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Tomatoes have the largest share among fruits and vegetables, which add substantially to thegross agricultural product in Turkey. We describe the structure and development of this sectorfrom the year 1990 onwards, covering farms in primal production, trade facilities, processingfirms, and marketing channels. An analysis of retail prices for table tomatoes in 22 provincesand their dynamics follows. Finally we employ a threshold vector error-correction model toanalyse integration among the markets for table tomatoes in the presence of transaction costs.The results show a ring of integrated provinces along the coasts of Turkey, while the interiorprovinces are rather separated. In some cases price transmission only occurs when deviationsfrom an interprovincial price equilibrium exceed a certain threshold.
