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The European Advantage |
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Turkey’s agri-food market a horn of plenty
February 22, 2006
Turkey’s agri-food market a horn of plenty
Over the past few years, Turkey has transformed itself into a dynamic, modern economy.
Reforms that began in the 1970s, and reinvigorated after 1999, have propelled Turkey’s economy
from a rural to a modern industrial one. It now ranks as the 21st-largest economy in the world,
with a gross domestic product (GDP) of approximately $345 billion.
With Turkey now in negotiations to join the European Union, the outlook for the future is even
brighter. With GDP rising faster than the rate of population growth, GDP per capita is expected
to reach $6,300 by 2009, a level that permits consumers to exercise more choice and increase
spending on foods of higher value and quality.
Demographic trends contribute to a positive outlook as well. Turkey has a population of some 73
million, with an annual growth rate of 1.48%. Half of its population is under 25 and 18% of the
country’s total population is between the ages of 15 and 24. The urban population, which was
estimated at 34.4 million in 1990, is expected to reach 57.9 million in 2005, making up 79.5% of
the total population.
Cuddy Farms Invests in Turkey
Cuddy Farms of Strathroy, Ontario,
a global leader in the production of commercial turkey-hatching eggs and day-old poults, purchased a modern hatchery near Bandirma, Turkey, in late
2003 to better serve Cuddy’s Turkish customers and to supply emerging turkey markets in the
Middle East and surrounding areas. The Turkish operation, Cuddy Farms Anatolia, has an annual
capacity of 10 million eggs, from which it has seen the country’s turkey requirements increase
from three million to seven million eggs over the last four years. Cuddy’s commercial production
will benefit from the rapid growth in turkey consumption that is expected in Turkey over the
coming years.
Cuddy Farms Anatolia turkey hatchery
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Turkey agri-food market growing
Turkey has a large agri-food market; in 2004, imports were valued at $5.4 billion and exports at
$3.9 billion. The country is also an exporter of agricultural and farm products. In 2004, Canada
exported $52 million worth of agri-food products to Turkey, including wheat, lentils, eggs,
tobacco and chicken.
Consumer expenditures on food in Turkey exceeded $55 billion in 2004, representing an increase
of 13% over the previous year. The market for packaged and processed food is emerging and
exceeded $21 billion in 2005, an increase of 4.7% over 2004. Euromonitor International forecasts
that sales of packaged food in Turkey will reach $27.8 billion by 2009, increasing by 28% in
2004. Sales of chilled and processed foods will lead the growth, followed by confectionery, sweet
and savoury snacks, oils and fats, ice cream, dairy products, spreads, sauces, frozen and baby
foods. Sales of chilled and processed foods are expected to increase at an average annual growth
rate of 6.4% from 2005 to 2009.
Sales of alcoholic beverages are increasing as well. In 2004, sales reached $7 billion, an increase
of 56% in 2003. An increasingly younger population, a rising rate of urbanization, increased
disposable incomes, and a greater interest in Western lifestyles have all played a role in the
growth of alcoholic beverages. In fact, wine sales in 2004 increased by 37% over the previous
year.
Another factor in the rising food market in Turkey is the growing tourism industry. Some 17
million tourists—mostly European—visited Turkey in 2004, generating more than $14 billion in
revenue. This sector is expected to reach $27 billion in annual revenue within five years.
Continued growth in the tourism sector has led to an increase in the number of foreign cuisine
restaurants, both inside and outside of hotels.
The Turkish government is placing special emphasis on the food-processing industry and is
taking measures to stimulate investment and technology transfer in this sector. As a result, this
sector is becoming very attractive for suppliers and foreign investors.
Opportunities
Current Canadian agri-food exports to Turkey include grains and oil seeds, wheat (non-durum),
fresh eggs, tobacco, live chicken and seafood. Expanding and emerging opportunities for
Canadian agri-food exporters include the following: grains and oil seeds: wheat (non-durum and
durum), soybean and soybean residue; corn; pulses; lentils; processed foods; vegetable oils;
gourmet seafood; sauces; wine; beer; blueberries; confectionery products; snacks; frozen, baby
and pet foods; bovine breeding and artificial insemination; seed potatoes; and food ingredients
for processing.
The Canadian-Turkish Business Council, with the assistance of the Canadian Embassy in
Turkey, International Trade Canada and Agriculture and Agri-food Canada, is planning an agri-food mission to Turkey from November 6 to 10, 2006.
For more information on market opportunities and the upcoming agri-food mission to Turkey,
contact:
Sohrab Oshidar
Agriculture and Agri-Food Canada
Tel.: (613) 759-7693
Fax: (613) 759-7506
Email: oshidars@agr.gc.ca
Website: http://ats.agr.ca
David Clendenning
International Trade Canada
Tel.: (613) 996-4484
Fax: (613) 944-0556
Email: david.clendenning@international.gc.ca
Catherine Gosselin
Email: catherine.gosselin@international.gc.ca
or
Can Ozguc
Email: can.ozguc@international.gc.ca
Canadian Embassy in Ankara
Tel.: (011-90-312) 409-2773
Fax: (011-90-312) 409-2715
Aida Viveiros
Canadian Manufacturers & Exporters and Canadian-Turkish Business Council Secretariat
Tel.: (905) 672-3466, ext. 288
Fax: (905) 568-8155
Email: aida.viveiros@cme-mec.ca
Tim Marshall
Saskatchewan Trade Export Partnership
Tel.: (306) 787-2191
Fax: (306) 787-6666
Email: tmarshall@sasktrade.sk.ca
Website: www.sasktrade.sk.ca
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