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Zendingsdossier MP THE FOOD AND BEVERAGE SECTOR IN TURKEY FLANDERS INVESTMENT & TRADE MARKET SURVEY Study The Turkish Food and Beverage Sector Market Study, December 2018 Author: Ezgi Çeri / Invest Deputy Flanders Investment and Trade c/o Consulate General of Belgium Siraselviler Caddesi 39 34433 Taksim Istanbul – Turkiye [email protected] T: +90 212 293 99 17 1 1 INTRO The following report aims to guide the trade and investment strategies of Flemish companies seeking to expand into the Turkish food and beverage market. First of all we need to point out that Turkey itself is a big producer of food and beverages. The sector has almost %20 of the country's GDP (2017). This has to do with the fact that the country is blessed with a suitable climate and ecological conditions for agricultural production, for a wide variety of fruits and vegetables. Turkey is the 7th largest agricultural producer in the world, and the largest one in Europe. It is the world’s largest producer of apricots, hazelnuts, figs, cherries and sour cherries, quinces. It is Europe’s largest producer of apples, green beans, beeswax, chestnuts, chick peas, green chilies and peppers, cotton lint, cottonseed, cucumbers and gherkins, eggplants, grapefruits, natural honey, leeks, lemons and limes, lentils, chicken meat, melons, whole fresh sheep milk, dry onions, green onions, pistachios, safflower seed, spices, spinach, strawberries, tea, tomatoes, vanilla, vetches, walnuts, watermelons. No wonder then that Turkey’s exports of food and beverages are much larger than its imports. In 2017 Turkey’s exports of the food & beverage industry reached USD 11,.7 billion. Its main export markets are: Germany, UK, Italy and Iraq. In 2017 Turkey’s imports in the food & beverage categories stood at USD 4.9 billion. The main import markets are: The Netherlands, Germany, USA, Poland and Italy. Turkey is a growing market with a large population of 80.8 million people, a young population (50% is younger than 30), of increasing affluence, and more and more open to international flavours, to imported foods and drinks, to convenience food. A market with continuously increasing market share of the ‘organised retail’ as well. The share of household expenditure allocated to food, beverages, and tobacco will remain high by western standards. It was 23.5 percent of household spending in 2017, but is expected to decline to 22.6 percent in 2022, according to Economist Intelligence Unit (EIU). There are over 41,000 registered producers in Turkey; but the increase in the population of the country, together with the increasing local production costs, open the doors, allowing the entrance of more foreign products to the domestic markets. In this respect, opportunities exists for Flemish companies that are able to supply the market with novel and lifestyle aspiring products. 2 2 CONTENTS 1 Intro ............................................................................................................................................................................................. 2 2 Contents ................................................................................................................................................................................... 3 3 Turkey Macro Economic Context & Market Overview ................................................................................. 4 4 Turkey Food & Beverage Industry Overview ..................................................................................................... 8 4.1 EMPLOYMENT IN FOOD AND BEVERAGE INDUSTRY ................................................................................................................................. 8 4.2 FOOD INDUSTRY PRODUCTION .................................................................................................................................................................... 8 4.3 REVENUES OF FOOD AND BEVERAGE INDUSTRY ..................................................................................................................................... 9 4.4 FOREIGN TRADE SURPLUS OF FOOD SECTOR ......................................................................................................................................... 9 4.5 FOOD AND BEVERAGE IMPORTS OF TURKEY ............................................................................................................................................. 9 5 Food Processing in Turkey .......................................................................................................................................... 11 5.1 IMPORT PROCEDURE .............................................................................................................................................................................. 14 6 Food Retail Landscape in Turkey .......................................................................................................................... 15 7 Road Map for Market Entry ........................................................................................................................................ 18 8 Opportunities for Flemish Companies ............................................................................................................... 18 8.1 A LARGE MARKET SIZE AND A GROWING, YOUNG POPULATION ..........................................................................................................18 8.2 UNSATURATED MARKET, OPEN FOR NEW ITEMS ...................................................................................................................................... 19 8.3 AN IMPORTANT EXPORT HUB ........................................................................................................................................................................ 19 9 Regulation of the Food and Beverage Sector ............................................................................................... 19 9.1 SECTION I. FOOD LAWS .................................................................................................................................................................................. 19 9.2 SECTION II. FOOD ADDITIVES REGULATIONS ......................................................................................................................................... 20 9.3 SECTION III. PESTICIDES AND OTHER CONTAMINANTS ......................................................................................................................... 20 9.4 SECTION IV. PACKAGING AND CONTAINER REGULATIONS .................................................................................................................... 21 9.5 SECTION V. LABELING REQUIREMENTS: ...................................................................................................................................................... 21 9.6 SECTION VI. OTHER SPECIFIC STANDARDS .............................................................................................................................................. 24 9.7 SECTION VII. OTHER CERTIFICATION AND TESTING REQUIREMENTS ............................................................................................... 28 9.8 SECTION VIII. IMPORT PROCEDURES ......................................................................................................................................................... 28 10 Key Contacts and Further Information ........................................................................................................... 30 11 Attachment 1: List of Regulation Classifies Which Products are Animal and Animal Products ....................................................................................................................................................................................... 31 12 Attachment 2: HS codes of commodities which require Control Certificate .......................... 32 13 Attachment 3: HS CODES of commodities which are not required to obtain a Control Certificate but are subject to veterinary controls/inspections .............................................................. 34 14 Sources ................................................................................................................................................................................. 35 3 3 TURKEY MACRO ECONOMIC CONTEXT & MARKET OVERVIEW Turkey Snapshot Official Name of Country Republic of Turkey Capital City Ankara Government Presidential System of Government Population 80.8 million (2017) Labor Force (Population) 31.6 million (2017) Median Age 31.7 (2017) Official Language Turkish President Recep Tayyip Erdoğan Area 783,562.38 km² Bulgaria, Greece, Syria, Iraq, Iran, Azerbaijan, Neighboring Countries Armenia, Georgia 4 Istanbul (15.0 million), Ankara (5.4 million), Izmir Major Cities (Population) (4.3 million), Bursa (2.9 million), Antalya (2.4 million) (2017) Currency Turkish Lira (TRY) Financial Center Istanbul GDP / GDP Growth (%) USD 851 billion / 7.4% (2017-Current Prices) GDP Per Capita USD 10,597 (2017) Exports Value USD 157 billion (2017) Imports Value USD 234 billion (2017) Foreign Direct Investment USD 10.9 billion (2017) Number of Companies with Foreign 58,418 (2017) Capital Inflation Rate 11.9% (CPI-2017) Germany (9.6%); UK (6.1%); UAE (5.8%); Iraq (5.8%); Major Exports Markets USA (5.5%); Italy (5.4%); France (4.2%); Spain (4.0%); Netherlands (2.5%) Israel (2.2%) (2017) China (10.0%); Germany (9.1%); Russia (8.3%); USA (5.1%); Italy (4.8%); France (3.5%);
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