Financial and economic impacts of the COVID-19 pandemic on aquaculture in Türkiye and financial policy recommendations

Abstract

The public health measures implemented to reduce the spread of the COVID-19 pandemic have had unexpected consequences in a wide range of industries worldwide including aquaculture. The first case of COVID-19 was also reported in March 2020 in Türkiye. The present study aims to determine the financial and economic effects of the COVID-19 pandemic on the aquaculture in Türkiye by analyzing consolidated financial statements of the industry released by Central Bank of the Republic of Türkiye in September 2021. Within this context, the consolidated financial statements of 2020 were examined using ratio analysis, followed by a comparison of the ratios from 2009 to 2020. As a result of the study, it was determined that the Turkish aquaculture sector continued to grow, the net profit margin improving considerably by 871 % in 2020 compared to the previous year, and the year 2020 achieving the highest profitability performances in the recent 12-year period, despite the severe effects of the pandemic on several industries globally. However, the sector's high financial leverage, inability to produce sufficient revenue to pay its debts, and reliance on foreign manufacturing costs are all concerns that must be managed to maintain economic and financial sustainability. Considering these results, some policy practices related to financial stability are advised so that aquaculture stakeholders can have a stronger financial and economic structure in the face of random shocks such as the Covid-19 pandemic.