AGROCHEMICAL MARKET POTENTIAL

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AGROCHEMICAL MARKET POTENTIAL OPORTUNITIES IN
TURKEY
Halil Ibrahim BUYUKEGEN Business Development
Manager SAFA TARIM AS TURKEY 2nd Eastern Europe
Crop Protection Forum International
Agrochemical Exhibition Turkey
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Overview

• Turkey with some key figures
• Turkey Economy
• Agro sector
• Pesticide Market
• Trends Opportunities

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Turkey with some key figures

• 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

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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 Worlds biggest Boron producer
• Turkey is 7th most visited holiday destination in
  the World.
• Out of Worlds 100 best hotels, 20 are from
  Turkey.

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Turkey with some key figures on Agriculture

• 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)

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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

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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

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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

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Turkey with some key figures on Agriculture
BLACK SEA
Field Crops
Vegetables
Fruits Tea
EGEAN SEA
Field Crops Fruits
Field Crops,Vegetables and Fruits
Field Crops
MEDITERENIAN SEA
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Turkey with some key figures on Agriculture

• 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.
• Turkeys greenhouse about 55.000 Ha
• Spain 60.000 Ha
• Italy 15.000 Ha
• Greece 2.500 Ha

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Turkey with some key figures on Agriculture

• Major Agricultural Projects

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
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Turkey Economy

• 76 Million population
• 30- 35 Million tourist every year (Tourist
  reserve 26 Billion USD)
• Purchasing power per Person (10.500 USD 2012)

Economy Growth Percentage
2011 8
2012 4
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
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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
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Turkey Economy

• 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.

SOURCE
THE REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT
SUPPORT AND PROMOTION AGENCY TUIK TURKISH
STATISTICAL INSTITUTE
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Pesticide Market in Turkey

• 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

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Pesticide Market in Turkey
Product Category - 2011
Group USD (Million) Active Materials
Insecticide 32 144 Imidacloprid, Acetamiprid,Emamectin Benzoate, Chlorpyrifos ethyl, Lambda cyhalothrin
Herbicide 29 130 2,4 D Acid, Glyphosate, Nicosulfuron, Paraquat
Fungicide 28 126 Mancozeb, Tebuconazole, Metalaxyl, Propineb, Copper Based Products
Acaricide 5 23 Hexythiazox,Abamectin,Spirodiclofen etc.
Others 6 27 PGR, Mollucicide, Rodenticide, Spindle oil, etc.
Pesticide Usage in Turkey Excluded Tax 2000
Total consumption was 207 Million USD 2011
Total consumption app. 450 Million USD . 2013
Total consumption app 480 Million USD Between
2000 and 2011 consumption increased more than
double.
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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
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Trends Opportunities

• 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.

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Trends Opportunities

• FARMERS TRENDS
• EC and SL still strong sales exist because of
  efficacy of formulations and cost advantages.
• Premixes products and their formulations.

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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.

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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

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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

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Thank you.
??

• Halil Ibrahim BUYUKEGEN
• buyukegen_at_safatarim.com
• www.safatarim.com