2013 Trade Mission

December 6-15, 2013

Prepared for the US Dry Bean Council

J. Stobbs (Marketbase), 71 avenue Bosquet, 75007 Paris, FRANCE Tel. + 33 (0) 1 45 51 36 03 / Fax + 33 (0) 1 47 53 72 85 email: [email protected]

Table of Contents

page Turkey Trade Mission Summary 3 Itinerary 4 Purpose 4 Meetings 5 Role of PR Agency 5 Turkish Market 6 FAS US Export Statistics 7 Turkish Dry Bean Domestic Production & Consumption 8 Turkish Importers and End-Users 8 Main Competing Countries 8 US Dry Bean Classes for Turkey 8 Market Notes 10 Recommendation 11 Recommendation Budget Summary 12 Trade Mission Program 13 Meeting Notes Aral 18 Arbel 20 Ba şhan 22 Bayamta ş Group 24 Dervi şoglu-Agroder 25 Diyablar Agro 27 Marka Trading 28 Memi şler 29 Memi şoglu 30 Tamek 32 Tiryaki Agro 35 Yurt Konserve 37 Store Check – Macro Center Supermarket 39 Going Forward in 2014 40

USDBC 2013 Turkey Trade Mission Report, December, 2013 2

Turkey Trade Mission Summary

Title: 2013 Turkey Trade Mission Report Trip Start Date: December 6, 2013 Trip End Date: December 15, 2013 Trip Locations: Istanbul and Mersin/Adana Trip Country: Turkey Trip Persons: USDBC members: Mark Streed and Alan Juliuson, and USDBC Representative for Turkey, Johanna Stobbs

USDBC Turkey Trade Mission - December 6-15, 2013

Arrival Name Date Airline & Time Departure Date Airline & Time

Mark Saturday, Delta/KLM # KL1613, Sunday, Air France, AF Streed December arriving Istanbul from December 15 #1391, leaving 7 Amsterdam at 15h50 Istanbul at 6h25

Alan Saturday, Delta/KLM # KL1613, Sunday, Air France, AF Juliuson December arriving Istanbul from December 15 #1391, leaving 7 Amsterdam at 15h50 Istanbul at 6h25

Johanna Saturday, Air France, AF Saturday, Air France, AF Stobbs December #1890, arriving December 14 #1891, leaving 7 Istanbul from Paris at Istanbul at 18h35 16h55

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Trip Itinerary: 5 days of trade meetings in Istanbul and Mersin • December 7: Participants arrive in Istanbul; accommodation at the Sheraton Atakoy Hotel, Sahilyolu, 34158 Atakoy, Istanbul. • December 8: Market Briefing and dinner in Istanbul. • December 9: Trade Team flies to Adana/Mersin, TK # 2458, departing from Istanbul at 8:50 a.m., arriving in Adana airport at 10:20 a.m.; transfer to the Hilton Hotel, Palmiye Mah. 1225 Sk. N° 1, 33 110 Mersin. • December 9: two Trade Mission meetings in the afternoon. • December 10: three Trade Mission meetings throughout the day. • December 11: two Trade Mission meetings in the morning; Trade Team flies to Istanbul in the afternoon, Turkish Airlines TK # 2463, departing from Adana airport at 4:45 p.m., arriving in Istanbul at 6:25 p.m.; accommodation at the Sheraton Atakoy Hotel, Istanbul. • December 12: three Trade Mission meetings in Istanbul throughout the day. • December 13: three Trade Mission meetings in Istanbul throughout the day. • December 14: free day. • December 15: departure for the US.

Trip Purpose: • To renew and strengthen ties with Turkish importers of US dry beans.

• To discuss the US dry bean crop of 2013 and explain the lack of product availability concerning Great Northern beans and garbanzo beans, two classes sought after in the Turkish market.

• To encourage Turkish importers to consider the cost advantages of forward contracting, especially regarding US Great Northern beans. This will help to ensure an adequate supply of GNs for Turkey in the crop of 2014.

• To discuss the role that US navy beans can play as a short-term white bean substitute for Great Northern beans.

• To discuss and explain the role that US pinto beans can play as a long-term substitute for high-priced Turkish barbunya beans and high-priced Chinese light red speckled beans.

• To assess market conditions in Turkey.

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Trip Meetings: • One-on-one trade meetings were held with 12 companies:

Name Type of Company Location Page N° Aral Importer-dry packager Istanbul 18 Arbel Importer Mersin 20 Bashan Importer-dry packager Mersin 22 Bayamtas Importer-dry packager Mersin 24 Dervisoglu/Agroder Importer Mersin 25 Diyablar Agro Importer Mersin 27 Marka Trading Importer-agent Istanbul 28 Memisler Importer-dry packager Mersin 29 Memi şoglu Importer-dry packager Mersin 30 Tamek Canner Istanbul 32 Tiryaki Agro Importer Istanbul 35 Yurt Canner Istanbul 37

USDBC Turkey Trade Mission Team, from left: Jack Jacob (Promedia PR agency), Alan Juliuson (USDBC member), Mark Streed (USDBC member), Johanna Stobbs (USDBC representative for Turkey) and Feray Alpay (Promedia PR agency).

Note: the role of the PR Agency, Promedia • The USDBC was assisted during the 2013 Turkey Trade Mission by the Turkish PR Agency, Promedia. Promedia helped to set up company meetings and assisted in translation, when needed. Promedia was also responsible for hotel reservations and ground transportation. We thank Promedia for its excellent support.

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The Turkish Market

Area: total: 780,580 sq km (301,000 sq. miles - slightly larger than Texas)

Bordering countries: Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraq, Syria

Population: 80.7 million (2013 estimate)

Ethnic groups: Turkish 80%, Kurdish 20% (estimate)

Religions: Muslim 99.8% (mostly Sunni), other 0.2% (mostly Christians and Jews)

GDP: $794.5 billion (2012 estimate)

Average per capita income: $15,200 (2012 estimate)

GDP composition by sector : agriculture: 9.1% industry: 27 % services: 63.9% (2012 estimate)

Agricultural products : tobacco, cotton, grains, olives, sugar beets, hazelnuts, pulses, citrus; livestock

Capital city: Ankara (population 3.8 million)

Population of Istanbul: 10.4 million (municipality)

Urban population: 71.5 % of the total population (2012)

(Source: CIA Factbook)

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FAS US Dry Bean Export Statistics

Quantities in MT Values in thousands of US $

2008 2009 2010 2011 2012 Jan - Nov Jan - Nov 2013 2012 Partner Product UOM Value Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value Qty Period Period % % Change Change (Value) (Qty) Turkey Garbanzos MT 0 0.0 0 0.0 835 968.0 931 1,282.5 8,739 7,391.7 4,484 4,147.0 7,197 6,897.6 +60 + 66

Turkey Dry Beans MT 8,366 12,522.9 0 0.0 3,328 4,554.0 130 125.7 1,502 2,550.1 1,261 2,140.6 8,452 9,265.8 + 570 + 333 Grand MT 8,366 12,522.9 0 0.0 4,162 5,522.0 1,061 1,408.2 10,241 9,941.9 5,745 6,287.6 15,649 16,163.4 + 172 + 157 Total

Notes: • In 2008, Turkey had a massive shortage of white domestic sira beans and imported more than 12,500 MT of US Great Northern beans for a value of $8.4 million.

• In 2009 there was no export activity from the US into Turkey. This was the year that the USDBC supported an EMP program in Turkey to introduce the US pinto bean. The USDBC also participated in a seminar-based GBI program with other cooperators groups in 2011 (Craig Kelley was the speaker for the USDBC). Since then, there has been no specific USDBC marketing program in Turkey, except for general trade servicing.

• In 2010, US exports of Great Northern beans jumped to more than 4,500 MT, but fell to only 125 MT in 2011, a year of GN shortages. However, US garbanzos started to really enter the market in 2011 with 1,280 MT.

• Since then, US garbanzos continued to take off because the Turkish roasting industry prefers them to garbanzos from other origins (i.e. India, Mexico). In 2012, Turkey took over 7,300 MT of garbanzos, as well as 2,500 MT of dry beans (mostly GNs, but also some pintos) for a total of 9,900 MT and a value of more than $10 million.

• Comparing 11-month activity between 2012 and 2013, everything is up (garbanzos and dry beans), with US exports now reaching more than 16,000 MT for a total value of nearly $15.6 million. Quantity is up by 157%; value is up by 172%.

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Turkish Dry Bean Domestic Production and Consumption: White beans Production: 120,000 MT Consumption: 300,000 MT

Garbanzo beans Production: 350,000 MT Consumption: 450,000 – 500,000 MT

Speckled beans Production: 2,000 MT – 5,000 MT Consumption: 20,000 MT

Turkish importers and end-users • There are approximately 20 well-known Turkish import companies, many of which are also active in the retail dry packaging sector. • Turkish importers also export to neighboring markets such as Iraq, Iran, Syria, Jordan, Lebanon, the UAE and Egypt. • In addition, there are approximately 10 national canning companies, most of which market canned dry beans.

The main countries competing against the US for the Turkish dry bean market are: White beans: China, Argentina, Kyrgyzstan Speckled beans: China, Kyrgyzstan, Ethiopia

There is a 19.2% import tariff on all pulses entering Turkey although, due to the dry bean shortage in the market, the government is currently considering lowering the duty to zero.

US dry bean classes for Turkey: Traditionally, the Turkish market has been interested in three classes of US dry beans:

• US Great Northerns are by far the most sought after class of US dry bean. Turkey will always buy US Great Northerns when there is white bean demand. Great Northerns stand on their own in this market. They are well-known and well-liked. Exports of US Great Northerns fall when there are other, cheaper sources of alubia- type white beans and rise when there are not. This year, with the Argentine crop failure, the Turks were caught off-guard. In the face of no Great Northern beans available, Turkish importers are resorting to US navy beans – for the first time.

• US garbanzos are now very popular with the Turkish roasting industry for the snack food called “leblebi”. US garbanzos (9mm & 10mm) are the right size and the right quality, i.e. they do not break during roasting and produce very little wastage.

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• US pinto beans are starting to come into their own because:

• Production of the domestic Turkish speckled bean, the “barbunya”, is in decline and prices are now unaffordable.

• The Chinese light red speckled bean is also in decline and this year’s prices, CIF Mersin, have gone well over the $2,000/MT line.

• US pinto beans cook well, have a wonderful taste, can well, and are half the price of Chinese speckled beans.

Turkish importers are wary of US pinto beans because they tend to be on the dark side and the speckles are brown, not red (Turkish barbunya beans and Chinese light speckled beans have red speckles).

The canning industry is beginning, finally, to understand that this does not matter when pintos are canned. But the dry packaged retail sector is still reluctant, believing that the consumer will think that US pinto beans are old or spoiled.

However, the high price of speckled beans from other sources (China, Turkey) is pushing importers and dry packagers towards the US pinto bean as an inevitable substitute, like it or not.

Once the housewife tries pintos, (which will be lower in price than other dry packaged beans) we feel sure that she will buy again – and again.

Canned US pinto beans (on the left) compared with canned Chinese red speckled beans (on the right). People at the Tamek Canning company, Istanbul, thought that the US pintos looked better, had better color and taste, were more uniform in size, and presented fewer broken beans.

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Market Notes • Turkey holds good potential for US exports of dry beans. There are essentially three different classes of US beans that are of interest in this pulse-consuming market.

1. Turkey will always be a customer for US Great Northern beans, as long as the price is right. Great Northern beans are almost identical to the Turkish domestic sira bean, so GNs are well-known to the consumer. In addition, as Chinese production of a range of dry beans continues to decrease, including white beans, Chinese prices keep on rising and are, increasingly, becoming unaffordable. This gives an even greater opportunity for Great Northern beans to establish themselves in Turkey on a long-term basis as the white bean of choice.

2. US 9mm & 10mm garbanzo beans are already a “hit” in Turkey due to their success in the snack food industry, i.e. with companies that produce roasted garbanzos, called “leblebi”. This success should continue, making Turkey one of the most important customers for US kabuli, large-size garbanzos.

3. US pinto beans continue to struggle in Turkey due to the fact that buyers have become accustomed over the years to Chinese light red speckled beans and low prices. However, Chinese production of various types of red speckled beans is in decline. Chinese production is not meeting international demand and prices have risen to unheard-of levels. The US pinto bean now finally has a chance to make in- roads in Turkey, not because importers want it, but because they need it. Buyers tend to be extremely conservative and worry that the consumer will not want a smaller, brown-speckled bean, after years of consuming a larger, red speckled bean. Nevertheless, money talks. If US pinto beans can remain at half of what Chinese speckled beans cost, buyers will be forced to change their tune. The Turkish domestic red speckled bean, the “barbunya” is rapidly becoming a thing of the past. Production is in steep decline as farmers turn to more lucrative crops. Yet the market demands a good tasting, affordable speckled bean, both for the dry packaged sector and the canning industry.

N.B. It is important to note that Turkey is not only a pulse-consuming country, but is also one of the principal exporting countries in the region. Its geographical location and free-zone ports makes it a powerhouse for re-exports to its neighbors (Iran, Iraq, Syria, Jordan, Lebanon, Egypt, UEA). Therefore, US dry bean classes that are not ideal for the Turkish domestic market are still candidates for re-exports to foreign markets.

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Recommendation

US Pinto bean promotion for the Turkish retail dry packaged sector

This would seem to be an optimum time to conduct a retail promotion of US pinto beans in the Turkish dry packaged sector. The dry packaged sector is the focus for this recommendation because, for now, it is larger than the canning industry in terms of volume.

Details: • A one-year promotion offering: • $10,000 in promotional money to be used by a Turkish dry packaging company to develop new packaging and print advertising to launch the product. A leading import-dry packaging company, Memisoglu-TAT has agreed to be the USDBC’s partner.

• One-year exclusive use of the USDBC’s heart logo

• $3,000 to cover the cost of registering the USDBC heart logo to protect it from misuse.

• Mandatory: the use of the heart logo on the new packaging, plus the use of the words, in Turkish: “US Pinto Beans” or” US Pinto Barbunya Beans”.

• Mandatory; the purchase of 5 to 10 full container loads of US pinto beans for the promotion by the Turkish dry packaging company.

• $15,000 to organize and conduct in-store promotions, in cooperation with the Turkish dry packaging company; these in-store promotions, designed and run by the Turkish PR agency, Promedia, would feature cooked US pinto beans, served to shoppers, as well as the distribution of a leaflet providing background information on US pinto beans and offering Turkish pinto bean recipes.

• Reinstatement of the USDBC’s Turkey Trade Servicing budget. This budget line ($15,000) was eliminated in 2013. Trade Servicing in 2014 will be necessary to prepare, organize and follow-through with all details related to a promotional program.

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Budget Summary - US Pinto Bean Promotion

US Pinto Promotion Program $10,000 – new packaging and print advertising $15,000 – in-store promotion $3,000 – registration of the USDBC heart logo ------$28,000 - total US Pinto Bean Promotion Program budget

------Turkey Trade Servicing $15,000 – reinstatement of the Turkey Trade Servicing budget.

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Schedule – Turkey Trade Mission December 7 - 15, 2013

The group was accompanied by Johanna Stobbs (USDBC) and Feray Alpay & Jack Jacob (Promedia PR Agency)

PROGRAM

December 7 - Saturday Arrive Istanbul – airport pick-up & transfer to Sheraton Atakoy Hotel

Accommodation at Sheraton Atakoy Hotel – Istanbul

December 8 - Sunday

6:00 p.m. Market Briefing and Dinner

December 9 – Monday

08:50 a.m. 10:20 a.m. Travel from Istanbul to Adana by plane Flight: TK (Turkish Airlines) #2458

10:50 a.m. 12:00 a.m. Airport pickup and transfer to Hilton Hotel in Mersin

2:00 p.m. Diyablar Agro Co., importer Address: Uray cad. 5206 No:3 Mersin, Turkey Contact: Sükrü Diyab & Bulent Erbesli Tel. + 90 324 232 6873 Fax + 90 324 233 1636 Email: [email protected] , [email protected] Website: http://diyablar.com/

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4:00 p.m . Bayamta ş Group, pulse and rice importer, trader and packager Address: Adana Mersin Yolu, Yenitaskent mevkii 12 Km. Mersin, Turkey Contact: Naci Bayamtas, Tel. + 90 324 221 3700 Fax + 90 324 221 3710 Email: [email protected] Website: www.bayamtas.com.tr

Accommodation at Hilton Hotel in Mersin

December 10 – Tuesday

09:30 a.m. Dervisoglu-Agroder, importer and packager Address: Kazanlı mah. 32001 sk. No:7/A Akdeniz 33281 Mersin, Turkey Contact: Sait Dervisoglu, General Manager Tel. + 90 324 221 34 15 / 324 221 5729 Fax + 90 324 221 34 16 Cell + 90 532 337 55 47 Email: [email protected] / [email protected] Website: www.agroder.com.tr

11:30 a.m. Arbel, importer Address: Adana Mersin Yolu, Yenitaskent mevkii 12 Km. Mersin, Turkey Contact: Hüseyin Arslan, General Manager Onur Ozdemir, Assistant General Manager Tel. + 90 324 241 11 11 Fax + 90 324 451 32 01 Email: [email protected] Website: www.arbel.com.tr

3:00 p.m. Memisoglu, importer and packager Address: Adana Mersin Yolu, Yenitaskent mevkii 12 Km. Mersin, Turkey Contact: Serafettin Memis, General Manager Ms. Tuba Memis, Assistant General Manager Ms. Kumsal Taylar, Foreign Trade Manager Tel. + 90 324 454 04 04 Fax + 90 324 454 04 06 Cell + 90 533 424 19 18 Email: [email protected] Website: www.tatbakliyat.com

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Accommodation at Hilton Hotel in Mersin

December 11 – Wednesday

09:30 a.m. Ba şhan, importer and packager Address: Mersin-Adana Karayolu, Üzeri Emek Mah. Atatürk Bul. 18 Karacailyas, Mersin, Turkey Contact: Bedrettin Memis, Sales & Marketing Manager Tel. + 90 324 221 41 41 Fax + 90 324 221 41 42 Email: [email protected]

1:00 p.m. Memisler, importer and packager Address: Cilek Mah. 1448, Sk #183 Mersin, Turkey Contacts: Sabahattin Memis, Vice Chairman Tel. + 90 324 234 96 66 Fax + 90 324 234 96 68 Email: [email protected] Website: www.memisler.com.tr

2:00 p.m. Travel from Mersin to Adana airport by car

4:45 p.m. Travel from Adana to Istanbul by plane Turkish Airlines TK2463

Accommodation at Sheraton Atakoy Hotel – Istanbul

December 12 – Thursday

10:30 a.m. Aral, importer, packager Address: Tat Binasi, Sile Otoyolu 11. Km. Ta şdelen, Istanbul, Turkey Contact: Mr. Ismet Aral, Director, Ms. Didem Aral, Director Tel. + 90 0216 4844270 Fax + 90 0216 484 4276 Email: [email protected] Website: www.aralfood.com

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1:00 p.m. Marka Trading, importer, agent Address: 19 Mayis Mahallesi, Sultan Sokak Deniz Apartmani No: 26/8 34736 Erenköy, Kadiköy Istanbul, Turkey Contact: Mr. Ahmet Kiziltan Tel. + 90 216 411 9275 Fax + 90 216 411 9277 Cell: + 90 532 233 3484 Email: [email protected] Website: www.markatrading.com

3:30 p.m. Yurt Konserve , canner Address: Mimarsinan Silivri cad. No:6 Buyukcekmece, Istanbul, Turkey Contact: Mr. Serafettin Unsal, Foreign Trade Manager Tel. + 90 212 861 4343 Fax + 90 21 861 4348 Email: [email protected] Website: www.yurtkonserve.com.tr

Accommodation at Sheraton Atakoy Hotel – Istanbul

December 13 – Friday

10:30 a.m. Tiryaki Agro, importer, trader Address: Abdullah A ğa Mah. Şemsi Efendi Sok. Ya ğcılar Kö şkü, Beylerbeyi 34676 Istanbul, Turkey Contact: Emin Akkan, Foreign Trade Manager Tel: + 90 216 333 20 00 Website: http://www.tiryaki.net/tr-TR/anasayfa/1.aspx

1:00 p.m. Tamek, canner Address: Nispetiye Mah. Hakkı Şehit Han Sok. No:35 2 Ulus 34340 Be şikta ş, Istanbul, Turkey Contact: Ay şe Özgür Süer Tel: + 90 212 325 80 50 Website: www.tamek.com.tr

Accommodation at Sheraton Atakoy Hotel – Istanbul

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December 14 – Saturday Free day

December 15 – Sunday Depart for the USA (6:25 a.m. flght)

Cell phone telephone numbers:

Johanna Stobbs: + 33 6 14 11 04 19 Jack Jacob: + 90 (0) 532 286 7274 Feray Alpay: + 90 (0) 533 373 6267

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Meeting Notes

ARAL Address: Tat Binasi Sile Otoyolu 11. Km. Ta şdelen, Istanbul, Turkey Tel. + 90 0216 484 42 70 Fax + 90 0216 484 42 76 Contact: Zafer Aral, President Contact: Ms. Didem Aral, Director Email: [email protected] Website: www.aralfood.com

From left: Cahit Aral (Subsidiary Business), Ismet Aral (Vice President), Didem Aral (Director), Johanna Stobbs, Alan Juliuson, Mark Streed and Zafer Aral (President).

Aral is a leading Turkish importer-exporter-dry packaging company, specializing in pulses, rice and sugar. A top-quality operation, Aral has sold product in the US (red lentils and garbanzos) and currently supplies Heinz in the UK. Founded in 1982, the company has processing facilities in Mersin and Ke şan-, with head offices in Istanbul. The company exports to the US, Canada, the UK, France, Italy, Germany, Libya, Lebanon, Kuwait, and Dubai.

ISO and HACCP-certified, Aral packages a wide range of products, including garbanzos, Great Northern beans, dark red kidney beans and dermason beans (the Turkish white sira bean), as well as red and green lentils. The company does private- label packaging for the Metro cash & carry chain, as well as marketing its own brands, Kiler (“store-cupboard” in Turkish), Noba (an up-market, premium brand, in laminated packaging) and Prenses . Aral also supplies the supermarket chain. One third of Aral’s business goes to supplying neighborhood bakkal corner shops, while two thirds of its activity is devoted to the supermarket retail trade.

Aral’s up-market range of pulse products under the Noba brand name.

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Aral purchases 15,000 MT of pulses per year, including 5,000 - 6,000 MT of garbanzos.

The company, under the direction of Didem Aral, is now interested in promoting US pinto beans to the Turkish canning industry and is actively engaged in discussions with canners. It is the opinion of Aral that pinto beans, which are between 35% to 50% cheaper than Chinese speckled beans or Turkish barbunya beans, can be more successful as a canned product than as a dry packaged product. In their estimation, dry packaged beans have started to become a thing of the past, with easy-to-prepare canned goods and frozen foods gaining market share in a modern, fast-moving economy in which no one has time to cook. Aral believes that the consumption of canned food is increasing by 5% to 10% per year, on average.

Meeting Outcomes Navy beans: Aral is not interested in US navy beans.

Forward Contracting: Aral will consider forward contracting for Great Northern beans and would like to receive an offer.

Pinto beans: Didem Aral will meet with five leading canners in late December/early January. These include TAT, Tamek, Tuka ş, Yurt and Penguin. Her objective is to present US pinto beans as a high-quality, affordable canning bean – the ideal substitute for Turkish barbunyas and Chinese speckled beans.

For these meetings she has requested 5 kilos of dry pinto beans per canner, i.e. 25 kilos. This sample could be included in any container shipment that is already coming to Turkey, since Aral has excellent relationships with all Turkish importers.

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ARBEL Address: Yeni Mahalle Cumhuriyet Bulvari 73/4 33281 Kazanli Mersin, Turkey Tel. + 90 324 241 11 11 Fax + 90 324 451 32 01 Contact: Hüseyin Arslan, Chairman Onur Ozdemir, Assistant General Manager Email: [email protected] Email: [email protected] Website: www.arbel.com.tr

From left: Mark Streed, Onur Ozdemir (Assistant General Manager), Johanna Stobbs and Alan Juliuson.

Arbel Pulse & Grain has production facilities in Mersin, with a daily capacity of 4,000 MT. Arbel, part of the Alliance Grain Traders Group, is the largest pulse exporter in Turkey, serving clients in the US, South America, Europe, Africa and Asia. It is estimated that Arbel processes and trades 30,000 MT of garbanzo beans and 30,000 MT of dry beans, as well as100,000 MT of lentils per year . The company is also highly successful with its Arabella pasta products.

The Arbel Mersin operation comprises 1 million sq. ft. of land, 38,000 MT of storage capacity in steel silos and more than 50,000 MT of storage in warehouses. Arbel production facilities include cleaning, calibration, peeling, splitting and color sorting for garbanzos, white beans, red lentils, green lentils, bulgur wheat, pasta/macaroni, semolina, durum wheat and wheat flour. The company will open a processing plant in China in 2014.

Arbel is a large buyer of product in North America. The company recently purchased 10,000 MT of North American navy beans, as well as pinto beans from Canada. It buys directly and through brokers. Although Kyrgyzstan remains a strong producer of white beans (i.e. between 70,000 MT and 80,000 MT per year), 2014 could be a very good year for US navy beans in Turkey. Arbel participates in World Food Program tenders and was considering offering US pinto beans. However, pintos are still too expensive to be successful in a WFP bid. Price is not an issue for the WFP only, of course, but also for the domestic Turkish market. Retail prices have recently risen by 15% for dry beans, leading to a fall in demand.

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The Trade Mission team asked Onur Ozdemir for some statistics regarding Turkish dry bean production and consumption. The following figures coincide with what other Turkish traders have indicated:

White beans Production: 120,000 MT Consumption: 300,000 MT

Garbanzo beans Production: 350,000 MT Consumption: 450,000 – 500,000 MT

Speckled Turkish Barbunya beans Production: 2,000 MT – 5,000 MT Consumption: 20,000 MT

Turkish traders tend to size beans according to the number of grains per 100 grams. Onur Ozdemir provided the Trade Mission team with the following guidelines:

6-8 mm – 275-280 grains per 100 grams 7-9 mm – 235 grains per 100 grams 8-9 mm – 220 grains per 100 grams 9-10 mm – 155-165 grains per 100 grams

Meeting Outcomes Forward Contracting: Will consider contracting for white beans (Great Northerns and/or navy beans) and will follow up in the New Year.

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BA ŞHAN Mersin-Adana Karayolu Üzeri Emek Mah. Atatürk Bul. 18 Karacailyas Mersin, Turkey Contacts: Bedrettin Memis Sales & Marketing Manager Nursah Pinarci, Foreign Trade Manager Tel. + 90 324 221 41 41 Fax + 90 324 221 41 42 Email: [email protected] Email: [email protected]

From left: Bedrettin Memis (General Manager) Mark Streed, Johanna Stobbs, Nursah Pinarci (Foreign Trade Manager) and Alan Juliuson.

Ba şhan is one of several companies owned by members of the Memi ş family, a dynasty that controls much of the dry legume trade in Turkey. Ba şhan was founded as a regional wholesaler in 1988 and only took on its present name and structure in 2005. Ba şhan focuses on pulses and cereals, with a strong sideline in nuts and spices. The company imports all types of pulses, but also sources locally (mostly Turkish chickpeas and red lentils). It has a 75,000 sq. ft. processing and warehousing facility in Mersin, very modern Sortex cleaning facilities and packages to a very high standard. On average, the company processes around 360 MT of pulses per day.

In addition to the Ba şhan brand (which means “top house” in Turkish), the company markets a secondary brand, Prizma , as well as private label packaging. Ba şhan also supplies the Turkish canning industry. High quality in all areas of production is at the core of its business.

In addition to the processing plant in Mersin, the company also has offices in the Marmara and Mu ş regions. Rather than sell directly to supermarkets, Ba şhan supplies a vast range of wholesalers who, in turn, sell to the retail sector. Ba şhan’s products are particularly strong in the BIM supermarket chain and in Pehlivanoglu stores, a retail chain in the Izmir region. Ba şhan sees itself as becoming increasingly specialized in small- and medium-sized retail outlets. 60% of its business is now focused on the domestic market and 40% on the export market. Ba şhan exports to the neighboring countries of the Middle East, Europe and the US.

The company is experiencing rapid growth. In 2012 its turnover was $110 million. In an average year, Ba şhan buys around 7,000 MT of white beans. It has recently bought pinto-type beans from Ethiopia.

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Meeting Outcomes Forward Contracting: Interested in contracting for Great Northern beans

Navy Beans: Looking for 5 to 10 containers of navies – immediate purchase.

Pinto Beans: Requested offers on pintos; awaiting current price indications.

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BAYAMTA Ş GROUP Address: Adana Mersin Yolu Yenitaskent mevkii 12 Km. Mersin, Turkey Contact: Naci Bayamtas, CEO Tel. + 90 324 221 3700 Fax + 90 324 221 3710 Email: [email protected] Website: www.bayamtas.com.tr

From left: Alan Juliuson, Mark Streed, Johanna Stobbs and Naci Bayamta ş (CEO).

Bayamta ş is a third-generation Mersin-based pulse, rice and spice importer/processor, founded in 1945. The company has two plants in Mersin and processes approximately 200 MT of product per day. Bayamta ş cleans and packs all types of dry legumes and splits red lentils. The company markets two major retail brands: Anadolu and Baytat, which are found in nation-wide hypermarket and supermarket chains such as Carrefour, BIM and Kipa. The company buys, processes and packages 10,000 MT per year of pulses, including 2,000 MT of white beans and 2,000 MT of garbanzo beans. The white beans are from Canada, Argentina and Kyrgyzstan. Bayamta ş has also bought Great Northern beans from the US, used both in the domestic market and for re-export.

Meeting Outcomes Forward Contracting: Interested in contracting for navy beans, if price were attractive enough.

White Kidney Beans: Would be a buyer for this class of bean, if available from the US.

Pinto Beans: Interested in marketing US pinto beans as “pink” beans (“pembe fasulye”). Would like to see a sample of the USDBC’s “heart” logo for an eventual promotion.

USDBC 2013 Turkey Trade Mission Report, December, 2013 24

DERVI ŞOGLU-AGRODER Address: Kazanli mah. 32001 Sk. No. 7/A Akdeniz 33281 Mersin, Turkey Contact: Sait Dervisoglu General Manager Tel. + 90 324 221 34 15 Fax + 90 324 221 34 16 Cell + 90 532 337 55 47 Email: [email protected] Email:/ [email protected] Website: www.agroder.com.tr

From left: Ismail Dervi şoglu (Export & Import Manage), Alan Juliuson, Johanna Stobbs, Mark Streed and Sait Dervi şoglu (General Manager).

Devi şolgu-Agroder is a well-known import-export company, founded in 1984, that deals in pulses, rice, bulgur wheat, dried fruits, nuts, spices, oil seeds, grains and feed products. The company trades with 46 countries, but is especially strong in Iraq, Iran, Syria and Azerbaijan. However, its reach is global. For example, Agroder does private label packaging for a UK retailer. Nevertheless, Agroder now imports more than it exports.

Devi şolgu-Agroder has a processing capability of 90,000 MT per year, with a 10,000 MT storage facility for pulses and a 300 MT per day cleaning capacity for pulses. The processing plants do cleaning, splitting, crushing, sorting and color separation. Agroder packs product according to customer needs and can supply everything from 500 gr packs to 1-ton totes. The company’s annual turnover is approximately $100 million.

The company took 12 containers of US Great Northern beans early in the 2013 crop period, as well as 3,500 of navy beans from Michigan and Canada. It prefers the Alberta class of navy bean because that is the type that is used for seed in Turkey. The company works specifically with one broker in the US, but also purchases product directly. In addition to buying beans from North America, Devi şolgu-Agroder sources white beans from Kyrgyzstan, light speckled beans from China, pea beans from Ethiopia, and white alubia beans from Madagascar.

Devi şolgu-Agroder sees itself principally a white bean importer, taking approximately 20,000 MT. It sources white beans, in order of importance, first from Turkey and then: Kyrgyzstan, Argentina (in a normal year), Canada and, finally, the US. The company is not interested in forward contracting because 50% of its business is in back-to-back trading and, for it, dry beans are a spot market.

USDBC 2013 Turkey Trade Mission Report, December, 2013 25

In terms of re-exports, Devi şolgu-Agroder uses navy beans for Iraq and local wholesalers, while the company believes that pinto beans could go to the Turkish military.

Sait Dervisoglu, the General Manager, plans to visit the US in June-July 2014 and would like to meet with principal dry bean growers and processors.

Meeting Outcomes Blackeye beans: Interested and would like to receive offers.

White kidney beans: Interested and would like to receive more information.

Small red beans: Interested and would like to receive offers.

USDBC 2013 Turkey Trade Mission Report, December, 2013 26

DIYABLAR AGRO Address: Uray cad. 5206 No:3 Mersin, Turkey Contact: Sükrü Diyab & Bulent Erbesli Tel. + 90 324 232 6873 Fax + 90 324 233 1636 Email: [email protected] Email: [email protected] Website: http://diyablar.com/

From left: Johanna Stobbs, Mark Streed, Sükrü Diyab (CEO) and Alan Juliuson.

Diyablar is a family-owned company that specializes in imports-exports. 90% of its business is in imports-exports, with only 10% going to the local wholesale market. Founded in 1934, Diyablar started out in timber and cotton and gradually moved into pulses, almonds, walnuts and sunflower seeds. The company now considers itself to be a sunflower seed specialist.

Diyablar trades principally in Argentine alubia beans and Redondo beans, Alberta-type Great Northern beans and garbanzo beans. It sources product from all origins and exports principally to neighboring countries such as Syria, Lebanon, Iraq and Iran, as well as Europe.

Meeting Outcomes Navy beans: Interested in offers on navy beans for re-export to Iraq.

USDBC 2013 Turkey Trade Mission Report, December, 2013 27

MARKA TRADING Company address: 19 Mayis Mah. Sultan sk. Deniz ap. N° 26/8 Erenköy, Istanbul Turkey Contact: Mr. Ahmet Kiziltan, Managing Director Contact: Ergun Ba şkaya, Domestic Sales Contact: Ms. Bilgen Butun, Purchasing Tel. + 90 216 411 9275 Fax + 90 216 411 9277 Email: [email protected]

Email: [email protected] Email: [email protected] From left: Mark Streed, Bilgen Butun (Purchasing), Website: www.markatrading.com Johanna Stobbs and Alan Juliuson.

Marka Trading specializes in pulses, rice, sunflower seeds, coffee and wheat flour. It was founded in 2009. Ahmet Kiziltan, Ergun Ba şkaya and Bilgen Butun were all formerly of the Doruk Group, a major flour mill and processing company with annual sales of over $250 million. Doruk Group has now been sold to the Ülker Group, one of the largest grocery product manufacturers in Turkey. The three partners formerly ran Doruk’s pulse division, which was called Ivme Foods.

Marka Trading is the n°1 brokerage firm in Turkey f or pulses, and is well-known among Turkish importers, dry packagers and canners. Marka supplies pulse products from around the world to the Turkish dry legume industry at all levels and has an excellent reputation for honesty and transparency in its dealings. Marka buys approximately 20,000 MT of product per year. The company works on the basis of an emailed photo of a product, a price quote and finally, a sample. Among the Turkish dry packagers that Marka serves are: Aral, Caglayan, Göze, Serttas, Memi şoglu and Yayla.

Meeting Outcomes Forward Contracting: Marka will consider this option for Great Northern beans and will discuss the matter with its buyers.

Navy Beans: Marka could perhaps find buyers for navy beans (e.g. Pinarsan and Mersin Şeker), at the current US price.

Pinto Beans: Again, there may be buyers now for US pinto beans since Chinese prices have topped $2,000/MT and continue to rise. A photo of cooked pinto beans at the point of sale will be important to show consumers how the brown speckles disappear when the beans are cooked and transform into an attractive, uniform color.

USDBC 2013 Turkey Trade Mission Report, December, 2013 28

MEMI ŞLER Cilek Mah. 1448, Sk #183 Mersin, Turkey Contacts: Sabahattin Memis, Vice Chairman Tel. + 90 324 234 96 66 Fax + 90 324 234 96 68 Email: [email protected] Website: www.memisler.com.tr

From left: Mark Streed, Sabahattin Memi ş (Vice Chairman), Johanna Stobbs and Alan Juliuson.

Memi şler is one of the top five Turkish pulse companies, founded in 1971. It specializes in rice and pulses. The company added lump-sugar to its business mix in 1992. In 1996 it opened its own trading company in the Mersin Free Zone (the largest Free Zone in Turkey for agro-products).

The company sources both locally and world-wide. It cleans, sorts and packages, and is active in international imports and exports, with half of its business going to the domestic market and the other half to the export market. Memi şler has its own retail brand called “Ideal’, but does private label packaging as well. It also supplies the Turkish canning industry.

In terms of volume, Memi şler is one of the top three companies in Turkey dealing in garbanzo beans and among the top ten in dry beans. Each year the company takes approximately 20 containers of Great Northern beans from the US and Canada. Memi şler particularly likes the Alberta type of Great Northerns, which is used as seed in Turkey. Memi şler also re-exports Great Northerns to Iraq. In addition to GNs, the company also takes around 13,000 MT of white beans, sourced from Argentina, China, Egypt and Kyrgyzstan. Memi şler normally buys its garbanzos from Mexico for direct shipment to the UAE. The company participates in both World Food Program tenders and tenders issued by the Iraqi government. It recently took a position on Ethiopian pea beans for the WFP.

Meeting Outcomes Forward Contracting: Will consider contracting for Great Northern beans and/or navy beans.

Navy Beans: Currently interested in navies because of absence of Great Northerns.

Pinto Beans: Mild interest, but still unconvinced that this class of bean can work well in the Turkish domestic market.

USDBC 2013 Turkey Trade Mission Report, December, 2013 29

MEMI ŞOGLU Address: Adana Mersin Yolu Yenitaskent mevkii 12 Km. Mersin, Turkey Tel. + 90 324 454 04 04 Fax + 90 324 454 04 06 Cell + 90 533 424 19 18 Contact: Serafettin Memis, General Manager Ms. Tuba Memis, Assistant General Manager Ms. Kumsal Taylar, Foreign Trade Manager Email: [email protected] Website: www.tatbakliyat.com

From left: Kumsal Taylar (Foreign Trade Manager) Alan Juliuson, Johanna Stobbs,

Mark Streed, Serafettin Memi ş (General Manager) and Tuba Memi ş (Assistant General Manager).

Tat Bakliyat Memi şoglu is a family-owned company that began trading in foodstuffs in 1977. It relaunched itself under its present name in 1991 and began a program of dynamic growth which continues today.

The company specializes in rice and all types of pulses, which it purchases both locally and worldwide. Memi şoglu cleans and sorts product, and repackages to customer requirements. The company is very active in international imports and exports. Memi şoglu has its own retail brand “Tat”, which means ‘taste’ in Turkish (‘bakliyat’ means ‘pulses’) and is found in all major retail outlets, such as Carrefour hypermarkets and Real supermarkets. Memi şoglu is also active in private label packaging.

The company, which began as a small grocery shop, was founded by six Memi ş brothers in 1977. Over the past 36 years, there has been a great deal of growth. Today Memi şoglu employs over 200 people and has four processing plants in Mersin for lentils, bulgur wheat, rice, dry beans and chickpeas. Memi şoglu has sales offices in Istanbul and Izmir, and 30 small regional offices to control distribution. Last year the company traded 90,000 MT (all products combined).

A major player in the domestic market, 75% of Memi şoglu’s business is in retail and foodservice, while 25% is in the re-export market.

* Of all of the import-dry packaging companies in Turkey, Memisoglu is best placed to conduct a USDBC-sponsored and approved promotion of US pinto beans in the packaged retail sector.

USDBC 2013 Turkey Trade Mission Report, December, 2013 30

Meeting Outcomes Forward Contracting: Interested in contracting for Great Northern beans.

Navy Beans: Needs 10 container loads, but is unhappy with US navy bean color.

White Kidney Beans: Interested in this class of US bean for future purchases.

Pinto Beans: Interested in being selected as the Turkish dry packaging company that officially launches the US pinto bean in a retail promotion, supported by the USDBC. Memisoglu is awaiting USDBC approval of the plan, together with a detailed proposal. The company would commit to taking 5 to 10 container loads of pinto beans to meet the needs of the promotion.

USDBC 2013 Turkey Trade Mission Report, December, 2013 31

TAMEK Nispetiye Mah. Hakkı Şehit Han Sok. No:35 2 Ulus 34340 Be şikta ş, Istanbul, Turkey Contact: Ay şe Ozgür Süer Tel: + 90 212 325 80 50 Website: www.tamek.com.tr

From left: Ay şe Ozgür Süer (Purchasing Specialist), Neslihan Tipi (Purchasing Specialist) and Perihan Baykal Güler (Purchasing

Tamek, founded in 1955, is one of the leading brands in Turkish food sector. The company is a household name in fruit juices and tomato products, including tomato juice, ketchup and tomato paste. Its range of products also includes canned stuffed vine leaves, green peppers, vegetables, jams, marmalades, and mayonnaise. In the fruit juice category, Tamek is famous for its orange, cherry, apricot, peach, apple- strawberry, apple-apricot, and apple-peach juice flavors.

Canned dry beans are a minor product segment for this company, which uses Great Northern-type white beans (Turkish domestic sira beans) and speckled beans (Turkish domestic barbunya beans and Chinese light red speckled beans). In the absence of available US Great Northern beans, Tamek was interested in the sample of US navy beans that the Trade Mission team presented.

The companies principal plants are located in the region.

USDBC 2013 Turkey Trade Mission Report, December, 2013 32

Meeting Outcomes The Purchasing department of Tamek is not experienced in buying dry beans. Tamek currently buys locally-produced beans or Chinese beans through Turkish importers and brokers.

However, the three ladies of the Purchasing department were taken by the samples of US pinto beans that were presented: the Trade Mission team opened a can of US pinto beans and compared them with a can of Tamek beans. In both color and taste, the US pinto beans were judged by the Turkish Purchasing department as superior. The Tamek beans were larger in size.

USDBC 2013 Turkey Trade Mission Report, December, 2013 33

US canned pinto beans are on the left; Quality Control Director, Göze Algun tastes Tamek canned beans are on the right. US canned pinto beans during the Trade The Tamek Purchasing team considered Mission meeting. the pinto beans to be better tasting and more attractive, but on the small side.

Meeting Outcomes Navy Beans: Requests a quote for 1 container of US navy beans

Garbanzo Beans: Requests price indications for garbanzo beans for an eventual purchase (2014 crop)

Pinto Beans: Requests a 3-lb sample of dry US pinto beans and several cans of pintos, in brine and in various sauces

USDBC 2013 Turkey Trade Mission Report, December, 2013 34

TIRYAKI AGRO Address: Abdullah Aga Mah. Şemsi Efendi Sok. Yagcilar Kö şkü N° 16 Beylerbeyi 34676 Istanbul, Turkey Tel: + 90 216 333 20 00 Fax + 90 216 333 20 20 Contacts: Emin Akkan, Senior Trader Mahmut Nedim Sanli, Junior Trader Email: [email protected] Website: www.tiryaki.net From left: Orhan Okur, Trader, Nedim Sanli, Trader, Johanna Stobbs, Mark Streed and Alan Juliuson.

Tiryaki is the largest trading house in Turkey, dealing in pulses, oil seeds, soya (for feed) and rice. It deals in 600,000 MT of rice and pulses per year. Handling over 3 million MT of product per year, the company has a $1.5 billion turnover.

Tiryaki trades approximately 1 million MT of wheat per year, dealing with markets such as Ukraine and Russia, where it engages in contract farming. In addition to its grain section, Tiryaki has a department devoted to nuts (pistachios, almonds, and walnuts) as well as an organics department.

The Turkish market is very large, not only because Turkey is a hub for re-exports to the surrounding region, but also because of domestic consumption. The company estimates that Turkey consumes per year:

• 250,000 MT – 300,000 MT of white beans • 450,000 MT – 500,000 MT of garbanzos • 20,000 MT of speckled beans

Tiryaki is interested in all sizes of garbanzo beans. It purchases some 7 mm garbanzos from Russia. For larger-size garbanzos (8mm, 9mm, 10mm), Tiryaki buys Turkish, Mexican, Argentinean, Australian and US origin. Large-size chickpeas go to the “leblebi” roasting industry in Turkey. Both small garbanzos and large are considered niche market products. 7mm chickpeas are a commodity product, bought in large volumes. The smallest garbanzos go to the hummus market. Tiryaki also sells organic Turkish garbanzos to Europe.

Tiryaki is also strong in the white bean market, taking approximately 4,000 MT per year, of which 2,000 MT come from Kyrgyzstan. The company considers white beans a spot- market item and does not usually buy ahead. Nevertheless, Tiryaki could be open to forward contracting on certain items, in small volumes.

USDBC 2013 Turkey Trade Mission Report, December, 2013 35

Meeting Outcomes Forward Contracting: Could commit to a contract for small amounts, i.e. 3 container loads of Great Northern beans; awaiting an offer.

Navy Beans: Interested in an immediate purchase of navy beans (150 MT), re-bagged and shipped directly from the US to the customer.

Pinto Beans: Would like to receive cans of pinto beans to see how they are transformed once cooked. The Trade Mission team will respond to all requests.

USDBC 2013 Turkey Trade Mission Report, December, 2013 36

YURT KONSERVE Mimarsinan Silivri cad. No:6 Buyukcekmece, Istanbul, Turkey Contact: Mr. Serafettin Unsal Foreign Trade Manager Tel. + 90 212 861 4343 Fax + 90 21 861 4348 Email: [email protected] Website: www.yurtkonserve.com.tr

From left: Tuna Hasdemir (Food Engineer), Johanna Stobbs, Alan Juliuson, Mark Streed, Serafettin Unsal (Sales Director) and Oya Kizikaya ( Export Manager).

Yurt Konserve is one of the leading canning companies in Turkey. This 140,000 sq. ft. plant, which employs 200 people, is located in the Buyukcekmece area of Istanbul. The company will soon open another plant in the Izmir region. Yurt has over 50 years of canning experience and uses very modern equipment and canning techniques to ensure quality and innovation.

Yurt is strong in the retail sector. Its products are found in such nation-wide supermarkets as BIM, A101 and Dia. Yurt also supplies the Turkish military and exports product to the Middle East, Canada and the US.

The company is well-known for its excellent “Pilaki” (a cold dish of beans, served as a cold starter), as well as other types of canned beans, stuffed vine leaves, canned vegetables, canned meats and canned fish.

At left: Yurt’s canned “Pilaki”, a traditional Turkish dish of beans and peas, served cold in a special sauce.

Pilaki is usually served as a starter. The beans used in Pilaki are large-size speckled beans, such as the Turkish barbunya or Chinese light red speckled beans.

US pinto beans are being considered as an alternative, to make this popular product more affordable.

USDBC 2013 Turkey Trade Mission Report, December, 2013 37

Yurt uses approximately 1,000 MT per year of speckled beans. White bean and garbanzo bean usage is lower, around 200 MT to 300 MT per year, each.

Meeting outcomes Pinto Beans: Yurt would like to test-run US pinto beans to see if they could work in Pilaki. The company requested a 5-kilo sample of US pintos to begin testing as soon as possible. The high price of Chinese light speckled beans, and the unavailability of Turkish barbunya beans, means that US pinto beans could be an ideal substitute.

USDBC 2013 Turkey Trade Mission Report, December, 2013 38

Store Check – December 13, 2013 – Istanbul Macro Center Supermarket

Top left: Mark Streed, Jack Jacob (Promedia) and Alan Juliuson.

Top right: display of canned beans at the Macro Center supermarket.

Bottom left: Chinese red speckled beans under the Noba brand (Aral).

Bottom right: Mark Streed, Alan Juliuson and Jack Jacob (Promedia).

USDBC 2013 Turkey Trade Mission Report, December, 2013 39

Going Forward in 2014

Turkey continues to be an important emerging market for US dry beans. US exports of both dry beans and garbanzo beans have topped 16,000 MT in the January-November period of 2013, an increase of 157% over the same period in 2012.

White beans, such as the Great Northern, and large-size garbanzo beans, are establishing themselves as first-choice products for this market. Other classes of dry beans, such as dark red kidney beans, are very slowly entering in small volumes.

US pinto beans remain the question for the future. The US has a high-quality, moderately-priced speckled bean which offers excellent taste. Once cooked, the pinto has a pleasing aspect, including good color and uniform size. The difficulty is that this bean remains unknown in the Turkish market and importers do not trust the consumer to buy a brown-speckled bean which has neither the size nor the color that shoppers are used to.

The potential for the US pinto bean in Turkey is good. The trick will be to overcome reluctance to try something new, both in the dry packaged sector and the canning industry. A vigorous promotional campaign for the pinto (see pages 11-12 for details) could turn the tide, especially now in a period of dry bean shortages and astronomically high prices.

The main issue for US dry beans in Turkey in 2014 will be whether or not to formally promote the US pinto bean, with the support of the US Dry Bean Council.

Marketbase January 13, 2014

USDBC 2013 Turkey Trade Mission Report, December, 2013 40