10 sn içinde kapatılıyor.

Investment Themes

Agriculture

When you take a look at the last 10 years, you can see that the size of cultivable land in Turkey is decreasing day-by-day and the need for capital intensive investments is increasing. Agricultural production is not carried out adequately due to low technology utilization, scarcity of capital intensive investments and scale problems (low capacity, unconsolidated land, lack of integrated buildings etc.), independent from increases in demand and price.

In 2012 issues like problems in raw material supply, scarcity of cultivable land, problems of milk and meat producers in Turkey were also started to be addressed by the state and consequently certain incentives were provided to producers.

2012 was a year where along with uncertainties in the world economy, fluctuations in raw material costs and other problems were sensed relatively less in our region.

In result of the industry being handled with a professional investment mentality, development of the Turkish agriculture industry shall gain speed. Strategies suitable for the strengths and weaknesses of the industry should be developed within this period.

Opportunities
  • The climate and land structure is suitable for any kind of economic plant production and stockbreeding except for a few tropical plants
  • Agricultural land is relatively less contaminated compared to developed countries
  • Quality of underground and over ground waters
  • Geographical adjacency to regions importing agricultural products such as Middle East, North Africa, European Community and Caucasus
  • Potential for growth provided by development-oriented regional projects
  • Improvement works in agricultural legislation
Threats
  • Risks arising from production subject to natural conditions
  • High input costs with low predictability
  • Widespread unconscious production methods
  • There are not enough branded strong companies in the market
  • Large number of small scale businesses
  • Problem of land divided due to inheritance
  • Insufficient research and development activities
  • Decrease in agricultural labour due to urbanization
TURKISH DAIRY MARKET
High growth potential

83% of the total milk production in the world is made with cow’s milk. Primary factors affecting milk consumption in Turkey are price, oblivion about milk consumption and consumption habits. As of 2010, Turkey ranks among the 15 largest milk producers in the world with a yearly 12 million tons of milk production. Due to farm structures and hardships in processing, milk collection costs are very high in Turkey. Approximately 60% of the milk produced in Turkey is utilized in street sales.

Apart from these, there are many unregistered medium and small scale milk producers in our country. While yearly milk production in the world is 670 million tons, 12 million tons of this is produced in Turkey. However, the amount of milk consumed in Turkey is pretty low compared to the amount produced.

For development of the Turkish dairy industry, in regard to increasing drinking milk consumption, school milk project has been launched, milk consumption has been encouraged by efficient advertising campaigns, policies for informing the public about nutritional value and constituents of milk have been launched, and for enhancing efficiency in milk production collective stockbreeding has been launched and plants with modern infrastructure have been established for quality drinking milk production.

While per capita milk consumption in the world was 104.7 kg by the end of 2010 (Source: IDF 2012), this rate was approximately 16 kg in Turkey (National Milk Board, Turkish Statistical Institute). While milk consumption rate being so low indicates that the industry has a potential for growth, the “School Milk Project” launched by the government in 2012 to increase milk consumption indicates that milk consumption in Turkey is much less than it should be and the authorities are taking the required measures.

Please click here for our “September 2010, Turkish Agriculture

Energy

In line with economic growth in the last eight years, Turkey has become one of the world’s fastest growing energy market and rapidly gaining a competitive structure. Recent developments such as; privatizations, licensing contacts and strategic partnership, energy sector in the country is currently witnessing a rapid growth. According to Turkish Electricity Distribution Company, it is estimated that Turkey’s electricity needs will grow by 6% per year between 2009 and 2023 with the investment estimation of 225 billion US dollar.

Turkey is an important energy importer. Significant investments in the energy sector needs to be realized to meet the demand for energy in the country. Liberalized Turkish energy industry has become more attractive for both domestic and foreign investors.

Infrastructure

According to OECD estimates, by 2030 the infrastructure investment need will be around 2 trillion US dollar. On the other hand, Turkey’s infrastructure investment need has exceeded the level as well as in all development countries. In this context, the new funding opportunities for the sector, ensuring the diversification of income-generating resources, emphasis on public-private sector co-operation projects should increase. Turkish infrastructure sector attracts investors to focus on long-term business opportunities. In the last decade, Turkey infrastructure services market witness sudden and radical changes with mergers and acquisitions of international investors. The average share of Infrastructure sector in GDP stood at 32% between 1998 and 2010.