by: Dr Adnan Mushtaq

Introduction:
This Report explain Rice export Methodology to turkey by highlighting all basic
indicators like macroeconomics ,Demand and supply, value chain , Marketing
strategy & cost analysis.

About Turkey :
Turkey is Asia foothold in Europe a melting pot of cultures and bridge between
continents, its one of the emerging market in the world.

Macro economic: Turkey is the 18th largest economy in the world with
$ 858 billion GDP.

GDP per capita 10,787.61 USD (2016)

Population 79.51 million (2016)

GDP growth rate 2.9% annual change (2016)
Inflation rate 9.79%
Average net annual salary 8000 U$D

Demographic trends: On current projections, by 2050, Turkey will have the

second-largest population in Europe, after Russia, and unlike in most European
economies Turkey’s working-age population will continue to grow.Turkish people
spend 20% of their income on food items. The urbanization is78% in turkey &
continuously increasing. The people are food lover and used rice as daily part of
their meal. This creates an opportunity of Rice export due to high consumption
and Market demand .
 Why Rice Export to Turkey Demand & Supply Gap

Demand & Supply Profile

1,200

1,000

800

600

400
249 226 225 221 218 214
183 211 207
200

0
2011 2012 2013 2014 2015 2016 2017 2018 2019

Rice imports (000 t) Milled production (000 t) Total rice consumption (000 t)

Element 2011 2012 2013 2014 2015 2016 2017

Paddy Production
900 880 900 1,021 1,073 1,125 1,177
(000 t)
Milled production
600 625 675 673 700 730 745
(000 t)
Rice imports (000
249 183 226 225 221 218 214
t)
Rice exports (000
91 98 8 63 69 75 80
t)
Total rice
consumption (000 756 785 800 805 830 860 888
t)
On average a Turkish family spends 29.1% of its total income on food and rice is
one of the daily consumable food items in turkey. As per current Statistics the
Annual Rice consumption is 888 (000t) as compared to production which is 745
(000t) .
There is gap in Demand and production so by taking this as opportunity Rice is a
choice of export .

Countries export Rice to Turkey.

Turkey import Rice from:

1)India 2)Thailand 3)USA 4)Vietnam

Why Rice export from Pakistan

Pakistan is the world's 4th largest producer of rice. Pakistan is major producer of
Rice and producing around 6.9 Million Tons of rice ,out of which Basmati
production is 2.5 Million tons .Basmati is a premium long grain variety of rice
which is highly valued for its aroma and flavor and has a big demand in
international market.
Challenges in exporting Rice from Pakistan

Mixing of rice

Pakistan rice is famous in world but mixing of one variety with another
affects the quality of rice which results in loss of market.

Technology

The use of low technology both at harvesting/threshing and milling level

results in huge quantity of broken rice.

Brand

Mostly Pakistani exporting companies are selling rice without any brand
name. Due to this the exporters do not get good price of even high quality
product.
Opportunity through Value Addition:
By converting all above challenges as opportunity
strategy will be design in a such way that add value in terms of packing and
grading . Market segmentation strategy will be
executed which will devise a reasonable price
with low margins , high quality at affordable price
to customers . Rice will be introduce in market in
different packings 1kg,2kg,5kg,10kg in Vacuum
Bags .
Our an other competitive edge will be good
relationship with the suppliers/customers &
quality of services .

Cost Statistics:
Conclusion:
The demand for Rice is constantly growing in Turkey ,with the increase in
population, These factors and more provide a positive outlook for Rice export
Furthermore Turkey has favorable policies towards businesses and reasonable
profits can be achieved. However competitive strategy (competitive edge of
price and marketing) is required as a new entrant which can compete with local
and international business Players.

References:

 Rice Exporters Association of Pakistan (REAP)

 Thailand Rice Exporters Association
 Federal Bureau of Statistics
 International Trade Centre
 Food and Agriculture Organization
 United States Department of Agriculture
https://www.export.gov/article?id=Turkey-Rice tdap.gov.pk