TURKEY 2011 TRADE MISSION & 2011 FOODIST TRADE SHOW REPORT

December 4-9, 2011

Prepared for the US Dry 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

Trade Mission Summary 3

Summary of US Dry Bean Exports to 5

Turkey Market Highlights 7

Trade Mission Schedule 8

Turkey Trade Show 11

Trade Show Leads 16-24

Trade Mission Meeting Notes Tiryaki Agro 25 Marka Trading 27 Yurt Canning 30 Memi şoglu 32 Agroder 35 Yayla 37 Armada 40 Bayamtaş 42

Going Forward in 2012 44

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 2 Trade Mission Summary

Title: 2011 Turkey Trade Mission Trip Start Date: December 4, 2011 Trip End Date: December 9, 2011 Trip Locations: Istanbul and Mersin Trip Country: Turkey Trip Persons: USDBC Trade Team: Bob Green, Mark Dombeck, Johanna Stobbs

Trip Itinerary:

Airline Schedules Name Arrival Time Airline Departure Time Airline

Bob Green Sat., Dec. 3 10h15 Delta #72 Sat., Dec. 10 12h15 Delta #73 Mark Dombeck Sun., Dec. 4 14h25 AF #1590 Mon., Dec. 12 06h25 AF #8353 Johanna Stobbs Sat., Dec. 3 16h55 AF #1890 Fri., Dec. 9 15h15 AF #1591

Trip Purpose: • to renew ties with Turkish importers of US dry • to discuss the drop in US dry bean production in 2011 and the resulting rise in prices • to reassure Turkish importers that US dry bean production will in all probability return to normal production levels in 2012 and that prices will become more affordable • to ascertain which dry legume products are most sought after in the Turkish market.

Trip Result: • 8 top Turkish import companies were interviewed (3 in Istanbul and 5 in Mersin) during the 3-day Trade Mission period of December 5-7. Three of these, Tiryaki, Agroder and Bayamtas, were new trade contacts for the USDBC. • The USDBC also participated in the Foodist Trade Show in Istanbul with a booth shared with the USA Dry Pea & Council. The Trade Team worked at the show on December 8. • Johanna Stobbs, USDBC and USADPLC representative for Turkey, made a presentation on Consumer Trends for Dry Legumes in the US and , at a Foodist Trade Show seminar, organized by the Turkish Packagers Association, PAKDER. • 3 container loads of US garbanzo beans were sold during the Trade Mission for a value of $109,000. • 4 companies (Yurt, Agroder, Bayamta ş and Armada) requested US product samples during the Trade Mission, with a view to placing purchasing orders at a future date.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 3 • A USDBC logo program, to encourage the consumption of US pinto beans in Turkey, was discussed by two companies interested in promoting US pinto beans, Yayla and Memisoglu. Such a program, envisaged for 2012, would authorize the use of the USDBC’s heart logo on packages of US pinto beans that state the country of origin as US and that name the beans as “US Pinto Beans”.

Trip Recommendation: • The US dry bean industry should be encouraged to continue to follow the Turkish market because it is in a state of flux. Opportunities for US garbanzo beans remain strong. Great Northern bean exports may also take off in the spring of 2012. The market also has a growing interest in dark red kidney beans and is now ready to promote US pinto beans as a new, US specialty product. Monitoring these trends and opportunities should be a priority for the USDBC in 2012. Of vital importance will be to keep the Turkish trade informed of US production levels as the planting season begins in the spring of 2012.

Industry contact : Bob Green, Chairman of the US Dry Bean Council’s International Programs Committee

Note: the role of the PR Agency, Promedia The USDBC was assisted during the Trade Mission of 2011 by the Turkish PR Agency, Promedia, which provided logistical aid and translation support; for participation in the FOODIST Trade Show, Promedia helped to design and organize the booth, and provided booth staff during the 4-day show.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 4 Summary of US Dry Bean Exports to Turkey

The USDBC Trade Mission to Turkey of 2011 came at a crucial time. The US crop of September 2011 registered important falls, both in area planted and overall production. Area planted was stated in the USDA Report of December 9, 2011 to have declined by 37% compared with the previous year, while area harvested showed a 38% drop. US dry bean production fell from 1,442,470 MT in 2010 to just 894,890 MT in 2011, a decrease of 38%. Production was lower in 17 of the 18 states in the dry bean regions, including the top five producing states (North Dakota, Michigan, Minnesota, Nebraska, and Idaho).

The fall in US production can be attributed largely to a shift to corn, wheat and soy, which were seen by US farmers as more profitable. To some extent wet weather conditions also contributed to the poor performance of 2011.

The drop in US dry bean production has resulted in significant price increases and a sharp downturn in exports to Turkey.

The Trade Mission has played a significant role in helping to stabilize commercial relations between US exporters and Turkish importers. Many Turkish importers were shocked by the US price rises and had difficulty in understanding why production levels had fallen so low after years of fairly steady numbers.

The Trade Mission allowed the US Dry Bean Council to explain to Turkish traders the reasons for the current situation and to reassure them that market conditions for 2012 indicate that US dry bean production will return to more normal levels and more reasonable pricing. This is because the high dry bean prices of this year will encourage US farmers to plant more dry beans in 2012.

The three most important classes of US dry beans for Turkey are Great Northern beans, pinto beans and dark red kidney beans. All three suffered production decreases in 2011.

Great Northern beans fell to 54,636 MT in 2011, compared with 63,773 in 2010, a drop of 14%. The fall in pinto bean production was even more dramatic. In 2010, the US produced 627,909 MT of pinto beans, while in 2011 production reached just 268,692 MT, a decline of 57%. Dark red kidney beans were down by 6%.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 5 It is clear that high 2011 prices have slowed down US dry bean exports to Turkey.

After an excellent 2010, in which the US exported 5,522 MT (4,937 MT of which occurred during January-October), the picture for the period of January-October 2011 shows just 988 MT.

This is particularly unfortunate for US pinto beans, which were just beginning to make inroads into this market, following the EMP program of 2009 which featured US pinto beans. Until this unexpected downturn in US pinto bean production, pintos were starting to become a known, and much appreciated, class of US dry bean in Turkey.

US Exports to Turkey Cumulative To Date Quantities / Values in Thousands of Dollars % Jan-Dec Jan-Dec Jan-Oct Jan-Oct Jan-Oct Jan-Oct % Value Quantity 2010 2010 2010 2010 2011 2011 Change Change Value Quantity Value Quantity Value Quantity ($ 000) (MT) ($ 000) (MT) ($ 000) (MT) ($ 000) (MT) Great Northern 3,207 4,390.90 3,207 4,390.90 0 0 -100% -100% Beans Dark Red 75 100 53 79.2 49 60.4 -8% -24% Kidney Beans Pinto Beans 29 41.7 29 41.7 0 0 -100% -100% Black Beans 17 21.3 17 21.3 0 0 -100% -100%

Non-specified 0 0 0 0 81 65.3 n/a n/a Beans (NESOI) Garbanzos 835 968 288 404.3 656 861.9 +128 +113

Total 4,162 5,522.00 3,594 4,937.40 786 987.6 -78% -80% Source: FAS

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 6 Turkey Market Highlights

Discussions during trade meetings touched on the following topics:

• It was generally agreed among Turkish traders that there is a downward trend in Chinese dry legume production and that Chinese product is in retreat in the Turkish market.

• However, Russia is now entering Turkey and has a growing presence with regard to yellow peas and green ; Russian dry beans have not yet had an impact on the market. Several Turkish companies have made investments in southeastern Russia. These new business interests involve both the purchase of land and growing contracts.

• Dry legume purchases by Turkish importers are generally at a standstill because prices are seen as starting to decrease; there is a “wait-and-see” attitude among traders.

• This “wait-and-see” position is exacerbated by a fall in the value of the Turkish lira against the US dollar, making products bought with US dollars more expensive.

• In addition, the major bankruptcy of a Turkish import company is having a ripple affect among several other companies which have lost considerable amounts of money.

• Finally, there are political tensions with neighboring , where violence against Syrian citizens by the Syrian government has led to a 30% import duty on Turkish goods entering Syria, as well as slow-downs and closings of the Turkish-Syrian border. Turkey and Syria are normally strong trading partners, and pulses play an important trade role in cross-trade relations. With Syrian trade now blocked, Turkey currently has a glut of pulses. Unrest in Egypt, and is also contributing to pulse trade problems.

• Other issues concern the high cost of financing in Turkey which means that importers’ margins are under pressure and dropping.

• On a positive note, US Great Northern beans could make a strong comeback in Turkey in the spring of 2012 in preparation for Ramadan, which will take place in July

• Garbanzo beans are being sought after right now; there is demand for large-sized garbanzos, especially for the Turkish food market (“leblebi”, or roasted, spicy garbanzo , is a Turkish favorite, served with aperitif drinks).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 7

Turkey Trade Mission December 4-9, 2011

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

Trade Mission Schedule

December 4 – Sunday Arrive Istanbul – airport pick-up & transfer to Sheraton Atakoy Hotel

Accommodation at Sheraton Atakoy Hotel – Istanbul

December 5 – Monday

9:30 a.m. Tiryaki Agro, major rice and pulse importer Address: Abdullah Aga Mah. Semsi Efendi Sok. Yagcilar Kosku N° 16 Beylerbeyi, Istanbul Turkey Tel. + 90 216 333 2000 Fax + 90 216 333 2020 Contact: Emin Akkan, Trader Email: [email protected] Website: www.tiryaki.net

11:30 a.m. Marka Trading, leading pulse trader and importer Address: 19 Mayis mah. Sultan sk. Deniz ap.No:26/8 Erenköy, Istanbul Turkey Contact: Mr. Ahmet Kiziltan, Managing Director Tel. + 90 216 411 9275 Fax + 90 216 411 9277 Email: [email protected] Website: www.markatrading.com

12:30 p.m. Lunch hosted by Marka Trading

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 8 3:00 p.m. Yurt Canning, a major canner using dry beans and dry peas 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 6 -Tuesday

8:30 a.m. Travel from Istanbul to Adana by plane Turkish Airlines TK2458

11:00 a.m. Airport pickup and transfer to Hilton Hotel, Mersin

2:00 p.m. Memisolglu, pulse importer and dry packager Address: Adana Mersin Yolu, Yenitaskent mevkii 12 Km., Mersin Turkey Tel. + 90 324 454 04 04 Fax + 90 324 454 04 06 Contacts: Serafettin Memis, General Manager Ms. Tuba Memis, Assistant General Manager Ms. Kumsal Taylar, Foreign Trade Manager Email: [email protected] Website: www.tatbakliyat.com

4:00 p.m. Agroder, pulse importer and dry packager Address: Kazanli Mh. 32001 Sk. No:4/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] Website: www.agroder.com.tr

Accommodation at Hilton Hotel in Mersin

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 9 December 7 – Wednesday

9:30 a.m. Yayla, pulse importer and dry packager Address: Karaduvar Mahallesi Bakliyatçılar Sitesi G-6 Akdeniz, Mersin Turkey Contact: Ender Özdemir Foreign Trade Manager Tel. + 90 324 221 62 76 Fax + 90 324 221 62 78 Email: [email protected] Website: www.yaylabakliyat.com.tr

11:30 a.m. Armada, pulse importer and trader Address: Ismet Inönü Blv. Kurtulus meydani Klas Plaza Kat: 3, No: 5, Mersin Turkey Tel. + 90 324 238 07 29 Fax + 90 324 238 07 42 Contact: Fethi Sönmez, Director Email: [email protected]

2:00 p.m. Bayamta ş Group, pulse and rice importer, trader and dry packager Address: Cilek Mah. Kapali cezaevi arkasi, Mersin Turkey Contact: Naci Bayam, Chairman Tel. + 90 324 221 3700 Fax + 90 324 221 3710 Email: [email protected] Website: www.bayamtas.com.tr

3:00 p.m. Travel from Mersin to Adana airport by car 6:15 p.m. Travel from Adana to Istanbul by plane Turkish Airlines TK2467

Accommodation at Sheraton Atakoy Hotel, Istanbul

December 8 – Thursday Participation in the Foodist Trade Show, Istanbul, where the USDBC shared a booth with the USADPLC. Meet with Aral, Dinçer, Arbel and Bashan, as well as other pulse traders during the show to gather new trade leads. Stobbs to make a presentation on dry legume consumer trends in the US and Europe.

December 9 – Friday Depart for the US

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 10 2011 TUYAP FOODIST Trade Show, Istanbul, December 8-11, 2011

Trade Show Summary The US Dry Bean Council opted to exhibit for the second time at the FOODIST Trade Show in Istanbul in order to continue to promote US dry beans in a direct and cost- effective way in this ever-changing emerging market. The cost of participating in the FOODIST 2011 Trade Show (booth, management, etc.) was shared with the USA Dry Pea & Lentil Council.

More than 25,000 professional visitors attended from Turkey, Europe, the Balkans, the Black Sea region, the Caucasus, West and Central , the and North Africa. 12 countries had national pavilions, and a total of 275 companies participated.

The show was organized by the TUYAP trade fair group, which is supported by the Turkish Ministry of Agriculture & Rural Affairs, the Under Secretariat for Foreign Trade, KOSGEB (the Organization for the Development of Small and Medium-Sized Industries) and TGDF (the Turkish Federation of Food & Drink Industry Associations).

FOODIST included exhibits of milk and dairy products, meat, biscuits, confectionery and chocolate, canned foods, alcoholic beverages, non-alcoholic beverages, tea and coffee, flour-based foods and pastas, halal food, dried fruit, rice, spices, baby food, frozen seafood, food additives and supplementary foodstuffs, vegetable oils, fresh vegetables and fruits, jams, honey, molasses, halvah products, industrial food products and pulses.

Importers, exporters, marketing companies and representatives of wholesale companies, groceries and supermarkets were present, as well as operators of hotels, restaurants, bars, nightclubs and holiday resorts, and representatives of fast-food and catering companies, passenger accommodation services, military and official establishments, kiosks and canteen operators, and food and chemical engineers.

Foodist Trade Show booth From left to right: Johanna Stobbs,( USDBC & USADPLC representative), Mark Dombeck (USDBC), Meliha Atalaysun (FAS/ Istanbul), Lynn Virkler (USADPLC), Ibrahim Sirtioglu (FAS/ Istanbul), Bob Green (USDBC) and visitor.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 11 USDBC participation in the FOODIST Trade Show The USDBC Trade Team (Bob Green, Mark Dombeck and Johanna Stobbs) attended the trade show on its opening day, December 8.

The USDBC Directory was distributed at the booth, together with many USDBC give- away gifts. Samples of key dry bean products, including Great Northern beans, pinto beans and dark red kidney beans, were on hand for display.

During the FOODIST 2011 Trade Show, 56 serious importers, dry packagers and canners visited the booth. The business cards of these companies have been scanned and are included in this report (see pages 16-24).

In addition, Johanna Stobbs, representative for the US Dry Bean Council in Turkey, was invited to speak at a seminar at the FOODIST Trade Show, organized by the Turkish Packagers Association, PAKDER. The topic of Stobbs’ presentation was: Consumer Trends in Dry Legume Consumption in the US and Europe. A copy of the PowerPoint presentation is being sent with this report.

Photo top left: Lynn Virkler (USADPLC) and Bob Green (USDBC).

Photo top right: Anna Rademacher (USADPLC) and Bob Green (USDBC).

Photo left: Ahmet Kiziltan (Marka Trading) and Lynn Virkler (USADPLC); backs to camera: Ergun Baskaya and Bilgen Butun (Marka Trading).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 12

INTERNATIONAL SEMINAR PRINCIPLES OF HEALTHY NUTRITION, PULSES & ORGANICS Date: Thursday, December 8, 2011 Place: TÜYAP Meeting Room, FOODIST Trade Show Time: 15h00

SPEAKERS

15:00 - Consumer Trends for Dry Legumes in the US and Europe Mrs. Johanna Stobbs, US Dry Bean Council/USA Dry Pea & Lentil Council

15:30 - The Importance of Organics on Human Health Ayhan Sümerli - ORGÜDER

16:00 - The Importance of Pulses in Human Health Dr. Ender Saraç – PAKDER

16:30 – Food , Agricultural and Livestock Ministry Rural Development Harun Gök

16:30 – Reception offering pulse-based foods

Top left: Johanna Stobbs, USDBC representative for Turkey, gives a presentation on Consumer Trends for Dry Legumes in the US and Europe.

Top right: the Pakder-sponsored professional seminar at the Foodist Trade Show, Istanbul, Turkey, December 8, 2011.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 13

The TUYAP Exhibition Center, Istanbul, Turkey.

• 10 large-scale exhibition halls in 646,000 sq. ft. of indoor space with a gross display capacity of 452,000 sq. ft. • 11 meeting rooms with total area of 86,000 sq. ft. for meetings, seminars and private gatherings. Each room is air conditioned and has sound equipment. • Fully furnished press, VIP and management rooms; private security and control system. • 108,000 sq. ft. of social area and service buildings. • Fully air conditioned exhibition and work area. • 3 large conference rooms each for 1,000 people, for concerts or meetings. • 6 cafeterias, 2 restaurants and 2 fully-equipped industrial kitchens, able to serve 10,000 people at a time. • Telephone, fax and wireless internet. • Car park for 4,500 vehicles for exhibitors and visitors .

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 14

Photo top left: Tuba Memi ş of Memi şoglu company at the Memi şoglu TAT-brand booth at the Foodist Trade Show.

Photo top right: the Arbel booth at the Foodist Trade Show.

Bottom left: Feray Alpay (Promedia), Sabahattin Memi ş (CEO of Memi şler Group) and Johanna Stobbs (USDBC/USADPLC representative) meet at the Memi şler Group booth, Foodist Trade Show.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 15 Business cards gathered at the FOODIST Trade Show, Istanbul, December 8-11 2011

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 16

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 17

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 18

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 19

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 20

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 21

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 22

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 23

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 24 Trade Mission Meeting Notes

TIRYAKI AGRO Address: Abdullah Aga Mah. Semsi Efendi Sok. Yagcilar Kosku N0. 16 Beylerbeyi, Istanbul - Turkey Tel. + 90 216 333 2000 Fax + 90 216 333 2020 Contacts: Sinan Tüylü, Director Emin Akkan, Trader Email: [email protected] Email: [email protected] Website: www.tiryaki.net

Group photo at Tiryaki. From left: Jack Jacob (Promedia), Mark Dombeck (USDBC,) Bob Green

(USDBC), Sinan Tüylü (Tiryaki), Anna Rademacher (USADPLC), Feray Alpay (Promedia,) Johanna Stobbs (USDBC & USADPLC), Lynn Virkler (USADPLC) and Emin Akkan (Tiryaki).

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 and has a cooperative agreement with ADM. 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 department, Tiryaki has a department devoted to nuts (, , and ) as well as an organics department.

Tiryaki products:

Red lentils: Tiryaki is the largest player in the region for red lentils. The company takes bulk shipments, splits the lentils in Turkey, and exports throughout the Middle East. Egypt is Tiryaki’s largest market for red lentils.

Green lentils: the company normally purchases Canadian lairds and exports to Iran, the largest user of green lentils in the region. Depending on Canadian prices and product quality, Tiryaki could eventually be interested in US Richlea lentils. Tiryaki also offers organic Turkish green lentil seed for European customers.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 25 Garbanzos: Tiryaki is interested in all sizes. It purchases some garbanzos from Russia (7 mm), taking about half of the Russian crop of 70,000 MT. For larger sized garbanzos (8-9-10 mm), Tiryaki buys Turkish, Mexican, Argentinean, Australian and US origin. Large-sized garbanzos go to the “leblebi” industry (snack food) in Turkey. Both small garbanzos and large are considered niche market products. The smallest garbanzos go to the market. Tiryaki also sells organic Turkish garbanzos to Europe.

White beans: Tiryaki has tried all types of white beans and is currently buying from Kyrgyzstan. The company cleans the beans in Turkey for export to Iraq. It also takes some Argentinean alubias.

Yellow peas: Tiryaki sources yellow peas from Ukraine, Russia and Canada, and splits the peas in Turkey. The company is the largest Turkish supplier to the World Food Program (WFP). It also sells split yellow peas to .

Light red speckled Chinese beans (cranberry type): Tiryaki imports this class of bean, packages it and sells to the retail sector. For speckled beans, the shape and size are more important than anything else and US pinto beans are on the small side.

Green peas: Tiryaki is not yet in the market for green dry peas and does not currently supply Turkish canning companies.

Russia and Ukraine: these two markets are gaining in importance. Ukraine, of course, has long been a major supplier of grains and oil seeds. However, Russia has started to position itself as a serious supplier of pulses. Russia has the land and the climate. All that is missing is a modern infra-structure and the capacity to fight corruption.

Product interests: • Garbanzo beans

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 26 MARKA TRADING Company address: 19 Mayis mah. Sultan sk. Deniz ap. No: 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] Website: www.markatrading.com

Company Profile: Marka Trading is a brokerage firm, specializing in pulses, rice, sunflower seeds, coffee and wheat flour. It was founded in 2009. Ahmet Kiziltan, Ergun Ba şkaya and Bilgen Butun all come from 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.

The company works on the basis on an emailed photo of a product, a price quote and finally, a sample.

Product comments: Red lentils: Marka is not trading any red lentils at the moment because the Tiryaki company now dominates the market, selling to both importers, wholesalers and even retailers. The market is being depressed by low-cost Canadian red lentils which are being used for re-exports.

Green lentils: Canadian lairds are pale in color this year, while Richlea lentils offer a good color. The Canadians are currently selling a #2 laird which they are calling “Mersin” green. The market is also receiving some Russian green lentils. However, Richleas are seen to be an excellent product and could make a strong come-back in 2012.

Garbanzos: this product is now arriving in the Turkish market from Russia at very low prices. With the Syrian border closed and trade with Iraq down, Turkish has a glut of garbanzo stocks with no place to go. The Argentinean garbanzo crop was too large and prices have come down to very low levels. Marka Trading will wait for a few months before contracting for garbanzos in the hopes that the market will improve. There are always opportunities for small garbanzos for the hummus industry and for large garbanzos for the “leblebi” (Turkish snack foods) industry.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 27 White beans: the Turkish sira bean is becoming more and more expensive ($1,500/MT), but Chinese white beans are also high in price. US Great Northern beans could do well in the spring, if prices can come down a bit and stabilize.

Chinese red speckled beans (cranberry type): there is a shortage now in China of the cranberry type speckled bean and US pinto beans could be re-launched in Turkey in 2012. However, pinto prices must be more reasonable and pintos should be marketed as a new product, not as an ordinary speckled bean. A strong Turkish importer-dry packager could sell US pinto beans to the retail sector, but only if the product is positioned properly as “US pinto beans – product of the USA”.

Product interests: • Great Northern beans • Garbanzo beans • Pinto beans • Richlea lentils

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 28

Luncheon meeting at the invitation of Marka Trading, following a formal office meeting at their headquarters.

From left: Feray Alpay (Promedia), Jack Jacob (Promedia), Anna Rademacher (USADPLC), Ahmet Kiziltan (Marka Trading), Mark Dombeck (USDBC), Bob Green (USDBC), Bilgen Butun (Marka Trading), Johanna Stobbs (USDBC & USADPLC), Lynn Virkler (USADPLC)and Ergun Baskaya (Marka Trading).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 29 YURT CANNING 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

Company Profile Yurt Konserve is located about an hour’s drive from Istanbul city center. Yurt produces fifteen different products, including self-heating stews, stuffed vine leaves, peas, peas & carrots, mixed vegetables, fish products and meat products. They use both cans and glass jars, and also provide private label products. Founded in 1975, Yurt sells to several supermarket chains including Migros, Metro and BIM. The plant has a production capacity of 80,000 units per day.

Yurt exports to the UK, USA and Germany. Their stuffed vine leaves are sold through an importer-distributor in Texas.

One of the company’s main products is “”, a traditional Turkish dish of cooked beans, served cold as a starter.

At left: Yurt’s “Barbunya Pilaki” in a snap-top, ready to eat, pot.

Turkish barbunya beans are becoming harder to find (local production is in freefall) at reasonable prices. Therefore Yurt is now considering replacing barbunya beans with US pinto beans for its range of “pilaki”.

Yurt is now also ready to try US whole green dry peas, again because Turkish production of fresh peas is in decline. The company has already received a sample of dry peas from traders in Mersin, but these did not test well because there were several pea varieties in the sample. Yurt now understands that it is vital that only one type of pea be used in canning since mixed pea varieties will give poor results.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 30 Yurt currently does private label production of dark red kidney beans for the giant TAT canning company and is considering launching its own DRK product. High-quality garbanzo beans are also on Yurt’s radar.

Product samples requested: • Pinto beans • Dark red kidney beans • Garbanzo beans • Whole green dry peas, canning quality

Group photo at the Yurt Canning Company.

From left: Faruk Kabasakal (Yurt), Mark Dombeck (USDBC), Serafettin Ünsal (Yurt), Bob Green (USDBC), Jack Jacob (Promedia), Lynn Virkler (USADPLC, Anna Rademacher (USADPLC), and Feray Alpay (Promedia).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 31 MEMI ŞOGLU Company address: Adana-Mersin Yolu Üzerı Yenitaskent Mevkii Mersin - Turkey Contacts: Şerafettin Memi ş, General Manager Ms. Tuba Memi ş, Assistant General Manager Ms. Kumsal Tayar, Foreign Trade Manager Tel. + 90 324 444 0828 Fax + 90 324 444 1828 Email: [email protected] Website: www.tatbakliyat.com

Company Profile: Tat Bakliyat Memi şoglu is a Mersin-based, 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. It deals in bulk containers as well as 50-kilo bags.

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. The company 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 35 years, growth has been astronomical. Today Memi şoglu employs over 200 people and has four processing plants in Mersin for lentils, wheat, rice, dry beans and . 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). Its import-export business covers 60 countries, including the US. A major player in the domestic market, 65% of Memi şoglu’s business is in retail and foodservice, while 35% is in the re-export market.

Memi şoglu is particularly price sensitive and is continually looking for the best quality at the best price. Although this is true of all traders, Memi şoglu focuses on price perhaps more than most. The company is now examining Russian green lentils and whole yellow peas, as well as Argentinean garbanzo beans.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 32 Although Memi şoglu has resisted the idea of importing US pinto beans, the shortage of Chinese speckled beans is changing the picture in the Turkish market. The company is now interested in promoting US pintos, as a new packaged product, labeled as US Pinto beans, a specialty from the USA, with the USDBC heart logo on the package. Discussions regarding this possibility will take place in 2012.

Product interests: • Pinto beans • Garbanzo beans • Richlea lentils

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 33 At left: Mark Dombeck (USDBC) shows photos of US farming techniques to Şerafettin Memi ş, (General Manager, Memi şoglu) and Kumsal Taylar (Foreign Trade Director, Memi şoglu).

Group photo at Memisoglu.

From left: Lynn Virkler (USADPLC), Bob Green (USDBC), Mark Dombeck (USDBC), Anna Rademacher (USADPLC), Johanna Stobbs (USDBC & USADPLC), Serafettin Memis, Tuba Memis, Veysel Memis and Kumsal Taylar (all of Memisoglu).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 34 AGRODER Address: Kazanli Mh. 32001 Sk. No:4/A Akdeniz 33281 Mersin - Turkey Contact: Sait Dervi şoglu, Export Sales Manager Tel. +90 324 221 34 15 Fax +90 324 221 34 16 Cell + 90 532 337 55 47 Email: [email protected] Website: www.agroder.com.tr

Group photo at Agroder:

From left: Selami Dervi şoglu (Managing Director, Agroder), Sait Dervi şoglu (Export Sales Manager, Agroder), Ismail Dervi şoglu (Export & Import Manager, Agroder), Bob Green (USDBC), Mark Dombeck (USDBC), Anna Rademacher (USADPLC), Johanna Stobbs (USDBC & USADPLC), Lynn Virkler (USADPLC), Feray Alpay (Promedia) Cenani Dervi şoglu (Production Manager, Agroder), Ilhami Dervi şoglu (Sales Manager, Agroder), and Huseyin Dervisoglu (Logistics & Operations Manager, Agroder).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 35 Company Profile: Agroder is a Mersin-based import company dealing 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.

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 $60 million.

Founded in 1984, Agroder now imports more than it exports. It has a 20% share in the Komas Group, a major Turkish holding conglomerate.

Agroder confirmed that the pulse market in Turkey is sluggish at the moment, due to troubles with Syria and the impact of the ”Arab Spring” in the Middle East. In fact, the general consensus is that the market is in a state of flux and instability which is making trade very difficult. The Turkish white sira bean, for example, is priced so high that Iraq is now buying Argentinean alubias. The garbanzo market, which used to be dominated by local Turkish production, is now being fought over by garbanzos from multiple international sources.

Agroder is intrigued by the idea of getting into whole green dry peas for the Turkish canning industry and is also considering US pinto beans as an export item to Iraq.

Product samples requested: • Pinto beans • Garbanzo beans • Whole green dry peas, canning quality

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 36 YAYLA Company address: Karaduvar Mahallesi Bakliyatçılar Sitesi G-6, Akdeniz Mersin - Turkey Contacts: Ender Özdemir, Foreign Trade Manager Tel. + 90 324 221 62 76 Fax + 90 324 221 62 78 Email: [email protected] Website: www.yaylabakliyat.com.tr

Company Profile: Yayla Agro, founded in 1980, has become a top player in the agricultural sector of Turkey, developing products for both the domestic and foreign market. The company considers itself to be the n° 1 dry packager in Tur key. It supplies product to retail chains and the wholesale sector throughout the country. It also serves smaller Turkish food shops through a sales force of more than 60 people. In addition, Yayla produces private label products and participates in government food-aid and military tenders. The company has a turnover of $130 million. 60% of its business is in rice, 40% in pulses. 85% of its activities are focused on the domestic market, with 15% going to the export market. ISO 9000 and ISO 22000 registered, Yayla processes approximately 125,000 MT of product per year in its 115,000 sq. ft. plant near the Turkish capital city of Ankara. It has opened a new processing facility in Mersin for pulses, a $25 million investment. Yayla handles all types of dry legumes, as well as sugar, popcorn, bulgur wheat and rice, and has rice milling plants in the Thrace region of Turkey and in Çankiri. Yayla offers a full range of whole red lentils, split red lentils, whole green lentils, garbanzos and dry beans. Although 60% of the Turkish domestic market for pulses is controlled by retail chains, and only 40% by small neighborhood shops, retail packs still represent only 25% of the market, while 75% remains in open sacks. Concerned about falling pulse consumption in Turkey, Yayla is heavily involved in promotion, new product development and new strategies. It believes that aggressive promotion is the only way forward. The company recently bought land in Russia and has opened an office there with a view to producing rice.

The picture for white beans indicates that Turkey could be short of local sira beans this year and might be obliged turn to Great Northern beans and other types. Turkey needs 90,000 MT of white beans, yet sira bean production will drop in all likelihood to 35,000 MT. But the price of Great Northerns will have to come down if this US bean is to re- enter the market. Turkey is currently taking garbanzo beans from many sources, including its local production, of which 80% is predicted to be of good quality. It will still need approximately 60,000 MT of large size garbanzos for “leblebi” (the traditional Turkish snack food).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 37

A range of Yayla promotional pulse products: large-sized snap-top pots. From left: white beans, garbanzos and red lentils.

Yayla would like to discuss the possibility of promoting US pinto beans in 2012. The company sees the importance of positioning the pinto as a new bean from the USA, not simply another speckled bean. However, Yayla believes that the pinto will have to be discounted in the early stages (buy a pack of Yayla rice and get a pinto pack for free) in order to convince consumers to try pintos. Further discussions regarding how to promote US pintos will take place in 2012.

Product interests: • Pinto beans • Garbanzo beans

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 38

Group photo at Yayla.

From left top row: Bob Green (USDBC), Pankil K. Shah (AgriLink, visitor to Yayla from India), Ender Özdemir (Foreign Trade Manager, Yayla), Mark Dombeck (USDBC), and Feray Alpay (Promedia).

Bottom row: Lynn Virkler (USADPLC, Anna Rademacher (USADPLC) and Johanna Stobbs USDBC & USADPLC).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 39 ARMADA Company address: Ismet Inönü Blv. Kurtulus meydani Klas Plaza Kat: 3 No: 5 Mersin - Turkey Tel: + 90 324 238 07 29 Fax: + 90 324 238 07 42 Contact: Fethi Sönmez Email: [email protected] Website: www.armadafoods.com

Company Profile Armada is a major import-export company, specializing in dry beans, garbanzo beans, red lentils (split and whole), green lentils, popcorn and sesame seeds. This 5th - generation family-owned company is rated among the top five in Mersin in terms of the volume of pulses that it trades. Armada imports, cleans, packages and re-exports all types of pulses, principally to the Gulf States, and more recently to the UK. The company has bonded warehousing facilities in the Mersin Free Zone. It is a major supplier to dry packagers in the Turkish domestic market and also to the UN World Food Program.

Armada is actively expanding into new markets. 60% of its business is in red lentils, for which it is considered one of the largest processors in Turkey. The company runs four plants in Gaziantep, with a splitting capacity of 250 MT per day. Armada was the first company in Turkey to import British-made Sortex electric-eye sorting machines; now most other top processors have followed suit. Very quality-minded, the company ensures a Sortex 0+0 product for the majority of its clients.

In 2011, Armada acquired a brand from Bayamta ş, a competitor. This brand has been re-launched as Anadolu (which means “”) and is being sold in the 3,600 BIM supermarket stores that cover Turkey. Armada also does private-label packaging for the Carrefour hypermarket chain and hopes to introduce Anadolu to Carrefour in 2012.

Armada is intrigued by the idea of promoting US pinto beans and has suggested that pintos be positioned as ‘pinto pilaki”. Pilaki is a Turkish specialty and consists of beans served cold in a sauce as an aperitif.

Armada commented that pulse prices are dropping, which is putting the brakes on purchases. Another topic was Russia. Armada believes that Russia is a supplier country that must be watched carefully. Russian rice, garbanzos and yellow split peas can be delivered to Turkey in just ten days. Currently the quality of Russian product is good, while Russian prices are extremely low.

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 40

Product samples requested: • Great Northern beans • Pinto beans • Dark red kidney beans • Yellow split peas

Group photo at Armada.

From left: Feray Alpay (Promedia), Lynn Virkler (USADPLC), Mark Dombeck (USDBC), Bob Green (USDBC), Fethi Sönmez (Armada), Johanna Stobbs (USDBC & USADPLC) and Anna Rademacher (USADPLC).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 41 BAYAMTA Ş Company address: Mücahitler cad. No: 24 Mersin 33060 – Turkey Contact: Mr. Naci Bayam, owner Tel.: + 90 324 221 3700 Fax: + 90 324 221 3710 Email: [email protected] web: www.bayamtas.com.tr

Company Profile: Bayamta ş is a third-generation, family-owned pulse and spice importer/processor, founded in 1945, with 50% of its business based on imports.

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. It is also strong in spices, herbs, lemon sauce and molasses. The company markets two retail brands: M&5B and Klas .

It will enter the rice business with the launch of a new rice mill in Mersin early in 2012.

Bayamta ş has seen Russian green lentils arriving in Turkey and believes they could be successful in the market because they are similar to the green lentils that Turkey used to grow.

The company is interested in the long term in exporting US pinto beans to Iraq where Bayamta ş believes pintos could be successful.

Product samples requested: • Dark red kidney beans • Pinto beans • Large-sized kabuli-type garbanzo beans (9-10 mm)

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 42

Group photo at Bayamta ş.

From left: M.F. Bayam (Bayamta ş), M. Naci Bayam (Bayamta ş), Mark Dombeck (USDBC), Johanna Stobbs (USDBC & USADPLC), Lynn Virkler (USADPLC), Feray Alpay (Promedia), Anna Rademacher (USADPLC) and Bob Green (USDBC).

USDBC Report – 2011 Turkey Trade Mission & FOODIST Trade Show, December 2011 43 Going Forward in 2012

There are three specific issues for the USDBC in Turkey in 2012:

Great Northern Beans • There will be an opportunity for US Great Northern beans in the spring of 2012 when the local sira bean shortage becomes more apparent and importers begin to prepare for the holy period of Ramadan, which will take place in July this year. However, Turkish importers hope that the price of Great Northern beans will drop by then in order to be more accessible.

Garbanzo Beans • Turkish buyers are on the look-out for US light-colored chickpeas, in sizes ranging from 8mm to 9mm. These are for the very lucrative “leblebi” domestic market. “Leblebi” are roasted and flavored garbanzos, traditionally served as a before-dinner snack with aperitifs.

Promotion of US Pinto Beans • Several Turkish import-dry packaging companies, notably Yayla, Memi şoglu and Dinçer, are interested in marketing US pinto beans as a new pulse product for Turkey. US pintos would be promoted in packs that clearly identify them as a US specialty product, and named in English as “US Pinto beans”. The packs would carry the heart logo of the US Dry Bean Council.

• Discussions regarding this concept will continue in 2012. By the time that the US pinto bean crop arrives in September of 2012, it is hoped that production levels will have risen and US prices will have dropped in order to make the promotional program more profitable for all concerned.

Marketbase December 31, 2011

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