With its favorable geographical conditions and climate, Turkey is considered to be one of the leading countries in the world in the field of food and agriculture.
The restructuring efforts that began in the early 1980s, alongside a series of reforms including privatizations and the reduction of trade barriers in the agriculture sector, resulted in a domestic market that is an integral part of the world economy today.
Turkey has a large and growing food and agriculture industry that corresponds to 9 percent of the overall gross value-added (GVA) and 25 percent of the employment levels in the country.
The strengths of the industry include the size of the market in relation to the country’s young population, a dynamic private sector economy, substantial tourism income and a favorable climate.
Turkey has a population of 76 million people and is growing with rising income levels. This makes Turkey one of the largest markets in its region, and the changing consumer habits of the younger generation boost domestic consumption.
Consequently, Turkey’s food industry has registered steady growth in recent years, with Turkish consumers becoming increasingly demanding, driven by the multitude of choices offered by mass grocery retail outlets. Rising disposable income and changing consumption patterns, along with the increase in the number of females in full-time employment, have all led to an increase of interest in packaged and processed food, such as ready-to-eat meals and frozen food.
Turkey is the world leader in the production of dried figs, hazelnuts, sultanas/raisins and dried apricots. It has the largest milk and dairy production in its region. In addition, Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500.
While Turkey is becoming one of the largest markets for baked goods with its bread - an important element of the Turkish diet - subsector 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, holding back widespread growth but also offering potential to investors.
This potential positions Turkey to be among the top options for being the regional headquarters and supply center of top global players. In its region, Turkey has a strong dominance in production and exportation of many agricultural products such as hazelnuts, dried apricots, sultanas and dried figs. In addition, Turkey’s food industry is much better developed than that of neighboring countries. Given these factors, the country is one of the largest exporters of agricultural products in the Eastern Europe, Middle East and North Africa (EMEA) region, while its trade balance is significantly positive. With growing exports, the Turkish agrofood industry has recorded USD 5 billion of trade surplus.
Turkey offers a set of enablers for potential agrofood investors; the Turkish government’s support mechanism includes favorable regulations, tax structure, competitive and low-cost labor force and investment incentives.
According to McKinsey and Co., Turkey offers significant investment opportunities especially in the agribusiness subsectors such as fruit and vegetable processing, animal feed, livestock, poultry, dairy and functional food, aquaculture, and enablers (in particular cold chain, greenhouse, irrigation, and fertilizer).
An agreement has been reached to strengthen ties between the Australian state of Tasmania and the Chinese province of Fujian, with supermarket chain Yonghui Superstores looking set to bolster imports over the coming years.
Tasmania Premier Will Hodgman led an Australian business delegation to China on March 28, where they were accompanied by the provincial government’s Foreign Affairs Office Deputy Director Wang Tianming.
Representatives from Yonghui were also present during the visit, and reached a deal with the Tasmanian delegation to further their partnership.
The company’s chairman Zhang Xuansong said China and Australia were fostering a strong friendship, and described Fujian and Tasmania as ‘sister states’.
Last November, Yonghui representatives accompanied Fujian provincial secretary You Quan on a business trip to Tasmania. By Dec. 3, the first shipment of Tasmanian sea snails had arrived on Yonghui’s supermarket shelves.
“It’s a good start, and we hope to further capitalize on this market opportunity,” Zhang said in a release.
He added Yonghui would begin to purchase local specialities and snack foods, and expressed strong confidence in the partnership between the company and the island state in the future.
According to Yonghui’s figures, in 2014 the chain purchased Australian mangoes, oranges, tangerines, and beef, as well as Tasmanian sea snails, salmon, tiger prawns, with a total value of more than CNY80 million (US$13 million).
This year, Yonghui is planning to expand trade by purchasing more than 2,600 metric tons (MT) – or CNY90 million (US$15 million) – of products.
During the visit, Hodgman highlighted the high quality of the state’s produce due to the island’s natural surroundings.
Other members of the Tasmania delegation included Lord Mayor of Hobart City, Sue Hickey, Launceston City Mayor, Albert Van Zetten, Tasmanian Parliamentary Secretary for Small Business and Trade, Adam Brooks, and representatives of several Tasmanian companies.
Members of Yonghui’s global procurement team were also present during the visit.