|
|
Turkey Food and Drink Report Q3 2008Published by: Business Monitor International Published: Jul. 28, 2008 - 53 Pages Table of Contents
AbstractThe Turkish fast moving consumer goods industry has been experiencing booming growth in recent yearson the back of rising disposable incomes. With Turkey's per capita GDP now pushing close to 'highincome' territory, as defined by the World Bank, many firms are beginning to realise the potential of thisburgeoning consumer market. The pro-business AK Party has been proactively working to move thecountry toward EU membership. In that vein, it has instigated a number of key institutional reformswhich have helped to harmonise the country's business regulatory framework to international standards,while also significantly opening the country to foreign investors.However, this is not to say that all changes have been positive, and the AK Party has been highlycriticised for its alcoholic drinks policies. In fact, in May 2008, following years of frustration with thecountry's high taxes, Danish brewer Carlsberg decided to pull out of the Turkish market. Carlsberg isnow in negotiations to sell its 95.65% stake in its local operations, Türk Tuborg, to its Israeli partner,CBC Group, after having posted seven years of losses in the country. Although stronger levels ofcompetition were also a factor in Carlsberg's decision to withdraw, it was clearly the country's difficultbusiness environment that played the biggest role in Carlsberg's decision. Carlsberg cited the 35% privateconsumption tax and the 18% value-added tax as major factors in its withdrawal decision, noting that ithad made its stance on private consumption tax known to the government many times, stressing what aheavy burden this is for producers. The country’s pork producers are another group that have been very vocal in their complaints against thegovernment’s policies towards the industry. Currently the Turkish pork sector is facing a major crisis asproduction levels have plummeted in recent years. Following a 2004 crackdown, there are only two pigfarms left in the country where there were once 25, with the few remaining shops selling pork productsnow struggling to survive. While production has fallen, the demand for pork products has actually beenrising steadily in this predominantly Muslim country, along with growth in tourism and the number offoreigners living in major cities such as Istanbul. Some of the few remaining shops defend thegovernment, saying that it has granted licences to those shops with good business and hygiene practices.However, even these shops say that they are now facing possible closure, with supplies of pork quicklyrunning out. As most slaughterhouses are having their licences revoked, the rising demand from hotels,restaurants and shops is not being met, which is leading to a growing illegal trade. Although the current government has been widely lauded for the improvements it has helped bring aboutin the country’s macroeconomic stability, and the record levels of FDI this has helped attract, there arestill many in the food and drink sector who would like to see a serious revision of certain key policies. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||