agrochemical market potential & oportunities in turkey halil ibrahim buyukegen business...
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AGROCHEMICAL MARKET POTENTIAL &
OPORTUNITIES IN TURKEY
Halil Ibrahim BUYUKEGENBusiness Development Manager
SAFA TARIM AS – TURKEY2nd Eastern Europe Crop Protection Forum & International Agrochemical Exhibition Turkey
Overview
• Turkey with some key figures
• Turkey Economy
• Agro sector
• Pesticide Market
• Trends & Opportunities
• 15th largest economy in the World and 6th largest economy in EU.
• The largest youth population when compared to the 27 EU countries.
• 68 Million GSM user (2013) – 3 Companies: Turkcell, Vodafone and Avea)
• 30 Million Internet User ( 2009)
• 60 Million Credit Card Users
Turkey with some key figures
• Turkey is the 10th largest steel producer in the World.
• Turkey is the 15th largest automotive producer in the World.
• Turkish Airlines is fastest growing company in Europe (131 Million Passenger)
• Turkey is World’s biggest Boron producer
• Turkey is 7th most visited holiday destination in the World.
• Out of World’s 100 best hotels, 20 are from Turkey.
Turkey with some key figures
• One of the most important Agricultural producer in the World.
• The World leader in dried Figs, Hazelnuts and dried Apricot.
• The biggest milk and diary producer in the region
• Biggest cherry producer in the World
• Cereals production 29,2 Million tons.
– Wheat production 20 Million tons (9th largest wheat producer in the World)
• Tomato 10 Million tons (3rd biggest in the World after China and
USA)
• Cucumber 1,7 Million tons (3rd biggest in the World)
Turkey with some key figures on Agriculture
• Pepper production (2nd biggest in the World)
• Apple 2,5 – 3 Million tons (3rd biggest in the World)
• Watermelon 5-6 Million tons (Second biggest in the World)
• Chickpeas (3rd biggest in the World)
• Citrus 3 Million tons
• Grapes 4 Million tons
• Olive 1,6 Million tons
Turkey with some key figures on Agriculture
• Cotton 1,5 - 2 Million tons
• Potatoes 4 – 5 Million tons
• Pistachio 4th biggest in the World
• Onion 5th biggest in the World
• Lemon 6th biggest in the World
Turkey with some key figures on Agriculture
• Strong Infrastructure
• Highly experienced competitive work force
• Strong geographical position favorable climate conditions for almost all type of Agricultural crops
Turkey with some key figures on Agriculture
Turkey with some key figures on Agriculture
Fruits & Tea
Vegetables
Field Crops
Field Crops,Vegetables
and Fruits
Field Crops & Fruits
Field Crops
BLACK SEA
MEDITERENIAN SEA
EGEANSEA
• Size of arable land 395.000 km2 (40% of Turkey)
• Share of Agriculture in GDP is 7,8% and it employs about 24% of total employment.
• Total export of agricultural products reached more than 12 Billion USD.
– 189 countries 663 different agricultural products.
• Turkey’s greenhouse about 55.000 Ha– Spain 60.000 Ha– Italy 15.000 Ha– Greece 2.500 Ha
Turkey with some key figures on Agriculture
Turkey with some key figures on Agriculture
• Major Agricultural Projects
KOP
DAP
GAP
DOKAP
Southern Anatolia Project (GAP)•1.820.000 Ha arable land will open irrigation•Fertile land, irrigation potential and favorable climate•Potential downstream industries
Konya Plain Project (KOP)•650.000 Ha of arable land will open to irrigation•Increasing agricultural diversity
East Anatolian Project (DAP)•395.000 Ha of land will open for irrigation
Eastern Black Sea Project (DOKAP)•Fisheries and aquaculture development•Forest management and Forestry development
Turkey Economy
76 Million population
30- 35 Million tourist every year (Tourist reserve 26 Billion USD)
Purchasing power per Person (10.500 USD – 2012)
2000 2011 2012
Total Export 28 Billion USD 135 Billion USD
153 Billion USD
Total Import 54 Billion USD 240 Billion USD
237 Billion USD
Economy Growth Percentage
2011 8%
2012 4%
Turkey Economy
Most Export Countries Export Value
Germany 13,6 Billion USD
Iraq 11,6 Billion USD
England 8 Billion USD
Russia 7 Billion USD
Italy 7 Billion USD
France 6 Billion USD
USA 5,5 Billion USD
Egypt 4 Billion USD
Saudi Arabia 3,7 Billion USD
Spain 3,7 Billion USD
Major Import Countries
Percentage
Russia 11%
China 9%
Germany 8%
USA 6%
Italy 6%
Iran 5%
• Gross National Production GDP 820 Billion USD. (Year 2013)
• 60 Billion USD from Agricultural Production (Year 2012)
• Inflation rate 6-8 %
• Agricultural Sector growth 6% in a year
• Rain 643 mm/year
• Approximately 5 Million Ha irrigate.
Turkey Economy
SOURCE:THE REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCYTUIK – TURKISH STATISTICAL INSTITUTE
• 165 companies active (First 20 – 25 companies controlling more than 90% of market)
• 28 formulation plants (2 multinational companies, 26 local companies)
• App. 6000 dealers
– App. 4000 retailers are agricultural engineers
• Total Agrochemical consumption 52.000 MT
– Imported 22.000 MT (43%)
– Local produced 30.000 MT (57%)
• 400.000 – 450.000 MT total Agrochemical production capacity 98%- 99% belong local Turkish Companies
Pesticide Market in Turkey
Pesticide Market in Turkey
Group % USD(Million)
Active Materials
Insecticide 32 144Imidacloprid, Acetamiprid,Emamectin Benzoate, Chlorpyrifos ethyl, Lambda cyhalothrin
Herbicide 29 1302,4 D Acid, Glyphosate, Nicosulfuron, Paraquat
Fungicide 28 126Mancozeb, Tebuconazole, Metalaxyl, Propineb, Copper Based Products
Acaricide 5 23 Hexythiazox,Abamectin,Spirodiclofen etc.
Others 6 27PGR, Mollucicide, Rodenticide, Spindle oil, etc.
Pesticide Usage in Turkey – Excluded Tax2000 – Total consumption was 207 Million USD2011 – Total consumption app. 450 Million USD….2013 – Total consumption app 480 Million USD
Between 2000 and 2011 consumption increased more than double.
Product Category - 2011
Pesticide Market in Turkey
• IMPORTANT CROPS PESTICIDE USE MILLION USD
CROP NAME PESTICIDE USE AMOUNT
WHEAT 70 – 80 Million USD
COTTON 65 – 70 Million USD
VEGETABLES 45 – 50 Million USD
GRAPES 45 – 50 Million USD
CITRUS 20 – 25 Million USD
CORN 20 – 25 Million USD
FRUITS 25 – 30 Million USD
RICE 8 – 10 Million USD
OLIVE 4 – 5 Million USD
FARMERS TRENDS
•Organic farming grows (safer, newer and more environment friendly pesticide such as SC,WG, EW approved for use organic crops)
•Farmer Demand is big but need cost-effective products.
•Still generic products are key trend
•Farmers, in fact transitioning away from use of older broad spectrum pesticide and safer, more environment friendly compounds (especially vegetable and grape producers)
•This is likely increase development and adoption of Integrated Pest Management (IPM) and move to more environment friendly compound.
Trends & Opportunities
• FARMERS TRENDS
• EC and SL still strong sales exist because of efficacy of formulations and cost advantages.
• Premixes products and their formulations.
Trends & Opportunities
• INDUSTRY TRENDS
• Global drivers & Industry response• Advanced formulations• Cost- effective products• Food chain demand for lower residues , short pre-harvesting
intervals• Selective product• Short persistence and lower toxicity• New market• New uses• Bio pesticides, pheromones, traps ..etc.
Trends & Opportunities
• OPPORTUNITIES
– With a population of 76 Million and growing, Turkey represents one of the largest markets in the region.
– Government has made development of the agricultural sector a priority, ensuring continued levels of investment.
– Rising income and changing consumer habits.
– Dynamic, Stable and attractive economy
Trends & Opportunities
• OPPORTUNITIES
• International Hub
– Access to Multiple Market (Europe, Black Sea countries, Middle East, North Africa, Central Asia and Caucasus 1,5 billion population , 25 Trillion USD GDP)
– Energy Corridor
– Structural reforms
Trends & Opportunities
