FANDERS INETENT & TRE MARKET SURVEY · country’s current account and helped somewhat in fighting...

FLANDERS INVESTMENT & TRADE MARKET SURVEY

THE FOOD AND

BEVERAGE SECTOR

IN TURKEY

The Turkish Food and Beverage Sector

Market Report November 2015

Authors: Simla Çınar and Raphael Pauwels

Flanders Investment and Trade, Istanbul

c/o Consulate General of Belgium

Siraselviler Caddesi 39

34433 Taksim

Istanbul

Turkiye

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1 Intro

The following report aims to guide the trade and investment strategies of Flemish companies

seeking to expand into the Turkish food and beverage market.

First of all we need to point out that Turkey itself is a big producer of food and beverages. The

sector has an 18.9% share in GDP (2014). This has to do with the fact that the country is blessed

with a suitable climate and ecological conditions for agricultural production, for a wide variety

of fruits and vegetables.

Turkey is the 7th largest agricultural producer in the world, and the largest one in Europe.

It is the world’s largest producer of apricots, hazelnuts, figs, cherries and sour cherries, quinces.

It is 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.

No wonder then that Turkey’s exports of food and beverages are much larger than its imports.

In 2014 Turkey’s exports of the food & beverage industry reached USD 11.1 billion, coming from

USD 4.3 billion in 2005 and USD 6.7 billion in 2010. Its main export markets are: Iraq, Germany,

Syria, The Netherlands, USA.

In 2014 Turkey’s imports in the food & beverage categories stood at USD 5.6 billion, coming from

USD 2.1 billion in 2005 and USD 3.4 billion in 2010. The main import markets are: Russia,

Indonesia, USA, Ukraine, Germany.

So both exports and imports show rapid growth.

The current economic climate may not be too favourable in the short term, with Turkey’s GDP

growth expected to be around 3% in 2015 and in 2016 as well, according to most financial

institutions. Far below the 8 and 9% growth figures of a few years ago.

But…

… the fact remains that Turkey is a growing market with a large population of nearly 78 million

people, a young population (50% is younger than 30), of increasing affluence, and more and

more open to international flavours, to imported foods and drinks, to convenience food. A

market with continuously increasing market share of the ‘organised retail’ as well.

Fuelled by increasing disposable income levels and strong consumer demand, the Turkish food

retail sector reached USD 121 billion in 2014. The share of food in the total retail sector is 60%

and the food retail sector is expected to grow 8% annually in the 2015-2018 period.

In this respect, opportunities exists for Flemish companies that are able to supply the market

with novel and lifestyle aspiring products.

Food & Beverage Sector Report, Turkey | 2015 3

Cookies, chocolates, and beers from Flanders have already found their way to the shelves of

Turkish supermarkets, to restaurants and bars. Bakery products, soy drinks, coffee filters as well.

They show it is possible, and that there’s room for more to come – even though regulation can

be a hassle.

May this report help you discover the opportunities.

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2 Contents

1 Intro ..................................................................................................................................................................................................... 2

2 Contents ............................................................................................................................................................................................ 4

3 Economic Climate - Setting the scene ............................................................................................................................ 6

4 The Silver Lining - Business of food and beverages .............................................................................................. 9

5 Fruit &Vegetables ....................................................................................................................................................................... 11

5.1 Fruits ....................................................................................................................................................................................... 11

5.2 Apples .................................................................................................................................................................................... 12

5.3 Pears ....................................................................................................................................................................................... 13

6 Dairy Sector .................................................................................................................................................................................. 14

6.1 Milk .......................................................................................................................................................................................... 14

6.2 Cheese .....................................................................................................................................................................................17

7 Baked Goods ................................................................................................................................................................................. 18

7.1 Biscuits .................................................................................................................................................................................. 18

7.2 Breakfast Cereals ............................................................................................................................................................ 19

8 Red Meat ........................................................................................................................................................................................ 20

9 Fish .................................................................................................................................................................................................... 22

10 The Beverage Business - Is the glass half full? ................................................................................................. 24

10.1 Beer ........................................................................................................................................................................................ 25

10.2 Wine ....................................................................................................................................................................................... 26

10.3 Spirits .................................................................................................................................................................................... 28

11 Food Retail Landscape .................................................................................................................................................... 29

12 Intermediaries in Agro-Food Networks .................................................................................................................. 31

13 Impact of Russia’s trade sanctions against the EU ...................................................................................... 33

13.1 Russia and Turkey......................................................................................................................................................... 33

14 Regulation of the Food and Beverage Sector ................................................................................................. 36

14.1 Labeling Requirements ............................................................................................................................................... 37

14.2 Compulsory Information ........................................................................................................................................... 38

14.3 Nutritional Requirements ........................................................................................................................................ 39

14.4 Health Claims ................................................................................................................................................................... 40

14.5 Labelling for Food Additives .................................................................................................................................. 40

14.6 Packaging and Container Regulations .............................................................................................................. 41

14.7 Food Additives Regulations ..................................................................................................................................... 41

14.8 Pesticides and Other Contaminant .................................................................................................................... 42

14.9 Other Regulations ......................................................................................................................................................... 42


14.10 Copyrights and Trademarks ............................................................................................................................... 47

14.11 Import Procedures .................................................................................................................................................... 47

14.12 Sending Samples ....................................................................................................................................................... 49

14.13 Latest in Regulation ............................................................................................................................................... 49

15 Duty Rates on Agricultural and Dairy Products .............................................................................................. 51

16 Sources ...................................................................................................................................................................................... 54

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3 Economic Climate - Setting the scene

Turkey has experienced a volatile economic climate in 2014 and 2015, in line with the global

political and monetary developments coupled with factors intrinsic to the country. War in Iraq

and Syria, continuation of economic weakness in its largest trading partner, the European

Union, in addition to the slowdown of China’s economy, portrayed an unfavourable

international picture.

At home, political tension heightened and terror attacks resumed in the summer of 2015, and

Turkish security forces went into a full force offensive against the Kurdish PKK militants. The

economic environment casts a dark shadow over expectations, with the devaluation of the local

currency (USD/TRY went from 2.20 early 2014, to a high of 3.07 in September 2015, then 2.86 by

mid November), the softening of growth figures, and rising unemployment. Furthermore, the

sharp rise in interest rates needed to keep the lira from plunging took its toll on the economy

and led to a steep rise in non-performing loans by Turkish nationals.

It’s expected by Merrill Lynch that Turkey’s credit boom is coming to an abrupt end and is likely

to deflate further amid tighter liquidity in 2016. However, a more positive outlook is on the

cards for the next decade. The bank states that the share of households with an average annual

disposable income in excess of USD 25,000 is expected to grow 50% over the next decade, rising

from 40% in 2014 to over 60% by 2025-30, according to Euromonitor.

The formation of such a notable layer of middle and high income earners is thus expected to

have a knock-on benefit for the consumer goods and services sectors. When compared to other

developing countries such as Russia and South Africa, the Bank states that Turkey could see a

much more rapid middle-class formation (BofA Merrill Lynch, Consumer and Retails Report

September 2015).

Over the last year a positive trend occurred that diminished Turkey’s current account deficit

problem since Saudi Arabia’s decision to increase oil output in September 2014, which resulted in

the slump of oil prices from USD 100 to USD 50 levels. For Turkey, as a net energy importer, this

in turn led to a marked improvement of the country’s balance of payments account. According

to the Economist, Turkey’s energy imports had been costing 6% of the gross domestic product

(GDP) a year, therefore, the halving of energy costs immediately relieved pressure from the

country’s current account and helped somewhat in fighting high inflation.

Here are some of the underlying statistics of the country:

Indicator Term Data

Consumer Price Index September 2015 7.95%

Unemployment Rate June 2015 9.6%

GDP 2Q 2015 and FY 2014 3.8% and 2.9%

GDP 2Q 2015 and FY 2014-Current Prices $361 billion and $800 billion

GDP Per Capita 2014 $10,390

Exports Value Jan-August 2015 $95 billion

Imports Value Jan-August 2015 $140 billion

Tourism Revenue 2014 $34.3 billion

Tourist Number 2014 41.4 million

Total Population 2014 77.7 million


Major Exports Markets Germany (9.6%); Iraq (6.9%); UK (6.3%); Italy (4.5%); France (4.1%); USA (4%); Russia

(3.8%); Spain (3%); UAE (3%); Iran (2.5%) (2014)

Major Imports Sources Russia (10.4%); China (10.3%); Germany (9.2%); USA (5.3%); Italy (5%); Iran (4.1%);

France (3.4%); South Korea (3.1%); India (2.8%); Spain (2.5%) (2014)

Trade Agreements

Customs Union Agreement with the EU

Free Trade Agreements with Albania, Bosnia Herzegovina, Chile, Croatia,

EFTA member countries (Switzerland, Norway, Iceland and Liechtenstein),

Egypt, Georgia, Israel, Jordan, South Korea, Macedonia, Mauritius,

Montenegro, Morocco, Palestine, Serbia, Tunisia

Source: TurkStat and Invest in Turkey

After recording a 2.9% growth in 2014, the International Monetary Fund (IMF) expects Turkey to

roughly maintain the same speed in 2015 and 2016. This is not only well below the growth

figures of 8% to 9% in 2010 and 2011, but also below the average of some 4.5% over the past

decades. However on the longer term, beyond the current economic slowdown, one of the big

assets of Turkey is its large, growing and young population, where the median age of its 78

million people is 30. Rising incomes in addition to the willingness of the young population to

experience new goods and services makes the country an exciting market to expand, especially

for Western producers with products which promote a more affluent lifestyle, such as food

products and beverages from Flanders.

The graph here below gives an indication of the purchasing power standards across Europe, in

terms of gross domestic product per inhabitant. Although Turkey scores a positive growth

pattern in terms of purchasing power statistics, it still significantly lags behind European levels.


4 The Silver Lining - Business of food and beverages

Although the economic climate may be less favourable in the short term, the fact remains that

Turkey is a growing market with a young population of increasing affluence. Turkish customers

are open to international or ethnic flavours, and a small niche is also willing to pay the price for

organic and healthy lifestyle products. In this respect, opportunities exists for Flemish

companies that are able to supply the market with novel and life style aspiring products. A

thorough market research for the product must be established prior to entry and a trusted and

experienced Turkish partner is recommended for a smooth market access.

The Turkish economy grew 4.1% in 2013 reaching a gross domestic product (GDP) of USD 821.9

billion, making Turkey the 17th largest economy in the world. In 2014 growth was 2.9%, while a

depreciating lira made the GDP in US-dollar terms come out at USD 800 billion. For 2015 the

international financial institutions expect the GDP growth will be between 2 and 3%. GDP per

capita has grown 135% from $4,500 in 2003 to $10,806 in 2013, falling slightly to $10,482 in 2014.

Household consumption increased by 11.5% in 2013 to reach USD 582 billion. The proportion of

household expenditures spent on food has decreased over the last decade from 27% to 20%, but

the amount spent has grown from USD 59 billion in 2003 to USD 116 billion in 2013 (GAIN

Exporter Report, 2014).

For 2015 research firm Business Monitor International (BMI) sees a decline in consumption

expenditure, and a rather dramatic slowdown in all segments of consumer credit growth.

However, BMI also adds that they do not believe food consumption growth in Turkey will be

drastically affected.

This is due to the fact that the slowdown in private final consumption in Turkey will be fuelled

by the decline in credit purchases, which typically does not affect non-cyclical household

expenditure. It’s further noted that multinational FMCG and retail firms are investing in the

country at an increasing pace. The research firm concludes that they believe the country offers

one of the best global opportunities in terms of consumer expenditure growth from

continuation of the income growth of the large and youthful population. All expectations made

by BMI for the next years point to a positive growth for the sector. The summary of compound

annual growth rate (CAGR) expectations by BMI for 2013 to 2018 period is as follows;

Food consumption sales growth: 9.9% per year;

Food consumption per capita sales growth: 8.8% per year;

Alcoholic beverages value sales growth: CAGR to 2018: 9.4% per year;

Soft drinks value sales growth: CAGR to 2018: 10.7% per year;

Mass grocery retail sales: CAGR to 2018: 12.3% per year;

Prior to looking at specific food groups in the next chapter, it may be useful to point to the

general advantages of exporting to or setting up in Turkey, as viewed by the GAIN Exporter

Report of the US Department of Agriculture:

Western products enjoy customer preference as income level rises.

Change in retailing structure has opened new areas for branded import items.

Demand for food products is also growing from the prominent tourism sector.

High export potential due to geographic proximity to Russia and Middle Eastern

markets.

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International retailers that market a wide range of imported products in the sector have

influence on purchasing patterns.

The growth of the food market also facilitates the demand for food ingredients, which

are mostly imported.

The Customs Union with the EU creates an advantage for companies from Europe in

terms of price and lower import duties, as well as the harmonisation of regulations

between member and candidate countries.

On the flip side of the coin:

Laws governing the food sector are mostly focused on protecting local production

rather than promoting trade.

Regulations can be unclear, complex and can be changed overnight.

Depreciation of lira against the euro, has negatively influenced imported products with

cheaper Turkish subsidies.

Turkey has a well-developed food processing sector, with high quality products and

competitive pricing. There is also a rich base of agricultural production, providing raw

ingredients at cheaper prices.

In retail stores, competition for shelf space has led to higher costs for introducing new

products.

Turkey is a complex and challenging market requiring adaptability and persistence.

Challenges may lie in areas such as lack of transparency in regulations and

documentation, unpredictable judiciary and legal framework.

In light of the backdrop provided above, the following chapters explore market opportunities,

business climate and future expectations for a number of large categories in the Turkish food

and drink sector.


5 Fruit &Vegetables

With a growing population of 78 million, Turkey is one of the largest markets in its region.

Steady growth in income levels and changing consumer habits of the younger generation

provide opportunities for exporting certain types of agricultural produce to Turkey. The market

is moving towards an increased regulatory control for quality and performance and increasingly

affluent consumers are seeking greater variety of better quality produce.

On the other side, it should be stressed that Turkey itself is a significant player in the agriculture

market and has export volumes that largely surpass its import levels. The strengths of the local

industry include the size of the market in relation to the country’s young population, a dynamic

private sector economy and substantial tourism income.

Consequently, Turkey’s food industry has registered steady growth in recent years, with Turkish

consumers becoming increasingly demanding, driven by the multitude of choices offered by

mass grocery retail outlets. Rising disposable income and changing consumption patterns, along

with the increasing number of women in full-time employment, have all led to an increase in

interest for packaged and processed food, such as ready-to-eat meals and frozen food.

According to the Food Importers Association, unfortunately there are no viable statistics about

the share of locally produced and imported goods in the agricultural sector. The Association

states that around half of the produce is imported from overseas and there are a large amount

of small sized producers in Turkey.

It’s argued that it is hard for international producers to break into the Turkish market as import

duties on some products such as apples, pears and kiwi are as high as 60%, even climbing to

148% for bananas.

5.1 Fruits

According to the fresh deciduous fruit annual Gain report, Turkey’s production of all deciduous

fruits (apples, grapes, pears) was reduced in 2014 compared to the previous year, due to frost in

spring of 2014.

Details of production levels are as follows, all figures are full year 2014 and are compared to

2013;

Apples production down 23%, 2,233,000 metric tons (MT).

Pear production decreased 24%, 295,000 MT

Saudi Arabia, Syria, Egypt, Iran and Iraq continue to be the leading export destinations for

Turkish apples and pears and Russia is the leading market for grape exports in 2014.

The report further states that Turkey is the second largest producer of apples and pears in

Europe, though most of these are not of commercial varieties. Fruit producers usually run small

operations; however a few large commercial plantations were established in recent years, which

use better quality seedlings and modern agriculture methods. Most of the production in large

and commercial plantations is exported, as they grow new varieties which are in high demand

in importing countries. There is an increasing trend of establishing new plantations, specifically

for export-oriented production that is more profitable.

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5.2 Apples

Apples have traditionally been the most economically significant fruit crop for Turkey, followed

by grapes and pears. Turkey’s diverse geographic regions allow production of 460 varieties of

apples but only 10 of these are commercially viable. Apples are grown in many regions across

Turkey but approximately 50% of all commercial apple production comes from three provinces:

Isparta, Karaman and Nigde. These provinces are located in the southern part of Central Anatolia

and the Northern Mediterranean Regions.

Commercial apples are also grown in Antalya, Eregli, Denizli, Yalova and Amasya. Apple

plantation area has not been increasing, but there is a notable switch from traditional apple

trees to modern shrub-type varieties. Today almost half of the total apple production is modern

varieties.

About half of the apples grown in Turkey are Red Delicious (Starking) and about one third are

Golden Delicious. Amasya is the most popular local variety (shown in the below picture) and

constitutes about 10 percent of total production. Granny Smith, Fuji, Gala, Jonagold, and

Braeburn varieties are increasingly popular. New varieties are also becoming increasingly

popular among growers due to their higher export potentials. Approximately 3% of Turkey’s

total apple production is certified organic.

Apple production in most parts of Turkey was reduced due to weather conditions in 2014. The

spring frost especially hit red apple varieties. In the east of Central Anatolia the yield loss rate

has been between 50% to 70% and in the largest apple producing city, Isparta the rate of loss

was about 20%. The blooming rate was normal but frost led to scarce fruit setting. Red

Delicious was the most affected variety, the production of which went down from 1,300,000 MT

in 2013 to 700,000 MT in 2014.

Traditionally about 90% of Turkey’s apple production is consumed as fresh fruit. About 5% is

processed into juice, canned products, vinegar or dried products and less than 4% are exported.

The remainder is lost to damage, and is added into domestic consumption in the production,

supply and demand.

Consumers in larger cities recognize apples according to their colours. There is a lack of

awareness in terms of varieties. Turkish consumers usually prefer red apple varieties and 43% of

total apple production is composed of red varieties. Turkish consumers prefer sweet and strong

flavoured varieties, therefore Gala and Fuji varieties are increasingly popular.

Amasya variety is the most important among local varieties and their market demand is

increasing. Red Delicious is preferred more at the beginning of the harvest season and Golden

Delicious after the New Year. This is because Red Delicious apples become softer a few months

after they are harvested unless they are kept in cold storage properly. Controlled atmosphere

storage facilities, however allow apples to be marketed throughout most of the year.

The Ministry of Economy published a communiqué on export subsidies for apples on April 6,

2011. According to this communiqué, the Turkish government provides USD 50 per Metric Ton

(MT) to apple exporters annually. This subsidy is not given in cash, but can be deducted from

utility costs such as electricity and water, or can be deducted from taxes.

There are no subsidies provided to pear and grape exporters. Producers of all fruits can benefit

from the 350 Turkish Lira (TL)/decar government support when they are establishing a new

orchard. This support is given only to producers who buy certified saplings.


5.3 Pears

Pear production was also hit severely by weather conditions last year where production was

decreased from 390,000 Metric Ton in 2013 to 295,000 Metric Ton in 2014. Production is expected

to return to normal levels in 2015 if weather conditions are favourable.

Many different varieties of pears are grown in Turkey and are harvested throughout the year.

Almost 50% of the production comes from the Marmara region, followed by the Aegean and

Northern Mediterranean regions, concentrated in cities like Bursa, Yalova, Antalya, Ankara,

Konya, and Burdur. Both domestic and foreign pear varieties are grown in Turkey. The major

varieties are Santa Maria, Akca, Mustafabey, Cassia, Willliams, Ankara and Deveci.

About 90% of pears are consumed fresh, 3-5% are exported, 2-3% are canned and the remainder

is unsuitable for use. Annual per capita consumption of pears is 5 kilograms. Rusty varieties like

Conference and Comice are not preferred by Turkish consumers. The most preferred varieties are

Santa Maria, which constitutes 30% of total production, Deveci 20%, Ankara 10%, Williams 10%,

Keiffer 5% and Akca 5%. In recent years, Santa Maria, Deveci and Williams varieties are cold

stored and sold in the markets until March (Euromonitor, Agriculture Report for Turkey).

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6 Dairy Sector

6.1 Milk

The majority of milk in Turkey is adult drinking milk. Plain drinking milk for children, excluding

baby milk, is very limited with the only prominent product being from Danone. Within flavoured

milk drinks, drinking milk for children prevails. A significant majority of flavoured milk drinks in

Turkey are positioned towards children and they are mainly ambient products.

According to the Turkish Statistical Institute, the amount of collected cow's milk increased from

6,748,565 ton in 2010 to 8,632,246 in 2014. In the first 9 months of 2015 the amount was 6,633,571

ton, slightly higher than the 6,452,272 ton in the same period in 2014.

In 2014, drinking milk products registered single-digit current value growth which was

marginally lower than the review period CAGR of 6%. This performance was driven by a positive

environment over the last few years of the review period in terms of availability and demand for

more natural drinking milk products. From 2011 onwards, the supply of fresh/pasteurised milk

products increased significantly in response to consumer demand for more natural and healthier

drinking milk. In 2012, the growth of fresh/pasteurised milk reached a peak, which is the reason

for the higher CAGR over the review period compared to 2014.

The number of manufacturers producing fresh/pasteurised milk rose and the range of products

available increased. In 2012, for example, the first reduced fat fresh/pasteurised milk was

launched by Tat Konserve under its Sek brand. In addition, this milk type is dominantly packaged

in glass bottles which consumers associate with health and hygiene. By the end of the review

period, however, the rate of growth had slowed.

Source:TurkStat

In 2014, BIM remained the leader in drinking milk products with a 26% share of value sales. BIM is

the leading grocery retailer in the country and is focused mainly on the development of its

Change ratios of production of milk and milk products, 2014 - 2015 (y/y)

January February March April May June July

Collected Cow Milk 0,6 2,4 1,9 2,9 4,3 3,2 0,1

Cream from farms 72,9 110,9 8,1 51,3 45,8 97,8 33,3

Drinking Milk 1,8 7,7 5,7 2 4,1 0,9 7,5

Cream -8,7 6,4 -4,2 -2,2 -3,6 44,5 5,2

Concentrated Milk 38,1 46,8 15,8 10,5 39,7 25,1 72,4

Whole milk powder,

partly skimmed milk

powder, cream milk

powder -27,6 -19,2 3,4 15 -4,3 -18,6 -4,9

Skimmed milk powder 15,5 0,5 0,6 1,5 -3 29,3 17,2

Butter 11,5 3,1 22,5 12,9 16,2 12,3 20,4

Cheese made from

cow's milk 7,1 4,6 -1,6 9,9 10,3 7,7 3,2

Cheese made from

sheep,goats,buffaloe

and mixed milk 230,5 -19,7 113,3 -11 -3,5 5,2 -10,2

Yoghurt -3,2 1,1 0,6 0,9 6,2 2,1 -2,6

Drink made of yoghurt

(Ayran) -5,1 -1,4 2,7 7,4 8,4 -9,5 26,5


private label lines, which are around 30% cheaper than branded products. The company saw a

rapid share increase from around 18% in 2009 thanks to a high number of new outlet openings

over the review period in both urban and rural areas of the country. Private label has a strong

position within drinking milk products because of the share held by BIM. Additionally, other

chained grocery retailers such as Migros, Carrefour and Tesco Kipa also offer their own drinking

milk products (Euromonitor, Drinking Milk Products in Turkey January 2015).

According to the Turkish Milk Producers Association, the Turkish market is encompassing a

growing number of brands each day as consumers are becoming more sophisticated with a rise

of income and therefore demand more alternatives. Nearly 60% of this amount is currently sold

through the grey market, which constitutes sale of milk by small establishments, which is not

regulated by the Ministry of Agriculture. The remaining 40% of production is being supported by

the government through certain subsidiaries. The government is currently strategizing to

increase subsidy levels for both local agriculture companies and dairy producers.

The Association states that as demand increases, customers prefer domestic producer’s goods

because they are more palatable to Turkish tastes. Furthermore, as Turkish producers are now

more closely inspected by the ministry, health and safety standards have risen significantly.

Inspections are being published on governmental websites and are completely transparent and

accessible by the customer. This in turn leads to greater confidence by the local customer for

domestic producers. Furthermore in the last couple of years Turkish dairy factories have gone

through a modernisation process which also increases consumer perceptions of quality and

sterilisation. It can be argued that these factors have played an important role in the reduction

of the market share for international goods in the Turkish market.

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In line with the major global producers, OECD expects Turkish milk production to continue to

rise and arrive at 22 Metric Ton in 2023 from 17 Metric Ton in 2014, as is shown in the graph here

below.

Source: OECD, FAO (MT)

0 25 50 75 100 125 150 175 200 225

Colombia

Japan

Canada

Mexico

Australia

Ukraine

Argentina

Turkey

New Zealand

Brazil

Russian Federation

Pakistan

China

United States

India

European Union

Mt

2011-13 2023


6.2 Cheese

Cheese production from cow’s milk has increased every single month in 2015, when compared to

the previous year. Production from sheep, goat, buffalo and mixed milk on the other hand has

been decreasing.

Source: TurkStat

According to the Euromonitor report on Cheese, the market break down is led by white cheese

commanding 35% of the market. White cheese is a soft block cheese called “beyaz peynir” which

is usually consumed in breakfast time or in traditional Turkish pastry. The rest of the market is

40% soft cheddar and 25% spreadable cheeses

In 2014, cheese achieved current value growth of 8% and retail volume growth of 1%. This was

the result of new products and advertising campaigns launched by the leading companies, such

as Ülker Icim Suzme Peynir (strained soft cheese) from Yildiz Holding AS. Additionally, the

category’s growth was fuelled by an ongoing switch from unpackaged to packaged cheese.

According to trade experts, in retail volume terms, unpackaged hard cheese and soft cheese

together accounted for around 65% of total cheese sales in 2013. Thus, there is much potential

for growth for packaged cheese in the country.

In 2014, BIM remained the leading company in cheese thanks to its private label products holding

a 20% value share of sales. The company also registered one of the highest increases in sales of

17%. BIM, a local hard discounter, is the leading grocery retailer in the country and owes its

share increase to its policy of concentrating on its private label products and a sharp increase in

the number of its outlets. BIM’s private label products are around 30% cheaper than branded

products and due to the rapid expansion of the company in both urban and rural areas of the

country its value share in cheese rose from only 8% in 2009 to 20% in 2014. Due to the leading

position of BIM, private label held an overall value share of 23% in 2014, with chained grocery

retailers such as Migros, Carrefour and Tesco Kipa also offering their own private label lines.

Over the next 5 years cheese is predicted a value CAGR of 3% at constant 2014 prices. This

positive performance will be due to improved economic conditions in the country, along with

the launch of more sophisticated new products, supported by advertising campaigns.

Additionally, value growth will benefit from increasing unit prices as a result of rising milk

prices, demand for better quality products such as organic cheese and the shift from

unpackaged to packaged products.

January February March April May June July

2014 48401,1 48524,5 53321,2 50989 53455,9 54289,1 51236,3

2015 51850,4 50759,2 55630,1 56036 58956 58476,4 52880,8

2014 309,747 1164,01 2722,9 5054 6023,57 4766,53 3947,99

2015 1226,6 937,616 2419,79 4497,29 5905,22 4924,99 3537,52

Cheese made from cow's

milk

Cheese made from

sheep, goats, buffalo and

mixed milk

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7 Baked Goods

Artisanal products dominate the baked goods category in Turkey, with a market share (in value

terms) of 94% in 2014. In volume terms the sales of unpackaged/artisanal bread constitute

nearly 97% of total volume sales of baked goods in Turkey.

The dominance of the artisanal products largely stems from the Turkish consumers’ preference

for fresh baked products. Although still dominating, the artisanal share is decreasing in baked

goods because of changing eating habits of Turkish consumers.

The overall sales of baked goods are expected to decline in the next 5 years, leading to a

negative value CAGR of 3%. This decline is due to the declining value sales of

unpackaged/artisanal bread and bread substitutes. Sales of unpackaged/artisanal bread are

expected to decrease due to the increasing health awareness and changing eating habits of

Turkish consumers. Moreover, the increasing consumer awareness of waste bread due to the

“Don’t Waste Your Bread” promotion campaign of the government will continue to have

negative impact on the daily sales of unpackaged/artisanal bread (Euromonitor, Baked Goods

Market Research Report 2015)

7.1 Biscuits

Turkey’s relatively high young population and leading companies’ successful new product

launches lead to a current value growth of 11%. The growth is mainly due to the successful new

product launches in 2013 and 2014 such as Yildiz Holding’s Ülker Dore, new NH high fibre biscuit

range, Saklikoy and Eti Gida San ve Tic AS’s new Eti Burcak Sutlu Cikolatali. Apart from these

new product developments, the leading companies are also investing in their established brands.

For example, Yildiz Holding AS launched the mini bite-size version of its famous Biskrem brand.

In 2014, the leading company in biscuits continued to be Yildiz Holding AS (Ülker) with a 43%

value share. (For Belgian readers: this is the company that acquired the famous Belgian

chocolate producer Godiva a few years ago.) The second ranking company is Eti Gida with a

33% value share. Yildiz Holding’s wider product range and wider and more successful

distribution network have enabled the company to become the leading player in biscuits in

Turkey. The two leading players dominate biscuits and further consolidate their position with

their successful new product launches which target changing consumer preferences in Turkey.

Until 2019, biscuits are expected to register a higher value CAGR of 3% at constant 2014 prices.

Increasing young population, urbanisation, expected new product launches and successful

advertising campaigns will fuel this growth (Euromonitor, Biscuits Report January 2015).


7.2 Breakfast Cereals

In 2014, the breakfast cereals category registered a higher current value growth than 2013. When

compared to the Western European average, the consumption of breakfast cereals in Turkey is

low. However, it has been rapidly increasing as a result of urbanisation and higher numbers of

mothers at work. Breakfast cereal is increasingly regarded as a quick, practical and highly

nutritious meal. As the level of education and employment are increasing in Turkey, more and

more people prefer a breakfast with breakfast cereals. Moreover, new product launches by the

leading companies further stimulate the growth of breakfast cereals.

In 2014, Nestlé continues to dominate breakfast cereals with a 51% share, thanks to the good

performance and strong brand awareness of its Nesquik and Nesfit brands. Although the

company used to be very active in terms of new product launches, in 2014 the company focused

on marketing activities for its existing products rather than launching new products.

Additionally, the majority of the company’s sales are coming from its Nesfit brand which

registers negative growth due to the increasing popularity of muesli products among young

female urban consumers with high health awareness. Due to this shift, the company loses share

to other companies which are more active and successful in terms of targeting changing

consumer preferences with new product launches.

Up to 2019, breakfast cereals are expected to register positive growth, as consumers will switch

to easy and quick breakfast options. This is especially the case for larger cities, where consumers

need practical meal replacement alternatives as a consequence of their increasingly active life.

However, breakfast cereals are expected to register a lower value CAGR at constant 2014 prices,

over the next 5 years. Mainly, this will be the result of market saturation, especially with regard

to flakes. (Euromonitor, Breakfast Cereals Report, January 2015).

20

8 Red Meat

All imported red meat and livestock to Turkey is organised through a tender process by the Meat

and Milk Board (ESK). According to the information we received from the Turkish Ministry of

Agriculture, companies from Belgium are allowed to import red meat to Turkey, if they are

successful in the tender(s). However, in terms of charcuterie products, Turkey only allows

imports of pork products; other processed meat import are not allowed in the country. To

participate in the tenders for meat, Flemish companies are recommended to follow ESK’s

website at http://www.esk.gov.tr/en. The annual quota for red meat imports are at 19,000

tonnes, usually dispersed to 3 tenders.

Market leader in the field of red meat production is Pinar Et, which holds more than twice the

market share of the second largest player. Other leading companies include Aytac, Namet,

Polonez and Banvit.

Turkey’s market for meat and meat products recorded an average annual growth of 11% over the

2007-2012 period. Growth was boosted by favourable demographic and social trends but

hindered by limited government intervention, resulting in undersupply and rapid rises in retail

prices. Sharp increases in retail prices for meat in Turkey led to a surge in meat smuggling.

Industry of meat and meat products sees a 13% growth over the next 5 years despite problems

such as inefficient production, lack of feed supply and disease outbreaks. The red meat industry

is fragmented, with over 850 companies and the five leading players generating only 8% of

production. Turnover is set to expand at an average annual rate of 11% until 2019 (Euromonitor,

Meat Report for Turkey).

The import of red meat has significantly been reduced in the last 5 years from 251 million dollars

in 2010 to 121 million dollars in 2014.

Source: TurkStat (000, USD)

In 2015, the red meat market has again experienced a very sharp price rise. According to an

article in the newspaper Today’s Zaman, the retail price of red meat has surged 40% per

kilogram since August 2014 and hit 40 lira per kilogram. This has also been highlighted in the

minutes of the Turkish Central Bank which cautioned the upward trend in the price of red meat

on the negative impacts on June 2015 inflation (Today’s Zaman, “Meat prices up 40 percent,

speculations mount over shady imports” August 2015).

In 2010, shortages of domestic beef on the Turkish market were contributing to increased food

price inflation, which has occurred again in 2015. As a result, Turkey effectively allowed beef

imports by reducing the rate of duty in autumn 2010, from a prohibitive 225% down to as low

as 30% by early 2011. The tariff was gradually increased again, returning to 225% at the

beginning of 2013. The subsequent rise in beef imports was entirely supplied by the EU with

Turkish importers mainly taking chilled young bull beef. Turkish beef imports in 2011 were as

much as 111,000 tonnes with Poland the largest supplier followed by Germany. By early 2013

Year Total January February March April May June July August Sept October Nov December

2015 52355 1060 2925 3895 3767 6026 9307 10535 14840

2014 12106 96 155 549 801 600 674 794 426 690 114 2353 4853

2013 29279 11366 213 3184 125 9579 822 572 223 161 2287 263 485

2012 99743 8470 10509 22299 11567 5275 4112 6702 10755 6323 4707 5105 3920

2011 514810 69336 64977 84130 74375 54485 41728 24885 29372 20782 24960 12774 13006

2010 251235 217 240 188 164 128 136 185 98 63 21347 79973 148496

http://www.esk.gov.tr/en


trade had ceased with Poland, the one remaining supplier at the end of 2012. By 2014 Turkish

imports only amounted to 640 tonnes mainly supplied by Bosnia. Besides beef, store cattle are

also imported for finishing in Turkey, this trade re-commenced somewhat earlier than the

product trade, in November 2014. France, in particular, benefits from this trade, shipping 42,000

head, mainly young stores, between November 2014 and June 2015. The other main supplier is

Uruguay, but Brazil is also expected to enter this market following agreement on sanitary

certification. The EU supplied 96,000 head in the first seven months of 2015, whereas there were

no shipments in the same months of last year, with France the main supplier, Hungary is the

second largest (AHDB Beef & Lamb).

22

9 Fish

Turkey’s fish and fish products market enjoyed an average annual growth of 13% over 2007-2012

from growing favourable social trends and government programmes. Decreasing profit margins

discourage new entrants to the sector. The fish and fish products industry is fragmented, being

served by more than 2,200 entities with the five leading players generating only 11% of total

production. Outlook for the next 5 years for the industry is positive, with an expected 70%

growth in turnover, thanks to government programmes and flourishing aquaculture in Turkey.

(Euromonitor, Food Report for Turkey).

Imported fish has been experiencing a positive trend in the last few years from 137 million

dollars in 2010, to 197 million in 2014.

Source: TurkStat (000, USD)

The following table compares the total catches in selected fishing regions in the EU from 2003

to 2013. In line with other European countries, Turkey’s fishing sector has been on a steady

decline.

Source: Eurostat (000 tonnes live weight)

The main species in Turkey are primarily caught in the Black Sea and in terms of volume are

small pelagic, anchovies, pilchards, sprats, and horse mackerel mounting to 72% of the catch in

2012. They are used almost exclusively for the production of fishmeal and fish oil, the main

ingredients in fish feed. The rest of the catch is achieved from the Sea of Marmara with around

10%, the Aegean with 8% and the Mediterranean contributing with a mere 4%. Along with rapid

growth of farmed fish production, the national seafood processing industry is still not fully

Year Total January February March April May June July August Sept October Nov December

2015 150368 19821 13276 21919 17016 19707 16141 15166 27324

2014 197458 11821 18276 11867 12843 12740 13309 13404 16710 26225 18605 18057 23604

2013 187281 12317 11181 11544 15915 18332 16292 15813 11342 17521 15333 26183 15509

2012 178133 9877 11925 16415 16339 15658 13167 19922 16251 14647 15552 11831 16549

2011 175565 7373 8373 16565 13334 19638 15855 18707 13409 10940 13529 20188 17653

2010 137034 11066 10278 14025 11924 9577 12165 6300 9569 7311 13212 12700 18908

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EU-28 5 707 5 710 5 496 5 254 4 910 4 914 4 804 4 999 4 832 4 419 4 806

Belgium 26 26 24 23 24 22 21 22 22 24 25

Denmark 1 031 1 090 911 868 653 691 778 828 716 503 668

Germany 238 238 264 276 227 207 195 215 218 205 219

Ireland 266 280 267 211 215 205 269 319 206 276 246

Greece 90 91 91 97 94 87 82 70 63 61 64

Spain 798 715 717 681 687 853 686 742 799 758 882

France 699 661 586 583 549 490 430 440 487 461 529

Italy 291 274 294 312 283 232 248 230 213 196 173

Latvia 114 125 150 140 155 158 163 164 156 90 116

Lithuania 155 160 138 153 150 157 150 138 137 70 75

Netherlands 524 520 547 434 366 376 341 376 365 345 324

Sweden 285 269 255 268 236 230 202 211 180 150 177

United Kingdom 631 652 665 615 609 588 580 605 595 626 618

Iceland 2 002 1 749 1 661 1 344 1 420 1 306 1 164 1 063 1 154 1 452 1 384

Norway 2 549 2 524 2 392 2 246 2 337 2 367 2 480 2 562 2 178 2 047 1 944

Turkey 463 505 380 489 589 453 425 446 478 396 339


formed. Processed fish is aimed mainly at export markets as preferences on the domestic market

are primarily for whole fish. Farmed seabass and seabream are exported chilled or frozen as

gutted, filleted, in vacuum-sealed trays, and more recently as frozen ready meals. Farmed

rainbow trout is filleted and smoked for western markets. Export of seafood includes

crustaceans, molluscs, and cephalopods, which may be frozen, preserved, or chilled. The EU is

Turkey’s primary market for fish and seafood exports, but exports are increasing to Russia, the

Middle East and even the Far East, as well as the US. Turkey also has a tuna ranching industry

which catches and fattens tuna for the Japanese market (Eurofish, Turkish Sea Market 2014).

Aquaculture

Turkey’s marine aquaculture industry is located primarily on the Aegean Sea coast and employs

some 8,000 people. Marine fish farming increased from 88,600 t in 2010 to 100,900 t in 2012. The

number of vertically integrated groups operating their own hatcheries, fish feed plants, fish

farms, and processing and packaging facilities is increasing constantly. The main species farmed

here are seabass (66,000 tonnes) and seabream (31,000 tonnes). The Black Sea is the site for a

modest production of sea-raised trout (3,000 tonnes). There is also a large and growing

production of freshwater rainbow trout (111,000 tonnes) in the interior of the country.

Aquaculture with a relatively short history in Turkey began with the farming of rainbow trout

and common carp in the late 1960s and developed further with gilthead seabream and European

seabass culture in the mid-1980s. Production of the three major species, namely rainbow trout,

seabass and seabream increased rapidly during the 1990s (FAO, Turkish Aquaculture Sector

Overview). Reported aquaculture production in Turkey from the 1950s is as follows;

Source: FAO Fishery Statistics, Aquaculture production

Turkey is ranked first in the Mediterranean for seabass farming and second, behind Greece, for

seabream. It has a 25% market share of the seabass and seabream trade in Europe (Eurofish,

Turkish Sea Market 2014).

24

10 The Beverage Business - Is the glass half full?

Turkey ranks last among European countries and last among Organization for Economic Co-

operation and Development (OECD) member countries in terms of per capita alcohol

consumption rates, estimated at around 1.5-1.6 litres per person per year.

Turkey also ranks low on the world list of per capita alcohol consumption, well behind the

world average.

According to a report by the Turkish Ministry of Health, 87 percent of Turks over the age of 15

said they had never tasted alcohol. Many restaurants in Turkey do not serve alcohol, especially

those in rural areas, in the eastern part of the country, or in conservative neighbourhoods.

The process to get an alcohol license in Turkey is difficult, and there are strict rules on which

restaurants and in what areas licenses can be obtained.

TABLE: Consumption Rates by Type of Alcohol in Turkey:

-

Source: Tobacco and Alcohol Market Regulatory Authority (TAPDK).

TABLE: Imports of Beer and Fermented Alcohols in Turkey:



TABLE: Imports of Distilled Spirits in Turkey:


10.1 Beer

Despite being a Muslim country, in terms of alcohol consumption, many metropolitans in Turkey

have a similar attitude to Europe. However, in the last decade, the political environment from

the AKP government and the resulting deeper conservatism in the country, has witnessed the

implementation of a number of policies to curb alcohol consumption. As well as limitations in

advertising, and increases in excise duties, legislation passed in 2013 limits sales of alcohol

between 10pm to 6am. Despite such policies, consumption of beer noted positive growth.

According to a report by investment bank JP Morgan in February 2015, there has been a faster

than anticipated recovery in the Turkish beer market by consumers adapting to higher beer

prices. Furthermore, better than expected weather conditions are also expected to drive demand

for beer and soft drinks in 2015. However, on the downside, ad hoc increases in excise duty rates

on beer above inflation levels reduces sector profitability. Looking forward, JP Morgan raises

caution over the hardening attitude towards alcohol consumption by the Turkish population,

which may eventually lead to a reversal of the long term trend towards higher alcohol

consumption.

New product launches positively stimulated the performance of beer in 2014. In particular,

imports of new premium lager brands revitalised the consumption of beer. Nevertheless, the

volume growth remained moderate but positive, due to increasing prices, from rise in excise tax.

Efes Pilsen (Anadolu Efes Group) continued to lead the Turkish beer market in 2014 with a total

volume share of 75%. The company enjoys high levels of brand awareness and benefits from its

extensive distribution network and large-scale production, which enabled it to consolidate its

leading position among beer companies. Over the next 5 years, beer is expected to register a

total volume CAGR of 1%. The main impetus behind the better performance in the category is

set to be the increasing levels of company investment in new product launches and increasing

marketing activities, especially within on-trade channels (Euromonitor, Turkish Beer Market

2015).

After Efes Pilsen, Tuborg is the second largest brewer and commands majority of the 25% share

of the remaining beer market. Although Efes had enjoyed 85% market share in 2012, Tuborg

successfully increased its hold with heavy investment in the quality of its production facilities

following its ownership change in 2008 and its significant marketing efforts for its flagship

brand, Tuborg Gold (Canadean, Turkey Beer Market Insights 2013). According to the investor

relations presentation by Efes, the company expects low single digit growth in 2015 for Turkey.

This year the company seeks to restore margins and shares through continued focus on cost

26

reduction, accelerated capability, development and execution of brand development strategy

(Anadolu Efes Investor Presentation 2014).

In terms of imports Tuborg currently supplies Leffe, Hoegaarden, Guiness, Corona and

Weihenstephan to the Turkish market, whereas Efes has Duvel, Grolsch and Samuel Adams under

its umbrella. Other Belgian beers like Kwak, Kasteelbier, Petrus, Bavik, Chimay, can be found in

specialty beer shops and a smaller number of cafés in Turkey.

10.2 Wine

Turkey has a very long history of vineyard cultivation and wine production. It is an established fact that Anatolia, the Asian part of Turkey, is the motherland of vineyards and wine. Evidence indicates that grapes were processed into wine and named vino by the Pre-Hittites who lived in

Anatolia between 3000-4000 B.C.

The country has diverse types of soil and climate that allow wine producers to cultivate several types of grapes for producing different types and tastes of wine. The producers in the sector continually increase their wine production capacity and invest in modern technologies. Besides the large wine producing companies, there are also almost 300 small producers located in

Central Anatolia, Marmara-Thrace and the Aegean region. Total wine capacity of the sector is about 120 million litres. The increasing popularity of wine among Turkey’s young professionals, continued to have a positive influence on volume growth in wine in the country during 2013. In addition, relatively low levels of increase levied on the excise tax imposed on wine also stimulated volume growth in the category during 2013. Due to these positive effects, wine registered superior total volume growth in 2013 than the 2% total volume CAGR recorded over the entire review period. According to the wine sector report by the Ministry of Economy; Turkey offers a potential of growing around 1,250 varieties. Although Turkey has traditionally specialised in producing table grapes and raisins, it also has 34 kinds of wine grapes, 22 of which are valuable native varieties. Most Turkish wines are made from native wine grape varieties. Turkish wine producers also use the native grapes in combination with European varieties to create high quality new wines with a new taste for the world wine market. Although vineyards are spread over the country, production is mainly concentrated in the Aegean, Mediterranean and Central Anatolian regions. Wine grape varieties by regions are as follows:


Regions White Red Regions White Red

Clairette Pinot Noir Emir Öküzgözü

Pinot Chardonnay Adakarası Central Hasandede Boğazkere

Riesling Papazkarası Anatolian Narince Kalecik Karası

Marmara Semillion Karaşeker (kuntra) Kabarcık Papazkarası

and Thrace Beylerce Gamay Dimrit

Yapıncak Karalahana Sergikarası

Vasilaki Cinsaut Burdur Dimriti

Carignane Kabarcık Sergikarası

Semillion

Çalkarası Mediterranean Boğazkere

Grenache

Dökülgen

Aegean Bornova Misketi Dökülgen Horozkarası

Merlot Öküzgözü

Sultaniye

South East Kabarcık

Cabarnet

Boğazkere

Rumi

Alicante Bouschet Sergikarası

Source: Ministry of Economy

Wine varieties are widely diversified and improved in quality. The market for wine expands in

Turkey as more varieties and better quality wines become available. As a consequence of the

increase in the quality of wine, many Turkish brands have been awarded gold medals in

international competitions.

According to Euromonitor, the increasing shift away from beer towards wine had a positive

effect on growth in wine in 2014 as the category increased in total volume by 19%, a

significantly higher rate of growth when compared to 2009-2014 review period, where total

volume CAGR of 4% was recorded. Increasing numbers of consumers who are sensitive about

the alcohol content and price of alcoholic drinks are increasingly preferring wine instead of

beer, as a result of the decreasing price gap between the two categories. Kavaklidere Saraplari

continued to lead the market in 2014, with a total share volume of 22%. Founded in 1929,

Kavaklidere is the first private sector wine producer in Turkey and owns 550 hectares of

vineyards. The company enjoys high levels of brand awareness due to its longstanding presence

in the sector. In addition, the company has an extensive distribution network, which also further

consolidated its position in 2014. After Kavaklidere, Doluca can be identified as holding a

significant market share. Other players include Pamukkale, Sevilen, Suvla, Gulor, Urla and Kayra.

Over the next 5 years, sector is expected to record an increase in total volume at a CAGR of 8%,

which is set to be higher than the last 5 years. The main impetus behind the acceleration in

growth expected in the category over the forecast period is set to be the increasing popularity

of wine as a consequence of increasing number of wine tasting courses, which is set to boost

the popularity of wine, especially among young adults living in urban areas. Additionally, the

Turkish government’s current excise tax policy is expected to have an influence over the

forecast period, further decreasing the price gap between wine and beer and contributed to the

shift away from beer towards wine among low-end consumers (Euromonitor, Wine in Turkey

Report 2015).

28

10.3 Spirits

During 2014, consistent excise tax increases had a negative effect on total volume growth in

spirits as unit prices increased. Nevertheless, the marginal total volume decline recorded in the

category in 2014 was slower than the 1% total volume decline recorded in 2013, thanks to new

product launches such as Jack Daniel’s Tennessee Honey and The Botalist by Brown-Forman and

Tanqueray No10, Tekirdag No10 and Gilbey’s Vodka by Mey. These new product launches added

dynamism to spirits in 2014. In 2014, Mey continued to lead spirits with a total volume share of

77% (Euromonitor, Spirits in Turkey Jun 2015).

Established in 2004 after the privatisation of the Tekel's alcoholic drinks division, Mey operates

as two separate companies in Turkey, one involved in manufacture and the other responsible for

sales and marketing. In 2011 Diageo completed the acquisition of Mey from TPG Capital for 1.3

billion pounds.

Mey's product portfolio includes the traditional Turkish aniseed drink Raki with brands Yeni Raki

and Tekirdag Raki also Istanblue and Binboa Votkas and also Kayra, Terra and Buzbag Wines.

Since 2011, Mey has been working under the umbrella of Diageo, an alcoholic beverage

manufacturer trading in close to 180 countries with offices in 80 countries. Mey also holds the

distribution rights of Johnnie Walker, Crown Royal, J&B, Windsor, Buchanan's and Bushmills

whiskeys, Smirnoff, Ciroc and Ketel One, as well as Baileys, Captain Morgan, Don Julio and

Tanqueray (Mey Icki, Corporate Website).

According to Euromonitor, the company’s well-established brands such as Yeni Raki and

Istanblue helped it to consolidate its leading position within spirits. It also enjoys high levels of

penetration both within on-trade and off-trade channels thanks to its extensive distribution

network throughout Turkey. Furthermore, is aggressive in new product launches and regularly

expands its product portfolio within various spirits categories. Nevertheless, the company’s total

volume sales registered a 2% decline in 2014 due to the negative performance of its Yeni Raki

brand, which constitutes the majority of its total volume sales. Another factor behind the

company’s value share decrease is the increasing competitive pressure it faces from other well-

established companies within spirits such as Pernod Ricard and Brown-Forman.

Spirits are expected to increase in total volume at a CAGR of 1% over the next 5 years, a better

performance than the marginally positive total volume CAGR recorded in sınce 2009 to 2014. The

main reason for the better performance expected in the category is set to be growth in the

number of young adults living in urban areas of Turkey, a situation which is set to have a

positive influence on sales of spirits over the forecast period. In addition, increasing levels of

company investment in terms of new product launches are also expected to have a positive

influence on the performance of spirits over the forecast period. Last but not least, the positive

performance expected in Turkey’s travel and tourism industry is also set to further boost the

performance of spirits over the forecast period (Euromonitor, Spirits in Turkey, June 2015).


11 Food Retail Landscape

The Turkish retail sector has significantly evolved in the last 2 decades from small corner shops

to supermarkets. The trend towards a more sophisticated retail space has enabled international

brands to be represented in shelves and satisfied the lifestyle of the generation that desired a

greater variety of products.

The retail sector is classified into two major groups of organised and unorganised retailers.

Organised retailers are mostly chain stores that have a corporate entity and are fully registered

such as Migros and Carrefour. The sales area of such supermarkets can vary from 400sqm to

hypermarkets of up to 2500sqm. Unorganised retailers are smaller corner stores, with floors of

less than 50 sqm. (USDA Gain Report, 2011).

According to consultancy firm Deloitte, the food and beverage sector represents the largest

segment of the total retail market with a 44% share and is expected to grow with a CAGR of 5%

and reach almost USD 150 billion in 2018. The consultancy firm expects continued expansion

strategies at the discount retailers as well as a consolidation in the market (Deloitte, Retail

Sector Update, July 2014).

Merrill Lynch depicts that Turkish retail sector enjoys low up-front investments from the

availability of commercial lease space across the country. Among the largest players, BIM and

Migros command a 26% share of modern food retailing in the country. On the other end of the

scale the unorganised market share of small corner shops is expected to be stabilised at around

40% of the market over the longer term (BofA Merrill Lynch, Consumer and Retails Report

September 2015). The leading players in the field in terms of the number of stores are hard

discount stores such as BIM:

Stores 2012 2013 Difference

BIM 3,281 3,662 381 A 101 1,291 1,687 396 SOK 1,238 1,222 -16 DIA SA 1,108 1,217 109 MIGROS 529 622 93 HAKMAR 228 252 24 TANSAS 184 218 34 MAKRO MARKET 154 171 17 CARREFOUR SA 181 195 14 KILER 193 203 10

Source: http://www.ortakalan.com.tr/

Grocery retailers have registered a growth of 3% in 2013. The operator of Turkey’s leading

discounter chain, BIM, maintained the leading position in grocery retail in 2014, with a 7%

market share. Migros, meanwhile, ranked second with a 3% share of the market. Both of these

companies recorded growth in their value shares, thanks to the increasing number of outlets

they operate. The reason for BIM’s leading position in grocery retail is the fact that it operates

the highest number of outlets in grocery retailers, not to mention that it continues to benefit

from the increasing consumer demand for discounters in general. In addition, the private label

products offered by the company remain very successful and this ensures that the company is

able to maintain its top ranking within grocery retail, due to its strong position in a number of

packaged food categories, including a high number of frozen processed food and dairy

categories. In addition, the company’s strategy, which involves cutting expenditure on

http://www.ortakalan.com.tr/

30

advertisements and in-store investment and reflecting the revenues from these as price

discounts, has been highly successful in terms of attracting price-sensitive consumers. The

increasing consumer preference for convenience is expected to continue over the next 5 years,

which will force the leading companies to increase their penetration within smaller streets by

opening new outlets with smaller sales areas (Euromonitor Report, Grocery Retailers, January

2015).


12 Intermediaries in Agro-Food Networks

A research article in the German Magazine “Die Erde” sheds light onto intermediaries in agro-

food networks in Turkey and transforming food market structures. The article also provides

insight into how business is conducted in Turkey for agricultural products. Intermediaries in

agro-food networks have often been blamed for ineffective trade resulting in large quantities of

spoiled food, exploitation of farmers and inflated food prices. The dependence on middlemen is

especially emphasised in studies on the market situation and livelihood of smallholders.

Therefore, reforms in the regulation of food trade systems, such as the abolishment of the

obligatory integration of state controlled wholesale markets into trade systems, aim to improve

the market integration of smallholders.

Such reforms are often part of broader agro-food market liberalisation activities including the

acceptance and encouragement of foreign direct investment (FDI) into food markets, both

wholesale and retail.

Since the 1990s, with the entrance of transnational corporations (TNC) to the Turkish retail

sector, the demand for standardised and packaged products according to international

standards in the fresh fruits and vegetables (FFV) segment increased. However, demand often

exceeded supply as wholesale markets in Turkey still lacked required infrastructures, such as

cold storage and packaging facilities. In response to these inadequacies a new generation of

intermediaries evolved to serve the demands of transnational actors in food retailing and

increasingly hotels, restaurants and caterers (HORECA) in the Turkish market.

The diffusion of supermarkets in Turkey was not only the result of an increasing presence of

transnational retailers, but also of strategic adjustments of Turkish actors in the market.

Domestic actors also opened supermarket chains or reworked their one-shop business strategies

towards developing retail chains. A representative of PERDER, the Turkish retailer association,

estimates that more than 450 local or regional retail chains exist in Turkey. Besides the changing

demands from supermarkets also the customs union agreement between Turkey and the

European Union (EU) established in 1995 and the negotiations about Turkey’s full membership

since 2005 influenced transformations in standards and trade in FFV. These developments also

led to changes in the regulation of the ways wholesale markets were allowed to operate.

The most recent regulatory adjustment came in 2010 mainly concerning the certification of

standards and the traceability of produce, their quality and origin. The law aims to ensure

industrial certainty about local quality at the level of wholesale markets”. As a result, wholesale

agents face a number of laws and regulations they have to comply with:

Compulsory barcoding systems for every produce to increase traceability;

The establishment of a central registration system on quantities and prices, so that

knowledge and information can be retrieved from everywhere;

Allowing purchases outside of the wholesale market upon the condition of presenting

the invoice and producer receipts;

Even though the law has been in force since 2010, the obligations concerned with infrastructure

developments, like the implementation of laboratories and testing facilities, as well as

appropriate cold storage facilities or the barcoding system were delayed until 2013, due to high

financial investments and technological adjustments.

32

In terms of governance structures and towards reworking patterns of actors the most important

change in the law of 2010 was the possibility to trade outside wholesale markets upon the

presentation of invoice and tax documents through the purchaser of the products. The

obligation to present invoice and tax documents aims to prevent unregistered trade and

guarantee traceability. This is an important feature, as unregistered trade in Turkey is estimated

to be very high often resulting in tax avoidance or misleading labelling of products, e.g. in

relation to modes of production (organic vs. conventional) or regional origin.

Commissioners and merchants exert strong roles in the Turkish wholesale market. Bulk buyers in

Turkey for fresh produce include transnational and domestic retail chains operating at different

spatial scales, traders on bazaars, neighbourhood shops as well as HORECA. Although farmers

can market their produce via direct marketing to the end customer for amounts up to one ton

or through producer organisations, wholesale intermediaries are usually the dominantly chosen

option for Turkish farmers to market their produce in larger quantities to the expanding

domestic market, and producers set the minimum sales prices. The commissioner then arranges

the transaction. One reason for the stability of the commissioner-producer relationship is that

commissioners often pay in advance. In consequence, power asymmetries are established

through the fact that many of the commissioners also fulfil functions of financial institutions.

Eliminating the commissioners thus would also mean to eliminate certain financial structures.

Producers therefore have to rely on the information provided by the commissioner which

underlines the role of trust in such networks and leads to an information advantage and a

considerably high power of the commissioners over the producers.

In contrast to commissioners, merchants on wholesale markets have had a less dominant role in

terms of power over producers. This derives from the fact that commissioners do not take

ownership of the produce and therefore cannot suffer from lock-in effects stemming from the

perishability of the produce. In contrast to merchants, commissioners do not have the risk to

invest in purchases they cannot sell.

Since 2010 wholesale agents have faced a number of challenges, due to the fact that FFV trade

can be performed outside the wholesale markets which decreases expenses. It can be expected

that in the future more and more retailers will source their products in direct agreements with

producers, vertically integrated supplier firms, producer unions or cooperatives. However,

traditional trading structures are likely to remain stable and will thus be resilient in the

foreseeable future since personal networks and relations to other actors in the system including

farmers and buyers often define a successful operation.

The article in Die Erde concludes that, governance structures including wholesale markets will be

overcome in the short term. Therefore also wholesale markets have to functionally upgrade and

invest into infrastructures for appropriate storage and processing of FFV products. This form of

upgrading of wholesale organisations, however, is less a strategic decision than the result of

regulatory pressure. Therefore, these processes have to be seen as resilience rather than

strategic reworking. Still, the resilience of traditional purchasing and supply patterns also

mirrors the socio-economic reality in Turkey where not everybody has the financial capacity to

buy sorted, packed and branded FFV products (Die Erde, Intermediaries in agro-food networks in

Turkey, 2014).


13 Impact of Russia’s trade sanctions against the EU

Russia imposed an embargo on imports of agricultural products, raw materials and food from

countries which had joined the anti-Russian sanctions on August 7, 2014. The ban applied to

imports of beef, pork, fruit and vegetables, poultry, fish, cheese, milk and dairy products

manufactured in EU member countries, the United States, Australia, Canada and Norway. Later

the food embargo was extended until August 5, 2016. Russia accounted for 10% of EU

agricultural food exports in 2013 and the banned products amounted to 4%. The Russian

Government has pledged to compensate the decline in purchases from EU by boosting its

imports from other countries, including Turkey, Latin America and ex-Soviet, nations.

The European Commission has provided support to stabilise markets in response to the Russian

ban, notably for dairy and fruit & vegetables in the most affected countries. The local EU market

has learned to diversify exports to new markets, or in some cases, adapted their production.

Additional promotion activities and talks to lift trade barriers in third country markets has also

been carried out. Furthermore, negotiations for trade agreements have been intensified such as

the recent agreement with Vietnam. As a result, the Commission has opened the Canadian

market for pears, which were originally supplied from Belgium and apples from Poland. These

where two important markets with a global market value of more than € 300 million euros

(MeatCommerce website).

13.1 Russia and Turkey

Russian trade sanctions against EU producers since August 2014 have led to an initial increase in

exports of Turkish food produce to the country, from 2.12 billion euros in full year 2013 to nearly

3 billion euros in 2014.

List of banned food products imports from EU and US Meat of bovine animals, fresh/chilled/frozen Pork, fresh/frozen Meat and edible offal of the poultry, fresh/chilled/frozen Fish and crustaceans, molluscs and other aquatic invertebrates Milk and milk products Vegetables Fruits and nuts Sausages and similar products of meat, meat offal /blood

Finished products including cheese, curd based on vegetables fats Source: Rosselkhoznadzor However despite the initial surge, trade numbers gradually flattened, as the depreciation of the

Russian Ruble against the Turkish Lira shaved off potential profits and lead to a decrease in

business appetite. Furthermore, the requirements and the approval process by Russia for Turkish

exporters have further acted as a barrier. Therefore, the notion of European companies

supplying for the market gap left by Turkish exporters directing goods to Russia has fallen

below expectations.

Furthermore, Russia has increased poultry and meat production to make up for the drop in

numbers, which further provided a buffer for the market. In the first 9 months of 2015, Russia’s

own production rose by 9%, according to Rosselkhoznadzor, the Ministry of Agriculture of the

Russian Federation.

34

The USDA Foreign Aricultural Service summarized it as follows, in a mid 2015 report:

“Turkey expected to benefit when Russia implemented an agricultural trade ban against the

United States, Canada, European Union, Australia, and Norway in August 2014. However, exports

to Russia have not increased as dramatically as anticipated, especially in terms of revenue.

Furthermore, exports of most products have been sporadic and variable. In the January - April

2015 period, Turkish fruit exports to Russia increased 39 percent in volume though only 27

percent in revenue compared to the same period last year.

Vegetable exports, on the other hand, actually decreased by 8 percent in volume and 13 percent

in revenue compared to the same period last year. Turkey has greatly increased its export of

poultry products to Russia (977 percent in the January-April period when compared with

previous years), however poultry exports have declined significantly in the first quarter of 2015

compared to the dramatic increases in the third and fourth quarters of 2014 (with the exception

of hatching eggs).

Dairy exports to Russia have not increased significantly and have experienced tremendous

variability. Some of Turkey’s largest companies did not try to enter the Russian market as they

view the market opportunities as temporary and risky and they were not willing to make

investments in sales and distribution systems. They feel that there is more to lose from investing

in Russia than there was to gain.

Furthermore, some companies have reported problems with collecting payments from Russian

importers. While the announcement of Russia’s western trade ban sparked high hopes among

Turkish exporters last year, the extension of the ban has not generated the same response.

Although Russia will continue to be an important export market for Turkish agricultural

products, it has clearly not met the sector’s hopes and expectations.”

Only three companies from Turkey have met the veterinary requirements by Russia; they are

Pinar Sut, Unilever and Aynes Gida. However, the following companies may also meet the

criteria and can be approached for partnerships by Flemish companies.

Company Description M CapTL mn

Revenues TL mn

Share of Exports

Initial beneficiaries

Tat Gıda Tomato paste, dairy products and pasta manufacturers

364 793 6%

Pınar Sut Dairy product producer 845 810 11%

Yaprak Sut ve Besi Animal breeding, milk producer

29 6 0%

Banvit Poultry manufacturer 257 166 9%

Seker Pilic Poultry manufacturer 233 63 20%

Merko Processed tomato products 47 70 64%

Karsusan Su Urunleri Aquaculture fish 19 14 0%

Tukas Tomato Paste 93 137 31%


Tac Tarım Urunleri Milk and poultry producer, animal breeding

67 3 0%

Secondary beneficiaries

Dardanel Canned fish 27 99 18%

Frigo Pak Gıda Frozen Food, Fruit Juice, Canned Food

6 20 79%

Kerevitas Frozen Food 136 264 7%

Konfrut Fruit and vegetable juice and concentrate

85 60 51%

AVOD Dried vegetable 33 35 84%

Ar Tarım Organik Organic fruit and vegetable 24 8 0%

Penguen Gıda Canned Food 88 85 38%

Selcuk Gıda Dried food 8 11 89%

Pınar Et Processed meat products 393 479 2%

Vanet Gida Processed meat products 176 7 7%

Source: Is Investment, Food Sector Flash Note, August 2014

36

14 Regulation of the Food and Beverage Sector 1

The main target of Turkish food and agriculture policy is to harmonize the related laws and

regulations with the European Union (EU) acquis communautaire.

In the scope of EU harmonisation, the Turkish Government issued a new Law no. 5996 on

Veterinary Services, Phytosanitary, Food and Feed on June 13, 2010 with the objective of

protecting and ensuring public health, food and feed safety, animal health and welfare, plant

health and consumer interests taking into consideration environmental protection. In the past,

veterinary services, phytosanitary, food and feed policies were covered by separate laws and

regulations.

Unlike the old legislations, Law 5996 covers all stages of production, processing and distribution

of food, materials and articles intended to come into contact with food and feed, controls of

residues of plant protection products and veterinary medicinal products and other residues and

contaminants, control of epidemic or contagious animal diseases and harmful organisms in

plants and plant products, welfare of farm and experimental animals and pet animals,

zootechnics, animal health and plant protection products, veterinary and plant health services,

entry and exit procedures of live animals and products to the country as well as related official

controls and sanctions.

The Law also gives an authority for the principles and procedures relating to the production,

packaging, sale, import and export of spring water, drinking water, natural mineral water and

water for medical purposes and the principles and procedures relating to compliance with

technical and hygienic rules, ensuring fulfilment of quality standards and monitoring and

control of quality standards of potable and utility water to the Ministry of Health (MoH). MoH is

also responsible for the principles and procedures relating to the production, import, export,

and control of dietary foods for special medical purposes.

For the implementation of Law no. 5996, the Ministry of Agriculture and Rural Affairs was

extensively re-organized by the Decree Law no. 639 under the name of the Ministry of Food,

Agriculture and Livestock (MinFAL) in June 2011. Currently, MinFAL is the competent authority

with regard to food and feed safety, veterinary and phytosanitary issues in Turkey. Under

MinFAL, the General Directorate of Food and Control (GDFC) is the most important ministerial

structure for food and feed safety, veterinary and phytosanitary policies, adoption of legislation

related to these policies, relevant official controls and inspections at all stages of processing,

distribution and placing on the market as well as ensuring animal health and welfare. The GDFC

is the contact point for international organizations such as Codex Alimentarius Commission,

European Food Safety Authority (EFSA), European and Mediterranean Plant Protection

Organization (EPPO), World Organisation for Animal Health (OIE), World Trade Organization

(WTO).

Another important law is Law no 5977 on Biosafety which was published in the Official Gazette

on March 3, 2010. The objective of this Law is to establish and implement a biosafety system in

order to prevent the potential risks of the genetically modified organisms and products thereof

obtained through modern biotechnological means within the context of scientific and

technological advancements; protect human, animal and plant health; safeguard and ensure the

sustainable use of the environment and biological diversity and to determine the procedures

1 The information in this chapter is to a large extent based on the GAIN Reports by the US Department of Agriculture.


and principles governing the control, regulation and monitoring of these activities. It governs all

activities including but not limited to the research, development, processing, placing on the

market, monitoring, utilization, importation, exportation, transit, transportation, preservation,

packaging, labelling and storage regarding Genetically Modified Organisms and products thereof.

Veterinary medicinal products, human medicinal products and cosmetics which acquired license

or got approval from the MoH do not come under the scope of the Biosafety Law.

In the scope of this Law, the Biosafety Board was established in 2011. Since then, 16 corn events

and 3 soybean events have been approved by the Biosafety Board for feed use. However 2 of 16

corn events were suspended by a court decision in December 2013. In 2015 an additional 13 traits

were approved in July and November; and 25 more are still undergoing risk and socio-economic

assessments.

Not even one single trait has been approved for food use (products intended for human

consumption).

Enforcement of Turkish food and agriculture legislation is performed by 81 Provincial Food,

Agriculture and Livestock Directorates (PAD) and 846 District Directorates (DD). The public

laboratories of MinFAL, including 39 Provincial Food Control Laboratories, 1 National Food

Reference Laboratory, 9 Veterinary Control Institutes and 9 Plant Quarantine Laboratories and

Plant Protection Research Institute Laboratories and 87 private food control laboratories which

are authorized and audited by MinFAL and are involved in the official control system. Auditing

of directorates and districts and laboratories is performed by GDFC officials (General Directorate

of Food and Control).

The legal infrastructure of agriculture is mainly based on regulations and/or communiqués

rather than on laws. The reason for this is that the Turkish constitutional system does not allow

laws to be adopted, amended or abolished easily. Therefore governments have traditionally

preferred to publish regulations, communiqués, directives or circulars. The majority of the

regulations on food and agricultural products are prepared and published by the MinFAL.

However, there are also regulations published by other Ministries, such as the Ministry of

Finance and the Ministry of Health. About a hundred implementing regulations of Law no. 5996

have been published and enforced by MinFAL since 2011. The Turkish government rarely informs

the international bodies such as the WTO about possible or actual regulation changes. Exporters

should also be aware that there may be some variation among provinces in applying legislation.

This may be due to the lack of guidelines for the enforcement of rules in some cases.

14.1 Labeling Requirements

The communiqué regulating the packaging and labelling of foods was published on August 25,

2002. This communiqué was prepared within the framework of harmonization with the EU

Directives 2000/13/EEC on the Labelling, Presentation and Advertising of Foodstuffs, 90/496/EEC

Directive on Nutrition Labelling of Foodstuffs, and Directive 80/232/EEC on the approximation

of the laws of the member states relating to the ranges of nominal quantities and nominal

capacities permitted for certain pre-packaged products. It was amended once in 2004 and twice

in 2006.

On December 29, 2011, the GDFC published a new Turkish Food Codex Regulation on Labelling in

the Official Gazette. It was prepared parallel to EU Directives of 2000/13/EEC, 2008/5/EC,

1999/10/EC, 2002/67/EC, 90/496/EEC, 87/250/EEC and Regulations 608/2004/EC and

1924/2006/EC and amended three times since it was published. The regulation concerns the

38

labelling of foods to be delivered as such to the consumer and certain aspects relating to its

presentation and advertising. Nutritional and health claims are also involved in the scope of this

regulation.

According to the regulation, labels should not mislead the consumer by suggesting that the food

possesses special characteristics when in fact all similar food possesses such characteristics and

by attributing to the food effects or properties which it does not possess. Statements, signs or

pictures should not be on labels which mean or imply that food has the property of preventing,

treating or curing a human disease. The importer is responsible for the imported food product’s

labelling.

An imported food item may arrive in its original package, but a permanent “sticker” label, in

Turkish, must be attached to the package before it is marketed. Each food has to be labelled

clearly, completely and accurately in Turkish language before placing on the market. Other

languages in addition to Turkish may also appear on the label. Labelling requirements are

enforced by PAD and DD officials. Turkish authorities do not grant exceptions to their labelling

regulations.

14.2 Compulsory Information

The compulsory information must appear on the packaging or on a label attached to it. The

information must be marked in such a way that it is easily visible, clearly legible and indelible.

The following information is compulsory on labels of foods for those domestic and imported:

The name under which the product is sold,

The list of ingredients, in descending order of weight,

Allergenic ingredients,

The net quantity of product,

Date of minimum durability. For highly perishable goods (due to microbiological

activity), “use by” and date. Date must be given as day/month/year or: “best before” and

date in terms of day and month for foods expected to keep for three months or less, or:

“best before end” and date in terms of month and year only for foods expected to keep

for more than three months but not longer than eighteen months, or “best before end”

and date in terms of either month and year or year only for foods expected to keep for

more than eighteen months,

Any special storage conditions or conditions of use,

The name or business name and address of business operator ( i.e., manufacturer or

packager or seller or importer)

Business Registration number of business operator,

Country of origin,

Instructions for use,

Strength of alcohol by volume with respect to beverages containing more than 1.2%

alcohol by volume,

The quantity of certain ingredients or categories of ingredients such as fats, oils, herbs,

etc.,

Production batch/lot number and date.

Additional Compulsory Information:


The statement "….contains alcohol" if the ethyl alcohol is used as an ingredient in the

manufacture or preparation of a food notwithstanding the amount of the alcohol. (The

transition period for this requirement will end on 1 January 2015),

The statement "contains ... obtained from pigs" if the product contains any

product/ingredient obtained from pigs notwithstanding the amount of that

product/ingredient. (The transition period for this requirement will end on 1 January

2015),

The statement “ ….contains herbal sterol/stanol” or “….contains added herbal

sterol/stanol” if herbal sterol and/or sterol ester is added to product,

The statement “….contains high amount caffeine, not for children or pregnant or

lactating woman” if product contains caffeine exceeding 150 mg/L,

The statement “….contains licorice. Patients with hypertension should avoid the

consumption” if the product contains glycyrrhizic acid or ammonium salts of glycyrrhizic

acid,

The statements “…contains sweeteners” or “….with sweeteners” or “…contains sugar and

sweetener” or “…contains aspartame (source of phenylalanine)” if the product contains

sweetener and/or added sugar,

The statement “….packaged under protective atmosphere” if the product is packaged

with packaging gases.

In addition to compulsory labelling, certain foodstuffs such as infant and follow-on formulas,

wines, aromatized wines, spirit drinks, food supplements, energy drinks, non-alcoholic beverages,

sugar, honey, coffee, meat and meat products, fruit juice, and dairy products have specific

labelling requirements in their ‘vertical’ communiques.

Because of difficulties fighting adulterated foods such as honey, alcoholic drinks, energy drinks,

black tea and food supplements, MinFAL decided to implement a new single code system for

certain food categories. This system is called “Product Verification Monitoring System (PVMS)”.

According to PVMS a consumer will verify purchased food products information by using a 19

digit number. An article related to PVMS was published in the second amendment of Turkish

Food Codex Labeling Regulation, on September 03, 2013. MinFAL determined seven food

categories, which are alcoholic beverages, food supplements, honey, energy drinks, black tea,

vegetable liquid oil, infant formula, follow-on formula, supplementary baby foods to implement

this system.

14.3 Nutritional Requirements

Nutritional labelling is mandatory when there is a nutritional and/or health claim on the label,

presentation or advertisement of foodstuff. Food supplements are out of the scope of this

requirement. This requirement is valid also for the foods for special dietary purposes without

prejudice to its vertical legislation. Nutritional labelling includes energy value, fats,

carbohydrates, proteins where required fibre, and salt/sodium, vitamins and minerals.

Nutritional claims and their requirements are given in detail in the Regulation.

Some examples for the nutritional claims allowed in the Regulation on Labelling are as follows:

If the energy value of the solid food is not more than 40 kcal, the nutritional claim as

“low calorie” might be on the label,

If the energy value or ingredient amount is reduced 30 percent with respect to similar

product, the claim “reduced calorie” might be on the label,

40

If the amount of alpha linolenic acid amount is minimum 0,3 gr per 100 gr or 100 kcal

food, the claim “source /contains/ added Omega 3 fatty acids” might be on the label,

If the 100 gr or 100 ml foodstuff contains sugar not more than 0,5 gr, the claim “sugar

free” might be on the label

Whole group of nutritional claims and their requirements allowed by the regulation can be

observed at http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx in Turkish language.

14.4 Health Claims

According to the regulation, health claims on the label, presentation or advertisement of

foodstuff are allowed if:

the product is consumed as food or food supplement

the product has the claimed effect at normal consumption level

the alcohol content of the product is not 1.2 percent

the product contains 3 of the following requirements at the same time:

o maximum sodium amount is 120 mg/100kcal

o maximum 8 percent of energy value comes from saturated fatty acids

o maximum 10 percent of energy comes from added sugar

o minimum 55mg/100kcal calcium naturally

Claims are not allowed which refer to:

negative effects on health when that foodstuffs is not consumed

weight loss amount or rate

advices of doctors or other medical persons

The whole group of health claims and their requirements allowed by the regulation, please visit

the web site at http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx in Turkish language. Some

examples of health claims are as follows:

“This foodstuff contains probiotic microorganism. Probiotic microorganisms may help to

regulate digestive system and support immune system”

“This foodstuff contains omega 3 fatty acids EPA and/or DHA. EPA and/or DHA may help

to protect your heart and vein health.”

“This foodstuff contains low sodium. Low sodium may help to reduce the risk of high

blood pressure and protect your vein and heart health.”

14.5 Labelling for Food Additives

Labelling rules for food additives are indicated in the Regulation on Food Additives which was

published in the Official Gazette no. 28693, dated 06/30/2013. In this regulation, in addition to

compulsory information, there are specific labelling requirements for food additives which will

and will not be supplied to the consumer.

Labelling for Food and Feed containing, consisting or deriving from Genetically Modified

Organisms (GMO’s):

In addition to general labelling rules, specific labelling rules for food and feed containing,

consisting or deriving from GMO’s are set in the Regulation on Genetically Modified Organisms

and its Products published in Official Gazette no 27671 dated 08/13/2010. Currently, there is no

GMO event approved for food use in Turkey. There are 16 corn events of which 2 of them are

http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx



suspended by a court decision in December 2013 and 3 soybean events approved only for feed

use. Imported feed into Turkey must be labelled “Contains GMO” if it contains GMO over 0.9

percent within a given shipment.

14.6 Packaging and Container Regulations

Turkish Food Codex Regulation on Materials and Articles Intended to Come into Contact with

Food was published on the Official Gazette no 28157 dated 12/29/2011 and it was amended on

08/03/2012. This regulation is applied to materials and articles, including active and intelligent

food contact materials and articles, which in their finished state;

are intended to be brought into contact with food;

are already in contact with food;

can reasonably be expected to be brought into contact with food or to transfer their

constituents to food under normal or foreseeable conditions of use and were intended

for that purpose;

This regulation is not applied to materials and articles which are supplied as antiques; covering

or coating materials, such as the materials covering cheese rinds, prepared meat products or

fruits, which form part of the food and may be consumed together with this food and fixed

public or private water supply equipment.

Under the framework regulation, there are specific requirements related to materials and

articles such as glass, paper, metal, plastics, ceramics, regenerated cellulose and those which

contain vinyl chloride monomers. These regulations are available at website

http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx in Turkish language.

14.7 Food Additives Regulations

The food additive section of the Turkish legislation is quite detailed and aimed to prepare it to

conform to EU regulations. Revised Turkish Food Codex Regulation on Food Additives was

published in the Official Gazette no. 28693 dated 06/30/2013. The regulation specifies general

conditions for inclusion and use of food additives in the list. It sets the food additive functional

groups, names of food additives, defines the food categories, and lists maximum amounts and

conditions of additives allowed in defined food categories as well as exceptions and restrictions.

It also lists food items in which food additives are not allowed to be used or lists certain food

additives which are not allowed to be used for certain traditional foods namely fermented sucuk

(herbal sausage), heat-treated sucuk, poultry döner, döner and köfte (meatballs), pastirma

(pastrami).

The ministry states that the reason of this prohibition is to protect the traditionalism of these

products and protect unnecessary usage of additives. In addition, nitrates are banned in

fermented sucuk and pastirma and nitrites are banned in döner and köfte. The ministry states

that the aim of this prohibition is to prevent the additives used except for technological

necessities. Regulation is available at http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx in Turkish

language.



42

14.8 Pesticides and Other Contaminant

Turkish Food Codex Regulation on Maximum Residue Levels of Pesticides was published in the

Official Gazette no. 29157 dated 12/29/2011 and amended once in 2013. The Regulation is applied

to foodstuffs of plant and animal origin to be used as fresh, processed and/or composite food in

or on which pesticide residues may be present. It does not apply to the manufacture of products

other than food or sowing or planting or activities authorized by national law for the testing of

active substances. The regulation lists the maximum level of pesticides which are permitted in

foods and undergoes occasional updates.

Turkish Food Codex Regulation on Pharmacologically Active Substances and Their Classification

Regarding Maximum Residue Limits in Foodstuffs of Animal Origin was published in the Official

Gazette no. 28282 dated 05/04/2012. Pharmacologically active substances and their classification

regarding maximum residue limits are set in the regulation.

Both Regulations were prepared in the scope of harmonization to EU, however, there are

differences from EU in both Regulations. The Turkish Food Law maintains provisions for

regulators to refer to the Codex Alimentarius or EU Directives if the pesticides or

pharmacologically active substances are not contained in the Turkish Food Codex.

Both regulations are accessible at http://www.tarim.gov.tr/Sayfalar/Mevzuat.aspx in Turkish

language.

14.9 Other Regulations

MinFAL has followed a dual approach in preparation of food regulations: "horizontal" legislation

that covers aspects which are common to all foodstuffs such as additives, contaminants,

labelling, hygiene, official controls, etc., and "vertical" legislation on specific products such as

food supplements, cocoa and chocolate products, sugars, wine, spirit drinks, beer, meat and

meat products, infant and follow-on formulas, honey, fruit juices, fruit jams, etc.

Please see below some horizontal regulations and publishing dates:

Date of official gazette

Name of regulation

Important articles

December 17, 2011

Official import controls of plant originated food and feed

- Based on 5996 law, veterinary services, plant health, food and feed law:

- Importers should get an electronic username and password for pre-notification

- Importers should electronically fill attached pre-notification form for plant origin food; feed and food contact material and attached copies of certificate, ingredient list, and other documents which will be determined by MINFAL.

- Border Inspection Post or provincial directorates provide a date of inspection



- Frequency of analysis is determined by risk analysis

- If there is a non-compliance, importers can either use special treatment, declare change in intent of use, send it back or confiscate the product

- If there is a protocol between two countries electronic certificate will be accepted

- Turkish translated labelling should be done before actual import control carried out.

December 17, 2011

Measurements to monitor certain substances and their residue on live animals and animal products.

- EU harmonization regulation, 96/23/EC - EU harmonization regulation, 97/747/EC

- If inspectors detect residue on imported animals or animal products they will increase the frequency of analysis from the same country of origin

December 17, 2011

Food Hygiene - EU harmonization regulation, 852/2004/EC


- Define general hygiene criteria for premises including HACCP criteria and good management practices

December 17, 2011

Food premises registration and approval

- Based on 5996 law, veterinary services, plant health, food and feed law

- Define which premises requires registration and define criteria of how they should register

December 17, 2011

Food and Feed official controls


- MinFAL is now ready to delegate some of their control and inspection authority to accredited private food control offices or some NGOs. Import and export controls are excluded.

- MinFAL decided to publish the list of approved premises, approvals suspended premises, approvals cancelled premises, it will increase transparency.

- Defined traceability, responsibility, general requirements for imports and exports - Establishing rapid alert system December

17, 2011

Pre-notification and veterinary checks of animal and animal products entering to the country


- Based on 5996 law, veterinary services, plant health, food and feed law: - Pre-notification of imports of animals and animal products

- Veterinarians responsibilities to check and sign forms

December 17, 2011

Specific rules for animal products official inspections

- EU harmonization regulation, 854/2004/EC


- Approval of premises

- General hygiene rules

- Raw meat inspections - Role and duties of official veterinarian and his/her assistant - Live animal inspections and animal welfare

44

December 17, 2011

Veterinary checks on products entering to the country



- Pre-notification and veterinary checks at the border inspection post

- Issuance of veterinary check form

- Frequency of veterinary controls

- Physical criteria of border inspections post

December 17, 2011

Veterinary checks on live animals entering to the country

- EU harmonization regulation 97/794/EC - EU harmonization regulation, 91/496//EC


- One day before arrival, importers should inform amount, variety

and expected date of arrival to veterinary border inspection

- Veterinary controls should contain documentary checks, physical

checks,

- First veterinary checks should be done at the border inspection posts

December 17, 2011

Domestic animal and animal products movements


- Issuance of veterinary health certificate on animal movements

- Define vehicle criteria on animal and animal products movements

December 21, 2011

Animal hospital Regulation

- Based on 5996 law, veterinary services, plant health, food and feed law - Criteria to setup animal hospital including staff qualifications

December 21, 2011

Veterinary checks on animal and animal products entering to the country

- EU harmonization regulation 97/78/EC - EU harmonization regulation, 91/496//EC

- EU harmonization regulation, 2007/275//EC


- Attached list of regulation classifies which products are animal and animal products

December 23, 2011

Animal welfare Regulations


- Defines criteria of animal farms including barns, cages for chickens etc.

December 23, 2011

Protection and combating measurements against cattle leucosis


- Vaccination to leucosis cattle is prohibited

- Animal movements to herds that have leucosis cattle restricted

December 23, 2011

Protection and combating measurements against cattle anthrax


- Diagnosis, notification and combating measures.


December 23, 2011

Surveillance of zoonosis and zoonotic agents, related antimicrobial resistance and food borne outbreak

- EU harmonization regulation 97/78/EC

- Based on 5996 law, veterinary services, plant health, food and feed law - Surveillance of Brucellosis,

December 24, 2011

Criteria of livestock markets registration, inspections


December 24, 2011

Animal welfare during animal transportation


- Criteria of animal transportation vehicles including ships and trucks

- Responsibilities, training, inspections and reports

December 24, 2011

Animal by products that are not intended to use for human consumption

- EU harmonization regulation 1069/2009/EC - Categorization of by-products

- Collection and transportation criteria

December 24, 2011

Semen, Ovum and Embryo production centre establishments regulations

- Registration, approval and certification of centres

December 27,2011

Special hygiene regulation for animal products



- Defines criteria for animal slaughtering and animal products processing facilities

December 27,2011

Feed hygiene - EU harmonization regulation, 183/2005//EC - Based on 5996 law, veterinary services, plant health, food and feed law

- Registration and approval of feed premises

December 27,2011

Placing on the market and use of feed



- Principles of labelling and presentation

December 27,2011

Methods of sampling and analysis for the official control of feed



December Turkish food - Based on 5996 law, veterinary services, plant health, food and 29,2011 codex, maximum

residue limits of pesticides

feed law

46

December 29,2011

Turkish food codex, flavourings and certain food ingredients with flavouring properties




December 29,2011

Turkish food codex; food additives

- EU harmonization regulation, 1333/2008//EC - Based on 5996 law, veterinary services, plant health, food and feed law

December 29,2011

Turkish Food Codex


December 29,2011

Turkish Food Codex preparation


December 29,2011

Turkish food codex, Microbiological criteria for foodstuff



December 29,2011

Turkish food codex, labelling


- EU harmonization regulation, 2000/13/,/79/112/,2002/67,/608/2004,/90/496,87/250,1924/2006 EEC

December 29,2011

Turkish food codex, contamination


- EU harmonization regulation,1881/2006/EC

December 29,2011

Turkish food codex, materials and articles intended to come into contact with food


- EU harmonization regulation,1935/2004/EC

December 4, 2012

Turkish food codex, composition and labelling of foodstuffs suitable for people intolerant to gluten



December 4, 2012

Turkish food codex, sampling, testing method for dioxin and similar products Turkish food codex, indications or marks identifying the lot to which a foodstuff belongs


14.10 Copyrights and Trademarks

Companies must apply to the Turkish Patent and Trademark Institute for trademark registration.

A separate application is required for each brand name. After the initial inspection and check,

the trademark is announced in the Official Trademark Gazette for three months. If there are no

objections during this period, the trademark can be registered. The process takes about four

months.

14.11 Import Procedures

Regulations

Imports of food products into Turkey are allowed only if they conform to regulations related to

import controls and Turkish Food Codex. Turkey is harmonizing its food import regulations and

Turkish Food Codex Regulation with those of the European Union. If the product in question is

not covered by the Turkish Food Codex, officials can refer to the international regulations such

as International Organization for Standardization (ISO), Codex Alimentarius or relevant EU

Directives if it is not harmonized yet, on a case-by-case basis.

Process

Before December 2011, the majority of food and non-food imports required a “Control

Certificate” which is an import license that states whether or not the product is eligible for

import. However, according to the new import regime in December 2011, control certificates are

required only for animal, animal products, and certain plants.

According to new import control regulations for food and feed of plant origin and materials and

articles intended to come into contact with food, there is a pre-notification system in place in

Turkey. The importer should register the required information for each product in the electronic

system which is called Food Safety Information System (FSIS) of General Directorate of Food and

Control (GDFC), which is accessible by the importer. Required information contains product

name, product category, country of origin, name of importer, name of exporter or manufacturer

together with ingredient list and label of product. This information is evaluated and approved

by the Provincial Directorate (PAD) if it complies with the legislation in force. Later, the importer

notifies the PAD about shipment details by filling the shipment notification form through FSIS

and uploads the certificate related to product to be imported within a minimum 3 days and a

48

maximum 20 days before arrival of commodity. When the product arrives at customs, the

importer makes an application with the original documents to PAD. Inspectors of PAD check the

documents and product. If the result of these checks is positive then inspectors take a sample.

Frequency of sampling is determined by PAD. If the results of the analysis comply with the

legislation, PAD sends a conformity letter to customs to release the product in question. The

process normally takes up to one week depending on the type of analysis. Analysis is carried out

by the official control laboratories and private laboratories which are authorized by GDFC. The

cost of analysis for both official control laboratories and private laboratories is determined

annually by GDFC and it is published in the GDPC’s website.

For animal and animal originated products, a control certificate is required to be approved prior

to import. The importer should apply to PAD together with following documents for approval of

control certificate:

Filled control certificate Form

Pro forma invoice or invoice

Sample veterinary health certificate

Document of country of origin

Ingredient List

For food supplements, food for special dietary purposes and for products and feed

where national legislation does not exist, specification document

Label/draft label

Commercial Activity Certificate or Trade Registry Gazette where importer is registered

Other documents where MinFAL requested

After approval of the control certificate within one or two weeks by PAD, it is registered to FSIS

for animal sourced food products. Control certificates are valid for a period of between 4 and 12

months, depending on the product. Control certificates are sometimes used as an instrument to

deny or delay the importation of some products. After receiving a control certificate, the

importer should inform the border inspection post and PAD about the arrival of the shipment at

least one working day before arrival by filling and submitting the Veterinary Entrance

Document. When the commodity arrives at port, the importer fills out an application with the

control certificate and the originals of documents which are approved before by PAD. Inspectors

of PAD check the documents and product. If the result of these checks is positive, then,

inspectors take sample. Frequency of taking sample is determined by PAD. If the results of

analysis comply with legislation, then PAD sends conformity letter to custom to release the

product in question. The process normally takes up to one week depending on the type of

analysis. Analyses are carried out by official control laboratories and private laboratories which

are authorized by GDFC.

A control certificate is required also for seeds prior to import. A control certificate is valid for 6

(six) months and such time period cannot be extended. An individual preliminary permit

application is required for each control certificate. For the approval of a Seed Control Certificate,

the following documents are required;

Letter of Application Control Certificate Form Original copy of invoice/pro forma invoice or its copy certified by importer and

its Turkish translation. Items required to be included in invoice/pro forma invoice:

o Invoice/Pro forma invoice date and number (such date cannot be older


than 6 (six) months); o Type and variety of seed to be imported; o Quantity, lot/batch number and monetary value of seed to be imported; o Name, authorized signature and seal of importer company; o Contact details of importing company.

A document certifying that respective seed is not a genetically modified organism (GMO): o Letter of Undertaking III (Annex-6) shall be required from importer company. o Importer company can declare it on pro forma invoice or with an individual

document. In case such document is a copy, it must be approved by importer company.

o In case it cannot be documented by importer company, an analysis report certifying that it is free from GMO shall be required.

Preliminary import permit; bank receipt evidencing that application fee has been paid. Seed Certificate

14.12 Sending Samples

Requirements for shipping product samples are slightly different than for products intended for

consumption. For the importation of samples, there is no pre-permission or control certificate

required. Technically, there are no documentation requirements, if the sample is for an exhibit

or scientific research. For commercial samples, the importer needs to fill out a special form from

the PAD and provide a copy of the pro forma invoice (if it is free of charge, this is simply stated

on the invoice). Once the PAD has that form, they prepare a letter to relevant custom to notify

them to release the sample. Note - there is no health certificate requirement.

Customs Inspection and Documentation

Upon entry of the product at the customs offices which are specified for food and agricultural

products, the importer should be prepared to present the approved control certificate (if

required) together with originals of invoice, ingredient list, certificate of origin, veterinary health

certificate or plant health certificate, etc., as well as other import documentation such as the bill

of lading. Inspectors from the PAD take samples of the product and send it to the MinFAL’s

official laboratory or a private laboratory authorized by MinFAL for physical, chemical and

microbiological analysis. Import of the foodstuff is allowed if the results of the analysis are

found to be acceptable and consistent with related regulations, and imports have been

approved by PAD. If the inspection results do not comply with Turkish legislation requirements,

the importer may request secondary sample tests. In the case that the secondary test results

are also against the Turkish import requirements then the shipment is rejected by PAD.

In addition, if the foodstuff is a bulk or semi-processed commodity, it is checked by plant

quarantine specialists or veterinarians for consistency with the appropriate law and regulations.

14.13 Latest in Regulation

As of November 2014, Turkish officials now require an official attestation that imports utilising

enzymes or microorganisms are free from genetically engineered enzymes or microorganisms.

The attestation must be provided by the government of the producer or exporter’s government.

The documentation has to be completed in the exporting country prior to the export of

products.

According to Ministry of Food, Agriculture and Livestock (MinFAL) the requirement applies to the

import of enzymes, microorganisms, and products that utilize them in their production. MinFAL

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suggests that import officials may also require a government attestation for products “known”

to utilise enzymes or microorganisms. The lack of clear guidance from MinFAL means

implementation at the ports will likely be inconsistent (USDA Gain Report, Food and Agricultural

Import Regulations and Standards, 2015)


15 Duty Rates on Agricultural and Dairy Products

As Turkish import duties on several agricultural and food products tend to be high and thus

highly impact the profitability of exports of products from Flanders, we list the export duties for

a number of categories here below.

Duty Rates (%)

HS Code Product description VAT(%) EU, EFTA

0406.10.20.00.11 Fresh cheese 8 138

0406.10.20.00.12 Whey cheese 8 140

0406.10.20.00.13 Curd 8 140

0406.10.20.00.19 Other 8 140

0406.10.80.00.00 Other 8 138

0406.20.10.00.00 Glarus herb cheese (known as Schabziger) made from skimmed milk and mixed with finely ground herbs

8 138

0406.20.90.10.11 Gruyere cheese 8 43

0406.20.90.10.12 Chester, Parmezan, Dutch (Flemeng) and similar cheese

8 43

0406.20.90.90.00 Other 8 138

0406.30.10.00.00 In the manufacture of which no cheeses other than Emmentaler, Gruyère and Appenzell have been used and which may contain, as an addition, Glarus herb cheese (known as Schabziger); put up for retail sale, of a fat content by weight in the dry matter not exceeding 56 %

8 138

0406.30.31.00.00 Not exceeding 48 % 8 138

0406.30.39.00.00 Exceeding 48 % 8 138

0406.30.90.00.00 Of a fat content, by weight, exceeding 36 % 8 138

0406.40.10.00.00 Roquefort 8 43

0406.40.50.00.00 Gorgonzola 8 43

0406.40.90.00.00 Other 8 43

0406.90.01.00.00 For processing 8 138

0406.90.13.00.00 Emmentaler 8 138

0406.90.15.00.11 Gruyere 8 43

0406.90.15.00.12 Sbrinz 8 43

0406.90.17.00.00 Bergkäse, Appenzell 8 138

0406.90.18.00.00 Fromage fribourgeois, Vacherin Mont d'Or and Tête de Moine

8 138

0406.90.19.00.00 Glarus herb cheese (known as Schabziger) made from skimmed milk and mixed with finely ground herbs

8 138

0406.90.21.00.00 Cheddar 8 43

0406.90.23.00.00 Edam 8 138

0406.90.25.00.00 Tilsit 8 138

52

0406.90.27.00.00 Butterkäse 8 138

0406.90.29.00.00 Kashkaval 8 178

0406.90.32.00.11 Cheese encased in a skin 8 180

0406.90.32.00.12 White Cheese 8 180

0406.90.32.00.91 Cheese encased in a skin 8 180

0406.90.32.00.92 White Cheese 8 180

0406.90.35.00.00 Kefalo-Tyri 8 138

0406.90.37.00.00 Finlandia 8 138

0406.90.39.00.00 Jarlsberg 8 138

0406.90.50.00.00 Cheese of sheep's milk or buffalo milk in containers containing brine, or in sheepskin or goatskin bottles

8 138

0406.90.61.00.00 Grana Padano, Parmigiano Reggiano 8 138

0406.90.63.00.00 Fiore Sardo, Pecorino 8 138

0406.90.69.00.00 Other 8 138

0406.90.73.00.00 Provolone 8 138

0406.90.75.00.00 Asiago, Caciocavallo, Montasio, Ragusano 8 138

0406.90.76.00.00 Danbo, Fontal, Fontina, Fynbo, Havarti, Maribo, Samsø

8 138

0406.90.78.00.00 Gouda 8 138

0406.90.79.00.00 Esrom, Italico, Kernhem, Saint-Nectaire, Saint-Paulin, Taleggio

8 138

0406.90.81.00.00 Cantal, Cheshire, Wensleydale, Lancashire, Double Gloucester, Blarney, Colby, Monterey

8 138

0406.90.82.00.00 Camembert 8 138

0406.90.84.00.00 Brie 8 138

0406.90.85.00.00 Kefalograviera, Kasseri 8 138

0406.90.99.00.11 Cester, Parmezan, Felemenk and other similar cheese

8 43

0406.90.99.00.12 String cheese 8 138

0406.90.99.00.19 Other 8 138

0401.40.10.00.11 Milk 8 150

0401.40.10.00.12 Cream 8 150

0401.40.90.00.11 Milk 8 150

0401.40.90.00.12 Cream 8 150

0704.10.00.00.11 Cauliflowers 8 19,5

0704.10.00.00.12 Broccoli 8 19,5

0704.20.00.00.00 Brussels sprouts 8 19,5

0704.90.10.00.11 White cabbages 8 19,5

0704.90.10.00.12 Red cabbages 8 19,5

0704.90.90.00.00 Other 8 19,5

0706.10.00.00.11 Carrots 8 36,9


0706.10.00.00.12 Turnips 8 36,9

0706.90.10.00.00 Celeriac (rooted celery or German celery) 8 36,9

0706.90.30.00.00 Horseradish (Cochlearia armoracia) 8 36,9

0706.90.90.00.00 Other 8 36,9

0707.00.05.00.00 Cucumbers 8 29,7

0707.00.90.00.00 Gherkins 8 29,7

0803.10.10.00.00 Fresh: Bananas 8 145,8

0805.10.20.00.00 Sweet , fresh 8 54

0805.10.80.00.00 Other 8 54

0805.20.10.00.00 Clementines 8 54

0805.20.30.00.11 Monreales 8 54

0805.20.30.00.12 Satsumas 8 54

0805.20.50.00.00 Mandarins and wilkings 8 54

0805.20.70.00.00 Tangerines 8 54

0805.20.90.00.00 Other 8 54

0805.40.00.00.00 Grapefruit, including pomelos 8 54

0805.50.10.00.00 Lemons (Citrus limon, Citrus limonum) 8 54

0805.50.90.00.00 Limes (Citrus aurantifolia, Citrus latifolia) 8 54

0805.90.00.00.11 Other fresh citrus fruit 8 54

0805.90.00.00.12 Other dehydrated citrus fruit 8 54

0808.10.10.00.00 Cider apples, in bulk, from 16 September to 15 December

8 60,3

0808.10.80.00.11 Of the variety Golden Delicious 8 60,3

0808.10.80.00.13 Starking apple 8 60,3

0808.10.80.00.14 Starkrimson apple 8 60,3

0808.10.80.00.19 Other 8 60,3

0808.30.10.00.00 Perry pears, in bulk, from 1 August to 31 December

8 60,3

0808.30.90.00.00 Other 8 60,3

0808.40.00.00.00 Quinces 8 60,3

54

16 Sources

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