Turkey has a large and growing agriculture and food industry sector. It is the 7th largest agriculture producer globally and largest in Europe, producing many crops where it is the world's top producer. The food and beverage manufacturing industry accounts for 19.7% of GDP and is dominated by large Turkish and multinational companies. Exports have grown significantly and Turkey is a net exporter, led by processed foods. Future growth is expected to come from trends like urbanization, rising incomes, and increasing demand for convenience and packaged foods to serve Turkey's young population.

1. Foreign Market Consulting Ltd. Sti.
Istanbul
June 2014
Agriculture and Food
Industry in Turkey

2. Contents
A Overview Page 03
B Growth Page 07
C Foreign Trade Page 08
D Main Companies Page 10
E Market Outlook Page 12
© 2014 Foreign Market Consulting Ltd. Sti.

3. 3
A. Overview
Agriculture
• Suitable ecological conditions and climate for agricultural production, wide variety
of fruits and vegetables.
• Turkey is the 7th largest agriculture producer in the world and largest one in Europe
with USD 62 bn agricultural revenues. (Source: Ministry of Science, Industry and Technology, 2013)
• World’s largest producer of apricots, hazelnuts, figs, cherries and sour cherries,
quinces in 2012. (Source: FAOSTAT database, 2014)
• 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. (Source: FAOSTAT database, 2014)
• Main processed agricultural products are fruits, vegetables, cereals, tobacco,
sugar beet, milk, meat and poultry.

4. 4
A. Overview
Agriculture
• Total agricultural land in Turkey is 38,428 thousand hectares.
Distribution of Agricultural Land in Turkey, 2013 (Thousand Hectares, Percentage)
Area of Cereals and Other
Crop Products, 19 766,
52%
Area of Vegetable
Gardens, 808, 2%
Area of Fruits,
Beverage
and Spice
Crops, 3 232, 8%
Land under Permanent
Meadows and Pastures,
14 617, 38%
Area of Ornamental
Plants, 5, 0%
Source: Turkish Statistical Institute, 2014

5. 5
A. Overview
Food & Beverage
• 40,872 food manufacturers and 634 beverage manufacturers in 2014. (Source: Social Security
Institution, 2014)
• Food and beverage industry has 19.7% share in GDP in 2012. (Source: Federation of Food &
Drink Industry Association of Turkey, 2012)
• 71% of the food retail in Turkey belongs to traditional retailers and 29% belongs to
organized retailers as of 2011. (Source: The Union of Chambers and Commodity Exchanges in Turkey, Turkish
Statistical Institute, Trade Council of Shopping Centers and Retailers, 2012)
• Unrecorded sales have a significant share in the food and beverage sector. It is
estimated that the share of unrecorded sales in the Turkish retail sector is 30%. (Source:
The Union of Chambers and Commodity Exchanges in Turkey, 2012)

6. 6
A. Overview
Food & Beverage - FDI
• 536 foreign capital manufacturers operate in the food, beverage and tobacco industry
in 2013, 265 of them are in Istanbul. (Source: Ministry of Economy, 2014)
• More than USD 3.5 bn FDI inflow to the food, beverage and tobacco industry btw.
2009-2013. (Source: Central Bank of the Republic of Turkey, 2014)
• Share of the food, beverage and tobacco industry in the FDI inflows to the total
manufacturing industry was 28% btw. 2009-2013, which is the highest share among
all industries. (Source: Central Bank of the Republic of Turkey, 2014)

7. 7
Food & Beverage Growth
5.3
9.4
8.4
6.9
Growth %
4.7
0.7
-4.8
9.2
8.8
2.1
6.8
1.7
8.7
3.9
2.1 2.2
1.0
2.1
6.6
2.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP Food & Beverage
B. Growth
Source: Federation of Food & Drink Industry Association of Turkey, 2012

8. 8
C. Foreign Trade
Food and Beverage Exports and Imports
• Between 2003 and 2012, food & beverage exports of Turkey have grown by 15% per
year, and imports have grown by 14% per year on average.
2648
3350
Food & Beverage Foreign Trade
4272 4340
5165
6476
5931
6703
8884
9523
1634
1904
2114
2455
2662
3763
2908
3429
4905
5122
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports Imports
USD mn
Source: Federation of Food & Drink Industry Association of Turkey, 2012

9. 9
C. Foreign Trade
Food and Beverage Exports and Imports
• Turkey is a net exporter of food and beverage products.
Food and Beverage Foreign Trade (2012)
Food and beverage exports USD 9.5 bn
Food and beverage imports USD 5.1 bn
Main destinations of exports Iraq, Germany, UK, Netherlands, USA
Main sources of imports Russia, Ukraine, Germany, Indonesia, USA
Main export items
Processed fruits and vegetables, milled cereal products, vegetable and
animal oils
Traditional agricultural exports
Dried fruits (raisins, sultanas, dried apricots, dried figs), fresh fruits
(lemons, grapes, cherries, oranges and grapefruits), hazelnuts
Main import items Vegetable and animal oils, meat and meat products
Source: Federation of Food & Drink Industry Association of Turkey, 2012

10. 10
D. Main Companies
Main State-Owned Enterprises in the Food Industry
• The largest state-owned enterprises in the agriculture and food industry:
• Turkiye Seker Fabrikalari A.S. (TSF): TSF has 25 sugar plants and is in the process of
privatization.
• Cay Isletmeleri Genel Mudurlugu (Caykur): Caykur is the leading tea producer in Turkey with
a 60-65% market share in dry tea.
• Et ve Sut Kurumu Genel Mudurlugu (ESK): ESK has nine meat production facilities and aims
to support the domestic animal husbandry industry.
• The largest privatization in the agriculture and food industry in the last years: 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.

11. 11
D. Main Companies
Largest Private Manufacturers in the Food Industry
• Main Private Manufacturers in the Food Industry
Rank* Company
Production Based Net Sales
(TRY mn)**
Product Groups
17 Unilever 2,668 Tea, Ice Cream, Sauce, Margarine, Soup
31 Philsa Philip Morris Sabanci 1,801 Tobacco
33 Coca-Cola Icecek 1,765 Beverage
43 Ak Gida (Yildiz Holding) 1,454 Dairy
44 Konya Seker 1,447 Sugar
56 Sutas 1,203 Dairy
57 Oltan Gida 1,203 Hazelnut
58 Banvit 1,201 Poultry
60 Abalıoglu Yem 1,171 Feed
68 Anadolu Efes 1,085 Beer
73 Eti Gida 1,005 Biscuit, Chocolate
76 C.P. Standart 966 Poultry, Feed
77 S.S. Trakya 941 Vegetable Oil and Margarine
85 Besler Gida (Yildiz Holding) 820 Vegetable Oil and Margarine
86 Keskinoglu 809 Poultry
89 JTI Tutun 798 Tobacco
90 Ulker Biskuvi (Yildiz Holding) 795 Biscuit
92 Erpilic 786 Poultry
93 Ulker Cikolata (Yildiz Holding) 784 Chocolate
96 Senpilic 746 Poultry
*Rank among top 500 Manufacturing companies in Turkey in 2012
**EUR 1 = TRY 2.31 in 2012.
Source: Istanbul Chamber of Industry, 2013

12. 12
E. Market Outlook
Future Trends
• Main factors and trends influencing future production and consumption of food in
Turkey will be:
• Young and fast increasing population willing to try new brands and products (half of the
population is under the age of 30.4., population growth rate in 2013: % 1.37)
• Urbanization (Population living in urban areas in 70% in 2007, 91% in 2013)
• Rising income levels (GDP per capita: USD 3,492 in 2002, USD 10,497 in 2012)
• Increasing hygiene standards
• Healthy nutrition trends
• Increasing number of working women (Women’s share in the labor force: 26% in 2004, 31%
in Nov. 2013)
• Increasing demand for packaged, ready-to-eat and frozen foods
• Increasing production and consumption of organic food (Organic crop production: 421,934
tons in 2005; 1,750,127 tons in 2012)
• Proliferation of mass grocery retail outlets
• Modern production facilities of the large scale manufacturers continuously making new
investments
• Growing tourism industry supports the domestic market (Number of visitors: 16 mn in 2003,
36 mn in 2012)
Source: Turkish Statistical Institute, 2014

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information to be handled confidentially, especially regarding the sources used.
Liability
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customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.info