Sugar production investments in turkey during post 1929 economic crisis period

During the 1929 Economic Crisis, prices of agricultural products decreased muchmore than industrial products. Turkey, as an agricultural product exporter could not affordits importation under these new conditions. For the financial structure of Turkey, selfsufficiencywas seen as the most convenient solution. In this period, the Turkish governmentaimed at importing substitution in sugar production. But for achieving this, Turkey neededsome additional investments. For the capital needs of these investments, governmentprimarily evaluated foreign contribution. But Turkish banks provided necessary capital tosugar industry, with the leadership of İş Bankası. German and Czechoslovak contributionalso supplied machinery and technical assistance to Turkish sugar industry. Governmentdeeply investigated possible investment places, to reach the most appropriate conditions.At last, Turkey founded two new sugar factories with their own financial sources in 1933and 1934. Eskişehir Sugar Factory was the third factory in Turkey and Turhal Sugar Factorybecame fourth investment in this field. Government unified the whole sugar production ofTurkey in 1935, in order to reduce production costs. From this date, Turkey experienced rapidexpansion in both beet agriculture and sugar industry. In this article, the state centered sugarproduction investments were evaluated under the different financial conditions of the 1929Economic Crisis. For the time period, subject would be investigated up to the early 1940’s.