Agriculture and Food Industry in Turkey. Foreign Market Consulting Ltd. Sti. Istanbul June, 2014
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1 Agriculture and Food Industry in Turkey Foreign Market Consulting Ltd. Sti. Istanbul June, 2014
2 Contents A Overview Page 03 B Growth Page 06 C Foreign Trade Page 07 D Main Companies Page 09 E Market Outlook Page Foreign Market Consulting Ltd. Sti.
3 A. Overview Agriculture Suitable ecological conditions and climate for agricultural production, wide variety of fruits and vegetables. Turkey is the 7 th largest agriculture producer in the world and largest one in Europe with USD 62 bn agricultural revenues. (Source: Ministry of Science, Industry and Technology, 2013) World s largest producer of apricots, hazelnuts, figs, cherries and sour cherries, quinces in (Source: FAOSTAT database, 2014) Europe s largest producer of apples, green beans, beeswax, chestnuts, chick peas, green chilies and peppers, cotton lint, cottonseed, cucumbers and gherkins, eggplants, grapefruits, natural honey, leeks, lemons and limes, lentils, chicken meat, melons, whole fresh sheep milk, dry onions, green onions, pistachios, safflower seed, spices, spinach, strawberries, tea, tomatoes, vanilla, vetches, walnuts, watermelons. (Source: FAOSTAT database, 2014) Main processed agricultural products are fruits, vegetables, cereals, tobacco, sugar beet, milk, meat and poultry. 3
4 A. Overview Agriculture Total agricultural land in Turkey is 38,428 thousand hectares. Distribution of Agricultural Land in Turkey, 2013 (Thousand Hectares, Percentage) Area of Vegetable Gardens; 808; 2% Area of Ornamental Plants; 5; 0% Area of Fruits, Beverage and Spice Crops; 3 232; 8% Land under Permanent Meadows and Pastures; ; 38% Area of Cereals and Other Crop Products; ; 52% Source: Turkish Statistical Institute,
5 A. Overview Food & Beverage 40,872 food manufacturers and 634 beverage manufacturers in (Source: Social Security Institution, 2014) Food and beverage industry has 19.7% share in GDP in (Source: Federation of Food & Drink Industry Association of Turkey, 2012) 71% of the food retail in Turkey belongs to traditional retailers and 29% belongs to organized retailers as of (Source: The Union of Chambers and Commodity Exchanges in Turkey, Turkish Statistical Institute, Trade Council of Shopping Centers and Retailers, 2012) Unrecorded sales have a significant share in the food and beverage sector. It is estimated that the share of unrecorded sales in the Turkish retail sector is 30%. (Source: The Union of Chambers and Commodity Exchanges in Turkey, 2012) 536 foreign capital manufacturers operate in the food, beverage and tobacco industry in 2013, 265 of them are in Istanbul. (Source: Ministry of Economy, 2014) More than USD 3.5 bn FDI inflow to the food, beverage and tobacco industry btw (Source: Central Bank of the Republic of Turkey, 2014) Share of the food, beverage and tobacco industry in the FDI inflows to the total manufacturing industry was 28% btw , which is the highest share among all industries. (Source: Central Bank of the Republic of Turkey, 2014) 5
6 B. Growth Food & Beverage Growth 12,0 Growth % 10,0 8,0 6,0 4,0 2,0 0,0 9,2 9,4 8,7 8,8 8,4 6,8 6,9 6,6 5,3 4,7 3,9 2,1 1,7 2,1 2,2 2,1 2,0 0,7 1, ,0-4,0-4,8-6,0 GDP Food & Beverage Source: Federation of Food & Drink Industry Association of Turkey,
7 C. Foreign Trade Food and Beverage Exports and Imports Between 2003 and 2012, food & beverage exports of Turkey have grown by 15% per year, and imports have grown by 14% per year on average. USD mn Food & Beverage Foreign Trade Exports Imports Source: Federation of Food & Drink Industry Association of Turkey,
8 C. Foreign Trade Food and Beverage Exports and Imports Turkey is a net exporter of food and beverage products. Food and Beverage Foreign Trade (2012) Food and beverage exports Food and beverage imports Main destinations of exports Main sources of imports Main export items Traditional agricultural exports Main import items USD 9.5 bn USD 5.1 bn Iraq, Germany, UK, Netherlands, USA Russia, Ukraine, Germany, Indonesia, USA Processed fruits and vegetables, milled cereal products, vegetable and animal oils Dried fruits (raisins, sultanas, dried apricots, dried figs), fresh fruits (lemons, grapes, cherries, oranges and grapefruits), hazelnuts Vegetable and animal oils, meat and meat products Source: Federation of Food & Drink Industry Association of Turkey,
9 D. Main Companies Main State-Owned Enterprises in the Food Industry The largest state-owned enterprises in the agriculture and food industry: Turkiye Seker Fabrikalari A.S. (TSF): TSF has 25 sugar plants and is in the process of privatization. Cay Isletmeleri Genel Mudurlugu (Caykur): Caykur is the leading tea producer in Turkey with a 60-65% market share in dry tea. Et ve Sut Kurumu Genel Mudurlugu (ESK): ESK has nine meat production facilities and aims to support the domestic animal husbandry industry. The largest privatization in the agriculture and food industry in the last years: The sale of the tobacco and alcohol manufacturer TEKEL. The alcohol manufacturing part of the enterprise was privatized in Diageo Plc acquired whole shares in The tobacco manufacturing part of the enterprise was sold to British American Tobacco in
10 D. Main Companies Largest Private Manufacturers in the Food Industry Production Based Net Sales (TRY mn) Rank* Main Company Private Manufacturers in the Food Industry Product Groups 17 Unilever 2,668 Tea, Ice Cream, Sauce, Margarine, Soup 31 Philsa Philip Morris Sabanci 1,801 Tobacco 33 Coca-Cola Icecek 1,765 Beverage 43 Ak Gida (Yildiz Holding) 1,454 Dairy 44 Konya Seker 1,447 Sugar 56 Sutas 1,203 Dairy 57 Oltan Gida 1,203 Hazelnut 58 Banvit 1,201 Poultry 60 Abalıoglu Yem 1,171 Feed 68 Anadolu Efes 1,085 Beer 73 Eti Gida 1,005 Biscuit, Chocolate 76 C.P. Standart 966 Poultry, Feed 77 S.S. Trakya 941 Vegetable Oil and Margarine 85 Besler Gida (Yildiz Holding) 820 Vegetable Oil and Margarine 86 Keskinoglu 809 Poultry 89 JTI Tutun 798 Tobacco 90 Ulker Biskuvi (Yildiz Holding) 795 Biscuit 92 Erpilic 786 Poultry 93 Ulker Cikolata (Yildiz Holding) 784 Chocolate 96 Senpilic 746 Poultry *Rank among top 500 Manufacturing companies in Turkey in 2012 Source: Istanbul Chamber of Industry,
11 E. Market Outlook Future Trends Main factors and trends influencing future production and consumption of food in Turkey will be: Young and fast increasing population willing to try new brands and products (half of the population is under the age of 30.4., population growth rate in 2013: % 1.37) Urbanization (Population living in urban areas in 70% in 2007, 91% in 2013) Rising income levels (GDP per capita: USD 3,492 in 2002, USD 10,497 in 2012) Increasing hygiene standards Healthy nutrition trends Increasing number of working women (Women s share in the labor force: 26% in 2004, 31% in Nov. 2013) Increasing demand for packaged, ready-to-eat and frozen foods Increasing production and consumption of organic food (Organic crop production: 421,934 tons in 2005; 1,750,127 tons in 2012) Proliferation of mass grocery retail outlets Modern production facilities of the large scale manufacturers continuously making new investments Growing tourism industry supports the domestic market (Number of visitors: 16 mn in 2003, 36 mn in 2012) Source: Turkish Statistical Institute,
12 Confidentiality Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all information to be handled confidentially, especially regarding the sources used. Liability FMConsulting receives information and data from third parties and presents the gathered data to its customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or precision of any gathered data. Foreign Market Consulting Ltd. Şti. Dede Yusuf Sok. No:11, Büyükdere Sarıyer İstanbul - Turkey Tel: Fax:
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