Brief information on Agriculture, Livestock, Fishery and Food Industry in Turkey by 2016

1. Foreign Market Consulting Ltd. Sti.
Istanbul
November 2016
Agriculture, Livestock, Fishery and
Food Industry in Turkey

2. FMConsulting prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different
segments, please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmconsulting.com ). We would be happy to support you.

3. Contents
© 2014 Foreign Market Consulting Ltd. Sti.
A Agriculture, Livestock & Fishery Page 04
B Food & Beverage Page 11
C Main Companies Page 16
D Market Outlook Page 18

4. 4
• Suitable ecological conditions and climate for agricultural production, wide variety
of fruits and vegetables.
• Main processed agricultural products are fruits, vegetables, cereals, tobacco,
sugar beet, milk, meat and poultry.
• World’s largest producer of (2013):
• Europe’s largest producer of (2013):
A. Agriculture, Livestock & Fishery
Position in the World
• Apples
• Beans (Dry and
green)
• Chestnut
• Chick peas
• Green chillies and
peppers
• Cotton lint, cotton
seed
• Cucumbers and
gherkins
• Dates
• Eggplants
• Grapefruits
• Groundnuts
• Leeks
• Lemons
• Lentils
• Melons
• Okras
• Onions
• Pistachios
• Safflower seed
• Sesame seed
• Spinach
• Strawberries
• Tea
• Tobacco
• Tomatoes
• Vanilla
• Vetches
• Walnuts
• Watermelons
• Apricots
• Cherries
• Figs
• Hazelnuts
• Poppy seed
• Quinces
Source: FAOSTAT, 2016

5. 5
• Turkey ranks 7th in the world and 1st in Europe in terms of agricultural production.
A. Agriculture, Livestock & Fishery
Position in the World
Rank Country
Gross Production Value, Agriculture
(USD mn, 2013)
1 China 1,284,599
2 USA 311,084
3 India 256,782
4 Brazil 219,402
5 Indonesia 126,047
6 Russian Federation 96,939
7 Turkey 73,680
8 France 73,142
9 Japan 71,147
10 Iran 69,830
Source: FAOSTAT, 2016

6. 6
• Total utilized agricultural land in Turkey is 38.6 mn hectares.
A. Agriculture & Livestock
Crop Production
Source: Turkish Statistical Institute (TUIK), 2016
Area of
cereals and
other crop
products
19,837
51.5%
Land under
permanent
meadows
and
pastures
14,617
37.9%
Area of
fruits,
beverage
and spice
crops
3,284
8.5%
Area of
vegetable
gardens
809
2.1%
Area of
ornamental
plants
5
0.0%
Distribution of Agricultural Land, 2015
(Thousand Hectares, Percentage)
38,637.1
29,552.3
19,100.0
1,079.0
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Cereals Vegetables Fruits Dry pulses
Crop Production, 2015, ‘000 tons

7. 7
A. Agriculture, Livestock & Fishery
Livestock
Source: TUIK, 2016
316,332
41,924
14,128
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Poultry
Animals
Sheep &
Goat
Bovine
Animals
Number of Animals, '000, 2015
16,726,332
0
10,000,000
20,000,000
Hen eggs
Number of Hen Eggs, '000, 2015
1,961,999
1,015,251
134,011
0
1,000,000
2,000,000
3,000,000
Poultry meat Bovine Meat Sheep&Goat Meat
Meat Production, tons, 2015
16,996,280
1,658,401
0
10,000,000
20,000,000
Bovine Milk Sheep&Goat Milk
Milk Production, tons, 2015
345,765
240,334
51,966 34,176
0
100,000
200,000
300,000
400,000
Caught sea fish Aquaculture
production
Caught
crustaceas and
molluscs
Caught fresh-
water products
Fishery, tons, 2015

8. 8
A. Agriculture, Livestock & Fishery
Growth in Production
000 tons Cereals Vegetables Fruits Dry Pulses
2005 36.471,6 26.472,2 15.982,7 1.433,4
2015 38.637,1 29.552,3 19.100,0 1.079,0
CAGR
(2005-
2015)
0,6% 1,1% 1,8% -2,8%
Source: TUIK, 2016
000 tons Sheep&Goat Meat Bovine Meat Poultry Meat Sheep&Goat Milk Bovine Milk
2005 86,1 323,3 979,4 1.043,6 10.064,3
2015 134,0 1.015,3 1.962,0 1.658,4 16.996,3
CAGR
(2005-
2015)
4,5% 12,1% 7,2% 4,7% 5,4%
Source: TUIK, 2016
000 tons Caught Sea Fish Caught Crustaceas, Molluscs Aquaculture Production Caught Fresh-Water Products
2005 334,2 46,1 118,3 46,1
2015 345,8 52,0 240,3 34,2
CAGR
(2005-
2015)
0,3% 1,2% 7,3% -3,0%
Source: TUIK, 2016
High Growth Low Growth Decrease
Crops
Animal Products
Fishery

9. 9
• Turkey is a net importer in the agriculture, livestock and fishery industry.
• CAGR (2005-2015):
• Exports: 6.8%
• Imports: 10.9%
A. Agriculture, Livestock & Fishery
Foreign Trade
Includes crop and animal production, hunting and related service activities, fishing and aquaculture
Source: TUIK, 2016
USD mn
2,234.1
2,689.7
2,941.6
3,337.3
3,753.3
4,118.6 4,205.0 4,173.1
4,720.5 4,874.7
4,332.3
2,337.2
2,444.3
4,082.1
5,799.6
4,106.2
5,952.3
8,323.2
6,799.8
7,155.1
7,981.9
6,571.6
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports Imports

10. 10
A. Agriculture, Livestock & Fishery
Foreign Trade
Russia
979.5
23%
Iraq
547.4
13%
Germany
285.1
7%
USA
226.1
5%
Italy
186.0
4%
Netherlands
162.6
4%
Ukraine
120.9
3%
Romania
108.6
2%
Saudi Arabia
104.1
2%
Syria
101.4
2%
Other
1,510.7
35%
Main Destinations of Exports
USD mn, % Share
USA
1,068.2
16%
Russia
991.9
15%
Ukraine
473.4
7%
Canada
288.0
5%Brazil
272.3
4%
Turkmenistan
216.9
3%
Ivory Coast
214.1
3%
Romania
189.0
3%
Greece
186.6
3%
Moldova
185.0
3%
Other
2,486.3
38%
Main Sources of Imports
USD mn, % Share
Includes crop and animal production, hunting and related service activities, fishing and aquaculture
Source: TUIK, 2016

11. 11
• 41,571 food manufacturers and 649 beverage manufacturers as of August 2016.
(Source: Social Security Institution, 2016)
• 460,778 people were employed in the food and beverage (F&B) industry as of August
2016. (Source: Social Security Institution, 2016)
• F&B industry has 19.0% share in GDP in 2015. (Source: Federation of Food & Drink Industry Association of
Turkey/TGDF, 2016)
• F&B and tobacco expenditures have the second largest share in total household
consumption expenditures with 24.4% in 2015, following housing and rent
expenditures. (Source: TUIK, 2016)
• 77% of the food retail in Turkey belongs to traditional retailers and 23% belongs to
organized retailers in 2015. (Source: TUIK, AC Nielsen and PwC, 2016)
B. Food & Beverage
Industry Overview

12. 12
• 568 foreign capital manufacturers operate in the F&B and tobacco industry as of June
2016, 281 of them are in Istanbul. (Source: Ministry of Economy, 2016)
• Main origin of foreign investors is the EU, led by Germany with 100 companies. (Source:
Ministry of Economy, 2016)
• More than USD 4.7 bn FDI inflow to the F&B and tobacco industry btw. 2011-2015.
(Source: Central Bank of the Republic of Turkey, 2016)
• Share of the F&B and tobacco industry in the FDI inflows to the total manufacturing
industry was 27% btw. 2011-2015, which is the highest share among all industries.
(Source: Central Bank of the Republic of Turkey, 2016)
B. Food & Beverage
FDI

13. 13
B. Food & Beverage
Source: TGDF, 2016
Growth
• CAGR (2010-2015) in F&B Industry GDP: 2.7%
8.7%
3.9%
2.1% 2.2%
1.0%
2.1%
6.6%
2.6% 2.5%
1.8%
0.2%
8.4% 6.9%
4.7%
0.7%
-4.8%
9.2%
8.8%
2.1%
4.2%
3.0%
4.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
F&B Industry GDP Total GDP

14. 14
• Turkey is a net exporter of F&B products.
• CAGR (2005-2015):
• Exports: 8.1%
• Imports: 9.6%
B. Food & Beverage
Foreign Trade
Source: TUIK, 2016
USD mn
5,493.4 5,244.6
6,092.3
7,313.2
6,710.3
7,645.9
10,013.9
10,706.7
11,912.5
12,670.2
12,009.8
2,289.3
2,613.4
2,977.5
4,243.4
3,204.6
3,782.6
5,270.1
5,632.5
6,052.1 6,230.1
5,744.5
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports Imports

15. 15
B. Food & Beverage
Foreign Trade
Iraq
2,205.2
18%
Germany
1,253.1
10%
Italy
732.4
6%
Syria
522.3
4%France
454.6
4%USA
413.4
4%
Netherlands
391.4
3%
UK
381.3
3%
Saudi
Arabia
323.9
3%
Sudan
196.2
2%
Other
5,136.0
43%
Main Destinations of Exports
USD mn, % Share
Russia
1,111.9
19%
Malaysia
448.4
8%
Ukraine
441.5
8%
USA
287.9
5%Germany
281.3
5%
Netherlands
258.2
4%
Italy
188.2
3%
Indonesia
181.1
3%
Bulgaria
176.3
3%
Bosnia and
Herzegovina
152.7
3%
Other
2,216.9
39%
Main Sources of Imports
USD mn, % Share
Source: TUIK, 2016

16. 16
• The largest state-owned enterprises in the agriculture and food industry:
• Turkiye Seker Fabrikalari (Turkey Sugar Factories): Has 25 sugar plants and is in the
process of privatization.
• Caykur (General Directorate of Tea Enterprises): Is the leading tea producer in Turkey with a
60-65% market share in dry tea.
• Et ve Sut Kurumu (Meat and Milk Board): Has 12 meat production facilities and aims to
support the development of the domestic livestock industry.
• The largest privatization in the agriculture and food industry was the sale of the
tobacco and alcohol manufacturer TEKEL:
• The alcohol manufacturing part of the enterprise was privatized in 2004. Diageo Plc acquired
whole shares in 2011.
• The tobacco manufacturing part of the enterprise was sold to British American Tobacco in
2008.
C. Main Companies
Main State-Owned Enterprises in the F&B Industry

17. 17
C. Main Companies
Largest Private Manufacturers in the Food Industry
Company Net Sales (TRY mn, 2015)* Product Groups
Coca-Cola Icecek 6,723.9 Soft Drinks
Unilever** 4,089.8 Tea, Ice Cream, Sauce, Margarine, Soup
Tiryaki Agro Gida 3,507.5 Agricultural Products
Anadolu Efes*** 3,481.3 Beer
Mey Icki 3,282.1 Alcoholic Beverages
Ulker Biskuvi (Yildiz Holding) 3,075.1 Biscuit
Eti Gida 2,672.1 Biscuit, Chocolate
Philsa Philip Morris Sabanci 2,421.8 Tobacco
Konya Seker 2,164.1 Sugar
Banvit 2,001.1 Poultry
Sutas 1,886.6 Dairy
Abalıoglu Yem 1,693.5 Feed
Tekozel Gida (Yildiz Holding) 1,535.1 Private Label
Besler Gida (Yildiz Holding) 1,340.5 Vegetable Oil and Margarine
Altinmarka 1,304.9 Coffee
Arbel Bakliyat 1,265.6 Pulses
JTI Tutun Urunleri 1,231.6 Tobacco
Namet Gida 1,225.8 Meat Products
Onem Gida (Yildiz Holding) 1,217.4 Raw Materials for Chocolate Production
Bunge Gida 1,198.6 Oil Seed
*EUR 1 = TRY 3.021 in 2015.
**Includes non-food sales of Unilever
***The sales volume of Coca Cola Icecek, which is a subsidiary of Anadolu Efes, is deducted.
Source: Fortune and Capital magazines, 2016

18. 18
• Main factors and trends influencing future F&B production and consumption:
• Young and fast increasing population willing to try new brands and products (half of the
population is under the age of 31, population growth rate in 2015: 1.34%)
• Urbanization (Population living in urban areas 92% in 2015)
• Increasing number of working women (Women’s share in the labor force: 26% in 2005, 31%
in 2015)
• Increasing demand for packaged, ready-to-eat and frozen foods
• Increasing hygiene standards
• Healthy nutrition trends
• Increasing production and consumption of organic food (Organic crop production: 421,934
tons in 2005; 1,829,291 tons in 2015. CAGR (2010-2015): 6.4%)
• Proliferation of mass grocery retail outlets
• Tourism industry supports the domestic market (Number of visitors: 20.3 mn in 2005, 39.5
mn in 2015), despite the slowdown in 2015 and 2016.
D. Market Outlook
Future Trends
Source: TUIK and UNWTO, 2016

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information to be handled confidentially, especially regarding the sources used.
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customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
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