Consumer Attitude and Behaviour towards Organic Food

1
Consumer Attitude and Behaviour towards Organic
Food

• Cross-cultural study of Turkey and Germany

Nihan MUTLU Supervisor Prof. Dr. Tilman
Becker Institute for Agricultural Policy and
Markets University of Hohenheim
2
CONTENTS

• Introduction
• Organic Agriculture in Turkey
• Organic Agriculture in Germany
• Research Objectives
• Methodology
• Results
• Conclusion

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Introduction

• Why organic food?
• ?Food safety, quality, ethical
  movementsetc.
• Different market structures between western and
  eastern Europe (emerging, growing, established)
• Necessity of consumer studies in organics
• Lack of information in Turkey
• Continuous change in German consumer trends
• Cross-cultural example between west and east

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Organic Agriculture in Turkey
Start-up mid 80s with export orientated
production First Regulation 1994, based on (EEC)
No 2092/91 and IFOAM Basic Standards. Last
revision has done in 2005. Certification 11
Agents ( 5 national)
Export 37 countries Germany (61) USA
(15) UK (5) etc. Domestic market Urban area
(Big supermarkets, a few organic shops and bazaar)
Product numbers, ETO, 2007
Organically managed area (ha) and producer
numbers , ETO, 2007
5
Organic Agriculture in Germany
Import Biggest importer of Europe with 38
Domestic market Organic food market share 3,
4.5 billion Marketing channel Supermarkets,
organic shops, direct marketing, bazaar,
discounts, health stores
Start-up Early 20th century Regulation First EU
Regulation 2092/91 based IFOAM Basic Standards,
private organic agriculture associations
(Demeter, Naturland..etc) Certification 22
inspection bodies
Spatial distribution of organic farming in
Germany in 2001, Bichler et al., 2005
Organically managed land and farms , ZMP, 2006
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Research Objectives
What are the similarities and differences
between Turkish and German consumers?

• Socio-demographic distribution (age, gender,
  household structure, education, income)
• Buying behaviour (frequency, shopping place and
  product preference)
• Organic food and label knowledge
• Motivations and barriers

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Methodology
8
Results - Demographic Distribution
Source Own Calculations
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Results Buying Behaviour

• Frequency first purchase time of organic food
  products
• Turkey
  Germany

Source Own Calculations
10
Results Shopping Place Preferences
Comparison of ranking in shopping place
preferences
Source Own Calculations
11
Results Product Preferences

• Demand differences between products of today and
  future in Turkey

Maximum Changes Meat products 58 Textile 50
Bakery, sugar and baby products 40
Beverages 36 Pulses 31 Milk products
27 Herbs spices 24 Oil products 18
Cereals 14
Minimum Changes Fresh fruits and vegetables,
dried fruits and nuts 2-3
Source Own Calculations
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Results Product Preferences

• Demand differences between products of today and
  future in Germany

Maximum Changes Cereals 16 Pulses and meat
products 14 Textile 12 Herbs spices
8 Minimum Changes Milk products, dried fruits
vegetables oil and sugar products
6 Vegetables, baby products 4 Beverages and
bakery products 2
No Changes Fresh fruits 0
Source Own Calculations
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Results Product Preferences

• Most preferred products in Turkey in Germany
• Fresh fruits and vegetables
• Milk and milk products, cereals

• Less preferred products in Turkey in Germany
• Baby products and textile

• Strategies for future organic market
• Turkeys organic market is satisfied with fresh
  fruits and vegetables dried fruits and nuts or
  conventional products are also charming.
• Meat products can easily find consumers in
  Turkey. Herbs and spices, pulses, beverages,
  bakery, cereals and sugar products expected to
  expand demand in Turkey.
• Germany is a saturated market with all categories
  and will be difficult to introduce new product to
  the market. Cereals, pulses and meat products can
  be important goods to gain new consumers.

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Results Organic Food Description
Comparison of overall ratings in organic food
description
(5 Strongly agree, 4 Agree, 3 Neutral, 2
Disagree, 1 Strongly disagree) Source Own
Calculations
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Results Label Knowledge

• Government Logos
• Bio-Siegel great success
• Turkish logo needs further actions
• Private Logos
• Should be carefully
• introduced to both markets
• Danger of confusion

DE
TR
DE
TR
DE
TR
Source Own Calculations
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Results Consumer Motivations
(5 Strongly agree, 4 Agree, 3 Neutral, 2
Disagree, 1 Strongly disagree)
Source Own Calculations
17
Results Consumer Barriers
(5 Strongly agree, 4 Agree, 3 Neutral, 2
Disagree, 1 Strongly disagree)
Source Own Calculations
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Conclusion

• Turkey
• Need more research and development
• Production should be enlarged (to reduce high
  price, to raise availability and accessibility)
• Production aims should turn to domestic market
• Subsidies will be useful
• More organic shops should be established

• Germany
• Harmonisation of private labels
• Raising awareness of consumers to regional
  products should be taken into account!
• Discounts are overtaking the place of direct
  marketing from farms

• Both countries
• Should invest to inform consumers about
  certification and true labels
• Demographic distributions and future product
  expectations are important for market actors

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References

• Aksoy, U. 2002. Turkey. Report on Organic
  Agriculture in the Mediterranean Area
  Mediterranean Organic Agriculture Network,
  Options Méditerranéennes, Series B N40, CIHEAM-
  IAMB, Bari. Al-Bitar (Ed.). p. 147 - 159.
• Babadogan, G. and Koc, D. 2005. Organik Tarim
  Ürünleri Dis Pazar Arastirmasi. IGEME, Turkey
• Bichler, B., Häring, A. M., Dabbert, S. and
  Lippert, C. 2005. Determinants of Spatial
  Distribution of Organic Farming in Germany.
  Paper presented at Researching Sustainable
  Systems, Adelaide/Australian, 21. - 23. 09. 2005,
  p. 304-307. ISOFAR / FIBL. 1 June 2007, available
  at http//orgprints.org/6322/
• BMELV, 2007. Verzeichnis der in der
  Bundesrepublik Deutschland zugelassenen
  Kontrollstellen, 1 June 2007.available at
  http//www.bmelv.de/cln_044/nn_750590/DE/04-Landwi
  rtschaft/OekologischerLandbau/VerzeichnisKontrolls
  tellen.html
• BLE, 2006. At a glance information about the
  Bio-Siegel. Federal Agency for Agriculture and
  Food (BLE), Bonn, Germany. 1 June 2007, available
  at http//www.oekolandbau.de/fileadmin/redaktion/
  bestellformular/pdf/BMVEL_Verbrau._engl_flyer.pdf
• Bolten, J., Kennerknecht R. and Spiller, A. 2006.
  Perspectives of small retailers in the organic
  market Customer satisfaction and customer
  enthusiasm. Paper presented at 98. Seminar of the
  European Association of Agricultural Economists
  EAAE, Crete, 29 June - 2 July 2006. 1 June 2007,
  available at http//orgprints.org/10198/
• Dempsey, T. 2007. Turkey. 1 June 2007, available
  at http//www.photoseek.com/Turkey.html
• ETO, 2007. Ecological Agriculture in Turkey (in
  Turkish). Ecological Agriculture Organisation. 1
  June 2007, available at http//www.eto.org.tr/tur
  eko.asp
• Güler, S., 2006. Organic Agriculture in Turkey.
  Journal of Faculty of Agriculture. OMU, Vol. 21,
  No.2. p. 238-242
• Haccius, M. and Immo L., 2000. Organic
  Agriculture in Germany, Stiftung Ökologie
  Landbau (SÖL), Bad Dürkheim, Germany. 15 June
  2007, available at http//www.organic-europe.net
• Hamm, U., and Gronefeld, F., 2004. The European
  Market for Organic Food Revised and Updated
  Analysis. Organic Marketing Initiatives and Rural
  Development Volume 5, Aberystwyth, UK

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References cont.

• Kenanoglu, Z. and Karahan, Ö. 2002. Policy
  implementations for organic agriculture in
  Turkey. British Food Journal, Vol. 104, No.
  3/4/5, p. 300-318
• Latacz-Lohmann, U. and Foster, C. 1997. From
  niche to mainstream strategies for marketing
  organic food in Germany and the UK. British Food
  Journal. Vol. 99, No. 8, p. 275-282
• MARA, 2005. Organik Tarimin Esaslari Ve
  Uygulanmasina Iliskin Yönetmelik, Turkey Ministry
  of Agriculture and Rural Affairs. 15 June 2007,
  available at http//www.tarim.gov.tr/uretim/organ
  iktarim/organik.doc
• Padel, S. 2004. Main Findings of the Delphi
  Survey on the market for organic food In O.
  Schmid, J. Sanders, P. Midmore (Ed.), Organic
  Marketing Initiatives and Rural Development.
  Vol.7, University of Wales Aberystwyth, UK,
  p.24-25
• Rehber, E. and Turhan, S., 2002. Prospects and
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  of Turkey, British Food Journal, Vol. 104 No
  3/4/5, p.371-390
• Richter, T. 2005. The Organic Market in Germany
  Overview and information on market access, BLE.
  15 June 2007, available at http//www.oekolandbau
  .de/fileadmin/redaktion/bestellformular/pdf/031105
  .pdf
• Richter, T. and Hempfling, G. 2003. Supermarket
  Study 2002 Organic Products in European
  Supermarkets, FIBL. 10 June 2007, available at
  http//orgprints.org/8356
• Willer, H. 2007. Organic Agricultural Land and
  Farms in Europe, FIBL Survey 2007, 1 May 2007,
  available at http//www.organic-europe.net/countr
  y_reports/germany/default.asp
• Zanoli, R. (ed), Baehr, M., Botschen, M.,
  Laberenz, H., Naspetti, S., Thelen, E., 2004. The
  European Consumer and Organic Food. Organic
  Marketing Initiatives and Rural Development Vol.
  4, Aberystwyth, UK
• ZMP, 2006. Marktüberblick. Oekomarkt Jahrbuch
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  6.pdf

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THANK YOU

• Nihan MUTLU
• MSc Organic Food Chain Management