Sorgun Ozbalci - Aso Food Industry Ltd. Dried Fruit & Nuts Consumption and Product Trends in Turkey Dried Fruit & Nuts Consumption and Product Trends in Turkey

Sorgun Ozbalci - General Overview - Turkey Name: Republic of Turkey Population: 63,451,000 (1998) Annual Growth rate: 1.4% Area: 814,578 Km2 Land Area: 76.9m ha. Cultivated area: 28m ha. Population Density: 78 persons/Km2 Unemployment: 6.3% Employed in agriculture: 43% Employed in services: 40.3% Employed in industry: 16.7% Capital: Ankara Currency: Turkish Lira (TL) $1=1,450,000 TL (as of 5/2004) GNP: US$ billion (16th among OECD) GDP: US$ 3,250 per capita Trade (1998 figures) Exports: US$ 26.9 billion Imports: US$ 45.9 billion Exports Agricultural US$ 2.7 billion Minerals US$ 363 million

Sorgun Ozbalci - General Overview – Turkey-2 Manufacturing: US$ 23.8 billion Crops: Wheat, barley, cotton, sugar beets, sunflower, potato, tobacco, vegetables, dried fruits, fresh fruits, nuts, ornamentals. Natural Resources: Hydro-Electric power, chromium, copper, tungsten, phosphate, boron, barite, bentonite, manganese, zinc, magnesite, perlite, wolfram, asbestos, bauxite, lead, mercury, sulphur, emery, meerschaum, marble, aluminium, iron, coal, crude oil, forests, livestock. Agricultural Exports: Hazelnuts, pistachio, figs, dried raisins and apricot, pulses, tobacco, citrus, pome and stone fruits, melons, vegetables, tomato products, cut flowers, processed food, poultry meat, cereals, cotton, tea. Other Exports: Manufactured goods, minerals, textile, thread, ready-to- wear clothing, leather, machinery, mechanical appliances, furniture, carpets, rugs, automobiles, buses, pharmaceuticals, man-made filaments, glass and glass-ware products, articles of iron and steel and aluminium. Major Trading Partners: OECD, EU, Middle-East and CIS countries, Russian Federation.

Sorgun Ozbalci - Insufficiency in Statistical Data There is no comprehensive statistic regarding domestic consumption of Dried Fruits and Nuts in Turkey Wholesalers of DFN make sells without invoice This situation is also valid for retailers Around 80% of the sales are done without records In these presentation, figures are generally based on estimations and household surveys

Sorgun Ozbalci - Most Popular Dried Fruit & Nuts Consumed in Turkey Hazelnuts Raisins Dried Apricots Dried Figs Peanut Walnut Pumpkin & Sunflower Seeds Pistachio Almonds Roasted Chickpeas

Sorgun Ozbalci - Consumption Traditions of Turks Dried Fruits like apricots, figs, raisins, prunes and date are mostly consumed in holly months like in Ramadan & Ashure periods. Nuts consumption is generally balanced all over the year. During Christmas time it goes peak levels

Sorgun Ozbalci - Imported Dried Fruits and Nuts Walnuts: Ukraine, Moldovia, Uzbekistan, Romania. Almonds: USA Date: Iran, S.Arabia, Tunusia Pumpkin&Sunflower Seeds: Ukraine, China, East Europe In walnuts, almonds and sf&p seeds Turkey’s production is not sufficient that’s why they are imported sometimes.

Sorgun Ozbalci - Domestic Market Prices (€ /kg) WholeSale Retail Hazelnuts (roasted) Raisins Dried Apricots34.5 Dried Figs 2.54 Peanut.81.2 Walnut46 Pumpkin Seeds1.52 Sunflower Seeds.61 Pistachio Almonds57 Roasted Chickpeas11.5

Sorgun Ozbalci - Hazelnuts (1) One of the popular item which is used for snacking, bakery, chocolate and oil industry. Because of excess supply, different organizations are promoting domestic consumption of hazelnuts Generally consumed in roasted form. Sliced and diced types are being popular recent years. In recent years some processors roasting hazelnuts in shells with salt.

Sorgun Ozbalci - Hazelnuts (2) Years Producti on (shelled) Export Remaining (‘000 tons) (46) (17) Last 10 year’s avarage is 47,000 mt for domestic consumption. A big part of it goes to oil industry. Source: Aegean Exporter’s Union

Sorgun Ozbalci - Raisins & Apricots Sultana Seedless Raisins and Apricots are consumed as cospote, snack, in bakery, molasses, chocolate and biscuit industry Raisins with seeds are consumed for snacking. Bad Quality Raisins go to Alcohol Factories and Molasses Factories

Sorgun Ozbalci - Raisins (2) Years Production Export Remai ning ('000 tons) Last 8 year’s avarage is 37,000 mt for domestic consumption. A serious part of it goes to alcohol industry. When we consider unrecorded production domestic consumption must be bigger.

Sorgun Ozbalci - Dried Apricots (2) The statistics show very irrelevant numbers That means unrecorded apricot production is at very high levels According to our surveys avarage household consumption is 3kg/year. That makes ,000 mt annual domestic consumption. Years Production (tons) Exported Balance ,023 33,063 (10,040) ,955 46,175 20, ,140 52,778 (22,638) ,361 43,370 (25,009) ,256 45,544 (8,288) ,637 50,655 25, ,000 50,431 (10,431) ,579 68,128 9, ,500 85,626 (27,126) Sources: Ministry of Agriculture, Undersec. Of Foreign Trade

Sorgun Ozbalci - Ground Nut Ground Nut Export and Imports of Turkey (tons) YearsProduction ExportedImporte d Balance for Dom. Consumption , ,241 82, , ,359 87, , ,481 99, , ,708 78, , ,581 85, , ,660 Source: FAO ( Ground Nut consumption is generally done as snack format in Turkey. In recent years, some ‘’spice&starch’’ coated grıundnuts became very popular

Sorgun Ozbalci - Dried Figs Years Producti on Export ed Balanc e Sources: Foreign Trade Statistics, EBİM, & Taris Dried Fig Consumption is around 9000 mt/year Around 5000 mt/year is consumed as regular dried figs Rest of it goes for industrial purposes It is very common to eat figs with walnuts

Sorgun Ozbalci - Pistachios Turkey is one of the biggest pistachio producing country. It is grown in Antep and Siirt regions Yearly production is around 80,000mt, almost all of them consumed domestically. Shelled pistachios are used in bakery and dessert sector. Most popular Turkish desserts are done by pistachio kernels. (walnut is substitute for pistachio in desserts)

Sorgun Ozbalci - Roasted Chickpeas Yellow and White types are available Coating of this product became popular Because of its cheap price, preffered in rural parts of Turkey. Turkish name is ‘’Leblebi’’

Sorgun Ozbalci - Almonds There is a tradition in Turkey, people eat almonds, when it is fresh, just after bloom. That’s why Turkey imports almonds from California. Normally Turkey must be self-sufficient even exporter country in almonds.

Sorgun Ozbalci - Conclusions (1) When we look at overall view of Turkey’s dried fruit and nuts consumption and product trends in Turkey, we see that: Self-sufficient country. There is no big demand for imported products. Historically exporter of classic dried fruits Average per capita consumption numbers are very low and distribution of consumption is unbalanced Becuase of lack of recorded production and sales, the real consumption numbers may differ from 30% to 70%

Sorgun Ozbalci - Conclusions (2) D.Fruits and Nuts consumption as ingredients recently increasing such as in bakery sector. Farmers prefer to produce classic products instead of improving new products Consumers are not very interested in new products Consumers prefer to buy from sellers with bulk cartons instead of retail packs because of price advantage

Sorgun Ozbalci - Conclusions (3) Turkey with its 70 million people, and very young population must shift consumption behaviors from fast foods to healthy dried fruits and nuts. This can be done with serious promotions and campaigns. This promotions are done only when there is excess supply of that product.

THANK YOU Sorgun Ozbalci ‘’Quality Dried Fruits and Nuts’’