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Agriculture – Turkey

Sector Report



IATC Sector Note Edited by; Taylan Atakan Senior Trade and Investment Manager, British Embassy Ankara September 2008

whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Enterprise & Regulatory Reform, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published September 2008 by UK Trade & Investment. Crown Copyright ©


however.including fertile soil. access to sufficient water. agriculture remains a major employer in Turkey and it is a significant contributor to the country’s gross domestic product. over 15% of the current amount of EU27 agricultural land. as well as wheat. badly managed land and water resources.Agriculture –Turkey OVERVIEW Despite a slow decline in recent years. the industry remains underdeveloped and there is a great deal of work that needs to be done particularly in relation to sustainable fishing and aquaculture for the future. . Turkey is one of the few self-sufficient countries in the world in terms of food. some highly sophisticated state of the art food processing businesses in Turkey. cotton and tobacco. safety and efficiency in the food processing sector.GDP. Livestock is also an important component of the agriculture sector and Turkey has traditionally been an important supplier of live sheep. with long term vision and a holistic approach to developing and improving their supply chains. with farming in the South East being mainly subsistence farming. However. and what the potential for Turkey could be with the application of improved production and processing technologies. Since 1983 the share of agriculture in GDP has declined from 21% to 12 %. To summarise. as a share of total employment is also in gradual decline. The 2001 census also recorded an average farm size of around 6 hectares and indicted that around 65% of farmers have less than 5 hectares of land.Only 6% of holdings are larger than 20 hectares.uktradeinvest. 39% of the population live in rural areas. There are. Turkey is self-sufficient in milk products. These businesses are excellent examples of what can be achieved. The number of agricultural holdings decreased by 25% from 4 million in 1992 to 3 m in the 2001 census. Turkey has a long coast line. and large number of freshwater Page 3 of 9 . vegetables. innovation and implementation of food safety and hygiene standards. The country produces a wide range of crops. Turkey has the potential to significantly increase its agricultural production and improve productivity. lamb and mutton to the Middle East. and varied climate are vast. edible nuts and dried fruits. Turkey’s basic agricultural resources . and the agricultural workforce. In the 1990’s fish farms were supported by the state and their numbers have grown since. Turkish agriculture is poorly structured and inefficient. including fruit. but Turkey has an agricultural area of over 27 million hectares. poor hygiene and food standards. and offer considerable potential for expansion and development. but growth is being hindered through inefficient farming and production techniques. Whilst Turkey is one of the few self–sufficient in food. that have ambitions to become global players. falling from 35% in 2001 to 30% in 2007 – around 7 million workers.

Defra have negotiated a bilateral co-operation agreement in the veterinary area with the Ministry of Agriculture and Rural Affairs and the Food Standards Agency is also participating in the Defra led bilateral working group with a view to assisting Turkey with their accession aims in the agri-food area. fig paste. agriculture and food.uktradeinvest. and this support puts the UK in an advantageous position as a ‘preferred partner’ for the future. Turkey only has EU approved residue monitoring plans for: o poultry. Camden BRI www. equine. www.theiatc. o fishery product o treated which has recently joined forces with the CCFRA. aqua culture and farm to fork post harvest technology. o aquaculture. The final point reached in achieving this target is the ongoing accession negotiations with the EU. pistachio nuts. This Memorandum of Understanding needs to be activated by a steering committee meeting in Turkey and/or the UK.Agriculture –Turkey CHARACTERISTICS OF MARKET UK Trade and Investment.campden. dairy farming. a number of UK Government Departments are engaged in different areas of have granted Turkey ‘Priority Country’ status in the Agriculture/Agri-Technology Sector. and the level of issues in relation to the limited range of products that can be exported appears to be disproportionately high. As part of the support in facilitating Turkey’s preparations for accession. which will be a major part of the negotiations. hazelnuts and derived products (mycotoxins – controlled by 2006/504/EC) non-cultivated mushrooms(over radioactivity linked to the Chernobyl incident) The agricultural trade with Turkey is relatively limited in terms of the product range that may legally be exported to the bladders and intestines. IATC also have an MOU signed with the Ministry of Agriculture and Rural Affairs in March 2007 for cooperation in Research & High Tech Development in cash crop. International Agri-Technology Centre. The accession negotiations with the EU began in October 2005 and with half of EU legislation devoted to Page 4 of 9 . . in consultation with the Sector Advisory Council and the Sector Group IATC. o milk o honey. EU CANDIDACY/ACCESSION TALKS Turkey has a long history in her endeavours to become westernized/part of o Honey may also be exported to the EU from establishments on a national list. All government departments in the UK have been urged to help deliver UK policy in supporting Turkey’s accession to the EU. indicating a need for significant improvement in standards and systems. www. Turkey currently has approved establishments for the export of only the following animal products: o live bivalve molluscs. The following non-animal products from Turkey are subject to import restrictions/ certification requirements and increased surveillance activity: o o o o o dried figs.

Tesco in particular has achieved rapid success through its acquisition on joint venture with Kipa. seeing more than 20 million tourists each year and its luxury hotel development is increasing year on year. Turkey’s retail food market is estimated as US$40 billion a year. FOOD PROCESSING INDUSTRY Recent investment in the food processing industry is seeing increased production in a number of areas. through the provision of goods. Burger King. IATC.Agriculture –Turkey Agriculture Sector Group of UK T&I. are making improvements and investing to upgrade systems and develop new processing technologies and products. have successfully established in supermarkets and hypermarkets) will reach about 60% of Turkeys retail sector. and provides www. and despite the traditional Turkish food purchasing patterns of buying fresh daily. International Agri-Technology Centre. and by 2010 industry sources expect that the volume of modern markets (i. and to provide solutions to Turkey’s current agri-food industry issues. branded products. Turkey’s food service industry is also expanding rapidly as a result of investment in fast food establishments. young consumer eating habits and the growing tourism industry.: supermarkets and hypermarkets) will reach about 60% of Turkey’s retails sector. Retailers. Turkey’s food retail market continues to grow. one of the major areas of concern remains food safety and hygiene in the supply chain – especially in the primary production area. training and services from the UK. GROWING CONSUMER MARKET – RETAIL AND FOODS SERVICE SECTOR The retail grocery and food service sector are growing rapidly and the consumer trends are changing. industry sources expect that the volume of modern markets (i. EXPORT POTENTIAL With Turkey’s wealth of natural resources. International products are becoming more widely accepted as levels of disposable income rise and large urban and young consumer populations are attracted to imported. including MacDonald’s. TOURISM Turkey is also a major world tourist destination. visionary and entrepreneurial companies in Turkey. it has tremendous potential to increase its exports. including Tesco.e. There is a growing acceptance of processed foods and whilst this currently account for only 15 – 20% of food products in Turkey. The Turkish Government recognises the importance and potential of the agri-food Page 5 of 9 . Starbucks are located mainly in urban areas. Many of the major retailers. vast agricultural land and potential for developing its fishing industry. Modern fast food outlets. including in the development of frozen food products and ready meals with an emphasis on bringing quality standards up to the level of those of its EU neighbours. see the potential for Turkey to become the ‘winter garden of Europe’. providing out of season produce to the UK and other EU countries. including Tesco. and bringing UK and Turkish businesses and research institutions together for mutual benefit. and are seeing considerable growth against a background of the growing number of people working in a more fast paced and modernized work environment. As Turkey becomes more modernised manufacturers. The number of expatriates living in Turkey also continues to grow than this too will have an impact on the food service sector. Whilst there are such highly successful. Significant opportunities exist for the UK in joint venturing and developing or manufacturing innovative food products under licence as well as in production of specialist machinery and equipment in Turkey.uktradeinvest. The hotel sector is estimated to comprise about 25% of Turkey’s total food service sales. can provide a valuable role in supporting these discussions and the work of the other UK departments by providing assistance and offering the ‘tool kit’ of potential solutions.e. this is set to rise.

o Collaboration and provision of agri-food science and research across the food chain. nutrition and Page 6 of 9 . o Best practice in the livestock sector – including meat and dairy – in management of fish stocks. o Opportunities for skills and technology sharing in relation to religious requirements (Halal) to meet EU standards. UKTI provides market research services which can help UK companies doing business overseas including: www. GAP. o Product development/innovation – both through collaborative ventures and in the provision of training. hygiene. continue to fetch increasing interest. HM Queen Elizabeth’s Banknote. which poses a serious threat to their agricultural and economic o Improvements in the fisheries and aquaculture sector – including science and research into sustainable technologies.Agriculture –Turkey visible. breeding technologies for aquaculture as well as processing and value adding technologies. o Training and capacity building – both at farm level and in manufacturing/ processing and supply chain. management (including animal welfare).HH Sheikh Mohammed Bin Rashid al Makhtoum’s Stable Godolphin’s Caradak and Laverock were just a few thoroughbreds that ran in these races. opportunities for joint ventures/manufacture under license o Advisory services and training which would help restructure and modernise Turkish agriculture MORE DETAILED SECTOR REPORTS Research is critical when considering new markets. www. o Packaging and processing – innovative and new technologies. OPPORTUNITIES The above initiatives create opportunities for UK Agriculture/Agri-Technology Sector in: o Food supply chain technologies and management systems – including safety. o ‘niche’ opportunities – for example in organic production technologies. IATC has organized Outward/Inward Missions in the equine sector in which was established to strengthen and expand the agricultural resource base within one of the most underdeveloped parts of the country and address the social tensions and problems arising as a result o the increasing levels of migration from the countryside to the traceability. high profile support for a number of projects aimed at increasing its productivity and efficiency. It should also be noted that International Races where the world’s most significant stables are hosted by the Turkey Jockey Club. One of the most important regions receiving significant support is in the South East – the South East Anatolian Project.

You can find details of the OMIS service through the 'Helping UK companies to do business abroad' section of the UKTI portal: www.uktradeinvest. This will allow you to set up your user profile to ensure that you receive automatic updates about opportunities in your sector in markets of interest to The British Embassy Commercial Section in Turkey offers a range of services to British-based companies wishing to do business in the Turkish market. This is a chargeable service operated by UK Trade & Investment. The portal also has a great deal of background information on priority business sectors in Turkey and on doing business A useful contact list of lawyers and other relevant professional bodies. validated lists of agents/distributors. We can also organise seminars or other events for you to meet contacts or promote your We also post on the UKTI portal information about specific business opportunities in Turkey. You can find details of your local office on the same portal by clicking on ‘Local Office Database’ in the same section and/or by the above map.tobb.ukinturkey. You might also be interested to find out more about the range of services available to UK companies trading internationally through the UK Trade & Investment International Trade Team in your region of England. Bespoke research into potential markets. financial and taxation advice. As a UK-based company. as well as further information is available from the British Embassy in Turkey. You might also like to note that all information about UKTI/British Embassy commercial events and trade missions in Turkey is published on the UKTI portal and the Embassy website www. When considering doing business in Turkey it is essential to obtain –Turkey o Overseas Market Introduction Service (OMIS). or through the Devolved Administrations in Scotland. we encourage you to register on the UKTI portal. Our services include the provision of market provides details of trade shows/fairs/exhibitions over 140 main and sub sectors under the headings. EVENTS TRADE FAIRS IN TURKEY 2008/09 The Union of Chambers and Commodity Exchanges of Turkey www. and support during your visits overseas o Export Marketing Research Wales and Northern Ireland.fco. In-depth and subsidised service administered by the British chambers of Commerce on behalf of UKTI Contact your local International Trade Advisor if you are interested in accessing these services.uktradeinvest. and arranging o Fairs According to Sectors o Fairs According to Cities o Fairs According to Dates www. Simply type the keyword: OMIS in the search field. key market players or potential customers in the Turkish market. to assist Britishbased companies wishing to enter or expand their business in overseas markets. establishing the interest of such contacts in working with you. This service is free of charge. You can commission these services from us under our Overseas Market Introduction Service .OMIS. UKTI. or for general advice in developing your export Page 7 of 9 .

the site to be visited. by the IATC in consultation with the Post. www. Ms Philippa David. Background and Geography. marketing: o local distributors o participation in private/public tenders Public Tenders are conducted in accordance with the Public Procurement Laws 4737 and 4964 which came into force on 05 January 2002 and 30 July 2003 respectively.Agriculture –Turkey o Fairs Organizing Companies o Fairs Search MISSIONS/BUSINESS DEVELOPMENT VISITS. there are both Outward and Inward Missions under planning International Agri-Technology Centre T:+44 02476 323961 philippad@iatc. is planning to organize an event in Istanbul in Fall 2008. 4 June 2008 at the attached Study Tour on the following day. BDVs As Turkey has a ‘Priority Country’ status when the UK agriculture sector is in question. Contacts and Setting Up. the main auctioneers of bloodstock race horses in the Page 8 of 9 .uktradeinvest. o o o o o Customs and Regulations. public KEY METHODS OF DOING BUSINESS For more detailed information about Turkey www.iatc. materials. Director. Selling and Communications. All government institutions. IATC. state-owned el=CountryType1&navigationPageId=/turkey The following ways of doing business are common in Turkey: In the case of manufacture/partnerships: o under licence agreement o joint venture partnerships For equipment. The Overseas Post Agriculture Sector Manager has also participated at the Campden Day. local governments. On the equine side. certain utility www. Visiting and Social. For more information/participation at the forthcoming events you should contact. services. within this financial Tattersalls www.

However there are cases when they can either draw a short list or award contracts directly provided that they justify the technical requirement to by-pass the Public Procurement Page 9 of 9 T: +90 312 455 3243 F: +90 312 455 3351 Should you be interested in more in-depth. They have to announce their requirements through public tenders as well as international competitive tenders if deemed necessary. tailored information and/or contacts in the Turkey Agriculture/Agri-Technology Sector. please contact: Mr Taylan Atakan Senior Trade & Investment Manager British Embassy.ukinturkey.uktradeinvest.Agriculture –Turkey companies and foundations managing public finances are obliged to follow the Public Procurement Act rules when purchasing goods and services.