry in general and 
sub-industries such as furniture, fiber plate, cutting plate 
and woodwork industry.  

In his master thesis, Çiçek compared the Turkish wood 
products industry and EU countries wood products 
industry. Also, in the study, accomplished by Karademir 
(2000), the foreign trade values of Turkish wood products 
have been examined. This study was designed to 
determine the production technologies of large scale 
organizations and the difficulties they face in following-up 
technology and implementing, the product standards, the 
production quantities and their values, the current 
capacities and utilization rate, foreign trade status and the 
opinions of the organizations for the future.  

A research performed by Akyüz et al. (2004), direct the 
preferences of private sector investments in the forest 
products industry in the Black Sea region, which lags 
behind the other regions from the point of view of 
economic development and has an unstable development 
situation. With this aim, cities with advantages and 
investment priorities were determined. This study deals 
with all the 18 provinces (Amasya, Artvin, Bartın, Bayburt, 
Bolu, Çorum, Giresun, Gümüşhane, Karabük, 
Kastamonu, Ordu, Rize, Samsun, Sinop, Tokat, Trabzon, 
Zonguldak and Düzce) in the region. Another study 
realized in 2004 with the same team investigated export 
problems of forest product industry companies located in 
the Western Mediterranean Region of Turkey 

 

By the study done by Karayılmazlar et al. (2008), a 
survey was carried out in order to determine the  
production and  technological  characteristics of  small  and  
medium sized forest products enterprises in Bartın 
province. The production and technological problems 

 
 
 
 

 

were explored and suggestions were given based on 
analyses of the data of the study. Another study 
conducted in 2006 with the same team was carried out to 
determine the social and economical characteristics of 
328 small and medium sized forest products enterprises 
in the vicinity of Bartın.  

With a research performed by Top and Akyüz in 2009, 
the situations of the foreign direct investments in the 
forest products industry (FPI) and its rank in the 
manufacturing sector were examined. It was found out 
that cellulose, paper and cardboard sector was selected 
more than other subdivision in the FPI for foreign 
investment and the foreign direct investments in the FPI 
settled in the city where the foreign direct investments in 
the manufacturing sector were situated. 
 

 
MATERIALS AND METHODS 
 
The research covers all Turkey-wide large-scale forestry products 

(except for the paper industry). In classifying the businesses, 

parameters such as the number of employees, total capacity of power 

equipment, capital, value added and turnover may be utilized. As a 

reliable response cannot usually be obtained from the criterions such as 

capital, turnover etc. in Turkey, in such studies, the scale of the 

business is classified usually according to number of employees. 

Furthermore, it is reported that number of employees, total capacity of 

power equipment and value added are proportionate to each other in 

the studies conducted therefore number of employees can be applied 

as the main criterion in classification process (Kurtoğlu, 2001). Number 

of employees in classifying the businesses may show variation in 

consideration by different organizations. For instance, Minor Industry 

Development Organization considers that a business with a number of 

employees of 1 to 9 is low-scale, 10 to 49 is medium-scale and over 50 

is large-scale, whereas the Istanbul Chamber of Industry assesses that 

1 to 49 is low-scale, 50 to 150 medium-scale and over 150 is large-

scale (Kurtoğlu, 2001). On the other hand, in Turkısh Statistical Institute 

(TURKSTAT) view, a business employing above 
 
100 employees is large-scale (TURKSTAT, 1991). However this 
approach may again show variation among industries. In some 
industries, businesses employing above 10 employees can even be 
considered as large-scale. In the present research, it was found 
appropriate, taking the structure of the Turkish Forestry Products 
Industry into consideration, to assess any business with the number 
of employees of above 25 as large-scale. Because most of the 
businesses employ fewer than 50 employees in Turkey, such a 
classification was adopted to include more businesses in the study.  

The economical and technical scope of the research is required 
to exclude the small and medium-scale businesses from the 
research. Furthermore, at the first stage, the accessibility of 
businesses and possibility to pick up data in a reliable and proper 
manner made essential to choose the large-scale businesses which 
reckoned to have fundamentally completed its corporate evolution. 
However these studies should be considered as a major stage in 
putting forth the structural situation of small and medium-scale 
businesses that make major contributions to the industrial 
development, thanks in particular to their flexible structures, and 
new researches should be planned within this scope.  

The occupational magazines, Internet, exhibition booklets and 
brochures along with the official bodies such as TURKSTAT, 
Ministry of Industry, State Planning Organization, Turkish Union of 
Chambers of Commerce and Industry and Commodity Exchanges, 
Small and Medium-Scale Industry Development Association, 
Turkish Standards Institute; the records of the Chambers of 



 
 
 

 
Commerce and Industry together with the Organized Industrial 
Zones in the provinces visited as well as the supplementary 
recommendations and information provided by businesses 
accessed have been the utilized sources in determining large-scale 
businesses.  

Survey method was employed in the research. 90% of the 
businesses have been included in the questionnaire through face-
to-face negotiations placed at the business site. Postal services 
were used to access the remaining 10% of the businesses due to 
the impossibility to visit for face-to-face negotiations, lack of 
accurate information regarding the presence and address of the 
business and the need to identify new businesses within the limited 
time. Answers to the systematically prepared data collection forms 
were received from the business owners or top-level directors of the 
business.  

The participation for the questionnaire was rated as 72% in the 
whole of Turkey. Demands of some of businesses for completing 
and returning the questionnaire at a later time after the face-to-face 
negotiation were accepted, however no feedback could be received 
from some businesses, and some businesses did not show 
willingness to respond to the questionnaire although relevant 
reminders and requests were frequently delivered through mailing 
or phone calling, and some did not return their responses within the 
period of evaluation.  
The results of the questionnaire have been transferred to the SPSS 
(Statistical Package for the Social Sciences) and subject to 
statistical evaluation. The reason for choosing the SPSS program 
for statistical evaluation is that SPSS is a commonly used package 
under Windows environment, the reliability of the questionnaire as 
well as its giving the opportunity to conduct plenty of different 
necessary tests based on the same data (Özdamar, 1999).  

The consistency of the questions (test F), whether the questions 
in each group were prepared on only on social scale, and the 
reliability of the questionnaire have been surveyed by means of the 
Alpha Management (Cronbach Alpha Coefficient) and “Tukey's test 
of addivity” methods. Furthermore, cluster analysis and the analysis 
of relationships between the variables established by frequency and 
distribution percentages have been made. In the evaluation of data 
provided on the data collection forms, qualitative assessments have 
been digitized by means of dual or multiple sequential evaluations. 
 

 

FINDINGS 

 

The findings that was determined as the result of the 
questionnaires conducted at the large size enterprises in 
forest products industry (LSFPI), was reviewed under  
four headings namely: Technological structure; 
production structure; marketing concepts; prospects for 
the future. 
 

 

The technological structure of the LSFPI 

 

The level of quality is of foremost importance in the forest 
products. With the impact of technology, quality is 
gradually increasing in production. The enterprises in this 
sector are obliged to keep in pace with the technological 
developments and employ the latest developments into 
their production, in order to improve their competitive 
edge. Today, the conventional machines used in the 
production are rapidly replaced by NC, CNC (Numeric 
Controlled – Computer Controlled) machinery. This 

 
 
 
 

 

technology, which allows the control of the machinery 
through special digital numbers and codes during the 
operation process without the need for any intervention 
by the machine operator, is currently undergoing a 
process of development, through the optimum utilization 
of computer technology. The employment of NC or CNC 
type machinery in production, offer certain important 
advantages such as ensuring the safety of the operating 
personnel, reduction of the period for work preparation, 
reduction in inventory costs, opportunity for optimization 
and flexibility (Ergün, 1997). In spite of certain 
disadvantages that arise during the initial stages of the 
implementation of the new technology in forest products 
such as the high costs of investment, need for personnel 
with special training, etc.; doubtlessly, the employment of 
NC/CNC machine tools in the manufacturing of forest 
products provides substantial advantages.  

The answers of the questions which were concerned 
with the existing technological structure used in the 
production process by the large size enterprises in forest 
products industry (LSFPI), the justifications provided by 
those who continue their production operations with the 
old technology, regarding their inability for upgrading their 
existing technology, the quantitative data relating to the 
sizes of the existing conventional machinery and the 
currently used machinery that operate with NC/CNC 
technology; and the plans of those enterprises who have 
not updated their technological infrastructure about the 
future, as follows.  

According to the data shown in Table 1, of the 300 
enterprises who responded to the questionnaire, only 
13% maintain their production activities with the old 
technology; in other words, with the conventional 
machine tools which they have not upgraded at all; while 
63.3% are performing their production activities with a 
machine park consisting of conventional machine tools, 
that are supported by NC or CNC machine tools; and 
23.7% of the enterprises employ the latest NC or CNC 
technology in most of their machine tools.  

Enterprises that continue their production with 
conventional technology, have indicated that the main 
(43.1%) reason for their inability to upgrade their machine 
tools was due to the fact that their enterprises lack the 
adequate financial resources that were necessary for the 
implementation of the new technology. The inadequacy 
of the state support is also among the major reasons for 
the inability of the enterprises in updating their machine 
tools (22.4%).  

Quantifying the number of the machinery in certain 
subsidiary industries is easy. However, in certain sub-
industries such as plywood, fiber plates, chipped wood 
plates, it is only possible to mention a machinery park 
that consists of a number of machines. The distribution of 
4.800 pieces of countable machinery available in the 
LSFPI, are shown in the Table 2.  

According to Table 2, among 245 enterprises 
participating in the questionnaire, that use conventional 



 
 
 

 
Table 1. Technological structure of enterprises in the LSFPI.  
 

Questions Answers Frequency %  
 
 

Status of the technology used in production 
 
 
 
 
 

 

Reason for the employment of old technology 
 
 
 
 
 

 
The desire to purchase NC or CNC machines 

 
 
 

 

The envisaged period for the purchase of NC 
or CNC machinery 

  
 

Old technology 39 13.0 
 

Relatively new technology 190 63.3 
 

State-of-art technology 71 23.7 
 

Total 300 100 
 

Difficulties in keeping in pace with the new technology 4 6.9 
 

Lack of funds required for new technology 25 43.1 
 

State support for upgrading to new technology is inadequate 13 22.4 
 

Upgrading to new technology is not necessary for the time 
5 8.6  

being  

  
 

Other 11 19.0 
 

Total 58 100 
 

Yes 17 60.7 
 

No 11 39.3 
 

Total 28 100 
 

1 year 3 17.6 
 

Up to 3 years 8 47.1 
 

Up to 5 years 4 23.5 
 

More than 5 years 2 11.8 
 

Total 17 100 
  

 
 
 

 
Table 2. Principal machinery used in the production activities.  
 
 Type Quantity Share in total (%) 

 Conventional machinery 3,796 79.1 

 NC machines 628 13.1 

 CNC machines 376 7.8 

 Total 4,800 100 
 
 
 

machinery, the average number of conventional 
machinery per enterprise is 15; among 145 enterprises 
that use NC type machinery, the average number of NC 
type machinery per enterprise is 4; and among 133 
enterprises that use CNC type machinery, the average 
number of CNC type machinery per enterprise is 2.8. 
According to the answers provided by the management 
level of the enterprises regarding their technological 
structures (Table 1) 63.3% of such enterprises have 
relatively new machinery; and although 23.7% stated that 
they have the latest machinery in respect of machine 
parks, the forest products industry in Turkey is 
considerably behind the level that had been achieved by 
the developed countries. For example, in the USA, 27% 
of the enterprises that are particularly engaged in the 
processing of hard wood employ monitoring and 
optimization technology (Scott et al., 2001). 

 
 
 
 

Production structure of the LSFPI 

 

Findings relating to the production structure of the 
enterprises in LSFPI have been outlined in Table 3. 
According to the data provided in Table 3, of 299 
enterprises who have participated in the questionnaire, 
only 13.7% are operating in full capacity, while the 
remaining 86.3% are unable to work at full capacity. 
According to the information provided by the 
management of the enterprises in the Forest Products 
industry, the average rate of capacity utilization is 68%. 
Based on the responses of the enterprises, the rate of 
capacity utilization of about 53% of the enterprises are 
below 60%. The rate of capacity utilization among the 
majority of the enterprises varies between 31.1% and the 
range of 40 to 59% at maximum. Regarding the reasons 
for the inability of the enterprises to work at full capacity, 
38.1% of the respondents have indicated that their 
inability to work at full capacity is due to lack of demands. 
The majority of the respondents have indicated that main 
reason for the lack of demands was because of the 
economic crisis. Other reasons for lack of demands were 
explained as follows: Inadequacy of financing (19.8%); 
problems with personnel (11.6%); inadequacy of 
technology (8.8%); inadequacy of raw materials (7.7%), 
and inadequacy of energy resources (3.9%).  

According to the data provided in Table 3, the  foremost 



 
 
 

 
Table 3. Findings relating to the production structure of LSFPI enterprises.  

 
Questions Answers Frequency %  

 
 
 
 

Reasons for inability to 

operate at full capacity 
 
 
 
 
 
 
 
 
 
 

 
The basic problems 
experienced by the 
LSFPI enterprises 

 
 
 
 
 
 
 
 
 
 
 
 
 

 

Applicable techniques 
for the improvement 
of efficiency 

 
 
 
 
 
 
 
 
 
 

 

Reasons for not 
deriving of benefits 
from techniques that 
improve efficiency 

  
 

Lack of demand 204 38.1 
 

Lack of adequate finance 106 19.8 
 

Problems with personnel 62 11.6 
 

Lack of technological means 47 8.8 
 

Lack of raw materials 41 7.7 
 

Lack of energy resources 21 3.9 
 

Other 54 10.1 
 

Total 535 100 
 

Market limitations 195 19.2 
 

Lack of financial resources 139 13.7 
 

High cost of energy sources 130 12.8 
 

Lack of qualified personnel 122 12.0 
 

High rates of loan interests 118 11.6 
 

Problems arising from raw materials and subsidiary materials 80 7.9 
 

Technological inadequacies based on machinery and 
80 7.9  

equipment  

  
 

Lack of adequate development of the auxiliary industry 73 7.2 
 

High labor costs 57 5.6 
 

No apparent problems 3 0.3 
 

Other 18 1.8 
 

Total 1015 100 
 

On-the-Job training 148 13.4 
 

Quality control 145 13.1 
 

Production planning 134 12.1 
 

Use of computers 125 11.3 
 

Stock control 118 10.7 
 

Motivating awards to the employees 97 8.8 
 

Financial analysis 84 7.6 
 

Protective maintenance 68 6.2 
 

Job survey 54 4.9 
 

Work performance evaluation 53 4.8 
 

Field training 43 3.9 
 

Wage policies with incentives 33 2.9 
 

Other 4 0.4 
 

Total 1106 100 
 

Financial problems 40 24.4 
 

Low quality of the available raw materials and subsidiary 
36 22.0  

materials  

  
 

Lack of adequate demand 31 18.9 
 

Lack of qualified personnel 26 15.9 
 

Technological inadequacy 12 7.3 
 

Marketing problems 11 6.7 
 

Other 8 4.9 
 

Total 164 100 
  



 
 
 

 

problem in production experienced by 19.2% of the 
enterprises is “market limitations”, which implies the 
inadequacy of potential market opportunities for the 
enterprises. Market limitation is one of the most important 
problems that have emerged concurrently with the 
economic crisis experienced in Turkey. Particularly, the 
enterprises operating in the provinces of Bursa and 
Istanbul, have attempted to overcome this problems 
posed by market limitation through offering their products 
to international markets, and were relatively successful in 
their endeavors. This problem is followed by limitation of 
financial resources (13.7%); high energy costs (12.8%); 
lack of qualified personnel (12%); high rates of loan 
interests (11.6%); problems relating to scarcity of raw 
materials and auxiliary materials and the inadequacy of 
technological means (7.9%); lack of a developed sub-
industry (7.2%); and high labor costs (5.5%). Of all the 
respondents, only 3% have indicated that they do not 
have any problems.  

The data provided in Table 3 shows that 69.3% of the 
enterprises adopt measures that increase efficiency. 
Based on the responses provided by the enterprises to 
the questionnaire, these measures could be listed as 
follows: On-the-job and field training, quality control, 
financial analysis, production planning, wage policies with 
incentives; job performance evaluation, job surveys, stock 
control, computer training, protective maintenance, 
tangible and intangible awards granted to personnel for 
motivating their performance. From the responses 
regarding this application, it was noted that that the three 
measures that were most frequently applied for this 
purpose consisted of on-the-job training (13.4%); quality 
control (13.1%) and production planning (12.1%). From 
the responses given by 296 enterprises responding to 
this question of the questionnaire, it was noted that 
30.8% of the enterprises did not have implement any 
measures with the objective of increasing the efficiency. 
The reasons indicated by the enterprises for the absence 
of any measures for the increase of efficiency were as 
follows: Financial problems (24.4%); the low quality of the 
available raw materials and subsidiary materials (22 %). 
Other reasons are lack of adequate demand; lack of 
qualified personnel; lack of adequate technological 
means and marketing related problems. 
 

 

Marketing concept of the LSFPI 

 

It must be acknowledged that the marketing concept of 
whose priority is rapidly increasing in modern 
management, and which refers to the development, 
pricing, maintenance and distribution of goods, services 
and ideas that meet human needs for the realization of 
changes that will ensure the accomplishment of the 
objectives of the enterprise, is more than just a sales 
transaction and that it involves different dimensions. 
(Mucuk, 1993). For example, while 61% of the 

          
 
 

 

enterprises located in the western United States engaged 
in the production and trading of forest products have their 
own web sites, 18% of these enterprises use electronic 
commerce in the marketing of their products. (Vlosky et 
al., 2002). Meanwhile in Turkey, while it is noted that the 
number of enterprises engaged in similar operations that 
have their own web sites are rapidly increasing, a definite 
progress had not yet been achieved with respect to e-
commerce.  

Forest products industry currently supplies products to 
three different types of markets: To the consumers 
market (end consumers), to industrial markets (industrial 
users or the intermediary consumers) and to international 
markets. Each market has its own specific 
characteristics. Accordingly, each market type should 
compete within its own category, due consideration of its 
characteristics. Enterprises endeavor to introduce the 
products that they have manufactured in the above 
mentioned markets.  

The methods applied by the LSFPI enterprises in 
introducing their products in the markets, the existing 
marketing problems and the problems experienced by 
the enterprises in the marketing of their products, have 
been outlined in Table 4.  

A review of Table 4 show that 23% of the LSFPI 
enterprises introduce their products through brochures, 
catalogues and other similar types of documents; 22.7% 
have direct access to their customers and 17.6% 
advertise and promote their products through the 
internet. In fact, a number of firms have begun to use e-
commerce in their marketing activities. The percentage of 
those enterprises that introduce their products through 
advertising in various media, primarily professional 
journals and local audio-visual media, are around 11.4%. 
While participation in domestic fairs is preferred by 15.5% 
of the enterprises, about 3.3% of the enterprises display 
their products in international markets. As could be noted 
from the table, enterprises can employ more than one 
promotional method at the same time.  

From the answers of the respondents, it is understood 
that in spite of all their efforts regarding the increase of 
sales, the enterprises are still having difficulties in the 
marketing of the products. Of 296 enterprises who have 
responded to this question of the questionnaire, 77% 
(228 enterprises) have indicated that they have 
problems. An inquiry on the nature of the existing 
problems reveals that the highest priority goes to 
economic recession by 32.5%.  

The economic recession which is considered to have 
occurred as a natural outcome of the recent economic 
crisis, is followed by the current credit sales system by 
17%. Enterprises are exerting efforts to increase their 
sales profiles that have declined, through the launching 
of various campaigns; however, the credit sales system 
as a problem. The managers of the large size enterprises 
complain that small and medium sized enterprises are 
occasionally engaged in aggressive competition in the 



 
 
 

 
Table 4. The existence of promotion activities and marketing problems in LSFPI enterprises.  

 
Questions Answers Frequency %  

 
 

 
How do you perform the 

promotion of your enterprise 

and your products? 
 
 
 

 

Do you experience 
problems in the marketing of 
your products 

 
 
 

 

What is your major 
problem in the marketing 
of your products? 

 
 
 
 

 

Can you realize export sales? 
 
 
 
 

 
What is the share (percent) 
of exports in your total sales 

 
 
 
 
 
 

 
List the group of countries 
to which you export your 
products 

 
 
 
 

 

What are the reasons 
for your inability to make 
exports; or, what are the 
major difficulties that 
you experience during 
your exports? 

  
 

Through documents such as brochures, catalogues, etc. 204 23.0 
 

Through direct access to the consumers 202 22.7 
 

Through a web page in the internet 156 17.6 
 

Through participating in local fairs 138 15.5 
 

Through publishing of advertisements in newspapers and journals 101 11.4 
 

Through participating in international fairs 58 6.5 
 

Other 29 3.3 
 

Total 888 100 
 

Yes we do 228 77.0 
 

No, we do not 68 23.0 
 

Total 296 100 
 

Recession in the market 190 32.5 
 

Credit sale system 99 17.0 
 

Competitive conditions 95 16.3 
 

Limited opportunities for international markets 93 15.9 
 

Cash deficit 73 12.5 
 

Effective marketing techniques implemented by the importers 17 2.9 
 

Other 17 2.9 
 

Total 584 100 
 

Yes 184 62.4 
 

No 111 37.6 
 

Total 295 100 
 

1-9 
39 23.2 

 

  
 

10-19 54 32.1 
 

20-39 32 19.0 
 

40-59 23 13.7 
 

60-79 9 5.4 
 

80-100 11 6.5 
 

Total 168 100 
 

European Union countries 89 26.5 
 

Arab countries 77 22.9 
 

Turkic Republics 64 19.0 
 

Balkan countries 60 17.9 
 

Other 46 13.7 
 

Total 336 100 
 

Lack of familiarity with foreign markets 121 17.1 
 

Inability to compete in terms of prices and quality 100 14.2 
 

Lack of adequate demands from other countries 91 12.9 
 

Lack of adequate personnel and organization 74 10.5 
 

Lack of adequate financing for exports 72 10.2 
 

Technological inadequacies 55 7.8 
 

Difficulties in transportation 37 5.2 
 

Production potential can only meet the domestic demands 30 4.2 
 

Problems relating to design 29 4.1 
 

Difficulties in adaptation to products 28 4.0 
  



   

Table 4. Contd.     
     

Inadequate capacity  29 4.1  

 Other 42 5.9  

 Total 706 100  

Do you have partners with Yes 33 11.7  
foreign trade firms active in the No 248 88.3  

same industry? Total 281 100  

 We can compete in terms of fair competition 65 23.4  

Chances for competing with the We have difficulty in competing with the EU countries 64 23.0  
EU countries We cannot compete 75 27.0  

 We do not yet have a clear idea on this subject matter. 74 26.6  
 
 

 

markets, which puts the large sized enterprises in a very 
difficult position. However, it can also be asserted that in 
such remarks, the managers of the large sized 
enterprises overlook the fact that small and medium sized 
enterprises have the advantage of acting more flexible, 
and that they enhance their competitiveness by using this 
advantage. The limited scope of opportunities offered by 
foreign markets, shortage of cash and the effective 
marketing techniques offered by the foreign buyers, are 
among the problems experienced by the large size 
enterprises operating in the sector of forest products.  

Indubitably, the LSFPI enterprises can overcome most 
of the problems that they are currently facing through 
offering their products to foreign markets. A substantial 
portion of the exportation of forest products is realized by 
the enterprises that we have included within the scope of 
our survey.  

From the data provided in Table 4, it is understood that 
of the 295 enterprises who have responded to the 
question, 62.4% perform direct or indirect export sales, 
and 37.6% are not engaged in exports. The export 
volume of the enterprises who realize export sales, vary 
from 1 to 100% of their total production. The percentage 
of the exports was grouped on the basis of certain ranges 
and the proportion of the export sales to the total 
production volume was determined. Accordingly, 32.1% 
of the enterprises export 1 to 19% of their total 
production. The distribution of export sales among 
country groups is as follows: 26.5% of the exports are 
made to the EU countries; 22.9% is exported to the Arab 
countries; 19% of the exports are made to the Turkic 
Republics, and 17.9% is exported to the Balkan 
countries. The share of the other countries in the 
distribution of the exports is 13.7%. These countries 
include, North Africa, Russia, Israel, Nigeria, Algeria, 
USA, Kenya, Dubai, Far East countries (Singapore, 
China, and Japan), Georgia, etc.  

An examination on the problems experienced by 
enterprises who currently export their products and who 
are not yet able to export, reveal that the biggest 

 
 

 

problem is lack of familiarity with the foreign markets 
(17.1%), which is followed by inability to compete in 
terms of price and quality (14.2%). From the answers 
provided by some of the managers of the enterprises, it is 
noted that the concept of “quality” is particularly 
highlighted. The respondents agree that price is an 
important factor in their inability to achieve a competitive 
power, but disagree on the issue of quality. Accordingly, 
the major problems experienced by the LSFPI 
enterprises relating to exports, can be listed as follows in 
respective order: Lack of familiarity with the foreign 
markets, lack of specialized personnel and appropriate 
organization, lack of financial resources for exports, 
technological inadequacies, difficulties in transportation, 
the fact that production potential can only meet domestic 
demands, problems relating to designing, difficulties in 
the adaptation of products and inadequate capacity.  

The sectoral foreign trade companies which are an 

organizational structure based on the realization of exports 

and the small and medium sized enterprises may overcome 

the difficulties that they might experienced during their 

individual efforts for exportation, and may acquire stronger 

marketing opportunities on the basis of their individual 

marketing activities. From the results of the survey, it is 

understood that company structures that enable certain 

export related activities such as customs procedures, 

transportation and insurance transactions, and that offer 

more effective marketing opportunities for export purposes, 

do not appear as an attractive option to the enterprises 

operating in large size forest products industry. As a matter 

of fact, about 88% of the enterprises do not have affiliations 

with such a company structure.  
The chances for competitiveness of the large size 

enterprises operating in the forest products industry have 
been questioned. According to the answers provided by 
the respondents, 27% of the enterprises indicate that 
they lacked competitive edge¸ 23% indicate that they 
have difficulty in competition, and 27.6% indicate that 
they do not yet have a clear idea regarding this subject 
matter. The percentage of those enterprises who assert 



 
 

 

that they can compete with the enterprises operating in 
the EU countries in terms of fair competition is 23.4%; 
which is by no means an insignificant value. 
 

 

Reliability of the survey and a statistical appraisal 

 

With the help of the SPSS program, in addition to the 
consistency of the method, the existence of meaningful 
correlations was questioned through the analyses of the 
correlation between certain questions and the answers  
received. Some to the results that need further 
elaboration are thus outlined.  

A meaningful correlation particularly between the size 
of the enterprise and the level of utilization of advanced 
technology, with 99% reliability, was achieved. These 
results can be construed as evidence to the fact that a 
change occurs in the management structure of the 
enterprises concurrent with the level of growth of the 
concerned enterprise. It is also noted that the impacts of 
the economic crisis that were experienced during the 
recent years are still visible and that it has a meaningful 
correlation with the decline in the rates of capacity 
utilization.  

While the production related problems of highest 
priority were focused on technological inadequacy 
concerned with machinery and equipment in furniture and 
plywood industry; in timber, parquet, coating and fiber 
plates industries that directly utilize wood as raw material 
in production, the first priority is focused on problems 
arising from raw materials and subsidiary materials. On 
the other hand, while the biggest problem in the 
woodwork and packaging industry is lack of qualified 
personnel, in chipped wood industry, the biggest 
complaint is concerned with the high rates of loan 
interests; and in wooden construction elements industry, 
the biggest problem is concerned with the high costs of 
energy.  

The problems of top priority experienced by the 
subsidiary industries of forest products during the 
marketing of their products were identified in respective 
order as follows: The effective marketing strategies 
applied by the foreign buyers for the furniture, parquet 
and packaging industry; the limited scope of opportunities 
offered by the foreign markets for the timber industry; 
cash deficits for the plywood and wooden construction 
elements industry; conditions for competition for the 
coating industry; recession in the markets for the chipped 
wood industry; and the credit sale system for the fiber 
plates industry.  

The top three reasons underlying the inability of certain 
subsidiary industries to realize export sales, or the major 
problems experienced by the subsidiary industries that 
realize export sales were questioned. Based on the 
answers, furniture and woodwork industry have indicated 
that their number one problem was the lack of financial 
resources; timber industry indicated that the volume of 

 
 
 
 

 

production was only adequate in the meeting of the 
demands of the domestic markets; and the wooden 
construction elements industry had emphasized that their 
major problem was relevant to designs.  

A listing was made based on the level of challenge 
experienced by each sub-industry included in the industry 
for forest products in their competition against their 
competitors in the EU countries. According to this listing, 
while the timber industry was identified as the sub-
industry that is most adversely affected from the 
challenges imposed by the competition with the EU 
countries, packaging industry appears as the sector that 
is most prepared for competing with the EU countries. 
This listing is based on the responses that have been 
provided by the management of the enterprises who 
have participated in the survey. The accuracy of this 
listing is open to debates, as it does not include any other 
indicators. 
 

 

DISCUSSION AND RESULTS 

 

Production and technological structure in the forest 
products industry in Turkey 

 

Enterprises operating in the forest products industry in 
Turkey generally perform their production on the basis of 
conventional machine tools. However, it is also marked 
that production based on machine tools that operate with 
NC or CNC systems has increased, starting from the 
beginning of 1990’s. Nevertheless, it cannot be asserted 
that an adequate progress had been achieved in Turkey 
in terms of technology. For, a lot of enterprises have not 
been able to perform successful feasibility studies 
regarding the purchase of NC or CNC based machinery, 
and have committed errors in the selection of the 
appropriate machine functions, and consequently, have 
faced significant failures in terms of the efficiency of their 
machine tools, loading levels and the rate of return of 
their investments. Whereas, during the purchase of NC 
or CNC based machinery that entail substantial 
investments, the issues that constitute bottlenecks must 
be taken into consideration, and accordingly, elaborate 
and carefully designed plans must be developed. One of 
the main reasons why the enterprises choose to continue 
their production operations with conventional machine 
tools is lack of adequate financial resources. In this 
respect, leasing of machinery equipped with high 
technology plays an important role. However, it has also 
been understood that leasing does not offer an adequate 
solution to the existing problem. Therefore, enterprises 
that consider the acquisition of machinery supported with 
high technology as their top priority are required to 
develop a financial leasing policy commensurate with 
their economic power.  

Most of the enterprises operating in the forest products 
industry are unable to work at full capacity. 



 
 
 

 

The results of the survey highlight the fact that one of the 
basic problems underlying production is related to market 
limitations at a rate of 19%. Nevertheless, in spite of all 
these adverse conditions, it had been also marked that 
most of the enterprises operating in this sector have 
adopted certain measures with a view to enhance their 
levels of efficiency, which creates certain optimism about 
the future. Those enterprises, who fail to adopt measures 
to increase their efficiency, indicate that their failure is 
due to financial reasons. As the result of the inadequacy 
of their operating capitals, enterprises may become 
exposed to serious problems, or may be unable to realize 
their targets due to the economic recession, or due to 
other reasons. The solution to such problems would 
consist of the implementation of the necessary measures 
for the financing of the operating capital, to set aside 
reserves for this purpose at times of profitability, and the 
utilization of the subsidies or loans received in a careful 
and prudent manner. 
 

 

The marketing concept in the forest products 
industry in Turkey 

 

About 77% of the enterprises have difficulties in the 
marketing of their products due to the recession that is 
experienced in the markets. An appraisal from the 
standpoint of consumers highlights that fact that the 
consumers are on the whole unhappy with the 
enterprises operating in the forest products industry. 
Since the enterprises presume that marketing consists 
solely of distribution and sale, they may overlook the 
issue of post-sale services. In the occurrence of 
bottleneck circumstances in domestic markets, 
enterprises should endeavor the marketing of their 
products in foreign markets. They should even endeavor 
to sell their products both in domestic and in international 
markets. Although around 62% of the enterprises are 
directly or indirectly involved in export activities, and 
although the volume of exports are increasing both in 
terms of the types of products exported and in terms of 
export quantities since 1990’s, Turkey’s exports in forest 
products have not yet reached the desired level. Turkey’s 
export potential regarding forest products is visible only in 
large size enterprises. A substantial portion of the small 
and medium size enterprises are far away from this 
concept. Enterprises should form partnerships with the 
Sectoral Foreign Trade Companies which is an 
organizational structure based on the realization of 
exports and small and medium size enterprises must 
ensure solidarity with various types of organizations. For 
example, among the enterprises that are engaged in 
exports, and the enterprises that have not yet realized 
exports, lack of familiarity with the foreign markets 
occupies the first place among their difficulties related to 
foreign trade. Inability to compete in terms of price and 
quality is also an important problem. The elimination of all 

 
 
 
 

 

these problems necessitates solidarity. 
 

 

Suggestions for the forest products industry in 
Turkey 

 

In order to enhance competitiveness in the forest 
products industry on a worldwide basis, there are certain 
duties that should be undertaken by the enterprises, the 
universities, concerned government establishments, 
finance institutions like banks, the end consumers and 
the manufacturers and suppliers of raw materials. During 
the contacts with the managements of enterprises, the 
managers have confirmed that there were certain issues 
for which they have deserved criticisms. However, most 
of these enterprises anticipate a lot from the government. 
Obviously, some of their claims are justifiable. However, 
the degree to which they have attempted to derive 
benefits from the R&D subsidies offered by the State, the 
Small and Medium-Scale Industry Development 
Association projects, and the applications of the Regional 
Technological Development Center and the issue as to 
whether or not they have expended the subsidies that 
they have derived from the public sector in line with the 
desired purposes, should be discussed and further efforts 
should be exerted in order to ensure that they derive 
further benefits from such subsidies and incentives. 
 

The results that were achieved from the survey show 
that while the Forestry Enterprises are supplying the raw 
material of wood to the consumers, they are at the time 
committing certain erroneous actions that result in the 
impairment of the quality of the forest products. The 
conscientious attitude of the enterprises operating in the 
forestry industry in line with the expectations shall be 
effective in the elimination of the current problems that 
are experienced in raw materials. For example, the 
method of sale of planted trees, that ensures the 
classification of the forest products as per their types, 
sizes and appearance, in line with the demands of the 
buyers, that minimizes losses in production, that 
increases productivity in terms of economic value, that 
offers a saving in production costs, and that had been 
developed for the purpose of the elimination of the 
occurrence of negative effects such as cracking, 
decaying, or darkening that might occur during storage in 
the warehouses (Aslankara, 1998) can be applied in a 
more effective manner.  

The reduction of the pressure applied on the licensed 
producers by the State will be beneficial. The reduction of 
the burdens imposed by the VAT and income taxes, and 
the Social Security premiums, shall facilitate the 
enterprises operating in the forestry industry to 
accomplish certain effective endeavors. In fact, both the 
enterprises that document every sales transaction, and 
the enterprises that perform the operation on the basis of 
unrecorded economy for purposes of tax avoidance, are 



 
 
 

 

enforced to compete on the same race track. This 
situation marks a great unfairness to those enterprises 
who comply with the rules and regulations.  

The government bureaucracy that imposes barriers in 
front of the enterprises, who wish to export their products, 
needs to be restructured for being more active; the 
current legislation needs to be updated and the 
bureaucracy must be charged with more responsibilities. 
The enterprises that are currently suffering from financial 
bottlenecks must be subsidized with low interest loans 
that will enable them to operate in foreign markets. 
Authentic designs must be developed to enhance 
Turkey’s share in foreign markets. The Sectoral Foreign 
Trade Companies which have decisively achieved 
positive developments in the export scene on behalf of 
many industries in Turkey must include the sector of 
forest products in its scope and must gain the confidence 
of the sector through its efforts. Uncontrolled and low 
quality imports are gradually becoming a subject matter 
of great concern. The opportunities granted to such 
importers must be restricted and this type of importation 
must be deterred. According to a recent study, the 
opportunities granted to the enterprises in the forest 
products industry for benefiting from free zones is 
extremely low as compared to the other sectors (0.01%) 
(Koç and Aksu, 1999). Enterprises operating in the forest 
products industry must be granted opportunities to 
effectively benefit from the free trade zones (Atatürk 
Airport, Aegean Free Zone, etc.). 
 

 
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