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Turkey Food and Drink Report Q1 2008Published by: Business Monitor International Published: Feb. 20, 2008 - 68 Pages Table of Contents
AbstractBelgian-based UNIVEG Group, has recently announced that it has become a strategic shareholder inTurkish fruit company ALARA. According to the deal, the two companies will partner to export cherriesand figs worldwide, with UNIVEG gradually purchasing shares in the Turkish company. UNIVEGoperates in 23 countries and is one of the largest fresh produce distributors in the world, with an annualturnover of EUR2.2bn (US$3.2mn), while ALARA is the world’s biggest fresh fig exporter, and a majorcherry exporter to Europe. The two companies will work together to improve growing techniques,packaging, and to further develop Turkey’s export potential, while also looking to grow the Turkishmarket share. ‘Thanks to its 225 ha of orchards, its high quality product, its strong brand name and itsinnovative agricultural practices, ALARA has an excellent expertise in the field of growing, packing andexporting cherries and fresh figs through worldwide distribution channels’, said Hein Deprez, CEO of theUNIVEG group of companies.The Turkish food and drink sector has increasingly been attracting attention from a number of foreignoperators who are drawn to the significant opportunities, and UNIVEG’s decision to invest in theagricultural sector comes as no surprise, given this sector’s vast potential. Turkey has one of the world’sstrongest agricultural sectors thanks to its ecological diversity and climate. It is among the world’sleading exporters in almost all of the major agricultural product sub-sectors, and has a significant placeamong the world’s biggest cereal-producing countries, as one of the top six wheat exporters in the world.Furthermore, Turkey holds a competitive advantage in sub-sectors such as organic foods, thanks to itslarge, cheap workforce. As the majority of Turkey’s farmers still use traditional methods, most of theirfarms have always been de facto organic, as are now starting to become certified as such. A major drive behind the recent strong growth in the economy in general and the food and drink industryin particular has been the mounting rates of foreign direct investment (FDI). As Turkey's economic andpolitical risk profile improves, net foreign capital inflows are set to remain at high levels through to 2009.Net foreign direct investment, which hit a record US$19.8bn in 2006 is likely to be similarly robust in2007, with the figure for the first seven months of the year totalling US$12.7bn, an 18.7% year-on-year(y-o-y) increase. Our view is underpinned by an expectation that Turkey's export sector is set for a majorexpansion going forward, on the back of production-oriented foreign investments. With labour costsaccelerating rapidly in the new EU accession states, Turkey is going to become an increasingly attractivedestination for export-oriented investments, such as those made by a growing number of food and drinkfirms. Not only do we expect the country's regulatory environment to improve in tandem with thestructural reforms likely to be enacted under the pro-business government, but food and drink companieswill favour the country's large and growing domestic market, as well as Turkey's strategic geographicposition with access to both the EU and the Middle East. Get Full Details About This Report >> |
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