1. UNESCAP Workshop - Colombo 6-7 September 2006 1 INTRODUCTION TO AGRICULTURE AND FOOD INDUSTRY OF TURKEY Nesrin KAYIPLAR Head, Food Sector Section Ministry of Industry and Trade nesrinka@sanayi.gov.tr REPUBLIC OF TURKEY MINISTRY OF INDUSTRY AND TRADE

2. UNESCAP Workshop - Colombo 6-7 September 2006 2

3. 3 SOME SOCIAL and ECONOMIC INDICATORS of TURKEY

4. UNESCAP Workshop - Colombo 6-7 September 2006 4 OUTLINE OF THE PRESENTATION Agriculture in TURKEY Food Industry of TURKEY

5. UNESCAP Workshop - Colombo 6-7 September 2006 5 AGRICULTURE IN TURKEY

6. UNESCAP Workshop - Colombo 6-7 September 2006 6 Historically, the agriculture sector has been Turkey’s largest employer and a major contributor to the country’s GDP Exports Industrial growth

7. UNESCAP Workshop - Colombo 6-7 September 2006 7 BUT…… As the country has developed, agriculture has declined in importance relative to the rapidly growing industry and services sectors.

8. UNESCAP Workshop - Colombo 6-7 September 2006 8 Agriculture’s share in GDP has declined from; 35% in 1970 to 22% in 1980 13% in 2000 and to 10 % in 2005 But still, it accounts for a relatively larger share of total output and employment than in many other countries.

9. UNESCAP Workshop - Colombo 6-7 September 2006 9 Turkey is the largest producer and exporter of agricultural products in the Near East and North African region. In 2005, export of agricultural commodities accounted for: 11.2 of Turkey’s total export earnings.

10. UNESCAP Workshop - Colombo 6-7 September 2006 10 The principal objectives of the Turkish agricultural policy are; to stabilize agricultural prices; to provide growing population; to increase yields and outputs; to reduce the vulnerability of production to weather conditions; to develop rural areas; to promote the application of modern agricultural techniques to develop the export potential of agriculture.

11. UNESCAP Workshop - Colombo 6-7 September 2006 11 Sunflower, rice, roots, sugarbeets Olives, grapes, cotton, tobacco, pulses, vegetables, tubers Cereals, sugarbeets, grapes, pulses, vegetables, tubers, livestock Cotton, cereals, citrus, rice, vegetables, pulses Fodder, cereals, fruits, tobacco, sugarbeets Cereals, sugarbeets, grapes, pulses, vegetables, tubers, livestock Fodder, wheat, tubers, pulses, livestock Hazelnuts Tea Rice Tobacco Cereals, rice, vegetables, pulses, fruits Regional Agriculture Pattern of TURKEY

12. UNESCAP Workshop - Colombo 6-7 September 2006 12 FOOD INDUSTRY OF TURKEY

13. UNESCAP Workshop - Colombo 6-7 September 2006 13 20% of the total Value Addition of the Production sector in Turkey, is being met by Food industry. Sugar, Tea,Tobacco and Alcoholic beverages are being produced by State-owned establishments. Most of the State-owned food production establishements has been privatized.

14. UNESCAP Workshop - Colombo 6-7 September 2006 14 Turkish food industry is mainly composed of Small and Medium Enterprises (SMEs) Employment is around 250,000 people. Totally, there are 25,000 company running in this business. Major Production areas are; - Pastry and Milling Products - Frozen fruits and vegetables - Tomato Paste - Dried grapes - Dried fig - Dried Apricot - Olive oil - Olive - Hazelnut - Pistachio nut

15. UNESCAP Workshop - Colombo 6-7 September 2006 15  The Ministry of Agriculture and Rural Affairs (MARA) is the main and competent authority with regard to food safety, veterinary and phytosanitary.  General Directorate of Protection and Control (GDPC) of MARA is the competent authority in charge of controlling and regulating the sector.  GDPC is also the contact point for international institutions and agencies. FOOD INDUSTRY LEGISLATION IN TURKEY

16. UNESCAP Workshop - Colombo 6-7 September 2006 16  Legal Framework (Primary Legislation): – Decree Law no. 441 on Organisation and Duties of MARA (O.G. 09.07.1991, No. 20955) – Food Law no.5179 (O.G. 05.06.2004, No.25483 ) – Animal Health Control Law no. 3285 (O.G. 08.05.1986, No.19109 ) – Animal Breeding Law no. 4631 (O.G. 28.02.2001, No. 24338 ) – Feed Law no.1734 (O.G. 07.07.1973, No. 14557) – Fisheries Law no. 1380 (O.G. 22.03.1971, No.13799 ) – Law of 308 on Registration Control and Certification of Seeds (O.G. 29.08.1963, No.11493 ) – Law on Protection of Breeder’s Rights of New Plant Varieties no. 5042 (O.G. 08.01.2004, No. 25347) – Plant Protection and Quarantine Law no. 6968 (O.G. 08.05.1986, No. 9615)

17. UNESCAP Workshop - Colombo 6-7 September 2006 17 OTHER MINISTRIES AND PUBLIC INSTITUTIONS INVOLVED ANDTHEIR AREA OF COMPETENCIES  Ministry of Interior (via Municipalities and Special Provincial Administrations) Issuing working licence and registration of food establishments in accordance with Law no. 5302, Law no. 5393 and Law no. 5197  Ministry of Health (General Directorate of Primary Health Services) The principles concerning water and foods intended for special medical purposes are specified by the Ministry of Health. Ministry of Health has the right of intervention in cases of emergency concerning public health in accordance with Law no.5179.

18. UNESCAP Workshop - Colombo 6-7 September 2006 18  Organized Industrial Areas For food establishments within organized industrial areas, working licenses are issued by the administration of these organized industrial areas in accordance with Law no. 4562.  Ministry of Environment and Forestry Animal protection Law no. 5199 gives responsibility and competence to the Ministry of Environment and Forestry. The environment related issues are the main responsibility of the Ministry.  Undersecretariat of Foreign Trade UFT carries out export controls in accordance with the National Standards of Turkish Standard Institute in order to protect and improve the image of Turkish goods in accordance with Law no. 4059  Ministry of Industry and Trade In the DG for Industry, there is a Food Sector Section and we follow up the recent developments, export/import figures of the industry.

19. UNESCAP Workshop - Colombo 6-7 September 2006 19  Legislation related to Other Ministries and Public Institutions; – Metropolitan Municipality Law no. 5216 (O.G. 23.07.2004, No. 25531) – Municipalities Law no. 5393 (O.G. 13.07.2005, No. 25874) – Law no. 5197 on Special Provincial Administration (O.G. 04.03.2005, No. 25745) – Organized Industrial Areas Law No. 4562 (O.G. 15.04.2000, No.24025) – Animal Protection Law no. 5199 (O.G. 01.06.2004, No. 25509) – General Hygiene Law no.1593 (O.G. 06.05.1930, No. 1489) – Consumer Protection and Competition Law no. 4077 (O.G. 08.03.1995, No. 22221) – The Law Relating to the Preparation And Implementation of the Technical Legislation on Agricultural Products no. 4703 (O.G. 11.06.2001, No. 24459) – Customs Law no. 4458 (O.G. 04.11.1999, No. 23866) – Environment Law no.2872 (O.G. 11.08.1983, No.18132)

20. UNESCAP Workshop - Colombo 6-7 September 2006 20 GDPC’s Food Safety Strategy is in line with that of the EU;  Adoption and implementation of EU legislation,  A high level protection of human health,  Adoption of an integrated approach to food safety throughout the food chain,  Protection of animal health, control and eradication of diseases,  Animal movement and quarantine,  Phytosanitary and plant health, quarantine measures,  Increase the implementation of preventive measures to avoid food contamination at its origin.

21. UNESCAP Workshop - Colombo 6-7 September 2006 21 Turkish Food Industry is mainly based on the following sub-industries; 1- Fruits and Vegetables Production 2- Milk and Dairy Products Production 3- Vegetable Oil Production 4- Sugar Confectionary - Chocolate and Cocoa Products Industry 5- Pastry and Milling Industry 6- Organic Agricultural Production 7- Meat Products and Poultry

22. UNESCAP Workshop - Colombo 6-7 September 2006 22 FRUITS AND VEGETABLES PRODUCTION INDUSTRY In the production of the fruits and vegetables, preserving food has an age-old tradition for Turkish society (preserving by salting drying). -One of the rapidly growing agroindustry sector is “Frozen fruit and vegetable” industry. - One of the most developed branch is “Fruit juice and Concentrates” industry. - Turkish Tomato Paste has high volume of trade because of it’s quality in the world markets.

23. UNESCAP Workshop - Colombo 6-7 September 2006 23 - Dried fruits industry is another well developed section of the F&V industry such as dried fig, apricot and raisin. -Canned F&V section showed very rapid development total production increased by 80% in last 10 years.

24. UNESCAP Workshop - Colombo 6-7 September 2006 24 MILK AND DAIRY PRODUCTS INDUSTRY; Despite it’s fragmented structure, Turkey is the largest milk and dairy products in the region. The rich varieties of cheese makes Turkey one of most prefferred cheese suppliers in the world. “Oltu” cheese, “Tulum” cheese, feta cheese, salinized Diyarbakır “orgu” cheese are some the examples of traditional products.

25. UNESCAP Workshop - Colombo 6-7 September 2006 25 VEGETABLE OILS INDUSTRY; Because of the suitable climatic and ecological conditions, Turkey has an important place amongst other countries in the oilseed production… Olive Oil, sunflower oil, corn oil, cottonseed oil, soybean oil, daphne oil and hazelnut oil are mainly produced in Turkey Olive oil is becoming a healthiest alternative oil in edible oils Turkey’s high potential of production capacity in olive oil makes it one of the few exporters in the market

26. UNESCAP Workshop - Colombo 6-7 September 2006 26 SUGAR CONFECTIONARY & COCOA PRODUCTS INDUSTRY; Because of the modernization of the plants and new investments, this sector has become one of the most progressed food sector in Turkey. Major products are various types of candies, chewing gum and some traditional products such as Turkish delight, Halva which date back to the old ages

27. UNESCAP Workshop - Colombo 6-7 September 2006 27 PASRTY AND MILLING INDUSTRY; Since Turkey is really a big cereal producer in the world; pastry and milling industry became very well developed. Major Products are; - Wheat flour - Semolina - Cracked wheat - Bread - Macaroni - Biscuits

28. UNESCAP Workshop - Colombo 6-7 September 2006 28 ORGANIC ARGICULTURAL PRODUCTS; Nowadays consumers are becoming more and more interested in environmentally sound products, because of the continously expanding awareness. In Turkey, The movement towards healhty food and organic agricultural products has started during the second half of the 1980s. Turkey’s plant variety and virginity of the soil makes it one of the countries best suited for organic cultivation. There are almost 30 kinds of agricultural products are being organically produced in Turkey, such as apricot and dried figs.

29. UNESCAP Workshop - Colombo 6-7 September 2006 29 MEAT AND MEAT PRODUCTS Main meat products produced in Turkey, are; Soudjouk Pastrami Salami Sausage Fried Meat Domestic poultry meat consumption have grown most quickly, largely displacing traditional meats such as lamb, mutton, and goat.

30. UNESCAP Workshop - Colombo 6-7 September 2006 30 FOOD INDUSTRY IN TURKEY; Today, Turkish food producers is striving for opening to the world markets, by combining their traditional skills with modern technology.

31. UNESCAP Workshop - Colombo 6-7 September 2006 31 FINALLY……

32. UNESCAP Workshop - Colombo 6-7 September 2006 32  Processing &packaging industry is progressing rapidly  Food regulations are being harmonised with EU  SMEs are major companies (90-95% by number) and needs to be assisted scientificly and technologicallly  Turkey has a high potential for agricultural production

33. UNESCAP Workshop - Colombo 6-7 September 2006 33  Frozen foods, oils&fats, tomato paste, confectionery sector use modern technologies  Food safety systems (i.e HACCP, GMP) and QA systems (i.e. ISO9000) are being established in the enterprises.  Ready to eat, functional, organic foods are becoming popular as the changes in consumer trends.  Natural drying is mostly applied for fruits/vegetables.  Fresh preservation(CA,MAP,minimally processing) needs to be improved.

34. UNESCAP Workshop - Colombo 6-7 September 2006 34 THANK YOU...