Agri-business Sector

An Expert's View about Agriculture and Animal Husbandry in Turkey

Last updated: 24 Feb 2011

Historically, agriculture has played a vital role in the Turkish economy. Contributing 8.3 per cent to Turkey’s overall GDP, the sector employs 24.7 per cent of the labour force.

Sector briefing Agri-business Opportunities in TURKEY Why TURKEY? Agriculture stands out as one of the most important sectors in Turkey. Contributing 8.3% to Turkey?s overall GDP, the sector employs 24.7% of the labour force and provides the main livelihood for 24.5% of the population. Favourable ecological conditions, climate and water resources make Turkey one of the world?s strongest agricultural players. Nearly rd 1/3 of the country?s total area consists of arable land. Consequently, Turkey enjoys a leading role in almost all major agricultural product sub-sectors. The fact that it?s the th world?s 8 largest agricultural economy; ranks The challenges that the sector faces, presents among World?s first 5 in the production of over major opportunities to UK businesses. 20 crops; and exports more than 1,530 different agricultural produce to 177 countries, Find general information on the Turkish market are all evidence to its eminence as a global conditions on UKTI's website. Turkey Business player. Guide gives an overview of Turkey?s economy, business culture, potential opportunities and an Despite its natural advantages, the sector faces introduction to other relevant issues. major issues in productivity, efficiency and ?Agriculture sector has seized an technical capability. Domestic and export market growth, changing consumer habits, unprecedented upward trend by health consciousness, along with EU recording growth in the last 5 years. harmonisation policies has fuelled the sector to It was the least affected sector from undergo serious transformation. the global economic downturn, and even mitigated the impact of the crisis on the overall economy.? UK Trade & Investment Sector briefing: Agri-business opportunities in TURKEY factors influencing the recent popularity of the Opportunities sector are: ? low red meat consumption per head in Aquaculture Turkey (approximately 12 kg as opposed 62 kg in the EU) indicating that the market is With a coastline of 8,000 km and large number far from saturation of freshwater sources, Turkey has a suitable environment for the culture of various marine ? shortage of raw materials for meat and milk and freshwater species. Only 20% of total products fishery production in Turkey is obtained from aquaculture, of which 95% comes from culture Although the sector is developing, the number of trout, sea bass and sea bream. Currently of cattle farms with a herd bigger than 100 Turkey is the 5th largest aquaculture producer cows is still not more than 500. in Europe (including Norway) and the 3rd largest excluding shellfish production. It is also Current production figures on beef and cows? the 2nd largest producer of seabass and milk are 325,000 tons and 11,570,000 tons, seabream (after Greece) and rainbow trout respectively. (after Norway). Turkey consumes only a third (8 kg per capita per annum) of average In order to combat with already high and rising seafood intake consumed by the EU countries. red meat prices, Turkish government lifted the This causes Turkish fishery production to ban on live cattle and meat imports. This was depend largely on export markets, thus makes put into effect in the second half of 2010 with it vulnerable to market conditions and price the condition that all imports should be fluctuations. completed by 31.12.2010. The imports were initially permitted only to the Ministry of Based on the above mentioned weaknesses, Agriculture?s Fish & Meat Institution from a Turkish aquaculture sector presents the limited number of countries. A series of tenders following opportunites: were issued to procure live cattle for slaughtering. This positive development was ? Diversification of species later followed by opening of borders to fresh ? Product development and processing meat imports and permissions were extended technologies to the private sector. With a Cabinet decision ? Industrial and domestic waste issued in December 2010, live cattle management importation period was extended until the end ? Advanced water quality management of 2011, and meat imports extended for an technologies indefinite period of time. ? Aquafeed and vaccines In the current circumstances, UK companies are allowed to export bovine meat. UK is still Livestock & Poultry not included in the list of countries from where Turkey imports live cattle for slaughtering and Livestock and poultry breeding are important breeding. components of the Turkish agriculture sector. Livestock: Poultry: According to 2009 data, the number of cattle At the beginning of 1980?s, the poultry sector amount to 10,700,000 and the number of in Turkey began to show a structural sheep and goats stand at 26 million. Organised transformation as vertically integrated farming sheep and goat farming is virtually non- and manufacturing facilities were established existent in Turkey, so the rest of this section and contract farming became widespread. will refer to cattle only. Investments in the sector gained momentum during the 1990?s, and currently about 80% of Livestock farming was once a marginal sector; the production are carried out in fully major Turkish firms and foreign companies integrated state of the art facilities. traditionally refrained from investing in this sector. However, over the last decade serious According to latest available data, Turkish investments have been made in beef and dairy poultry count is 232 million, of which 70% is cattle farming, stemming largely from demand broilers, 28% laying hens and 2% turkeys. created by meat and dairy factories. The main UK Trade & Investment Sector briefing: Agri-business opportunities in TURKEY Association ? CHA ? is responsible to promote In 2009, the poultry meat production in Turkey and organise UK participation at Growtech. was around 1,300,000 tons. Per capita poultry consumption in Turkey is 17 kg, slightly less than EU average. Organic Farming & Soilless Culture Opportunities in livestock and poultry sector are: Organic farming developed in Turkey in ? Fresh, chilled, frozen bovine meat (full, response to demand from Turkey?s major half, quarter carcass) export partners in traditional food produce. As ? Feed supplements, nutrients and the importer firms were mainly from Europe, vitamins EU standards and certification systems were ? Medication (subject to licence) adopted from the very beginning. ? Veterinary equipment ? Livestock breeding technologies Aegean region was the pioneer in organic products, and grapes and figs were the first Horticulture organically grown products in mid 1980s. Over the years, particularly after 2000, demand- Out of 250,000 defined plant species triggered organic production grew in number of throughout the world, 12,000 are grown in the products, including dairy, and spread to other whole of EU and 12,054 ? of which 3,906 are regions in the country. Today, Turkish organic endemic species - are grown in Turkey alone. production consists of 250 different products, grown on a land of around 200,000 ha by over In 2010, estimated horticultural crop 15,000 producers. The size of the sector is production in Turkey was 42.5 million tons, of around $250 million. which 26 mn tons were vegetables and 16.5 mn tons were fruits. As a sign of increasing health consciousness of consumers especially in Europe and USA, Turkey is among the top ten countries in the Turkish organic products sector grew by 10% world in the production of over 20 different in 2009. product categories. Organic Farming Law, issued in 2004, sets the Although a net exporter of horticultural crops, regulatory framework of organic farming, Turkey is far from having fully exploited its control and certification procedures. potential. This is largely due to poor post Certification companies can only operate with a harvest technologies and inadequate food licence issued by the Turkish Ministry of safety practices. Agriculture. Changing trends in the domestic market, Soilless culture has been a rising trend in demand from export markets, as well as the Turkey for the last 10 years. Despite being growing awareness for sustainable food introduced to this alternative farming method sources are putting pressure on Turkish agri- later than many other European countries, food companies to improve ?farm to fork? Turkish growers are enthusiastic in developing systems. In particular, there are opportunities soilless agriculture. in: Opportunities in organic and soilless culture ? crop protection are: ? cold chain ? distribution management ? Technology & Know-how ? food safety systems ? Training & Consultancy ? Investment, Joint Venture The main event of the sector is Growtech ? Certification and control Eurasia, which is held every year in Antalya with significant international participation. UKTI provides Trade Show Access Programme ? TAP ? support to UK suppliers of horticulture to exhibit at this event. Commercial Horticultural UK Trade & Investment Sector briefing: Agri-business opportunities in TURKEY EU Funds & Grants specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our Although Turkey is not an EU member country, staff overseas in British Embassies, High it?s been in the EU Customs Union since 1995, Commissions and Consulates, across all sectors which has contributed a lot to the foreign trade and in over 100 markets. volume mutually. Over the last 10 years, Turkey?s agricultural imports from the EU has You can be alerted to business opportunities on increased by 25%, which shows that despite a regular basis by registering on the UKTI being an exporter country, Turkey is an website. More on UKTI?s business opportunities important export market for EU countries. service Turkey has some strong EU links with various programmes aimed to improve agricultural and rural development which provide a Major events and activities considerable amount of funding. They are: th ? 7th and 8th Framework Programme ? Mersin Agrodays ? 6 International gathers all research related EU Agriculture Trade Show initiatives together under a common (Agriculture, Agricultural Machinery, Fertilisers, roof aiming growth, competitiveness Seeds & Horticulture) and employment. Run by TUBITAK (The Scientific and Technological Research Council of Turkey). Contact: Guliz Kiymaz ? Instrument for Pre-Accession Assistance Email: (IPA) - Turkey has been receiving Date: 03 ? 06 March 2011 funding since 2001 to be used in various th projects. It is estimated that Turkey can Anfas Fresh Antalya ? 5 International get over ?2 billion for 2007-2011 Fruit, Vegetable, Logistics & Technologies period. Trade Show ? Component V for Rural Development - Aims to prepare Turkish agri-food sector to meet EU requirements and provide Contact: Serenay Yilmaz support to modernise the agricultural & Email: rural sector. Date: 17 ? 19 March 2011 Ecology Izmir (Certified Organic Products, Organic Laws and Regulations Relating to Certification Bodies, NGOs) Genetically Modified Organisms Turkish Biosafety Law came into force at the Contact: Serenay Yilmaz end of September 2010. As part of this Law, a Email: GMO regulation was also issued. According to Date: 12 ? 15 May 2011 this, food and feed products containing 33 GMOs authorised in the EU can now be th Animalia Istanbul ? 8 Livestock & imported into Turkey. There is no threshold for Technologies Trade Show 3 soya genes, and the threshold for the rest is %09. A certificate issued by an accredited laboratory or an authorised body must be Contact: Guliz Kiymaz submitted to Ministry of Agriculture?s provincial Email: offices. Date: 09 -11 June 2011 VIV Turkey ? Poultry & Technologies Trade Show If you have any questions on the opportunities Contact: Guliz Kiymaz above, contact the UKTI contacts named in this Email: report. Business opportunities aimed Date: 09 -11 June 2011 UK Trade & Investment Sector briefing: Agri-business opportunities in TURKEY th Agrotec?2011 ? 15 International UKTI contacts Agriculture & Technologies Trade Show (Agricultural Machinery & Equipment) Guliz Kiymaz Trade & Investment Manager British Consulate Izmir Contact: Serenay Yilmaz Tel: +90 232 463 5151 ext 125,126 Email: Email: Date: 08 ? 11 September 2011 Serenay Yilmaz th Agroexpo Eurasia ? 7 International Trade & Investment Adviser Agriculture & Horticulture & Livestock British Consulate Izmir Trade Show Tel: +90 232 463 5151 ext 119 Email: Contact: Guliz Kiymaz Email: Date: 23 ? 26 September 2011 Next steps - How UKTI can help th Growtech Eurasia ? 11 International Horticulture, Agriculture, Floriculture & British companies wishing to develop their Technologies Trade Show business in the Turkish market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Contact: Guliz Kiymaz Turkey with its wide local knowledge and Email: experience can provide a range of services to Date: 01 ? 04 December 2011 British-based companies wishing to grow their business in global markets. th Agro Eurasia - 6 International Agriculture, Stock Breeding, Seed, Poultry This can include: & Dairy Industry Trade Show ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential Contact: Serenay Yilmaz customers in the Turkish market Email: ? Establishment of interest of such Date: 15 ? 18 December 2011 contacts in working with you ? Arranging appointments ? Organise seminars or other events for Find full details of all events in this you to meet contacts and promote your country and sector on the UKTI website. company in the Turkish market New export events are added daily to the site and you can register to be alerted to them on a This work is available via our Overseas Market daily, weekly or monthly basis Introduction Service (OMIS) a chargeable service which assists British-based companies UKTI?s Tradeshow Access Programme (TAP) wishing to enter or expand their business in provides grant support for eligible Small & overseas markets. Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about To find out more about commissioning this UKTI support for attendance at overseas work, or accessing other UKTI services and events specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Agri-business opportunities in TURKEY
Posted: 24 February 2011, last updated 24 February 2011

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