Sorgun Ozbalci - Aso Food Industry Ltd . http://www.asofood.com

1. Sorgun Ozbalci - Aso Food Industry Ltd.http://www.asofood.com Dried Fruit & Nuts Consumption and Product Trends in Turkey

2. Name: Republic of TurkeyPopulation: 63,451,000 (1998)Annual Growth rate: 1.4%Area: 814,578 Km2Land Area: 76.9m ha.Cultivated area: 28m ha.Population Density:78 persons/Km2Unemployment: 6.3%Employed in agriculture: 43%Employed in services: 40.3%Employed in industry: 16.7% Capital: AnkaraCurrency: Turkish Lira (TL)$1=1,450,000 TL (as of 5/2004)GNP: US$ 204.5 billion(16th among OECD)GDP: US$ 3,250 per capitaTrade (1998 figures)Exports: US$ 26.9 billionImports: US$ 45.9 billionExportsAgricultural US$ 2.7 billionMinerals US$ 363 million General Overview - Turkey Sorgun Ozbalci - www.asofood.com

3. General Overview – Turkey-2 • Manufacturing: US$ 23.8 billion Crops: Wheat, barley, cotton, sugar beets, sunflower, potato, tobacco, vegetables, dried fruits, fresh fruits, nuts, ornamentals.Natural Resources: Hydro-Electric power, chromium, copper, tungsten, phosphate, boron, barite, bentonite, manganese, zinc, magnesite, perlite, wolfram, asbestos, bauxite, lead, mercury, sulphur, emery, meerschaum, marble, aluminium, iron, coal, crude oil, forests, livestock. Agricultural Exports: Hazelnuts, pistachio, figs, dried raisins and apricot, pulses, tobacco, citrus, pome and stone fruits, melons, vegetables, tomato products, cut flowers, processed food, poultry meat, cereals, cotton, tea.Other Exports: Manufactured goods, minerals, textile, thread, ready-to-wear clothing, leather, machinery, mechanical appliances, furniture, carpets, rugs, automobiles, buses, pharmaceuticals, man-made filaments, glass and glass-ware products, articles of iron and steel and aluminium.Major Trading Partners: OECD, EU, Middle-East and CIS countries, Russian Federation. Sorgun Ozbalci - www.asofood.com

4. Insufficiency in Statistical Data • There is no comprehensive statistic regarding domestic consumption of Dried Fruits and Nuts in Turkey • Wholesalers of DFN make sells without invoice • This situation is also valid for retailers • Around 80% of the sales are done without records • In these presentation, figures are generally based on estimations and household surveys Sorgun Ozbalci - www.asofood.com

5. Most Popular Dried Fruit & Nuts Consumed in Turkey • Hazelnuts • Raisins • Dried Apricots • Dried Figs • Peanut • Walnut • Pumpkin & Sunflower Seeds • Pistachio • Almonds • Roasted Chickpeas Sorgun Ozbalci - www.asofood.com

6. Dried Fruits like apricots, figs, raisins, prunes and date are mostly consumed in holly months like in Ramadan & Ashure periods. Nuts consumption is generally balanced all over the year. During Christmas time it goes peak levels Consumption Traditions of Turks Sorgun Ozbalci - www.asofood.com

7. Imported Dried Fruits and Nuts • Walnuts: Ukraine, Moldovia, Uzbekistan, Romania. • Almonds: USA • Date: Iran, S.Arabia, Tunusia • Pumpkin&Sunflower Seeds: Ukraine, China, East Europe • In walnuts, almonds and sf&p seeds Turkey’s production is not sufficient that’s why they are imported sometimes. Sorgun Ozbalci - www.asofood.com

8. Domestic Market Prices (€ /kg) • WholeSale Retail • Hazelnuts (roasted) 4.1 6.5 • Raisins 1.1 1.5 • Dried Apricots 3 4.5 • Dried Figs 2.5 4 • Peanut .8 1.2 • Walnut 4 6 • Pumpkin Seeds 1.5 2 • Sunflower Seeds .6 1 • Pistachio 4.5 6.5 • Almonds 5 7 • Roasted Chickpeas 1 1.5 Sorgun Ozbalci - www.asofood.com

9. Hazelnuts (1) • One of the popular item which is used for snacking, bakery, chocolate and oil industry. • Because of excess supply, different organizations are promoting domestic consumption of hazelnuts • Generally consumed in roasted form. Sliced and diced types are being popular recent years. • In recent years some processors roasting hazelnuts in shells with salt. Sorgun Ozbalci - www.asofood.com

10. Hazelnuts (2) • Last 10 year’s avarage is 47,000 mt for domestic consumption. • A big part of it goes to oil industry. Source: Aegean Exporter’s Union Sorgun Ozbalci - www.asofood.com

11. Raisins & Apricots • Sultana Seedless Raisins and Apricots are consumed as cospote, snack, in bakery, molasses, chocolate and biscuit industry • Raisins with seeds are consumed for snacking. • Bad Quality Raisins go to Alcohol Factories and Molasses Factories Sorgun Ozbalci - www.asofood.com

12. . Raisins (2) • Last 8 year’s avarage is 37,000 mt for domestic consumption. • A serious part of it goes to alcohol industry. • When we consider unrecorded production domestic consumption must be bigger. Sorgun Ozbalci - www.asofood.com

13. . Dried Apricots (2) • The statistics show very irrelevant numbers • That means unrecorded apricot production is at very high levels • According to our surveys avarage household consumption is 3kg/year. That makes 30-40,000 mt annual domestic consumption. Sources: Ministry of Agriculture, Undersec. Of Foreign Trade Sorgun Ozbalci - www.asofood.com

14. Ground Nut • Ground Nut consumption is generally done as snack format in Turkey. • In recent years, some ‘’spice&starch’’ coated grıundnuts became very popular Sorgun Ozbalci - www.asofood.com

15. Dried Figs • Dried Fig Consumption is around 9000 mt/year • Around 5000 mt/year is consumed as regular dried figs • Rest of it goes for industrial purposes • It is very common to eat figs with walnuts Sorgun Ozbalci - www.asofood.com

16. Pistachios • Turkey is one of the biggest pistachio producing country. It is grown in Antep and Siirt regions • Yearly production is around 80,000mt, almost all of them consumed domestically. • Shelled pistachios are used in bakery and dessert sector. Most popular Turkish desserts are done by pistachio kernels. (walnut is substitute for pistachio in desserts) Sorgun Ozbalci - www.asofood.com

17. Roasted Chickpeas • Yellow and White types are available • Coating of this product became popular • Because of its cheap price, preffered in rural parts of Turkey. • Turkish name is ‘’Leblebi’’ Sorgun Ozbalci - www.asofood.com

18. Almonds • There is a tradition in Turkey, people eat almonds, when it is fresh, just after bloom. • That’s why Turkey imports almonds from California. • Normally Turkey must be self-sufficient even exporter country in almonds. Sorgun Ozbalci - www.asofood.com

19. Conclusions (1) • When we look at overall view of Turkey’s dried fruit and nuts consumption and product trends in Turkey, we see that: • Self-sufficient country. There is no big demand for imported products. • Historically exporter of classic dried fruits • Average per capita consumption numbers are very low and distribution of consumption is unbalanced • Becuase of lack of recorded production and sales, the real consumption numbers may differ from 30% to 70% Sorgun Ozbalci - www.asofood.com

20. Conclusions (2) • D.Fruits and Nuts consumption as ingredients recently increasing such as in bakery sector. • Farmers prefer to produce classic products instead of improving new products • Consumers are not very interested in new products • Consumers prefer to buy from sellers with bulk cartons instead of retail packs because of price advantage Sorgun Ozbalci - www.asofood.com

21. Conclusions (3) • Turkey with its 70 million people, and very young population must shift consumption behaviors from fast foods to healthy dried fruits and nuts. • This can be done with serious promotions and campaigns. • This promotions are done only when there is excess supply of that product. Sorgun Ozbalci - www.asofood.com

22. THANK YOU Sorgun Ozbalci www.asofood.com ‘’Quality Dried Fruits and Nuts’’