USDBC 2013 Turkey Trade Mission Report, December, 2013 2
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2013 Turkey 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 – Istanbul 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 USDBC 2013 Turkey Trade Mission Report, December, 2013 3 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, Turkish Airlines 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. USDBC 2013 Turkey Trade Mission Report, December, 2013 4 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. USDBC 2013 Turkey Trade Mission Report, December, 2013 5 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) USDBC 2013 Turkey Trade Mission Report, December, 2013 6 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%. USDBC 2013 Turkey Trade Mission Report, December, 2013 7 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.