AGROCHEMICAL MARKET POTENTIAL & OPORTUNITIES IN TURKEY Halil Ibrahim BUYUKEGEN Business Development Manager SAFA TARIM AS – TURKEY 2nd Eastern Europe Crop Protection Forum & International Agrochemical Exhibition Turkey

Turkey with some key figures Turkey Economy Agro sector Overview Turkey with some key figures Turkey Economy Agro sector Pesticide Market Trends & Opportunities

Turkey with some key figures 15th largest economy in the World and 6th largest economy in EU. The largest youth population when compared to the 27 EU countries. 68 Million GSM user (2013) – 3 Companies: Turkcell, Vodafone and Avea) 30 Million Internet User ( 2009) 60 Million Credit Card Users

Turkey with some key figures Turkey is the 10th largest steel producer in the World. Turkey is the 15th largest automotive producer in the World. Turkish Airlines is fastest growing company in Europe (131 Million Passenger) Turkey is World’s biggest Boron producer Turkey is 7th most visited holiday destination in the World. Out of World’s 100 best hotels, 20 are from Turkey.

Turkey with some key figures on Agriculture One of the most important Agricultural producer in the World. The World leader in dried Figs, Hazelnuts and dried Apricot. The biggest milk and diary producer in the region Biggest cherry producer in the World Cereals production 29,2 Million tons. Wheat production 20 Million tons (9th largest wheat producer in the World) Tomato 10 Million tons (3rd biggest in the World after China and USA) Cucumber 1,7 Million tons (3rd biggest in the World)

Turkey with some key figures on Agriculture Pepper production (2nd biggest in the World) Apple 2,5 – 3 Million tons (3rd biggest in the World) Watermelon 5-6 Million tons (Second biggest in the World) Chickpeas (3rd biggest in the World) Citrus 3 Million tons Grapes 4 Million tons Olive 1,6 Million tons

Turkey with some key figures on Agriculture Cotton 1,5 - 2 Million tons Potatoes 4 – 5 Million tons Pistachio 4th biggest in the World Onion 5th biggest in the World Lemon 6th biggest in the World

Turkey with some key figures on Agriculture Strong Infrastructure Highly experienced competitive work force Strong geographical position favorable climate conditions for almost all type of Agricultural crops

Turkey with some key figures on Agriculture Field Crops BLACK SEA Vegetables Fruits & Tea EGEAN SEA Field Crops & Fruits Field Crops,Vegetables and Fruits Field Crops MEDITERENIAN SEA

Turkey with some key figures on Agriculture Size of arable land 395.000 km2 (40% of Turkey) Share of Agriculture in GDP is 7,8% and it employs about 24% of total employment. Total export of agricultural products reached more than 12 Billion USD. 189 countries 663 different agricultural products. Turkey’s greenhouse about 55.000 Ha Spain 60.000 Ha Italy 15.000 Ha Greece 2.500 Ha

Turkey with some key figures on Agriculture Major Agricultural Projects Southern Anatolia Project (GAP) 1.820.000 Ha arable land will open irrigation Fertile land, irrigation potential and favorable climate Potential downstream industries Konya Plain Project (KOP) 650.000 Ha of arable land will open to irrigation Increasing agricultural diversity East Anatolian Project (DAP) 395.000 Ha of land will open for irrigation Eastern Black Sea Project (DOKAP) Fisheries and aquaculture development Forest management and Forestry development KOP DAP GAP DOKAP

Turkey Economy 76 Million population 30- 35 Million tourist every year (Tourist reserve 26 Billion USD) Purchasing power per Person (10.500 USD – 2012) Economy Growth Percentage 2011 8% 2012 4% 2000 2011 2012 Total Export 28 Billion USD 135 Billion USD 153 Billion USD Total Import 54 Billion USD 240 Billion USD 237 Billion USD

Turkey Economy Major Import Countries Percentage Russia 11% China 9% Most Export Countries Export Value Germany 13,6 Billion USD Iraq 11,6 Billion USD England 8 Billion USD Russia 7 Billion USD Italy France 6 Billion USD USA 5,5 Billion USD Egypt 4 Billion USD Saudi Arabia 3,7 Billion USD Spain Major Import Countries Percentage Russia 11% China 9% Germany 8% USA 6% Italy Iran 5%

Turkey Economy Gross National Production GDP 820 Billion USD. (Year 2013) 60 Billion USD from Agricultural Production (Year 2012) Inflation rate 6-8 % Agricultural Sector growth 6% in a year Rain 643 mm/year Approximately 5 Million Ha irrigate. SOURCE: THE REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY TUIK – TURKISH STATISTICAL INSTITUTE

Pesticide Market in Turkey 165 companies active (First 20 – 25 companies controlling more than 90% of market) 28 formulation plants (2 multinational companies, 26 local companies) App. 6000 dealers App. 4000 retailers are agricultural engineers Total Agrochemical consumption 52.000 MT Imported 22.000 MT (43%) Local produced 30.000 MT (57%) 400.000 – 450.000 MT total Agrochemical production capacity 98%- 99% belong local Turkish Companies

Pesticide Market in Turkey Product Category - 2011 Group % USD (Million) Active Materials Insecticide 32 144 Imidacloprid, Acetamiprid,Emamectin Benzoate, Chlorpyrifos ethyl, Lambda cyhalothrin Herbicide 29 130 2,4 D Acid, Glyphosate, Nicosulfuron, Paraquat Fungicide 28 126 Mancozeb, Tebuconazole, Metalaxyl, Propineb, Copper Based Products Acaricide 5 23 Hexythiazox,Abamectin,Spirodiclofen etc. Others 6 27 PGR, Mollucicide, Rodenticide, Spindle oil, etc. Pesticide Usage in Turkey – Excluded Tax 2000 – Total consumption was 207 Million USD 2011 – Total consumption app. 450 Million USD …. 2013 – Total consumption app 480 Million USD Between 2000 and 2011 consumption increased more than double.

Pesticide Market in Turkey IMPORTANT CROPS PESTICIDE USE MILLION USD CROP NAME PESTICIDE USE AMOUNT WHEAT 70 – 80 Million USD COTTON 65 – 70 Million USD VEGETABLES 45 – 50 Million USD GRAPES CITRUS 20 – 25 Million USD CORN FRUITS 25 – 30 Million USD RICE 8 – 10 Million USD OLIVE 4 – 5 Million USD

Trends & Opportunities FARMERS TRENDS Organic farming grows (safer, newer and more environment friendly pesticide such as SC,WG, EW approved for use organic crops) Farmer Demand is big but need cost-effective products. Still generic products are key trend Farmers, in fact transitioning away from use of older broad spectrum pesticide and safer, more environment friendly compounds (especially vegetable and grape producers) This is likely increase development and adoption of Integrated Pest Management (IPM) and move to more environment friendly compound.

Trends & Opportunities FARMERS TRENDS EC and SL still strong sales exist because of efficacy of formulations and cost advantages. Premixes products and their formulations.

Trends & Opportunities INDUSTRY TRENDS Global drivers & Industry response Advanced formulations Cost- effective products Food chain demand for lower residues , short pre-harvesting intervals Selective product Short persistence and lower toxicity New market New uses Bio pesticides, pheromones, traps ..etc.

Trends & Opportunities With a population of 76 Million and growing, Turkey represents one of the largest markets in the region. Government has made development of the agricultural sector a priority, ensuring continued levels of investment. Rising income and changing consumer habits. Dynamic, Stable and attractive economy

Trends & Opportunities International Hub Access to Multiple Market (Europe, Black Sea countries, Middle East, North Africa, Central Asia and Caucasus 1,5 billion population , 25 Trillion USD GDP) Energy Corridor Structural reforms

Halil Ibrahim BUYUKEGEN Thank you. 谢谢 Halil Ibrahim BUYUKEGEN buyukegen@safatarim.com www.safatarim.com