FOOD PROCESSING MACHINERY

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1 FOOD PROCESSING MACHINERY Prepared by Bora ESEN 2008 Export Promotion Center of Turkey

2 FOOD PROCESSING AND PACKAGING MACHINERY AND EQUIPMENT INDUSTRY IN TURKEY Turkey is the largest producer and exporter of agricultural products in the Near East and North Africa. Exports of agricultural commodities and food products were valued at US$ 9,1 billion in 2007 and accounted about 8.5 % of Turkey s total export earnings. Bread being the staple food of Turkey, cereals are of great importance in Turkish agriculture. In addition, Turkey has an important place among the major pulse producing countries and has the means of dominating the world trade. Except for a few varieties of exotic products, Turkey produces 80 types of fresh fruit and vegetables out of which 50 kinds are exported. Turkish edible nuts and dried fruit production is quite high and dominates the world markets. Turkey s vast agricultural potential offers an extensive range of fruits and vegetables which are preserved in a variety of ways. Rapidly growing sectors of Turkey s agro industry are frozen/canned and dried fruit and vegetable industry. Utilizing the advantages of its agricultural potential, Turkey has an important place among other countries regarding the quantity and quality of its vegetable oil, especially olive oil, production. With the technological advances and increased investments realized in the last years, the milling and pastry, the sugar confectionary, chocolate and cacao products, pasta and biscuits, fishery products, poultry, drinking water, alcoholic beverages are regarded as promising sectors for Turkish agro industry. The above mentioned strong agricultural potential and Turkey s food industry, changing lifestyles and tastes due to increased industrialization and urbanization, the increase in family income and the decrease in available time for preparing meals, have resulted in a strong food processing sector. Accordingly, a large food processing sector has accelerated the development of the food processing machinery and equipment industry in Turkey. At present, the Turkish food processing machinery and equipment industry is the most modern in the Middle East, North Africa, Balkans, Baltic and Central Asia. The Turkish food processing machinery industry produces every kind of machinery and equipment required for food processing industry and most parts and accessories. Flour and grain mill machinery, bakery and pasta making machinery, bakery ovens, industrial machinery for food and drink preparation, machinery for extraction/preparation of fats and oils, machinery for cleaning/ sorting/grading seeds and grains, cacao and confectionery machinery, presses and crushers for wine, fruit juice and beverages, pasteurizers and sterilizers, machinery for sugar manufacture, meat and poultry processing machinery, milking machinery, dairy machinery, machinery for the preparation of fruits and vegetables, cream separators and brewery machinery are the main food processing machinery and equipment in Turkey. The majority of food processing machinery and equipment manufacturers in Turkey range from small to medium sized companies mainly located in Istanbul, Konya, Ankara, Izmir and Gaziantep. The line of products manufactured by the companies varies substantially from highly automated equipment to manual and basic models. Moreover, food processing machinery manufacturers are increasingly focusing on research & development in an attempt to comply with the demand for more sophisticated machinery and greater flexibility. The food processing machinery and equipment industry has particular importance for Turkey due to its promising export potential. In this field, manufacturing firms were producing mainly for the domestic market until After 1990, the sector has directed its attention to foreign markets also. İGEME Export Promotion Center of Turkey,

3 Recent developments in the demand for packaged food have resulted in a large food packaging sector and a considerable demand for packaging machinery. At present the Turkish packaging machinery sector meets domestic demand and has a remarkable capacity for exports. The Turkish packaging machinery industry produces every kind of machinery and equipment required for the packaging industry and all the parts and accessories thereof. Cleaning and drying machinery, can sealing, container labeling, vacuum or gas packaging machines; machinery for filling, closing, sealing, labeling of bottles, cans, bags, boxes; machinery for opening, filling and closing bags, packing or wrapping machinery (including heat shrink types); weighing and labeling equipment; machines for making bags and sacks and machines for making cartons, boxes, cases or similar containers are the main packaging machinery and equipment being produced in Turkey. EXPORTS The Turkish machinery industry has recorded a substantial increase in exports compared to Turkey s overall exports. In 2007 the export value of the machinery industry was US $8.75 billion, showing a 35% increase compared with 2006 figures. Its share in total exports was 8% in One of the most promising sub sectors of the Turkish machinery industry in exports is food processing machinery and equipment. In 2007, the export value of food processing machinery and equipment reached US$ million, up 33.7 % compared with the year before. Turkish exports of food processing machinery and equipment consists mainly of: machines to mill or work cereals or dried legumes (US$ 88 million), bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products (US$ 19.3 million), machinery for the extraction or preparation of animal or fixed vegetable fats or oils (US$ 15.9 million), parts of grain, seed, dry legumes processing equipment (US$ 14.4 million). In the food processing machinery and equipment industry, exports are directed to 128 countries. Major markets in 2007, in order of rank, are Kazakhstan, Iran, the Russian Federation, Romania, Bulgaria, Greece, Georgia, Azerbaijan, Syria, S. Arabia and Iraq, which are geographically close countries and have similar agricultural structure and consumption habits. Furthermore, the Turkish food processing machinery and equipment industry also produces high tech and high quality machinery in order to meet the demand of developed countries such as Italy, Germany and the Netherlands. The Turkish packaging machinery sector largely meets the demand of the Turkish packaging sector and has recently concentrated on exports. In 2007, total exports of the Turkish packaging machinery rose to US$ 58.6 million. Most of the traded items were packaging and wrapping machinery including heat shrink type (US$ 27.8 million). Other important export items are machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers, machinery for capsuling bottles, jars, tubes and similar containers and machinery for aerating beverages (US$ 7.2 million). Turkish packaging machinery sector mainly export its products to the Russian Fed., Iran, Germant, the UK, Romania, the UAE, Azerbaijan, Italy, Bulgaria and Egypt. İGEME Export Promotion Center of Turkey,

4 The Turkish food processing and packaging machinery manufacturers/exporters follow European and international standards and norms. Companies exporting to the European Union affix the CE Mark under the New Approach Directives. The obligation to affix the CE Mark started in the Turkish domestic market in High engineering skills, product flexibility, continuous product development and adaptation, and efficient after sales services enable Turkey to export Turkish made food processing and packaging machinery and equipment all over the world at an increasing rate. The products of the Turkish food processing and packaging machinery industry are exhibited in international and national fairs organized in Turkey. In 2008 and 2009, major fairs which will be organized in this sector are; KONYA FOOD / FOOD TECH Food, Beverages and Technologies Fair Konya, May GIDA International Food Products and Food Processing Exhibition Istanbul, November IPACK International Packaging and Food Processing Systems Exhibition Istanbul, November GAPFOOD Food, Food Technology and Packaging Fair Gaziantep, November 2008 ANFAS FOOD PRODUCT Mediterranean Food and Beverage Exhibition Antalya, February ANFAS FRESH ANTALYA Trade Exhibition for Fresh Fruits, Vegetables, Logistics and Technologies Antalya, February İGEME Export Promotion Center of Turkey,

5 Exports of Turkish Food Processing Industry (US$ 1,000) H.S. Code Products Major Export Markets in 2007 (%) Bakery ovens, including biscuit ovens 3,563 6,422 5,754 6,013 Ukraine (16), Bulgaria (14), Iraq (12) Machinery for treatment of material by change of temperature nes. 3,832 6,477 7,927 9,096 Bulgaria (15), Azerbaijan (7), Romania (6) Cream separators Syria (65), Iran (23), France (7) Milking machinery 3,355 6,050 6,990 5,894 Morocco (33), Syria (16), Iran (10), Dairy machinery 1,036 1,788 5,490 2,443 Azerbaijan (19), Tunusia (10), TRNC (10) Parts of milking machinery and dairy machinery 487 2,102 1,662 1,753 Iran (19), Italy (14), Syria (7) Presses, crushers etc. for wine, fruit juice, beverage Azerbaijan (85) Parts of presses, crushers for wine, fruit juice etc Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables Machines to mill or work cereals or dried legumes nes Parts of grain, seed, dry legumes processing equipment Bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products Machinery for the manufacture of confectionery, cocoa or chocolate Machinery for sugar manufacture Sudan (91), Iran (7) 5,195 8,204 8,804 11,273 Kazakhstan (14), Romania (13), Iran (11) 42,433 51,099 56,186 88,064 Kazakhstan (19), Iran (9), the Russian Fed. (6) 8,733 22,564 9,647 14,414 Saudi Arabia (19), Kazakhstan (11), Syria (8), 8,061 13,405 18,352 19,365 Sudan (13), Romania (10), Bulgaria (8) 4,986 5,076 7,318 11,177 the Russian Fed. (16), Latvia (11), Germany (10) 2,681 1,402 1,849 1,201 the Russian Fed. (32), Algeria (29), Iran (12) Brewery machinery the Russian Fed. (100) Machinery for the preparation of meat or poultry Machinery for the preparation of fruits, nuts or vegetables Industrial machinery nes for food, drink preparation Industrial machine parts, food, drink preparation Machinery for the extraction or preparation of animal or fixed vegetable fats or oils 649 1,606 1,956 2,187 Iraq (21), Egypt (21), Denmark (8) 976 1,466 3,080 3,786 Romania (17), Georgia (8), Uzbekistan (7) 3,071 3,464 6,270 5,673 Syria (15) Azerbaijan (14), Kazakhstan (12) 1,701 2,784 2,856 9,286 the Netherlands (37), the Russian Fed. (13), Germany (12) 6,704 10,113 11,382 15,956 Tunisia (32), Greece (20), Georgia (12) TOTAL 98, , , ,801 Source: Undersecretariat for Foreign Trade of Turkey İGEME Export Promotion Center of Turkey,

6 Exports of Turkish Food Processing Machinery Industry by Countries (US$ 1,000) Kazakhstan 4,711 12,296 19,813 22,382 Iran 8,074 5,096 8,072 13,050 the Russian Fed. 5,500 7,829 7,526 12,500 Romania 2,209 6,333 11,534 11,933 Bulgaria 1,518 3,026 4,185 8,993 Greece 1,759 2,347 4,610 8,910 Georgia 1,082 2,832 2,873 8,294 Azerbaijan 3,895 6,720 8,240 8,262 Syria 5,856 5,625 5,117 7,368 Saudi Arabia ,233 2,236 7,137 Iraq 7,861 7,540 8,030 6,125 Tunusia 3,155 5,909 5,104 6,048 Italy 1,776 3,416 3,314 5,807 Uzbekistan 3,726 3,768 4,498 5,102 Algeria 4,068 4,413 5,216 5,037 Germany 1,974 3,050 3,955 4,800 Egypt 5,045 5,100 6,112 4,794 the Netherlands ,121 Sudan 1,842 2,886 2,870 3,796 Ukraine 3,469 1,862 2,871 3,439 Other countries 26,414 35,772 40,846 46,025 TOTAL 98, , , ,801 Source: Undersecretariat for Foreign Trade of Turkey İGEME Export Promotion Center of Turkey,

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