Turkey’s economy and foreign trade restored, relations with Russia normalized! As is known, Turkey has experienced a very tragic coup attempt on 15th July 2016. A group of treacherous forces infiltrated into Turkish governmental institutions, particularly the Turkish Army, tried to seize the control of the government in an ineffectual endeavor. We, in our history, have never witnessed such a movement not only against the elected government, but also against Turkish Public. However, as it is observed by the whole world, a political, even a military movement lacking public support is destined to fail. We are lucky that this movement was immediately suppressed by the heroic efforts of Turkish People. We, as one of your Turkish suppliers, have instantly opposed this non-democratic and violent act of treason as well as our entire nation. We are happy to observe that, after such an unfortunate event, Turkish economy is standing strong with all of its institutions operating regularly and even more effectively.Thanks to the precautions by the Central Bank of Turkey along with reassuring and unifying statements by all the political parties. All these helped our economy to recover after the initial shock. I can confidently say that our companies do operate without any trouble, back to its levels just before this incident. In the eve of WorldFood fairs, Istanbul and Moscow WorldFood fairs, we have enjoyed another great development: Turkey’s relations with Russia have been normalized. All these will offer golden opportunities for both Turkey’s and Russia’s industries. This will also contribute to the world economy. I wish success for all exhibitors and visitors of these two major events of the sector.
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Mehmet Söztutan FOOD TURKEY
August 2016
Group Chairman
H.Ferruh ISIK
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ISTMAG Matbaacılık Gazetecilik İç ve Dış Ticaret Ltd. Şti.
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CONTENTS
14 WorldFood Moscow opens for new opportunities
20 Danilo signature on Banetti pastas
24 Emek Food sails to American and Chinese markets, participates in food fairs
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WorldFood Istanbul 2016 to shed light on the future of the food industry!
Turkey ranks 45th among the 113 countries covered by The Global Food Security Index
46 Elvan hosts 150 trade partners in Istanbul
52 Elone, an internationally recognized reputable brand
58 Cagla Cikolata invests 35 million for cake production
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66 Position of Turkey at world pasta production
74 Turkish food industry: Can it benefit from Brexit?
80 Best edible nuts of the world
92 Halal meat in Turkey: How to get your products to the market
Seyidoglu attracts great interest at WorldFood Istanbul Mehmet Göksu, General Manager of Seyidoğlu Gıda said, “Our products became a focus of attention at WorldFood, İstanbul as usual. We displayed 300 different products with a keen eye on utmost quality and expertise. Actually, fairs are good platforms to introduce our new products. We have been participating in Worlfood Food Fair for years. We participate in major food fairs in the world.” “We produce by using new recipes healthy and nutritious products made of sesame and grape molasses. Presently we have 300 varieties. We try to increase them. We have new targets. We export to 20 countries. Customers coming from the USA and Japan are important ones that we have had talks in the fair. Our export volume is rising continuously. We develop new tastes for new markets in abroad. We want to sell to each and every country in the world. Demands for our sweets are growing in abroad. We started to export our traditional products that are produced on our mother’s recipe. “ He noted, “We prepared a new product series in which we used cartoon characters in order to make kids love our traditional tastes. With the new product varieties, we needed capacity increase and additional investments. We increased the tonnages of cake, dairy desserts and some bakery” 8
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Mehmet Göksu added, “Making the production of especially halva and jam and other product varieties, Seyidoglu continues its investments in order to extend its product range to meet the increasing demand. “We have one of the leading facilities of Europe in terms of product range and capacity. Especially in the recent
years, we have been making export to many countries with 4 different brands within our export activities. As a result of our R&D studies, we increase the product varieties each passing day. We started to reproduce the precious jams of Ottoman Palace.”
Fresa to grow 30% with Inisdibi with lemon Fresa introduced its lemonade mineral water. 27% of sales from 30 export markets are expected. Starting from refreshing nature of Blacksea Freşa offers both health and tast in its natural lemon sugar free natural mineral water, the first and the only product in Turkey, recently introduced to the market as Inişdibi Limonlu. Freşa focused its production on healthy and tasty drinks. The new product will expand the product portfolio and sales volume of the company in domestic and in international markets. “The product was developed following a two-year research and development,” says Hasan Cakirmelikoglu, chairman of the board. He said, “I myself have been drinking natural mineral water by adding lemon in it for years. Recently I learned that it caused an increase in my glucose level in my blood over normal ratio. It made me think about developing a new product that can be consumed safely by the people. In two years the new product was prepared for sales. One of the additional specs of the product is that it is suitable for sodium diets.” “Following the opening of our new factory in Bursa in addition to the mineral water bottling 10
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facility in Giresun, we have been able to expand our logistic network to great metropolis. Last year our sales were 160 million TL, our target this year is to sell 200 million TL worth of drinks. Market for mineral water with fruit aroma has expanded 11 % from 2014 to 2015. During the same period, sales of Freşa increased 20 %, which will grow 30 % in 2016. We are expanding our coverage in export markets for more sales. We sell our products to five countries, USA, Germany, France, Czech Republic, Iraq, Senegal, England, Greece, Palestine and Holland. New markets are on the way. Our sales volume in export markets was worth of 14 million Euros in 2014, it rose to 16 million in 2015 and this year, 25 to 27% of our sales will be from exports. “The market for mineral water with fruit aroma is about 350 million in Turkey. Freşa is the leading brand with its share of 35% in this market.”
Caramel toffee chocolate
Milky fondant with bitter chocolate
Saray Biscuit rises at home and abroad
Producing biscuits that loved by both children and adults, Sarar Biscuit Co. pursues a profitable and sustainable growth model both in the country and abroad. General Manager of the company Ramazan Sumer says, “We aimed to increase our share in domestic market from 30% to 45% and improve our position in export markets.” Established in 1961 as a company of Saray Holding, Saray brand was registered in 1981. The brand has more than 400 product varieties that are sold in 110 countries. One of the major brands in the food industry in Turkey, Saray launches tens of new products each year to serve best to the needs of its customers. 60% of annual production of 50 tons is composed of chocolates and candies. Emphasizing on the range of product varieties that are able to compete with the trends in the world markets, general manager Ramazan Sumer says, “We aimed to grow with our value added products that have higher demand of consumers, among them are, Madlen and Cevher chocolates, Roll Rex Truffles chocolates that are made of hazel12
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invest more for change. We targeted to increase our share of sales in domestic market from 30 % to 45 percent and aimed to increase our share in both domestic and foreign markets.
Ramazan Sumer General Manager
nut, milk, popped rice and coconuts, mix stuffed soft sugar, and etc. We aimed to increase the awareness of our brands both in Turkey and in abroad and to realize 25 % gro1th by the year 2020. We planned several activities in this regard both in the country and in abroad. We planned a sustainable growth and business plan by improving our activities in several fields that will add value to our brand. We are keen on R&D activities; we try to do the best and to
As a member in the Turquality program, we have emphasized on our activities directed to foreign markets and to enter in new markets. We want to improve our presence and our awareness in the markets and countries we have already been in. The only and unique state supported program, the Turquality, added much to our brands power. We work hard to contribute in the activities of Turkey in reaching to its 500 billion dollars of exports by the year 2023. Latest technology machinery and equipment is used in our factory, the most modern and highest capacity in Europe, and we produce innovative products to satisfy our customers. We seek new markets for both horizontal and vertical growths.”
Consumer confidence index sees 9-month high
The consumer confidence index rose to 74.4 in a 11.1-percent increase in August, according to data from the Turkish Statistical Institute (TurkStat) and Central Bank of the Republic of Turkey (CBRT). The index hit a ninemonth peak. In more specific terms, the financial situation expectation of household index increased by 6.6 percent compared to the previous month and moved to 94.19 in August. This increase resulted from the increase in the ratio of peo-
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ple expecting a better financial situation in the next 12-month period.
ing to 77.01 in August. This increase
Further, the general economic situation expectation index, which was 89.82 in July, increased by 13.5 percent to 101.95 in August. This increase shows that the number of consumers expecting a better general economic situation in the next 12 months increased compared to the previous month. The unemployment expectation index rose 12.7 percent compared to the previous month, mov-
ratio of people expecting a decrease
stemmed from the increase in the in the number of unemployed persons in the next 12 months. The probability of saving index increased by 13.9 percent from 21.62 in July to 24.62 in August. This increase shows that the possibility of consumer savings in the next 12-month period increased from the previous month.
WorldFood Moscow opens for new opportunities WorldFood Moscow is set to be another major international event for the food and drinks industry.The exhibition has grown to become a prominent meeting place and a vibrant source of products for the Russian market. WorldFood Moscow attracts a huge audience of wholesalers, distributors, retailers and restaurateurs thereby offering excellent opportunities for exhibitors and visitors. The fair showcases a broad range of food, beverage and packaging products and technologies. The fair is divided into 12 sectors showcasing both domestic and international destinations.The sectors include: grocery; frozen foods; confectionery; canned foods; oils, fats and sauces; dairy products; meat and poultry; fruits and vegetables; tea and coffee; and organic and health food.
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Over 1500 companies congregate to network, meeting and conduct business with over 30,000 food representatives. WorldFood Moscow, Russia’s leading and longest running event for the international food industry will be held at Expocentre, 12-15 September 2016. 2016’s edition of WorldFood Moscow continues its long legacy of attracting official support. Alongside attendees from the Ministry of Agriculture and Rosselkhoznadzor will be representatives from the State Duma Committee on Agrarian Issues, the Council of the Federation Committee for Agriculture and Moscow’s Department of Trade and Services.
The fairs is especially important for Turkish food suppliers after the normalization of the Turkish-Russian relations.
Russian Agricultural Minister plans to visit WorldFood Moscow This event has long enjoyed the support of the Russian authorities. Both heads of the Ministry of Agriculture and Rosselkhoznadzor visited the 2015 edition of the show, alongside regional
representatives from across Russia and international guests. Russian Minister of Agriculture Alexander Tkachev has stated he is planning to attend the opening of Russia’s biggest food and beverage trade show on 12 September 2016.
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Mr. Tkachev is one of the biggest figures in the whole of the Russian food industry, and plays perhaps the most vital role in shaping the food policies of his nation. The Minister will be representing the Russian government at the international food show in a drive to continue development of Russia’s food and drinks market. Joining Mr. Tkachev will be Sergey Dankvert, Head of Russian government agency Rosselkhoznadzor. Rosselkhoznadzor is the body responsible for reviewing the safety and quality of food imports to Russia. Exhibitors at WorldFood Moscow have been given a golden opportunity to get their products in front of two of the most important people in the Russian food sector. Approval from Mr.Tkachev and Mr. Dankvert could lead to huge success across the diverse Russian market.
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Central Bank cuts upper band by 25 base points, as expected The Central Bank of the Republic of Turkey (CBRT) continued a series of interest rate cuts with an additional 25 base-point cut in the upper band of the interest rate corridor to 8.5 percent in line with market expectations. The CBRT also held the policy rate (one-week repurchase agreement rate) at 7.5 percent, and the lower band of the corridor (borrowing rate) at 7.25 percent. This means the CBRT has lowered the upper band by 2.25 percentage points in total during the first half of 2016. With this latest move, the CBRT produced the narrowest gap since 2010 in the interest rate corridor, which it has long used as leverage. Markets closely watched the decisions announced after meeting of the CBRT’s Monetary Council Committee, with is largely in line with the expectations of most economists. Economists participating in a recent Anadolu Agency Finance poll expected the upper band of the interest rate corridor, which currently stands at 8.75 percent, to be lowered to 8.5, while no change was expected in the other short term rates. All participating economists expected a rate cut in the upper band. Sixteen of these economists expected this rate cut to be 25 base points, while only one economist expected a 50 base-point cut. The CBRT has responded to the government’s repeated calls for cheap credit. In late liquidity window interest
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rates – between 4 p.m. (1300 GMT) and 5 p.m. (1400 GMT) – the borrowing rate was kept flat, and the lending rate was reduced from 10.25 percent to 10 percent. The banking sector gave a concrete reaction to the CBRT’s series of interest rate cuts by lowering the monthly interest rate cuts on home loans. In August, approximately 20 banks decreased their home loan interest rates for various terms below 1 percent; while markets expected a second series of discounts. The government has repeatedly advocated for lower interest rates, describing high interest rates as oppressive to business investment, employment and economic growth, and has called for
the banking sector to lower interest rates. Publishing the results of its monthly meeting on its website, the bank said: “The adverse impact of domestic developments in mid-July on market indicators has been largely reversed due to improved global risk appetite and recent measures. The tight monetary policy stance, the cautious macro-prudential policies and the effective use of the policy instruments laid out in the road map published in August 2015 have increased the resilience of the economy against shocks. Considering its contribution to the effectiveness of monetary policy, the committee decided to take a measured and cautious step towards simplification.”
Danilo signature on Banetti pastas Recognized by popular TV showmen with his sympathetic and delicious recipes Italian Chef Danilo Zanna remakes Banetti pasta with his special sauces. Active in the market since 1977 Acarcan pasta company combined its experiences and abilities with its new brand Banetti.The brand sells its products to several markets in the Middle East, Far East, Asia, Europe, South and North America. With an aim to promote its brand in domestic market, the company now cooperates with famous TV showmen on Chef Danilo Zanna on a new project. Recipes of the Zanna were added on the pasta packages sold in Turkey. Danilo informed us about the cooperation.
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How did this project start? It has started recently. Banetti offered a project to me and the project was fantastic. To me, Turkey needs a quality pasta in such a style because Banetti is so cool, and so tasty. And I believe that those who will taste it will approve my judgment.
From a chef’s point of view, what distinguishes this brand from others? There are some peculiarities, for example housewives want to prepare and serve the best pasta to her family. Banetty pastas are both tasty and can be cooked in shorter period and can be served artfully on the table. Sauce is the most important element of pasta it is a must for success. However, you may get the better taste from Banetti pastas even when you consume that sauce-free, no need for additional ingredients. Production facilities and processes are also of highest quality, because I visited the factory.
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How was the factory? Behind the back of the brand are a powerful company, Acarsan. Quality is a long march on the way to success. They use quality inputs and machinery in the factory that is operated by professional people. I personally saw that where the delicious taste in the pastas came from. Banetti has one of the best production facilities in Turkey. In this project every people in the company have put their heart, love and efforts, from top management to the production staff. All are talking about this project.
As an Italian chef you know a lot about pasta. What the chef Danilo will contribute to the Banetti brand? I started from the beginning, the production phase of pasta. Then we developed new recipes for several sauces and decided to put the recipes of mine on the packages sold in seven region of Turkey. People will be happier by preparing their pasta uniquely in my way that will make their tastes and services more attractive. As an example, we have a recipe made of dried eggplant, a unique in the world. There is no such a taste. Pasta has become more tasty and attractive when combined with dried eggplant and lamb mince. There are 77 different recipes on the packages that are deliberately made simple for practicality reasons.
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Emek Food sails to American and Chinese markets, participates in food fairs
Sukru Kucukhemek General Manager
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Having been producing halva, preserves and chocolate in the food industry, Emek food raises its targets and aims to enter Chinese and American markets. General Manager Sukru Kucukhemek informed about their production and plans for the new season.
with cacao and chocolate. Trust is the most important priority for us. So, what we are doing are all aimed to establish trust with our customers. You can be both successful and profitable if your customers have trusted your company in the long run.
How long has been serving your company?
What do you say about your products?
Emek food was established in 1969 as a family business. In 2000 it renovated its structure and activities. We produce tahini, halva, preserves, hazelnut cream
Tahini is our historical product. Although machinery are used heavily in the production we keep producing in the old way with efforts of our produc-
Out of halva you have preserves and cream chocolate in your product portfolio. What is important in the production?
tion masters. Preparation of materials may be carried on machinery but you have to do the kneading by hand. Otherwise, consumers may feel another sense and taste of pismaniye. For this reason we prefer historical methods in the manufacturing. Halva is highly nutritious.We work hard to provide them to more people. We help our older masters to transfer their art to their kids. We do our best to keep the tradition to next generations.
Cream chocolate is a new product for Turkish food culture and a product sold hot in export markets. Cream chocolate is known in all parts of the world. So, it is a locomotive product. The harmony of formula and system is important. You have to produce them by considering the temperature level in the export market. Climate is so different in Russia and in Africa. You have to keep watch the temperature in target country.
How many countries do you export? We are exporting to about 25 countries including Arabian countries, Russia, Africa and Europe. Next target for us is the USA and China. We have to promote our products in these countries. Later on we will establish distributors
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Do you have plans to participate in fairs? We plan to enter the fairs in China and in the USA. We have to advertise our company to customers and to distributors. Buying businesses have to be accustomed to our logo and company name. Later on, the activities in the fair will be more effective.
Where is your production facility? Our factory in in Konya has 11.5 thousand sqm covered area. We import sesame, which is completely natural. During production process sesame became tahini. The important point is that, you have to reduce the rate of cellulose and bran ratio to a minimum to produce the top taste. This is important for us. The production band is also important for better taste. It produces healthier products.
Sesame is your basic input for production. Do you satisfied with the reduction of custom tax ratio? The tax reduction helped us to raise our sales income to its earlier level in Turkish market, but it is not true for our exports.Turkey’s agreement with EU on custom union is more important for us. We have to 28
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import from European countries and pay custom duties. Greece, Rumania, Bulgaria are our main rivals, because they can import sesame without paying any tax. And they can sell their products to customers in Saudi Arabia and in Egypt without paying any tax.
What is your opinion about the food production in Turkey? We want that our rivals should also target the same point with us. Because, by the year 2000 there were a few companies in Turkey exporting their products. After 2000 almost all companies have started to export their products. In a ten year period, there will be more compa-
ny headquartered in the country who have operations and exports in Turkey and its hinterlands. There must be more powerful companies having larger investments. Companies who have no factory in abroad will not be able to compete in the global markets.
Kardelen penetrates into Dubai and German markets Some of the world’s plumpest, most perfect chestnuts are grown right around the green city of Bursa, Turkey’s fourth largest city. If you’ve never tried a candied chestnut before, you don’t know what you’re missing. Ilka Sekerleme was established in Bursa to produce best quality chestnut candies sold under Kardelen and Cardelion brand. The company established a growing distribution network in the country and abroad when a larger plant was built in Bursa. We have recently interviewed Mümin Akgün, General Manager of Ilka Şekerleme- Kardelen.
How do you evaluate the three quarters of 2016 from the standpoint of Kardelen? We had a positive outlook in 2016 in ters of our targets. We had a series of a promotional activities in Dubai and
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Brasil. We have been exporting to Brasil. This year We participated in World Food, İstanbul. Our products attracted great interest during the Fair. We are planning to participate in a food fair in October in France, and Anuga Fair, Germany; and in Dubai in 2017. We have been exporting to 32 countries thereby promoting Bursa and Turkey as well.
cessed as candies, value added form of the product. Sales volume of chestnut candies in abroad has been limited.” “Number of Kardelen stores increased by investing in retail channels that owned by our company. Besides we have developed additional packages and products that were all aimed to facilitate the choice and buying processes of consumers.
Apart from Brazil, do you have We know that Kardelen has been exporting to its new export markets? products thorough a cold Apart from Brazil, we sent our prod- chain. Is this process valid ucts to Qatar and Bahrain. We aim to for the other countries apart upgrade our distribution network in from Middle East countries? these countries. We have three sale points in Saudi Arabia. We initiated the last one in Riyad.
Turkey is one of the biggest producers of chestnut in the world. Only a small portion of these produce are pro-
Our products are marketed in Saudi Arabia thorough a process of cold chain. We have to utilize cold chain process efficiently. As known, cold chain is a temperature-controlled supply chain. An unbroken cold chain is an
uninterrupted series of storage and distribution activities which maintain a given temperature range. It is used to help extend and ensure the shelf life of products. Such products, during transport and when in transient storage, are called cool cargo. Unlike other goods or merchandise, cold chain goods are perishable and always en route towards end use or destination, even when held temporarily in cold stores and hence commonly referred to as cargo during its entire logistics cycle. We use this tecnology to market our products.
How do you perform in the European markets? What are the your major plans as far as your distribution channels are concerned? Our products are displayed in the European markets under the brand
name of Kardelen. We are targeting to increase and diversify our distribution network located in the European markets.
What is your current position in the domestic market? We have 16 sale points in Marmara Region of Turkey. We are planning to initiate two new sale points namely in Ä°zmir and Ankara.
What is your view on the ink disease affecting chestnut trees? What major measures are taken for eliminating this disease? Cheestnut trees are sensitive to some diseases. Officials have been carrying out a far reaching pest control activities. They are able to eradicate the diseases of chestnut trees.
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WorldFood Istanbul 2016 to shed light on the future of the food industry! The largest and most successful food and drink exhibition in Turkey. The event features over 360 exhibitors annually. 32
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Despite the recent turmoil affecting Turkey, WorldFood Istanbul, the country’s largest food and packaging exhibition, is going ahead as planned. As Turkey’s most successful food and beverage trade show, attendees can enjoy some amazing benefits they cannot find anywhere else. Being the center of attention as the most dynamic industry of Turkish economy with the investment, production and employment potential it offers, the food industry is considered
to be one of the locomotive industries of Turkey with the enormous contribution it makes to employment and exports. To be organized for the 24th time, the International Food Products & Processing Technologies WorldFood Istanbul will support further development of the food sector, which has great significance for our country. At the exhibition to be held at Istanbul Fuar Merkezi CNR Expo, 1-4 September, the latest products, services and technologies from the food industry will be showcased.
Organized by ITE Turkey, the organizer of leading exhibitions in the leading industries of Turkey WorldFood Istanbul which offered new business and partnership opportunities for over 300 exhibitors in 2015, offers an effective business platform to sector’s professionals to access new markets and discuss new business collaboration opportunities both in Turkey and abroad. The 31st International Packaging and Food Processing Systems Exhibition – Ipack Turkey, which will be organized along side WorldFood Istanbul, will shed light on the latest developments in the packaging industry which is a complementary industry for the food sector. With the conference and seminars to be organized concurrently with the exhibitions, sector specific know-how and experience will be shared with the audience as well. ITE Turkey FMCG & Energy Group Director Atilla Marangozoğlu said; “With a very significant place in the Turkish economy, the food industry is also among the oldest industrial branches of our economy. With its annual turnover of over 290 billion TL and over 410.000 employees, Turkish food sector is the biggest production industry of our country. In that sense, with WorldFood Istanbul which we organize every year, we make a great contribution to the development of the food industry, one of the basic building blocks of economic development in our country”
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In addition to Food Ingredients Special Section - Ingredients Turkey, WorldFood Istanbul will also be featuring the Cold Chain Logistics, Equipment and Technologies Special Section - ColdChain Eurasia for the first time this year. As the specialized event aimed at the cold chain industry in the region, this special section, will be offering new opportunities for the companies operating in the areas of Cold Chain Services, Cold Transportation and Equipment, Cold Storage and Equipment. Also for the first time this year Ipack Turkey will be offering the Food Processing Machinery and Equipment Special Section - WorldFoodTech to sector’s professionals. This special section which will be featured for the first time at this exhibition, will showcase a wide range of food processing machinery, equipment and production technologies to bring the latest innovations to the sector’s companies. By showcasing the latest innovations and technologies that provide longer and healthier storage conditions for food products, this special section will also introduce the important details and latest developments of the sector to companies as well.
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“24th WorldFood Istanbul Exhibition�, the international meeting point of the Turkish food industry will be welcoming the players of the food sector! 35
Official negotiations on update of The Customs Union Agreement will be launched by early 2017 at the latest, says Turkish Economy Minister “Following an updated custom union agreement, Turkey will be part of all free trade agreements the EU signs with other countries, including the TTIP,” Minister Zeybekci said. ANKARA- Official negotiations regarding the update of the Customs Union Agreement between Turkey and the European Union will be launched by early 2017 at the latest, Turkish Economy Minister Nihat Zeybekci said. After Germany’s economy minister, Sigmar Gabriel, pointed out that negotiations between the U.S. and the EU over the Trans-Atlantic Trade and Investment Partnership (TTIP) had “failed”, Zeybekci said this situation was not expected to have a positive or a negative impact on Turkey. TTIP negotiations between the U.S. and the EU have been a matter of contention between Ankara and the bloc. Indeed, Turkey has argued that the Customs Union deal, in its current state, fails to protect Turkish interests when the EU signs a free trade agreement with third parties. “Following an updated custom union agreement, Turkey will be part of all free trade agreements the EU signs with other countries, including the TTIP,” Zeybekci said. Turkish officials had repeatedly criticized future free trade agreements signed by the EU with other countries, such as the U.S., which would effectively open Turkey’s
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market to exports from such states, with no reciprocity. “Official tours [of negotiations] will begin at the end of 2016 or at the latest in the beginning of 2017,” Zeybekci said. He added that the updated version of the Customs Union agreement would be expanded to cover agricultural goods, the service sector and pubic procurement. The current deal concerns mainly in-
dustrial goods.” “At the moment, impact assessments from both sides have been finalized,” he added.
Oba Makarna increases its innovation and export-oriented investments more than ever
Being a leader in seven continents, Makarna ranks first in Turkey and second in the World in terms of its macaroni production capacity. Alparslan Özgüçlü, CEO of Oba Makarna pointed out, “The brand of Oba is in the shelves of 86 countries including mainly Turkey, Africa, Middle East, Far East market and Britain, Germany, China, South Korea, India.”
Alparslan Özgüçlü
“Oba Makarna offering 40 different types of macaroni products to its consumers by using the 100% 38
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hard durum wheat grown in the fertile lands of Southeastern Anatolia Region provides service with laboratory analysis equipped with the most advanced control devices untouched by human hands in integrated modern production facilities.” Alparslan Özgüçlü said “Oba Makarna accounts for 27 percent of Turkey’s total macaroni exports in 2015. As for the year 2016, the Company targets 216 thousands tonnes macaroni export and 30 thousands tonnes cracked wheat export.” “Africa is the most prominent export market of Oba with its share of 50 percent in our total exports. Benin, Angola, Senegal, Togo ve Cibuti are our major markets in
Africa. We are planning to increase our market share in South America, South Korea and Japan in 2016.” “The selection of raw materials is performed by considering the all kinds of factors (wheat type, weather conditions, soil type, and environmental impact in production) that will affect the product quality by our experienced staff. We promise the same quality for each product in every country.” He added, “We will increase our market share in the growing and developing world economy and continue our business through a rapid, healthy and sustainable growth strategy. We will continue our business activities with the ambition to carry the reputation of country further in the international arena through our international investments, as we provide contribution to the development of Turkish economy. “
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Russia & Turkey: Food bans lifted by the end of 2016? WorldFood Moscow will be the first major meeting of the reps of the Turkish and Russian supply and demand.
Following August 9 2016’s meeting between Russian President Vladmir Putin and his Turkish counterpart Tayyip Erdogan, Russia could lift its food embargo on Turkey by the end of 2016. Russian Economy Minister Alexei Ulyukayev was quoted by news agency RIA Novosti hinting at the possibility of a reconciliation between the two countries. “We agreed that this is a gradual process,” Mr. Ulyukayev said. The Minister pointed out that any currently outstanding issues on meat, poultry and dairy products would be resolved bilaterally. Product quality remains an important issue for Russian authori- ties. “ We
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need to be sure that the qualities of the supplied Turkish products,” Mr. Ulukayev commented. “They must meet the requirements of Rosselkhoznadzor.” Rosselkhoznadzor is Russia’s agricultural watchdog, responsible for reviewing the quality of food products coming into the country. If sanctions are lifted, then this will be incredibly good news for Turkish growers and distributors as well as Russian consumers. Elena Akuletskaya, head of the import department of St. Petersburg’s Friend Fruits Group, recently told Fruitnet that Turkish fruits and vegetables, in particular tomatoes, are sorely missed by the Russian public. Ms. Akuletskaya said Russians prefer the taste and quality of Turkish pro-
duce, while import times were significantly shorter from Turkey than from states trying to fill the gap left by Russia’s food import ban.
to the $451 million worth of goods shipped from Turkey to Russian consumers across the same period last year.
Countries such as Morocco, Iraq and Israel took a bullish attitude towards replacing the volumes of fresh fruit and vegetables Russia previously imported from Turkey. So far, their efforts have failed. A shortage of popular vegetables, such as cucumbers, peppers, tomatoes and courgettes, is currently affecting Russia.
As such, Turkey’s food export sector will be waiting with baited breath to see if Russia follows through and does remove sanctions by the close of 2016.
Turkey has also lost significant amounts of revenue since a Russia-imposed trade embargo in the wake of the November 2015 jet crisis. Only $92 million worth of food products were exported by Turkish companies to Russia in the first six months of 2016 — a major contrast
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Turkish Dried Figs Working as an agent, broker and consultant at international markets targeting to build a strong link between producers and buyers, DORAINTRADE based in Izmir, analyses Turkish dried figs. Doraintrade has been tracing the market on behalf of producers and buyers in order to give feedbacks and market reports from the source regularly. Ms. Banu Er of Doraintrade supplied the following information about the early 2016 season for Turkish Dried Fruits. “Whether you are a manufacturer, producer, packer, wholesaler or an importer, you will benefit from our international experience and communication. The products from our reliable suppliers packed under international food safety conditions and there is a possibility to offer either private label products or supplier’s own branded products. Doraintrade is assisting all her partners always to go further by speaking the same language with you as your global trade partner,” says Banu Er of Doraintrade. By the third week of June 2016, new crop fig berries had been visible on the trees in wide growing area of 42
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Aydın Turkey. Caprification process is almost finished after 3rd application in the bottom altitude level growing areas and just started in high altitude places. Nowadays, temperatures in Aydın dried figs growing district are high more than 35C degrees average. Also relating to early spring this year from now we can expect the new season Turkish Dried Figs may start to 2 weeks earlier than usual. Now, it’s very early to estimate a precise crop size but from now as you can see from the photos early stage of fig berries look healthy and favorable in quantity. The most important period for Dried figs is harvest and drying season which is last weeks of August and through September. Despite the fact that there is some summer irrigation in some growing areas where no natural water supply, summer rains are also favorable. However, rain or high humid weather conditions in drying season would be much dangerous for aflatoxin, molds, rotten berries
In our previous newsletter, we informed you about frost in Malatya Dried Apricots growing area in late March 2016. Some of the expected crop has already been damaged. We also underlined that if there would be further frosts in April-May period, results might be catastrophic for the new crop. However, luckily since then, there has not been a major frost or heal to damage the crop in wide growing areas. Now, the Apricot fruits are maturating on trees.
risks as we just seen last crop in 2015 Autumn. We observe this year as well, at some orchards, male fig berries for caprification were not removed after the process as should have. Remaining old caprification figs on trees are rotten and make danger for health of the trees. There was not rain during the caprification period in growing areas so we can estimated the flies could do the pollination well that the caprification this year was successful. Current crop Dried Figs have mainly contracted for summer shipment of various destinations or in very limited quantities existed at the factories that have cold storage facilities only. Market for dices and paste products are also available in small quanti-
ties in the market. From now on, all overseas buyers are concentrated to new crop and any news from the growing areas. As we frequently mention about many hydrothermal electric power plants established in Aydın Dried Figs growing district of Turkey, their chemical emissions, heavy metals and especially SO2 to the air is a concern in Aydın area. While almost all power plants are established in the bottom level of the valley, valley figs are also under the risk of high humidity levels in the region which might affect Dried Figs quality. However, mountain fig growing areas are far away from those power plants that significant volume of mountain figs production is not affected by the weather conditions in valley.
We expect the harvest start during the July and following the drying period, first shipments may ready to be exported by the end of August. According to extreme hot temperatures all over the Turkey, irrigation at orchards is very important in this period. From the March major frost, flat bottom level valley and close to lake sides areas are weak in fruits. Akçadağ, Kale, Doğanşehir, Regions, estimated crop has decreased from last year due to the frost damage. While Battalgazi, Doğanşehir, Hekimhan, Yazıhan areas are estimated to have better crop than last year. Malatya Chamber of commerce, Malatya Bourse, Malatya Chamber of Agriculture and Government Agricultural Department published a joint statement for 2016 Dried Apricots crop estimations as you can see from the below chart. 43
In 2016-17 season estimation is total 103.250mtons. From the chart, it stands out that Elbistan district (out of the main growing area of Malatya) this year, estimated at 5000mtons production. However, last year, even if there was a shorter crop, stated at 12.500mtons. It’s very questionable that a region lost more than half of its seasonal crop in estimations without a major fact. Real sector stays little more positive than the declared estimations this year. Common idea is new crop estimated to come around 110-120.000 tons. In account of current crop’s remaining quantity to carry over at least 20-25.000 tons level, we can expect prices may decrease in the new crop 2016. Some packers already started to offer for new crop for both So2 and Natural varieties.
2016/2017 SEASON DRIED APRICOT CROP ESTIMATION TABLE PRODUCTION AREA
NUMBER OF TREES
AKÇADAĞ
1.375.000
77.000
18.000
ARAPGİR
13.700
480
75
ARGUVAN
156.300
7.800
1.850
BATTALGAZİ
1.125.150
56.200
13.000
DARENDE
1.185.000
39.000
8.750
DOĞANŞEHİR
441.700
31.000
6.875
DOĞANYOL
185.300
18.520
4.250
HEKİMHAN
686.350
31.500
7.100
KALE
179.500
12.200
2.750
KULUNCAK
341.000
3.400
750
PÜTÜRGE
194.000
17.400
4.100
YAZIHAN
610.000
45.750
10.500
YEŞİLYURT
1.022.000
46.000
11.000
BASKİL
47.000
8.750
ELBİSTAN
26.000
5.000
GÜRÜN
3.435
500
462.685
103.250
TOTAL
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7.515.000
TOTAL FRESH TOTAL DRIED APRICOT (TON) APRICOT (TON)
Sözer Gıda targets African market In an effort to penetrate new markets in exports Sözer Food Company targets Middle East and Africa first. Producing over 200 items from Turkish coffee to bouillon and serving domestic and foreign markets Sözer Food Company plans to accelerate its exports with new markets. Özer Gürbüz, CEO of Sözer has recently furnished us with information about their recent investments and new products.
On new products
Ozer Gurbuz, CEO of Sozer Food Industry
Talking about 2016 Gürbüz said they would launch new products this year. “It was neither a good nor a bad year for us. Turkey has escaped many dangers. We have naturally been affected from those unfortunate happenings. But our horizon is clear and we have new plans for the future. We will especially have surprises about bouillon production. We may make investments in bouillon, soup and cooking bases,” he said.
Target Africa Talking about their export targets Sözer Gıda’s CEO said that they targeted Africa. “We have a plan to open
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new markets. We are targeting Middle East and African countries first because these products mainly address to those regions. And the consumers in those countries can easily buy these products. When we establish our price policy, I believe that we can capture the markets over there,” Özer Gürbüz explained.
Highest tonnage coffee production in Turkey Stating that Sözer Gıda makes the highest tonnage coffee production in Turkey, Gürbüz concluded, “We already use up our capacity with production for BIM markets in Turkey. 85% of our domestic sales go to BIM markets. We produce the coffee, sweets, pudding and granules sold at BIM markets. This makes a big tonnage. We make the highest tonnage coffee production in Turkey but most people don’t know this. We make Abdullah Effendi brand. We also have our own brand.We got our market share with our brand Keyf-I Sefa.”
Having an export target of 1 billion dollars by 2023 Elvan Group’s Chairman Hidayet Kadiroglu has recently brought 150 trade partners from 50 countries to Istanbul and given the message of “Business continues in Turkey”
Elvan hosts 150 trade partners in Istanbul 48
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Recording an important stride to restore the fears happened in Turkey’s export markets after the unsuccessful coup attempt, Hidayet Kadiroglu has recently brought 150 trade partners from 50 countries to Istanbul. Bringing together the guests at Sheraton Hotel with the theme of “Together to the top”, Kadiroglu gave the message, “Production has been continuing uninterrupted in Turkey. Our target of 1 billion exports in 2023 is valid with full confidence and determination.”
Target is first 20… Pointing out that their production has been continuing at 9 factories located in Istanbul, Sakarya, Eskisehir and Manisa, Hidayet Kadiroglu continued, “As you may recall, we had announced our 2023 export volume as 1 billion dollars in 2010s. Later, we entered in Global Top 100 list in 2012. Since then, we have climbed 34 steps and jumped up to 66th rank. By the time we hit our target of 1 billion dollars we will be in Global Top 20. This means we have 46 ranks to climb. As a company managed to climb 34 ranks in 5-6 years we have the infrastructure and strategic plan to achieve 46 steps in 7-8 years. We will manage this altogether.”
Trade diplomacy with bridge tourism After the half-day meeting Kadirlioglu
concluded, “We had the opportunity to tell our foreign trade partners about the reflections of Emergency Case on production and transportation contracts and commitments. Naturally they are also in an effort to furnish their customers with this information. When they learned that the Emergency Case in only about the fast transac-
tions of the State, they felt comfortable. We showed them that Turkey has been realizing assertive openings as Yavuz Sultan Selim Bridge despite the conflicts the country has been going through and that this has influenced the world very much. Some of our customers wanted to have the experience of passing through the bridge. We provided this. When the requests on this increased we organized a Bosphorus tour with a ferry and we made commercial diplomacy by bridge tourism.”
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The 100 Club: Arbella feeds Turkish pasta to 100 countries worldwide In only eight years, Arbella has grown into a global top ten pasta producer— and has the facilities and capacity to grow even more
If you’re a lover of Turkish pasta, you’re probably familiar with Arbella, one of the three largest producers and exporters of pasta in Turkey and a registered brand worldwide. Arbella produces over 160,000 tonnes of pasta and 180,000 tonnes of semolina every year, and offers 28 different varieties of pasta to the world, including full lines of whole-wheat, gluten-free and vitamin-enriched products aimed at families and health-conscious consumers. Arbella’s product diversity has helped it expand from its humble beginnings in 2008, with the company
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now offering pasta to over 100 countries worldwide. “Innovation and value are the key components of our business,” says Gulcin Arslan Hazar, Deputy General Manager of Arbella. “We aim to develop new ideas and products that are economical and appealing for our customers. We talk to our customers to understand their wants and needs— not just with pasta, but with how our products can fit with their lifestyle. That’s how innovation is achieved.”
Gülçin Arslan Hazar, Deputy General Manager of Arbella
One of the newest innovations produced by Arbella is easy-open packaging, which features a reclosable opening that lets consumers pour exactly as much pasta as they need and save the rest for later. Preportioned spaghetti bundles are also available from Arbella, helping consumers track their servings and maintain balanced diets. Development of enriched pastas, including pastas with added protein and fibre from pulses, is also a priority for Arbella, with several of these products available on the market today. “We keep watching trends around the world. 9 out of 10 consumers are basing their food buying decisions on health needs, which is why we devote R&D on product development on new and healthy products to meet those needs,” added Hazar. “There is a serious demand for these kind of special products in American, European and Far East markets.”
In addition to new products, Arbella is focused on bringing Turkish pasta to new markets around the globe. Beginning this year, Arbella is now one of the first Turkish brands to enter into the lucrative Japanese marketplace. “Japan is a quality-conscious market, so getting the acceptance of that marketplace says a lot about the quality of our product,” says Hazar. “The future is looking bright for Arbella.” For more information on Arbella Pasta, visit www.arbella.tv.
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MND Gıda excels in diverse range of breakfast products with its dynamically growing production and export potential Tolga İnanlı, Marketing Manager of MND Gıda briefed information on MND Gıda. He said, “MND Gıda is renowned in diverse range of breakfast products with its dynamically growing production and export potential.” “Our enterprise aiming to present the best and the highest quality from the capital of the country and savor to its consumers has begun its commercial journey in 1984 as Sehirli Ticaret. Sehirli Ticaret which has completed its corporation process through a young and dynamic approach keeping up with the development of growing Turkey, has taken its place in the sector with MND Gida brand.”
Tolga İnanlı, Marketing Manager of MND Gıda
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Tolga İnanlı pointed out, “We export our products to various markets, 32 countries, from the Europe to Far East and we grow more every passing year. Food safety of our products is important for us more than anything.” “MND Gida is very meticulous on food safety issue and implements the cycle which covers processing, preparing, storing and presenting of food to the final consumer properly which will prevent the biological, physical and chemical impacts causing food related problems.” “MND Gida, attaching particular importance on human health and hygiene and adopting the principle of “Do not produce food which you cannot feed your children”, commits itself
to raise the awareness of consumers for purchasing food by considering the production method, place and quality.” As for the major brands of MNG Gida, Tolga İnanlı, Marketing Manager of the Company said, “MNG Gida, incorporates the brands such as Lokman, Arinur and Pasabey, sets its target to have the strength to compete in world breakfast food market as a Turkish brand without severing its ties with traditional values by the credit from its consumers.” “Lokman is one of the brands which MND Gida presents traditional tastes to its consumers by producing them through modern methods. Lokman which takes place in the shelves of marketplaces with its products such as jam, sesame oil, molasses, hazelnut cream, halva and cheese, also reaches its consumers in catering segment by varieties such as light jam, peanut cream, peanut butter, molasses and sesame oil mix, butter and oil. Lokman which never compromises from high-quality and hygiene with its expert engineer staff, production team equipped with trainings and seminars reaches its consumers both through
markets with its award wining package design and picnic serving size product segment.”
fasts being luxurious meals, produces healthy breakfast products consumed reliably.”
“Arinur is another of the brands which MND Gida presents traditional tastes to its consumers by producing them through modern methods. Arinur products which are manufactured in the factory equipped by MND Gida with the latest technology equipments by paying special attention on hygiene criteria bring high-quality and taste to your breakfast tables every morning. Arinur which stops tasteful break-
“Pasabey is one of the brands which MND Gida presents traditional tastes to its consumers by producing them through modern methods. Pasabey which takes its place on the shelves of marketplaces for presenting you healthy breakfast products are prepared carefully during production phase and give flavor the tables of its consumers.”
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Elone, an internationally recognized reputable brand 54
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Operating in the chocolate and Turkish delight fields, ELONE is a reliable company in the food industry. Mehmet Can Erginsoy detailed their success story for Food Turkey readers in an exclusive interview. Full text of the interview follows: Can you brief us about your company?
Anatolia, a land that, still today, keeps the gastronomic tradition of the past.
What does your product portfolio include?
ELONE Foods is a freshly new established company with the purpose of satisfying worldwide demands for high quality wholesome foods utilizing the state of the art facilities in Turkey. Although it is a new enterprise the owners are in food and export sector for more than 10 years.
We practice a very careful process and quality control. We are eligible to control the quality on each steps of production by coordinating the QA & QC departments of suppliers and our experienced technical people to ensure the right quality, availability and price.
We are offering Turkish Delights and Dark Chocolate Dragees. Our Turkish Delights are edge out the existing competition. They are very unique with the packaging and p r o d u c t quality. All are natural and rich with the nuts. At the moment we have 12 different delights.
Anatolia is the epicenter of agriculture and wholesome food production for centuries. As ELONE Foods our aim is to bring this nourishment to the tables worldwide. We offer a quality that comes from the ancient culture of
In a very short time, ELONE has gained a strong reputation in all the countries it operates and has managed to edge out the existing competition. Today our products are sold in retailers & food service in many countries.
We produce scrumptious Gourmet Dragees which are the unique combination of the best quality fruit pieces/nuts and fine dark chocolate. Dark chocolate means more antioxidant and less sugar, that is the main reason
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Demand for Specialty Food and Beverage options spurs double digit growth for DWTC’s trio of specialist food shows With the UAE’s food and beverage (F&B) market growing at an annual rate of four per cent and projected to be worth AED 48.5 billion by 2018 according to Euromonitor International, surging market potential has driven unprecedented demand for exhibition space at The Specialty Food Festival,Yummex and SEAFEX – a trio of niche food industry events powered by Gulfood running from 7-9 November 2016 at Dubai World Trade Centre (DWTC). In-line with regional demand for specialty, Halal, gourmet, organic and other high-end, premium quality food products, this year’s trio of specialist food events are poised to be more than 10 per cent larger than last year’s shows.
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More than 30,000 local, regional and international food sector producers line-up for The Speciality Food Festival, Yummex and SEAFEX
“The popularity of clean, natural, sustainable, artisan and other high quality produce including seafood and confectionery across the region continues to grow year-on-year,” said Trixie LohMirmand, Senior Vice President, Exhibitions & Events Management, DWTC. “The trend is evident in consumer buying patterns, as well as bulk buyers and hospitality outlets seeking to capitalize on demand by providing more innovative culinary offerings to diners.” The growing popularity of niche food products is being predominantly driven by the UAE’s young, affluent and well-travelled population. A recent survey by Visa revealed that 89 per cent of UAE consumers eat out every week, while market research by Real Estate Consultants
CBRE currently ranks the UAE as the world’s third largest market per capita for food and beverage consumption.
Waitrose, Emirates Flight Catering, Rotana Group, Manuel Market, Carrefour Hyatt Group and Dubai Duty Free to name a few.
In-line with increased exhibitor demand for The Speciality Food Festival, SEAFEX and Yummex – formerly known as Sweets & Snacks Middle East and celebrating its 10th anniversary with partner Koelnmesse GmbH – more than 30 C-Level buying delegations from the region’s major retail outlets, hotels and mass catering companies will descend on the specialist food events to source new products from around the world.
Mohammed Kapital, Vice President Supply Chain and Logistics at Jumeirah Group, said: “We are proud to partner with the Dubai World Trade Centre and support the Middle East and North Africa’s largest food and beverage trade event. The specialty food festival, SEAFEX and Yummex is the principal procurement platform for sourcing specialist food products for use across Jumeriah Group’s extensive UAE network of hotels and restaurants. Our team has received industry awards for its cutting edge procurement and business strategies and we are honored to support the event.”
The major buyers include top-level procurement delegations from regional and international brands including Jumeirah Group, Spinneys,
Andrew Pert, DWTC’s Portfolio Exhibitions Director of the three specialist food events, added: “Identifying and sourcing superior quality products from trusted food suppliers is now a commercial necessity for F&B entities across the region. With MENA regions burgeoning tourism and strong hotel occupancy – led by Dubai , our three specialist food platforms give retail and hospitality players access to thousands of premium food products, many of which are completely new to the market.” The tastes and preferences of the Middle East’s consumers are also the primary inspiration behind an array of colourful new features taking place at the specialist food events. Heading the list is the all-new and completely sold-out Global Date Market. The dedicated area is witnessing huge demand from exhibitors in Saudi Arabia, Jordan, UAE, Morocco, Egypt, Algeria, Iraq, Tunisia, Sri-Lanka and the USA who are eager to export dates as healthy snack and dessert products to international markets. Similarly, the Speciality Coffee Event MENA will attract regional baristas and coffee companies battling for a lion’s share in a domestic coffee market which generated sales of
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UAE’s F&B sector projected to reach AED 48.5 billion by 2018
AED544.5 million last year - up 10 percent on 2015 - according to international market researchers, Euromonitor. With a total of 2,200 new café licenses being issued across the GCC last year according to Euromonitor, the Speciality Coffee Event MENA is a tailored platform for baristas, café owners, restaurateurs and hoteliers looking to source from hundreds of gourmet and organic coffee blends around the world that appeal to high-end consumers at the lucrative end of the market. This year, Italy has become the first country partner for the Speciality Food Festival. The partnership with the Italian Trade Agency will bring a number of key features to the exhibition, including various summits, competitions and food experiences from across Italy which will unearth the latest flavors from Italian Michelin-starred and master chefs through live classes and demonstrations, tech talks and contests designed to ap-
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praise the handiwork of pizza chefs, risotto aficionados and gelato artists. Another first for the events is the co-located platform Future Food Live, a Dubai Municipality initiative hosted under the Gulfood umbrella to run alongside The Speciality Food Festival, Yummex in partnership with Koelnmesse GmbH and SEAFEX. Trade visitors focusing on the wellbeing segment will discover the full spectrum of organic, halal and other healthy food products, with an additional focus on agritech equipment for farm production. Attendees will include everyone from global food specialists and distributors to largescale government-backed farms. DWTC’s trio of niche food events are open from 10am-5pm from 7-9 November 2016 and are for trade and business professionals only. General public and persons under the age of 21 will not be permitted entry. Registration is available at the show upon proof of trade status.
Cagla Cikolata invests 35 million for cake production
Products of Cagla Chocolate firm will be exported to 70 countries. The company will export its new cake with the brand name of Volume. It is expected that Volume cakes will be very welcomed by the consumer. Umut Beyazpinar, chairman of the board of Cagla Cikolata informed about their new products and investments to grow more in the cake market.
First, we would like to hear from you about the story of your company. The story began when three entrepreneurs, Miktad Beyazpinar, Temel Beyazpinar and Sener Albayrak, decided to produce flour based products in a small family business Kara Firin, established in 1978 in Kocaeli. Then it moved to its own building, a factory of 240 sqm. in Tutunciftlik, Izmit, in 1983,
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where packaged products are cooked. In 1994, cocolin and wafer production started in the factory.
You emphasize on exports. How was the start of exports? To which countries do you export your products? Before that I would like to touch upon the cake exports of Turkey. A rising star in Turkey’s food exports, cake business is growing fast year after year. 567.5 million dollars worth of cakes were exported from Turkey in 2015, representing an increase of 9%. The cake market in Turkey is forecast about 100 thousand tons. First exports of our company were to Slovakia in 1998. We targeted to be one of the top five companies amount the chocolate producer in Turkey. We
produce 60 thousand tons of chocolate, wafer, hazelnut cream and cake annually. In our factories in Kocaeli and Hendek, we annually produce 20 thousand tons of chocolate, 10 thousand tons of wafers, 6 thousand tons of hazelnut cream and 18 thousand tons of cakes. We deliver our products to 70 countries under Volume and Truffino brand names.
What would you like to say about your recent investment? Despite the recessions in Turkey and in the world we invested 35 million TL to expand our cake producing facility by getting supports of our business partners. We cooperated with leading experts and consultants in the industry in Turkey and in abroad. The studies that extended up to the packaging phase, we made attractive products.
Do you have any market or country that you targeted for the sales of cakes in the world?
pressed their interest and intention to buy. Buyers in Irak constitute a great market for chocolate and cakes. It is hard to sell chocolate in African countries because of high temperature, however, cake may sell better in these countries. Cakes are more durable than chocolate, besides they are more affordable to buy than chocolate.
Cake is a good complementary product for our present product portfolio. Cake has a huge market. There are brokers acting as buyers in the USA, they ex-
Natural materials and ingredients in food products are important for health reasons. What do you want to say in this regard? We do not consume trans oils in the production of our products. Natural production is another point and a separate market segment. We have to invest more for the production natural products at larger volumes.
What are the percentage of cocoa and cocolin in the production of chocolate? Chocolate and cocolin are two different segments. Cocolin addresses to cheaper segments and made of vegetable oil. Chocolate is made of co-
coa oil. Since export markets demand more, half of our chocolate production is composed of cocolin products.
What do you want to say about the candy industry in Turkey? It has two dimensions. One is domestic and the other is export markets. Domestic market is still a large market, though players in it may change. Turkish companies are not so active in export markets, because they have a good share in domestic market and spend their efforts more in Turkey. Some companies produce only for exports. We are exporting large portion of our production.
Do you have you any activity to get incentives from Turquality program of the government that supports exporters? As one of the companies who believe in the marketing power in competition, we have prepared our application for Turquality program. We expect that formalities will be completed by 2017 to have Turquality certificate. This will improve our competitive power in export markets against global competitors.
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Orçay aims more penetration with Keifi brand Having three decades of experience in tea business Orçay introduced Keifi, a chain of teahouses, opened its first branch in Ankara in 2014. Senol Kasim, Deputy Board Chairman of Keifi, said that the first branch was successful and his brand decided to penetrate in Turkish market fast by opening new branches. He added, “Orçay is one of the early producers of tea in Turkey. Our passion for tea has forced us to this joyful voyage and first feeds of Keifi was laid down in 2011. We studied almost all developments in the tea business in the country and in the world. We developed the best tea with its best offers and its best tastes and opened the first branch in Next Level in Ankara in three years by investing about 4 million TL. Customers have become accustomed our tea and its taste and loyal clients were emerged. They even started to buy black tea to their homes and offices from our branch. In 2017 Keifi will begin to grow more by starting a chain teahouses in other metropolises in the country and in abroad.
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We have developed three concepts for Keifi, Keifi, Keifi Boutique and Keifi Café. They will have 250 sqm closed and 250 sqm open air spaces as café-brasserie that serve tea and
as a boutique that offers tea accessories. Keifi boutiques may have less space and will focus on tea concept. Keifi stores will both be owned by the company or are to be sold as franchise.
Turkey ranks 45th among the 113 countries covered by The Global Food Security Index The Global Food Security Index 2016-GFSI, developed by The Economist Intelligence Unit (EIU) with exclusive sponsorship from DuPont, is a dynamic and universal benchmarking tool that deepens the dialogue on food security by examining the core issues of food affordability, availability and quality and safety in 113 countries. Halide Aydınlık, DuPont-Turkey Country Manager pointed out: “Turkey ranks 45th among the 113 countries covered by The Global Food Security Index. According to findings of the Index, Turkey ranks 8th among 15 countries of MENA. “Turkey records a stable and rising trend in terms of food security standards. We believe that Turkey would continue to upgrade its standards further. According to GFSI,Turkey’s strongest area continues to be quality and security.” Halide Aydınlık said: “With our experience in Turkey, we believe this is where we built the innovation center network in the MENA [Middle East and North Af-
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rica] region that connects up with the global network.” “By collaborating with partners and customers, our Turkish team initiated inclusive innovation efforts to respond to the needs and opportunities arising from Turkey and the region.” She added: “While producing our own food security goals was an important step forward in addressing food security, we knew that we could not stop there. Talking with experts around the globe, we realized the need for a first-of-its-kind standardized tool to help identify food security risks as well as opportunities.” There are a
of Index unique. Most notably: • The data is kept current b y
number factors that make the
adjusting for food commodity price fluctuations to recalibrate the risk countries face throughout the year. • The Index contains a number of unique quality indicators, many related to government policies in order to capture the drivers of food security not currently measured in any other international database. The Global Food Security Index-GFSI considers the core issues of affordability, availability, and quality across a set of 113 countries. The Index is a dynamic quantitative and qualitative benchmarking model, constructed from 28 unique indicators, that measures these drivers of food security across both developing and developed countries. The Index is the first to examine food security comprehensively across the three internationally established dimensions. Moreover, the study looks beyond hunger to the underlying factors af-
fecting food insecurity. To increase the ongoing relevance of the study, the Index will employ a quarterly adjustment factor for food price fluctuations to examine the risk countries face throughout the course of the year. Food security has improved around the globe over the past five years, but hunger and food insecurity still persist. Governments, multilaterals and the private sector should remain proactive in addressing food-security challenges around the world. Over three-quarters (89) of the 113 countries in the 2016 GFSI have experienced food-security improvements over the past five years. These positive developments have
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largely been driven by rising incomes in most countries and general improvements in the global economy. Falling food prices have also positively impacted food security. But weather and climate change-related risks, as well as market-distorting government food policies, pose risks to food prices and food availability in the future. Geopolitical factors, average annual GDP growth of 1.4% across the region in the past year and favorable crop yields have supported Europe’s improvements. Falling oil prices have increased food affordability (via low-
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er costs for food production inputs such as petroleum-based fertilizer, and reduced food transport costs), and economic growth has improved the region’s capacity to absorb the stresses of urbanization. These factors have resulted in a 0.9-point rise in the region’s overall food-security score since 2015. Falling food prices and high food stocks mean that there is a positive outlook for food security in Europe over the next few years. However, an influx of refugees into cities across the region could strain food safety nets.
Meeting for sustainable food industry
Organized by the Academy of Sustainability and TUGIS, the second edition of Sustainable Food Conference that will be held on 18th October in Istanbul becomes more meaningful when joined with the World Food Day Meeting, The conference convenes several stakeholders in the food industry who will have talks on the problems of the industry, sustainable recycle of food chains, changing parameters, targets, business models and consumer behaviors in the market. New regulations and incentives, finance for sustainable food, sustainable supply chains and the importance of agriculture and preservation of foods will be on the agenda.
Several governmental bodies and organizations as well as representatives from business world will participate in the event, including, Food, Agriculture and Livestock Ministry, Ministry of Science and Technology, Ministry of Environment and Urbanization, and FAO. Experts on sustainability issues, managers and representatives of companies from every size, either public or private, are expected be a part of the organization.
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Position of Turkey at world pasta production Mr. Abdülkadir KÜLAHÇIOGLU, CEO of Association of Pasta Industrialists of Turkey (TMSD) evaluated the current strong position of the industry and outlined the objectives and promising future... 68
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Turkish pasta sector is on a great progress since the foundation of our Association in 1993. By the courtesy of our efforts, today we have been able to produce 10% of world pasta production which is about 3,5 million tons. We are at the 3rd place about pasta production after Italy and the USA and as regards exports; we proceed on our way as the second country after Italy. Naturally, while reaping this great success one of the main factors is being Turkey as the native country of durum wheat, which is the raw material of pasta. Currently Turkey takes the 4th floor on durum wheat production.
Our members of who have benefited from this advantage of Turkey, have exported 672 thousand tons of pasta to 152 countries last year. Our total incomes from these exports have reached up to approximately 420 million $, of which is an important amount. Briefly, we have started to see the result of our efforts towards industrialization of the pasta sector and during the last 20 years, we have taken our place among the countries those playing an important role in the sector. In other words, we have been a brand country in world pasta sector and not only by production and exports, but also by our quality we have voice globally.
Mr. Abdülkadir KÜLAHÇIOGLU, CEO of Association of Pasta Industrialists of Turkey (TMSD)
Still, despite these improvements it is not easily possible to say that we are at the position of which we demand on global-scale. One of the main reasons for this is the quotas implemented against our exports. At the same time, because of the quotas implemented by the USA and EU, which are the leading pasta importers, we are slogging on carrying our performance to our desired level. Let me explain this statement by an example; today EU countries are importing 3,7 billion $ of pasta annually and the share of Turkey in this trade is only 17 million $. This is just because a reason: quotas implemented against our goods. Despite all these obstacles, Turkish pasta sector is the first candidate to
be the World leader by its competitive structure, capacity, quality and the price policy. And we also, as an Association, are developing strategies both to carry up our export level and to overcome the obstacles in front of our exports.
The Objective Countries In The Coming Years First of all, I would like to emphasize that members of Association of Turkish Pasta Industrialists of Turkey (TMSD) have performed a great success by exporting to 152 countries. We have a wide range of country portfolio from Japan to Benin, from Madagascar to Italy but this is also a fact that, 58% of our exports are directed to African countries, of which are dominating our pasta exports. Still,
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you may not be able to see any other country, which shall export pasta to this much variable countries. As a result of this, Turkish pasta has become a brand in the world. On the other hand, being a brand country is only possible by submitting qualified products with competitive prices and our country has managed it also. As being an Association, we have determined short-term and longterm objectives in order to enhance the export level of our sector. In the short run, we are aiming to reach an active position in the Russia and in China markets. Although Russia is our neighbor, Turkey takes a small share from pasta exports to this country, since they realize their imports mostly from Italy and other EU countries. By collaborating with MBTG (Pasta, Legumes, Bulghur and Vegetable Oils Promotion Group) we are working to develop new markets. Meanwhile, we are planning active promotion activities in Russia market, since bilateral
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relations between two countries are started to meliorate. By this way, our objective is to bring our pasta, both with its quality and flavor to Russian consumers’ tables. This year World pasta day will be celebrated in the Russia Federation. We see it as a chance for Russia market to have knowledge on Turkish pasta during the days of which the crisis between two countries has been left behind. Russia Federation has imported 58 thousand tons of pasta in 2015 and only 221 tons from Turkey. If we shall increase our share in Russian market, Russian consumers will be able to buy qualified Turkish pasta cheaper. On the other hand, China is also an emerging market for pasta. Although the amount is not at a satisfactory level, its growth rate is far beyond all other countries and every year, we observe an increase of 80% by exports to China.
As a result of new developments, England is also included to our target markets. By voting Brexit England has decided to leave EU and imported 385 thousand tons of pasta in 2015. This means that England will be able to behave free from the quotas implemented by the EU and this gave us the opportunity to have 25% share from English market. In case of the abolishment of the quotas, we are assuming to realize 100 thousand tons of pasta with a value of 150 million $ annually.
Exports to 152 countries Turkey takes 3rd place in pasta production and ranks 2nd at exports, while it is at the 19th place of domestic consumption. Pasta consumption per capita of our country is 7,8 kg in 2015, while it was just at a level of 5,2 kg in 2006. The objective of the sector in the next term is to increase consumption up to 10 kg per capita. For this,
crowded countries such as China and India are among target countries especially. Current export level of Turkish pasta sector is 673 thousand tons per year, while domestic consumption is 550 thousand tons. Turkey realizes pasta exports to 152 countries, mainly African. The aim of the sector is to increase export level up to 2 million tons per year by 2023.
ASSOCIATION OF PASTA INDUSTRIALISTS OF TURKEY (TMSD) Association of pasta Industrialists of Turkey is representing pasta sector both in national and international platforms since it has been founded in1993. Mr. Abdülkadir KÜLAHÇIOĞLU is the Chief of Executive of TMSD and has 24 members belonging to pasta sector. Employing approximately 30 thousand person, has an annual capacity of 2 million tons and 1 billion $ of annual turnover.
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Efe Firat-Biral Celep, chairman of Aegean exporters association, Ertan Yalcin, New York consul, Davut Er, EZZIB chairman, Serdar Ozkan, deputy consul in New York, Ozgur Çelikel, commercial attaché in New York.
The US market loved olives from Turkey ZZTK was at Summer Fancy Food in the US, 62th edition held in New York, 26-28 June 2016.
ZZTK, the promotional committee for olive and olive oil from Turkey, recently was active in the USA, aiming to be the second largest supplier of olive oils and the leader of olive production in the world. Informing about the activities in the fair, Davut Er, chairman of the association of Aegean olive and olive oil exporters, mentioned about the rising interest for the ZZTK stand during the event and said that American consumers like olives from Turkey and several American firms wanted to import it to meet the rising demand. He said, “Top importer of olive oil, the USA is an important market for the future and one of our main targets. We aim to improve and fix our position in this market. If we could balance the pric-
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es up to the market level in the world we may have an important share in this country. Besides, sustainable supply is also important in this market. Thus we may get trust of buyers. Americans are interested in specific products, especially stuffed types and marinated olives and natural pressed olive oil get higher demand. We have to develop a new strategy to be successful in this high potential market. The strategy needs effective supports of economy ministry. We are happy with the interest shown our products. Several major companies from all over the world were in the fair to sell their olive products.” The booth of ZZTK was visited by Ertan Yalcin, New York Consul, and Ozgur Celikel, commercial attaché in New York.
Canned tuna fish with delicious sauces from Sasu
Started as a motto of Healthy Seafood in 2002 in Adana, Sasu modernized its production line and began to produce 2 thousand tons of canned salmon and tuna fish annually in its factory of 20 thousand sqm in 2010. Half of the production is sold to 10 export markets. Member of the board, Nil Ece Yamanyilmaz informed about their company and activities.
On export markets targeted
Nil Ece YamanyÄąlmaz, Board Member of Sasu
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FOOD TURKEY
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We increased our sales in both domestic and Middle East markets with our new product, the hot spicy tuna that we launched in 2013. Our major target for exports is Russia, because of logistics advantages. There is a serious potential for canned tuna sales. When the political tensions are solved with this country our sales may be accelerated soon.
On local varieties and tastes With our innovative investments our sales raised up to 20 % in 2015 and we expect 25 % growth this year. Sasu produced additional varieties with an aim to increase alternatives for consumers, including the varieties that were made of special sauces. We modernize and expanded our production facility by adding automatic machines and equipment where we produce hygienic and high quality products for the consumers. They can trust us completely, because we deal with every stage of Production process carefully. Considerations on food safety is rising up in the World both for consumers and producers. We offer completely natural products free of any additives to our customers
A motto of Healthy Seafood, Sasu starts to sell canned tuna fish that reflects Turkish tastes. who seek better, healthier and safer food for their diets. Sauced canned tuna is our new product, and we want to go further in offering more new products to consumers by investing more in the production of canned fish. We consider producing several sauces for special tastes including the ones with mayonnaise, mustard, barbeque, vegetable and jalapeno pepper. They will be on the shelves in the market soon. We forecast that canned fish consumption in Turkey will increase 100 percent in five years. People started to like canned fish much more, recently. Per capita consumption of canned fish in Turkey is about 75 gram, while it is 2.5 kilogram in European countries and 4.5 kilogram in some Middle East countries. Sales are doubling each year in Turkey.
2 million tons. Turkey ranks at 52nd place among 159 countries with its 12 thousand tons of production and 5 thousand tons of exports. We use the slogan, “Consume the fish weekly , and be healthy ! � for new generations. We aimed to reach out first the kids that need more fish for
their healthy nutrition. Fish is good for human body such as bone development, good for heart and brain. 70 % of human brain is made of fat and needs Omega 3 kind of fat acids. Fish is a serious food for health that must be consumed more.
Turkey has a share of 5 thousand tons an the global canned fish market of
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Turkish food industry: Can it benefit from Brexit? WorldFood Istanbul Fair will be a good venue to source the best products of the huge Turkish F&B industry.
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The historic exit of the United Kingdom from the European Union has cast uncertainty over the nation’s food supplies in the near future. A new report from Turkey’s Egeli & Co. Financial Services Group suggests that Brexit has opened up the UK’s food market for Turkish producers. The new report, spearheaded by Egeli & Co’s Asset Management Research Strategy Director, Güldem Atabay Sanli, examines the effects of Brexit on the UK, EU and Turkey’s agricultural and food sectors.
The state of Britain post-Brexit According to this report, the EU provides 70% of its food exports to the United Kingdom. Now that the UK has decided to leave the world’s biggest free trade market, food prices are expected to rise while sales volumes drop. England alone is home to over 65 million people. At present, the country’s agricultural sector can provide enough food for two thirds of the population including attendant fishing industries. Given the fact that the UK also includes Wales, Scotland and Northern Ireland, food imports are vital.
A growing demand for organic produce is sweeping across the United Kingdom too. Egeli & Co’s report suggests this increasing desire for health foods will further influence the levels of imported food needed to sustain the UK.
Where does Turkey’s food & drink sector come in? Given the import volumes of key food commodities needed by the United Kingdom, Turkey is well placed to capitalize on any shortfalls created in the wake of Brexit. High tariffs are currently hindering UK imports of fruit and vegetables, for example. Egeli & Co’s research suggests that as the United Kingdom negotiates with the EU, Turkey should also act quickly to take advantage of any breaks in relations and negotiate better tariffs for its food exports.
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Agriculture and food sector prosper in Turkey Home to the headwaters of the Tigris and Euphrates Rivers, Turkey’s agricultural sector is echoing the prosperity of ancient Mesopotamia. With its favorable geographical conditions and climate, large arable lands, and abundant water supplies, Turkey is considered to be one of the leading countries in the world in the field of agriculture and food. The restructuring efforts that began in the early
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1980s resulted in a domestic market that is an integral part of the world economy. Turkey has a robust agriculture and food industry that employs over a quarter of the country’s working population and that accounts for 7.1 percent of the country’s GDP. The strengths of the industry include the size of the market in relation to the country’s young population, a dynamic private sector economy, sub-
stantial tourism income and a favorable climate. Turkey is the world’s 7th largest agricultural producer overall, and is the world leader in the production of dried figs, hazelnuts, sultanas/raisins, and dried apricots. The country is also one of the leading honey producers in the world. Turkey boasted production of 18.6 million tons of milk in 2015, making it the leading milk and dairy
producer in its region. The country also saw production totals of 38.6 million tons of cereal crops, 28.5 million tons of vegetables, 17.5 million tons of fruit, 2 million tons of poultry, and 1.1 million tons of red meat. In addition, Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500. This bountiful production allows Turkey to maintain a significantly positive trade balance thanks to its position as one of the largest exporters of agricultural products in the Eastern Europe, Middle East, and North Africa (EMENA) region. Globally, Turkey exported 1,781 kinds of agricultural products to 190 countries in 2015, accounting for an export volume of USD 16.8 billion. Dairy products including milk, yoghurt, cheese, kefir, and ayran (a drink made of yoghurt and water) form an integral part of the traditional Turkish diet. Traditionally, artisan, unpackaged products have dominated the Turkish dairy market, meaning there is vast potential for investors looking to break into Turkey and the greater region with a mass market approach. This potential is not limited to only the dairy sector. Turkey is looking to position itself as the preferred option for being the regional headquarters and supply center of top global players in the agricultural sector. To encourage investment in the sector, Turkey offers a set of incentives for potential agribusiness investors. The Turkish government’s support mechanisms include favorable regulations, an extremely competitive tax structure, a qualified labor force, and numerous investment incentives.
According to McKinsey and Co., Turkey offers significant investment opportunities in agribusiness subsectors such as fruit and vegetable processing, animal feed, livestock, poultry, dairy, functional food, fisheries, and enablers (in particular cold chain distribution, greenhouses, irrigation, and fertilizer). As part of its targets set for the agriculture sector by 2023 Turkey aims to be among the top five overall producers globally. Turkey’s vision for its centenary in 2023 includes other ambitious goals, such as:
• USD 150 billion gross agricultural domestic product • USD 40 billion agricultural exports • 8.5 million hectare irrigable area (from 5.4 million) • Ranking number one in fisheries as compared with the EU
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STG in Summer Fancy Food Fair, New York
(l.to r.) Serdar Ozkan, Tolga Uruk, Yalcin Ertan, Taner Ciger, Birol Celep, Ozgur Celikel and I. Cumhur Isbirakmaz
STG, promotional committee for aqua products, participated in Summer Fancy Food Show Fair held in New York City, 26 – 28 June 2016, under the organization of Aegean Exporters Association with an aim to increase its share in American market. Chairman of the Aegean aqua and animal products exporters association Sinan Kiziltan pointed out that the sector is one of the stars of exports of Turkey. Board member M. Taner Ciger, represented the association in the event and said that the USA and Canada, having high potential for more sales, are important target markets for Turkish aqua products, either fresh or frozen, among them are seabasses and seabreams. He said, “About 10 million dollars worth of aqua products exports was realized during the Jan. – May 2016.
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Aqua products exports to the USA was 19 million dollars in 2014. Increasing 24 % exports reached to 24 million dollars in 2015. Fresh seabassas and seabreams and other sea food are both exhibited and offered to the visitors. Stand of STG in the Fancy Food Fair was visited by Ertan Yalcin, head consul of Turkey in New York, Serdar Ozkan deputy consul and Ozgur Celikel, commercial attaché in New York embassy.
Best edible nuts of the world 82
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ing and
ost outstand m e rc u o s to re asu Turkey is a tre dible nuts. e e v ti ti e p m o c most Today, the consumption of nuts has become an essential part of healthy consumption. Nuts have been recommended primarily for coronary heart diseases, problems in blood sugar and cholesterol, diabetes, metabolic problems, and their antioxidant, vitamin and mineral contents. More and more governments recommend them to be consumed on a daily basis. Dried fruits and nuts are consumed as a major raw material in bakery and confectionery industries, an ingredient in dried fruits and nut mixes and as snacks. Turkey is internationally renowned for its high quality dried fruits and nuts. With respect to production and export shares of dried fruits and nuts, Turkey is one of the most important countries in the world. Also, organic dried fruits hold a good share
and the number of the organic farmers is increasing over the years. Located as a bridge between Europe and Asia, Turkey has the advantage of producing various types of nuts as a result of various climate types. With the increase in domestic and international demand, production of nut is increasing from year to year.
Turkish Nuts Production Year 2006 2007 2008 2009 2010 2011 2012*
Production (Tons) 1 075 517 969 450 1 286 744 966 715 1 118 721 946 414 1 272 499
*Estimated Source: Turkish Statistical Institute
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HAZELNUTS Hazelnut is mainly consumed as a major raw material in chocolate, confectionery and baking industries and as an ingredient in edible nut mixes. Turkey is internationally renowned for its high quality hazelnuts. With respect to production and export of hazelnut, Turkey is the most important country in the world. Hazelnuts are known as a rich source of energy, protein, essential fatty acids, vitamins and minerals, and they do not contain cholesterol. Because of these features, hazelnuts are highly recommended by scientists for everyone. In short, it would be fair to say that hazelnuts are a vital nutrient and supplement in a balanced daily diet. Turkey is the most important country of origin for hazelnuts in the world. Very few countries in the world have a climate as favorable for hazelnut production as that of Turkey. Historic documents reveal that hazelnuts have been grown along the Black Sea coast
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in northern Turkey since 300 BC. Hazelnut farming has been the chief form of livelihood in the region for centuries – as it still is. It is estimated that more than 4 million inhabitants of Turkey depend directly upon the production, marketing or processing of this product.
Production In Turkey, hazelnuts are cultivated in an area of around 350 000 ha. The production area is spread densely all along the Black Sea coast. Hazelnut orchards extend up to 30 Km (18 Miles) in land. The average annual hazelnut production during the past five years in Turkey has been approximately 497 000 tons in-shell. With its outstanding position, Turkey leads the field among hazelnut producing countries. Turkey realizes almost 70-75% of the world’s hazelnut crop. Turkish hazelnuts are classified as Giresun or Levant quality and they are divided into two groups as round and pointed according to their shape and aromatic properties.
Turkish Hazelnut Production (In-Shell) By Years, Year 2006 2007 2008 2009 2010 2011 2012*
Production (Tons) 661 000 530 000 800 791 500 000 600 000 430 000 660 000
*Estimated Source: Turkish Statistical Institute
Exports Hazelnuts have been exported from Turkey to other countries for the last six centuries. In the 1950’s the hazelnut was the “leader” in Turkey’s foreign currency earnings followed by cotton, sultanas and figs. Today, revenues from hazelnut exports are still at significant level. Turkey is the largest exporter of hazelnuts, supplying about 80% of the world’s hazelnut exports. Being the largest producer and exporter, Turkey naturally plays an important role in determining world hazelnut prices. Until recently, Turkish hazelnuts were exported only as natural kernels. During the past 20 to 25 years hazelnut processing plants have been built and various forms of processed hazelnuts have begun to be exported. As a result, the market share of processed kernels has been growing steadily and is now about 40% of total hazelnut exports. New investments have also been carried out by Turkish exporters,
Turkey’s Major Export Markets of Hazelnut (Quantity, Tons; Value, US$ 1,000) Year
Quantity
Value
2006
247 381
1 456 197
2007
208 687
1 364 557
2008
232 286
1 424 936
2009
222 883
1 179 967
2010
251 070
1 521 409
2011
247 897
1 765 129
some of which are joint- ventures. Today, unshelled (natural) hazelnuts and processed kernels constitute 99% of total Turkish hazelnut exports. Have emerged as potential markets for Turkish hazelnut in recent years. Turkey, who exported mainly shelled and kernel forms to 32 countries before 1980, now exports hazelnuts and various processed forms of hazelnuts to over 75 countries. The majority of exports, above 80% of total exports,
are shipped to the countries of the European Union. Germany is the leading importer of processed and unprocessed Turkish hazelnuts with a share of 24% of total exports, and followed by Italy (19%), France (13%), Canada (4%), Austria (3,6%), Belgium (3,5%), Switzerland (3,4%), Poland (3,1%), Ukraine (3%), the Netherlands (3%), and the Russian Federation (2,5%). Far East, Latin American and Scandinavian Countries
Turkey’s Major Export Markets of Hazelnut (Quantity, Tons; Value, US$ 1,000) 2010 Quantity Value
2011 Quantity Value
% Change Value
Germany
56.551
339.665
59.282
416.465
22,6
23,6
Italy
43.540
260.246
44.925
330.165
26,9
18,7
France
30.888
190.888
30.899
226.025
18,4
12,8
Canada
7.102
45.250
9.712
73.931
63,4
4,2
Austria
9.389
55.930
9.134
63.817
14,1
3,6
Belgium
10.738
62.099
9.586
60.918
-1,9
3,5
Switzerland
8.955
52.649
9.068
60.577
15,1
3,4
Poland
7.311
45.914
7.251
54.370
18,4
3,1
Ukraine
6.465
39.951
7.312
53.686
34,4
3,0
Netherlands
6.783
42.525
7.471
53.444
25,7
3,0
Total
251.070
1.521.409
247.897
1.765.129
16,0
100,0
Country
Share %
Source: Turkish Statistical Institute
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PISTACHIOS Originating from the genus Pistacia, the species Pistacia vera is native to the Near East, Mediterranean and Western Asia. The green seed, which is the pistachio nut, is in a crusty shell that is being cracked during consumption. Pistachio kernels are very popular as a snack, but also are used as an ingredient in meat products like salami or sausages, or in the confectionary industry as a part of chocolate, cakes, Turkish Delight, baklava, ice cream and other traditional Turkish sweets.
Production Being one of the important producers of pistachio, growers continue to invest in pistachio tree plantations to satisfy the international and domestic demand. Pistachio cultivation on a professional basis started with the Ceylanpinar State
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Farm, which was established in 1948 with 114 da of land. Today, this farm has become an important area in pistachio research in Turkey, and the total area dedicated to this purpose has reached 10,7 million ha. The ideal growing conditions for pistachio trees are hot, dry summers and moderately cool, short winters. These climatic conditions are found particularly in the Southeastern part of Turkey; nevertheless, pistachios are grown in 56 provinces of Turkey from the Mediterranean, Aegean and even the Central Anatolian regions. But in the provinces of Gaziantep, Kahramanmaras, Adiyaman, Sanliurfa, Mardin, Diyarbakir and Siirt, the production of pistachios is relatively higher.
Production of Pistachios in Turkey by Years (Quantity, Tons) Year 2006 2007 2008 2009 2010 2011 2012*
Production (Tons) 110 000 73 416 120 113 81 795 128 000 112 000 150 000
*Estimated Source: Turkish Statistical Institute
Generally, no irrigation is done in the growing process of pistachios. As it can be seen from the production statistics, pistachio trees are alternate-bearing trees, thus the production amount can vary greatly. However, as a result of high demand from both the domestic and international markets, it is expected that the average production will increase in the coming years.
Exports
However, depending on the production output, Turkish pistachios have always been in demand in international markets as a result of their distinctive taste and aroma which is more intense with respect to others. As it is seen in the table below, the biggest market for Turkish pistachios is Italy with a share of 48%. Germany, Israel and Belgium are the other important markets.
Turkey is the tenth exporter of pistachios in the world with its 14 million USD of exports in 2010 and 23 million USD in 2011. As the pistachios from Iran and the USA are much more cost effective, these countries are the top two exporters in the world. According to the Trademap data, Iran’s export in 2010 is 1,1 billion USD whereas USA has an export value of 600 million USD.
Turkey’s Major Export Markets of Pistachios (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Italy
343
4.788
252
5.069
549
11.180
Germany
499
5.721
404
6.357
389
5.885
U.S.A.
147
1.258
130
1.543
254
2.997
Belgium
217
2.219
102
1.709
189
2.724
Azerbaijan
179
1.457
143
1.841
191
2.194
Israel
106
1.365
104
2.005
107
2.097
Saudi Arabia
252
2.647
6
94
82
1.648
Netherlands
143
1.552
88
1.367
92
1.465
France
93
1.104
83
1.190
86
1.330
Turkmenistan
57
415
36
398
73
771
Tajikistan
56
505
29
330
76
764
Switzerland
21
222
29
503
34
688
Total
4.072
39.309
1.940
30.001
2.545
39.707
Country
Source: Turkish Statistical Institute
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Production of Walnuts in Turkey by Years (Quantity, Tons)
WALNUTS Production
Year 2006 2007 2008 2009 2010 2011 2012*
Walnuts are produced in many regions of Turkey. Most of the production is consumed domestically, since walnuts are regarded as healthy because of their high omega-3 fatty acid content.
Exports The proximity to the Middle Eastern countries has made Turkey an important supplier for this product. The second important country group is the EU countries.
Production (Tons) 129 614 172 572 170 897 177 298 178 142 183 240 202 397
*Estimated Source: Turkish Statistical Institute
Exports of Walnuts by Years (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Iran
454
3.793
840
5.822
1.348
13.559
Iraq
232
2.018
682
5.589
851
8.183
Algeria
0
0
94
702
250
2.148
Italy
0
0
122
1.039
156
2.106
Germany
171
1.292
166
1.088
214
1.999
Netherlands
0
0
0
0
147
1.447
UK
0
1
253
1.795
122
1.067
Tunisia
3
28
92
689
93
746
Spain
52
519
239
1.608
60
708
France
122
1.210
69
484
89
666
Total
1.210
10.460
3.171
23.498
3.702
36.404
Country
Source: Turkish Statistical Institute
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CHESTNUTS
Exports
Being the third biggest chestnut producer in the world, Turkey is a leading producer of the Castanea sativa. The main production areas are the Aegean and Black Sea regions. Aydin is the most important province in chestnut production. The other important provinces are Izmir, Kastamonu, Sinop and Bartin. In 2011 the chestnut production reached 60 thousand tones in Turkey as seen in the table below.
Being a popular ingredient for the confectionary industry, chestnuts are preferred in cakes and other sweets like chestnut purees, marmalade and glazes. Therefore, the export figures of raw chestnuts seem relatively low since they are exported in processed forms.
Year 2006
Quantity 77 454
2007
86 409
2008
85 274
2009
90 081
2010
97 310
2011
90 416
2012*
122 000
*Estimated Source: Turkish Statistical Institute
Exports of Walnuts by Years (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Italy
438
1.060
534
1.214
1.323
3.452
Lebanon
1.189
1.249
1.372
1.683
1.536
1.782
Germany
447
1 322
326
927
411
1.303
Israel
52
139
45
114
177
529
Azerbaijan
0
0
0
0
121
316
North. Cyprus
91
196
85
179
122
268
France
98
76
6
16
114
235
Jordan
61
56
57
74
101
209
U.K.
65
143
5
14
69
187
Syria
397
562
484
591
94
105
Total
2.919
4.941
3.073
5.230
4.260
8.664
Country
Source: Turkish Statistical Institute
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PINE NUTS Originating from the Latin “Pinus pinea�, pine nuts are generally grown naturally in the Mediterranean region. It has been a popular ingredient in various foods especially in the Roman Empire and also in many Middle Eastern civilizations. It was the Roman Empire who introduced this special nut to European consumers from where it spread to the other parts of the world, especially America.
The cultivation of pine nuts from its trees may take 18-20 years. After cultivation of the cones, they are left to dry and the nuts are separated mechanically. Afterwards, the outer shell of the pine nut is removed. Pine nuts are popular for their nutritional properties, containing a high amount of proteins and minerals. Also, its taste has unique contributions to various dishes as well in confectionary
products. Production of Pine Nuts in Turkey by Years (Quantity, tons)
Exports As a Mediterranean Country, Turkey enjoys the privilege of being an important producer and exporter of pine nuts. The majority of the exports are headed to European countries like Italy, Germany, Switzerland and Spain.
Exports of Pine Nuts in Turkey by Years (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Italy
1.265
27.916
873
27.564
559
17.472
Germany
207
4.947
560
16.896
273
8.564
U.S.A
98
2.755
128
4.222
93
3.267
Spain
86
1.851
158
4.814
60
1.885
Switzerland
2
58
1
29
44
1.523
U.A.E.
44
1.098
46
1.530
44
1.468
U.K
0
2
15
515
25
911
Saudi Arabia
28
591
24
731
21
679
France
18
538
62
2.021
19
673
Total
2.210
50.780
2.167
67.775
1.221
39.198
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Country
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PEANUTS Peanuts are not originating from trees, but from legumes like lentils and other beans. It is favored among consumers for their high fatty acids and vitamins as well as resveratrol – ma valuable antioxidant.
es are the main production areas. The most popular varieties are the domestic Com and NC-7 types.
Exports Exports of peanuts in Turkey are developing and mainly focusing on neighboring regions.
Production The majority of peanuts in Turkey are produced in the Cukurova Region, in which Adana and Osmaniye provinc-
Year 2006
Production (Tons) 53 814
2007
55 100
2008
55 395
2009
61 697
2010
59 171
2011
60 270
2012*
57 144
Exports of Walnuts by Years (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Iraq
399
1.224
691
2.533
391
1.682
Azerbaijan
113
391
118
421
198
775
Germany
66
258
101
351
130
526
North. Cyprus
103
241
73
213
77
282
Kosovo
59
161
37
97
48
184
Senegal
0
0
0
0
21
113
Austria
8
33
15
67
17
72
France
13
50
17
59
18
69
Turkmenistan
3
13
8
42
13
65
Syria
21
21
20
50
20
62
U.S.A.
6
24
8
52
9
59
Total
983
3.028
1.285
4.543
1.083
4.465
Country
Source: Turkish Statistical Institute
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ALMONDS
production. Other important production regions in Turkey are Antalya, Isparta, Sanliurfa, Denizli and Elazig.
Production Almonds in Turkey are generally produced in provinces having Aegean or Mediterranean climates. In this regard, the main almond growing provinces in Turkey are Mugla and Mersin where about one quarter of the Turkish almond production is realized. Especially the Datca district of Mugla, and the Bozyazi and Anamur districts of Mersin have been specialized in almond
Exports Exports of almonds in Turkey are developing from year to year reaching almost 50 million USD in 2011; they are generally exported in shelled form but also in packaged form as well. Export partners are generally Middle Eastern and EU countries.
Production of Almonds in Turkey by Years (Quantity, tons) Year 2006 2007 2008 2009 2010 2011 2012*
Quantity 43 285 50 753 52 774 54 844 55 398 69 838 79 858
*Estimated Source: Turkish Statistical Institute
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Quality is one issue that Turkish exporters give priority to. As a result of integration with the EU, Turkish Food laws are being harmonized with the relevant EU Directives, ensuring that all consumers have access to safe products. In addition, Turkey is actively taking part in the FAO/WHO Codex Alimentarius Commission in the establishment of international standards for aflatoxin levels for Almonds, Hazelnuts, Pistachios and Dried Figs. In addition, many Turkish firms are applying quality systems like HACCP, BRC, IFS or ISO 9000 standards and trying to satisfy further demands of their customers.
Exports of Pine Nuts in Turkey by Years (Quantity, Tons; Value, US$ 1,000) 2009 Quantity Value
2010 Quantity Value
2011 Quantity Value
Tunisia
736
6.387
862
7.153
999
8.205
Iraq
931
9.346
596
4.553
816
6.939
Algeria
25
294
724
5.812
811
6.678
Libya
405
3.836
432
3.483
690
5.869
Iran
899
10.797
780
6.926
571
5.314
Saudi Arabia
71
596
107
718
564
4.681
Lebanon
151
1.062
369
2.714
399
3.136
Azerbaijan
61
487
66
511
268
2.420
Egypt
430
3.371
294
2.196
188
1.637
North. Cyprus
11
74
15
129
161
1.015
Germany
77
523
56
391
68
482
Total
4.311
39.969
4.867
38.351
5.932
49.335
Country
Source: Turkish Statistical Institute Note: Pastes included
93
Halal meat in Turkey: How to get your products to the market WorldFood Istanbul to show the potential of the Turkish halal meat sector. Turkey is something of a captive market for halal meat suppliers. With 99% of the nation’s populace identifying as Muslim, and an additional 15 million more Muslims expected to join the population by 2030, this $168 billion market is only going to expand. If you’re a halal meat producer, the Turkish market is one of the most lucrative in the world. ITE Food & Drink has put together a guide on everything you need quick reference guide on who you need to know regarding Turkey’s halal meat trade and how best to get your products to the nation’s consumers. 94
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Who are Turkey’s largest halal meat retailers? Unsurprisingly, it is Turkey’s largest s u p e rm a rket
chains that represent the best entry point for halal meat suppliers. The two biggest chains, by some margin, are Migros Ticaret A.Ş and BİM Birleşik Mağazalar A.Ş. Together, these brands operate close to 7,000 stores of varying sizes across Turkey. BİM Birleşik Mağazalar is one Turkey’s leading pioneers of the hard-discount supermarket model with 4,972 stores dotted around the country. All meat sold by the chain is certified 100% meat product, as opposed to offering those with a mixed composition, and halal slaughtering under hygienic conditions is expected by all of BİM Birleşik Mağazalar’s suppliers.
While Migros Ticaret enjoys a substantial bricks-and-mortar presence in Turkey, with 1,344 Migros stores across 72 provinces and 35 Macrocentre supermarkets, it is online where the brand truly shines. Migros Virtual Market (MVM) is the chain’s ecommerce platform and is Turkey’s most extensive food retail website. 8.7 million members joined MVM’s membership programme in 2015 and the service enjoyed 40% growth in the same year. These two supermarket chains are easily the quickest way for Halal meat suppliers to get their products to Turkish consumers. Turkey’s supermarket sector is rapidly expanding as consumer
habits change in Turkey. Expect further food retail market dominance in coming years. Some 20,000 tons of meat products are imported by Turkey every year. As the nation is 99% Muslim, it is only logical that the majority of meat products will be of halal origin, or will be imported for processing under halal regulations. Turkey enjoys an extensive network of halal meat importers and distributors. However, placing your products in front of the key industry fig-
ures is essential to ensure maximum market penetration. How can suppliers make this happen? Trade shows, such as WorldFood Istanbul, ensure exhibitors products are demonstrated to the Turkish food industry’s key players – including wholesalers, retailers, buyers and more. The below Turkish companies are in regular attendance, and include importers, wholesalers and distributors related to the meat industry: • ALTINKAYA ET VE ET MAM. SAN. VE TİC. A.Ş • BEŞEL ENDÜSTRİYEL ÜRÜNLER GIDA AMB. SAN. VE TİC. A.Ş • PINAR SÜT MAMÜLLERİ SAN. A.Ş • SMART GROUP DIŞ TİC. LTD. ŞTİ. / GLOBAL TRADE FOOD • SÖZER GIDA ÜRÜNLERİ TİC. SAN. A.Ş Indeed, trade shows are possibly the ideal way for international brands to get their 95
products exposed to Turkey’s important food retail figures. In a nation that imports extensive levels of meat, including bovine, poultry and sheep products, events such as WorldFood Istanbul form a crucial link in Turkish trade and supply chains. WorldFood Istanbul takes place between 1-4 September 2016. Learn more about the event today and visit to begin making your mark in Turkey’s halal meat market.
What gap can your company fill? It goes without saying that Turkey is a huge consumer of halal meat and associated products. Turkish spending on halal meat totals over $168 billion annually. With a young, growing population, demand for top quality halal offerings is expected to increase in the near future. For halal meat suppliers, Turkey offers almost boundless opportunities. 99% of Turkey’s population identifies as Muslim. In addition, societal changes are leading to a shakeup in consumption habits and which products are in high demand. ITE Food & Drink continues its look at the Turkish halal meat market and asked what gap can your company fill?
Halal meat products enjoying high Turkish demand Turkey imports around 20,000 tons of meat each year. As a majority Muslim nation, pork exports are minimal to non-existent. Poultry and beef however remain very much on the menu for Turkish consumers. According to data from the Turkish Statistical
Institute, consumption levels of poultry meat are the highest per capita in Turkey. In 2011, the latest available data, poultry meat consumption stood at 19.02 kg/capita outstripping consumption of beef, which totalled 10.34 kg/capita. Demand for poultry products remains the highest. Fresh meat, previously regarded as a treat for special occasions, is seeing increase consumption levels in Turkey as its young population enjoys higher income levels. According to Global Meat News, desire for fresh meat grew 11% across 2009-2014. While fresh halal meat is also growing in popularity, so too are frozen and pre-packaged offerings. Young Turks have more money to spend on food and their fastpaced lifestyles are fuelling an increase in sales of packaged food products. Expanding urbanisation rates
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has led to a rise in attractiveness regarding ready-to-eat offerings. A younger generation of Muslims has also grown up with fast food – thereby offering halal meat suppliers another avenue to explore in Turkey.
A reliance on meat imports for the Halal industry Turkey is replete with domestic halal producers. However, it does rely heavily on a number of meat products sourced from overseas. Halal meat is imported by Turkey alongside products to be processed in accordance with halal requirements. So, even if you are not strictly a halal supplier per se, there is still a need for unprocessed meat products sourced from international producers.
how international suppliers can satiate Turkish appetites for top quality meat products. In 2014, 23% of imported bovine products came from Austria. 15% came from German suppliers, with a further 11% coming from Hungary. In the same year, 67% of poultry meat imports were supplied by Brazilian
companies alongside 16% from the United States and 10% from Ukraine. A number of avenues exist for international firms to get their products exposed to the Turkish food sector’s major players. One of the most effective methods of market exposure is trade shows – specifically WorldFood Istanbul.
Demand for overseas meat and live animal imports isn’t just restricted to Turkey. The country is a member of the 57-state Organisation of Islamic Cooperation (OIC). OIC member states import a huge 85% of their meat requirements, demonstrating 97
Finance Minister: Three new tax regulations on way According to Finance Minister Naci Ağbal, with the aim of protecting and incentivizing businesses, the government has been working on three important tax regulations, among which is one that will ensure a merger of two firms operating in the same sector are exempted from corporate taxes. Speaking to Habertürk daily, Ağbal said in basic terms they will incentivize firms conducting businesses in the same sector to come together and grow their business through a merger on condition that the newly formed firm is expanded to make operations more efficient. Ağbal also announced that a second tax regulation is on the way, which will involve stamp taxes, which are considered a huge burden on production and investments. According to the new regulation that is in the process of being prepared, no stamp taxes will be implemented for projects that concern research and development (R&D), innovation and public-private partnership (PPP). Regarding the third tax regulation on the agenda, Ağbal said no taxes will be taken from leveraged foreign currency trading made solely with the purpose of protecting businesses from market risks. Meanwhile, in line with Ağbal’s remarks, Prime Minister Binali Yıldırım announced at the beginning of July that the government is
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set to boost the confidence of both international and domestic investors as well as focus on solving the problems faced by businesses hit hard by terrorism through an economic incentive package. The package lowers the tax burden for companies, provides new incentives for businesses, offers debt forgiveness to firms affected by terrorism and eases the employment process for foreigners. Yıldırım said all grants, incentives and the implementation of the regulations will not be a burden on the fiscal budget compared to the high returns expected on the creation of new jobs that will boost the overall economy, increasing production and revenue in Turkey.