1. TURKEY
LIVESTOCK & RED MEAT MARKET
STATISTICS & INCENTIVES
by
ÖMER ERDEM
NOVEMBER 2012

2. TURKEY
LIVESTOCK & RED MEAT
MARKET
STATISTICS

3. MARKET SUMMARY 2011
Meat production per animal (kg) in 2011
Cattle Buffaloes Sheep Goats
Number of animals 12.386.337 97.632 25.031.565 7.277.953
Number of slaughtered 2.571.765 7.255 5.479.546 1.254.092
Meat production (tons) 644.906 1.615 107.076 23.318
Slaughter ratio (%) 21% 7% 22% 17%
Meat production per animal (kg) 251 223 20 19
The livestock in Turkey is categorized in four segments; cattle, buffaloes, sheep
and goats.
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

4. RED MEAT PRODUCTION MONTHLY
2010-2011
120.000
100.000
80.000
60.000
40.000
20.000
0
RED MEAT PRODUCTION (CATTLE)
At Eid ul-adha, the production triples.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TONS
2010 2011
800
700
600
500
400
300
200
100
0
RED MEAT PRODUCTION (BUFFALO)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TONS
2010 2011
40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000
0
RED MEAT PRODUCTION (SHEEP)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TONS
2010 2011
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
RED MEAT PRODUCTION (GOAT)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TONS
2010 2011
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

5. ANIMAL FIGURES 1991-2011
CATTLE
12.000.000
10.000.000
8.000.000
6.000.000
4.000.000
2.000.000
0
Number of animals
CATTLE NUMBERS & DISTRIBUTION 1991-2011
Cattle
(Domestic)
Cattle
(Cross-breed)
Cattle
(Culture)
Percentage of domestic cattle declined from 55% to 20% in 20 years where
culture cattle increased from 10% to 40%.
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

6. ANIMAL FIGURES 1991-2011
SHEEP
40.000.000
35.000.000
30.000.000
25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
0
Number of animals
SHEEP NUMBERS & DISTRIBUTION 1991-2011
Sheep
(Merino)
Sheep
(Domestic)
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

7. ANIMAL FIGURES 1991-2011
GOATS
10.000.000
8.000.000
6.000.000
4.000.000
2.000.000
0
Number of animals
GOAT NUMBERS & DISTRIBUTION 1991-2011
Angora
Goats
Ordinary
Goats
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

8. ANIMAL FIGURES 1991-2011
BUFFALOES
350.000
300.000
250.000
200.000
150.000
100.000
50.000
0
Number of animals
BUFFALO NUMBERS & DISTRIBUTION 1991-2011
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

9. RED MEAT PRODUCTION 1991-2011
OVINE
150.000
130.000
110.000
90.000
70.000
50.000
30.000
10.000
-10.000
8.000.000
7.000.000
6.000.000
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
0
Meat production (tons)
Number of slaughtered animals
OVINE (SHEEP&GOAT) MEAT PRODUCTION
Sheep Goat Sheep meat Goat meat
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

10. RED MEAT PRODUCTION 1991-2011
BOVINE
700.000
600.000
500.000
400.000
300.000
200.000
100.000
0
2.500.000
2.000.000
1.500.000
1.000.000
500.000
0
Meat production (tons)
Number of slaughtered animals
BOVINE (CATTLE&BUFFALO) MEAT PRODUCTION
Cattle Buffalo Cattle meat Buffalo meat
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

11. ANIMAL PRICES 2010-2011
Price (USD) Changes
Livestock* 2010 2011 (%)
Sheep
Sheep (Merino) $303 $343 13,1%
Sheep (Domestic) $300 $324 8,0%
Lambs (Merino) $222 $237 6,6%
Lambs (Domestic) $208 $222 7,0%
Ordinary goats
Ordinary goats $256 $282 9,9%
Kid of ordinary goats $163 $182 11,5%
Angora goats
Angora goats $202 $236 17,1%
Kid of angora goats $132 $160 21,7%
Price (USD) Changes
Livestock* 2010 2011 (%)
Cattle
Cattle (Culture) $2.594 $2.763 6,5%
Cattle (Cross-Breed) $2.061 $2.169 5,3%
Cattle (Domestic) $1.506 $1.545 2,6%
Calves (Culture) $1.292 $1.353 4,8%
Calves (Cross-Breed) $1.067 $1.111 4,1%
Calves (Domestic) $764 $1.006 31,6%
Buffaloes
Buffaloes $1.660 $1.769 6,6%
Buffalo calves $800 $890 11,2%
Animal prices increased on USD basis although Turkish Lira/USD parity increased
11% which means TL prices increased more.
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

12. ANIMAL PRODUCT PRICES 2010-2011
Price (USD/kg) Changes
Animal products* 2010 2011 (%)
Meat
Sheep's meat $12,62 $12,19 -3,4%
Goat's meat $12,21 $11,30 -7,5%
Cattle's meat $12,27 $11,10 -9,5%
Buffalo's meat $11,10 $10,06 -9,4%
Milk
Sheep's milk $0,86 $0,84 -3,1%
Goat's milk $0,91 $0,87 -3,9%
Cow's milk $0,61 $0,48 -21,4%
Buffalo's milk $1,19 $1,06 -11,3%
Hide (USD/number)
Sheep's hide $3,30 $3,80 15,2%
Goat's hide $3,17 $3,14 -1,1%
Cattle's hide $22,19 $19,70 -11,2%
Buffalo's hide $14,27 $18,28 28,1%
Wool $1,63 $1,53 -6,0%
Hair $1,25 $1,19 -4,6%
Mohair $4,19 $4,43 5,6%
Meat prices seem to
decrease in 2011 however
Turkish Lira/USD parity
increased by 11% which
means that TL prices of
meat increased in year
2011 but less than USD.
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

13. TURKEY
LIVESTOCK & RED MEAT
MARKET
SUPPORTS
&
INCENTIVES

14. INVESTMENT SUPPORTS & INCENTIVES
• IPARD PROGRAM
• LOAN SUPPORT (REDUCED INTEREST RATE)
• INDUSTRIAL SUPPORTS
• CITY BASED SUPPORTS
• OTHER SUPPORTS
– GOVERNMENT INCENTIVES
– ORGANIZED INDUSTRIAL ZONES
– LAND ALLOTMENT INCENTIVES
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

15. IPARD PROGRAM
• IPARD (Instrument for Pre-Accession Assistance Rural
Development (IPARD) Programme)
• Granted in 42 cities (out of 81 cities total)
• Industries supported
– Milk production & processing
– Meat production & processing (including poultry)
– Fruit & vegetable production & processing
– Fishery
• Supported expenses & investments
– Construction
– Machine & equipment investment
– Procurement of services (such as consultancy, etc.)
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

16. IPARD PROGRAM
RED MEAT PRODUCTION & PROCESSING
Red meat production is supported in above cities and up to 1.000.000 Euro
Red meat processing support budget can vary according to the investment
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

17. LOAN SUPPORT
LOAN SUBJECTS
LOAN INTEREST
REDUCTION RATE (%)
UPPER
LIMIT
OF THE
LOAN
INVESTMENT
PERIOD
OPERATIONAL
PERIOD
DAIRY CATTLE BREEDING
UP TO 140.000 USD 100% 50%
140.000 - 1.700.000 USD 75% 50% $11.300.000
1.700.000 - 11.300.000 USD 50% 25%
COMMON ANIMAL
PRODUCTION
UP TO 28.000 USD 50% 50%
$280.000
28.000 - 280.000 USD 25% 25%
BREEDING
BEEF CATTLE 100% 100%
$4.250.000
HEIFER 100% 100%
BOVINE
BREEDING 50% 25%
$1.700.000
FATTENING 50% 50%
OVINE
BREEDING 100% 100% $2.800.000
FATTENING 100% 50% $850.000
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

18. INDUSTRIAL SUPPORTS
• These supports include;
– agricultural products processing, storage and
packaging (primary processing of plant, animal and
fishery products, except hard covered nuts)
• In this context below are supported;
– new investment facilities,
– capacity increase or renovation of facilities,
– completion of partly realized investments
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

19. CITY BASED SUPPORTS
• These supports can vary according to;
– City & region
– Type of investment (livestock, fish, etc)
– Quantity & capacity of investment
• These supports include;
– Investment financing
– Customs tax exemption
– Tax reduction
– VAT exemption
– Land allotment for production facilities
– Support for workers’ insurance payments
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

20. OTHER SUPPORTS
• GOVERNMENT INCENTIVES
– Annual support payments are done to livestock
breeders per headcount (cattle, sheep, etc.)
• ORGANIZED INDUSTRIAL ZONES
– Various tax exemptions (depending on the zone)
• LAND ALLOTMENT INCENTIVES
– Free land allocation (percentage depends on city)
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

21. TURKEY
LIVESTOCK & RED MEAT
MARKET
SUGGESTIONS
&
ROAD MAP

22. SUGGESTED CITY
SUGGESTED CITY FOR RED MEAT PRODUCTION IS KONYA
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

23. KONYA - ADVANTAGES
• LARGEST CITY (41.011km2)
• LARGEST AGRICULTURAL LAND (22.480km2)
• FIRST RANKS IN;
– AGRICULTURAL PRODUCTION: WHEAT, BARLEY, SUGAR BEETS,
CARROTS, APPLES, BEANS, ETC
– ANIMAL PRODUCTION: MEAT, MILK, EGGS, POULTRY
• CLIMATE AND SOIL TYPE
– SUITABLE FOR AGRICULTURE AND ORGANIC FARMING
• LARGE CATTLE & SHEEP GRAZING LANDS (7.600km2)
– ALSO SUITABLE FOR FODDER PRODUCTION
• TURKEY’S LARGEST "ANIMAL SPECIALIZED ORGANIZED
INDUSTRIAL ZONE” PRESENT IN THE PROVINCE
• LOTS OF INCENTIVES & SUPPORTS INCLUDING IPARD
TURKEY LIVESTOCK & RED MEAT MARKET REPORT OMER ERDEM - NOVEMBER 2012

24. CONTACT
OMER S. ERDEM
OMERSABRIERDEM@GMAIL.COM
OMERSABRI@HOTMAIL.COM
+90 – 532 – 2822120