MARKET RESEARCH REPORT

Transcription

1 This Project is co-financed by the European Union and the Republic of Turkey Technical Assistance for the Establishment of Rize Tea Research and Application Centre TR07R /001 MARKET RESEARCH REPORT OCTOBER

2 Table of Contents Turkish Tea Industry... 3 Global Tea Industry... 3 Rize Tea Research and Application Center... 4 Rize Tea Industry SWOT Analysis... 6 Strengths... 6 Weaknesses... 6 Opportunities... 7 Threats... 8 Factors Related to Variables of Brand Image for Tea Companies in Light of a Research... 8 Figures on Importation and Exportation of Tea Products (trademap)

3 Turkish Tea Industry Tea cultivation is carried out along a belt stretching from the Georgian border in Eastern Anatolia Region to Fatsa county in Ordu. Tea is grown in Ordu, Giresun, Trabzon, Artvin and particularly Rize in that region which is one of the regions with the highest potential among all tea-growing areas in the world. Temperatures never fall below zero Celsius in some Asian countries like China, India, and Sri Lanka because of the equatorial climate which permits farmers to grow tea during the whole year. Temperature falls below zero Celsius in our country where four seasons can be observed and tea fields are not cultivated for 6 months. Snowfall during the winter gives Turkish tea an important characteristics. Pesticide is not applied to tea fields in our country because of that property which makes our tea the most natural variety in the world unlike other varieties of tea grown elsewhere. Turkish tea has the potential to become the product of highest quality sold at the highest price in the global market because of its structural difference, but it requires an effective promotional campaign. In the eastern Black Sea region around 205,000 farmers grow tea on a total area of 760,000 dekars. The yield of tea leaves varied between 1,150 and 1,300 thousand tons in the past five years. There are a total of 197 active factories in the Turkish tea industry. Of them, 46 belongs to Çaykur and 151 are owned by the private sector. 154 of those factories are in Rize, 29 are in Trabzon, 10 are in Giresun, and 4 are in Artvin. They include 48 large-sized, 76 medium-sized, and 73 small-sized factories. According to data for 2014, 50 % tea leaves was processed by Çaykur and 40 % by the private sector. 49% of the quantity processed by the private sector was processed by large-sized enterprises which were followed by medium-sized firms with 30% and small-sized firms with 12%. 3 Global Tea Industry Tea plant is grown on approximately 2,461 thousand hectares across the world and 45 countries grow tea plant. China ranks first with 943 thousand hectares in terms of the area of tea fields and Turkey ranks sixth with 77 thousand hectares after India, Sri Lanka, Kenya, and Indonesia. Global dried tea leave production is 3 million tons. Turkey ranks fifth in terms of dried tea leaves production over 225 thousand tons and fourth in terms of per capita annual tea consumption (2.3 kg/person). Turkey has an important place in the global economy in terms of the production of tea, the second most popular drink after water. Consumption of Turkish tea is generally limited to the domestic market. The Tea Research and Application Center will play a key role in opening up Turkish tea and thereby giving a fresh imputes to regional development. A look at the fundamental problems of the industry shows that the tea industry's competitiveness and the quality of tea produced is not at a sufficient level. Thus, improper tea growth has a negative effect on the plant quality and hence on product quality. Factors that have a negative effect on competition include low SME competitiveness and poor cooperation and and coordination between players in the industry. 3

4 Rize Tea Research and Application Center When the center becomes operational, the competitiveness of tea-processing SMEs will be enhanced particularly in terms of quality and product standards by applying new technology and research methods and cooperation and coordination will be ensured. The Tea Research and Application Center (TRAC) also aims at finding a solution to problems facing SMEs regarding access to infrastructure and technology thanks to its processing and packaging plant. Training and consulting services will teach tea growers more efficient production and marketing techniques. Promotional activities will be carried out within the country and abroad for making Rize tea a special brand as part of the project. Studies on different tea brands on high demand will be carried out in order to achieve product diversity and to increase Turkey's share of the global tea market while SMEs will receive contributions regarding R&D and innovation. Rize Tea Research and Application Center Project and applied research methods to be employed as part of the project will be aimed at finding direct or indirect solutions to those problems. An analysis of factors that causes manufacturer SMEs to have low competitiveness indicates that there is no quality and product standard applicable to the production of tea products. High production costs make optimization in production impossible. Turkish tea is not sufficiently known particularly in international markets. Thus, tea producers have problems regarding both efficiency and quality and access to the market. The project has been designed to find solutions to some of the problems summarized above and to contribute to the resolution of some others. 4 Efforts aimed at providing manufacturer SMEs with more opportunities to access the market while increasing the visibility of tea basically aim at to contribute to the resolution of problems regarding access to the market and they are expected to prepare the ground for strengthening cooperation and coordination among the players in the industry. The center is anticipated to consist of three main units that would devise solutions to the problems summarized above. Applied research and development activities will be carried out in the applied R&D unit in order to produce tea products of higher quality in a more efficient manner. R&D results will be communicated to SMEs by the Training and Consultancy Unit which will also provide quality supervision services. The Marketing and Foreign Trade Unit will operate the common packaging plant and conduct researches in order to increase possibilities for access to the market. The tea research and application center is also designed to develop a tea literature which will comprise the past, current, and future state of foreign and Turkish tea varieties and processes from sowing to the consumer's cup. A Tea Promotion Group is planned to be formed by bringing together organizations active in tea production in the region. The purpose is to coordinate and spearhead efforts such as advertisements and awareness raising in order to promote Rize tea brand in domestic and international markets. 4

5 Different types of teas produced will be offered to customers in order to observe how people respond to their taste at mobile and stationery tea houses which have been designed as part of the project and be a part of the center. Results will be used for R&D efforts in order to contribute to the development of new products. The Pilot Fertilizer Production Plant to be built is designed to minimize the environmental impact of waste tea resulting from tea production while ensuring sustainable tea production. Waste tea will be used as organic fertilizer in order to contribute to the prevention of problems arising from environmental pollution and misuse of waste. Samples will be taken from tea fields where organic fertilizer will be applied and soil analyses will be done at laboratories at the center in order to produce organic fertilizer successfully. A formula required for producing fertilizer that will provide substances needed by soil will be developed. The formula will be applied to the pilot tea field and the tea fields of other growers who will volunteer. The fertilizer formula will be updated according to regional needs and be capable of meeting soil requirements as a result of analyses to be conducted annually. The production and quality of Rize tea will be registered after obtaining a Rize Tea Geographical Indication as a result of technical works to be undertaken. Organizational infrastructure of SMEs producing tea in our region will be enhanced, their productivity and product quality will be increased, technical support that will strengthen their marketing capabilities will be provided, and acquire new production techniques that will boost their competitiveness through the project. It will reduce the production costs of SMEs, enhance their competitiveness, and acquire new production techniques. In addition, tea producers that do not have a packaging system will be offered the opportunity to package their teas at a tea packaging plant to be built within the center. SMEs will be strengthened; their productivity and product quality will be enhanced, and marketing opportunities will be diversified through technical support. In conclusion, SMEs will reduce their production costs, enhance their competitiveness, and acquire new production techniques. The Recycling Plant Component which is planned to be built at Rize Tea Research and Application Center launched in Şirinköy village in Çayeli, Rize in TR90 Region is designed to: convert waste tea resulting from tea production to fertilizer; meet fertilizer needs during transition to organic farming; create new jobs in the fertilizer production plant; increase the value added of the tea product which has a low value added; improve production methodologies and technical capacities of tea industrialists; increase the quality of Turkish tea as a brand and to ensure that it secures a place in the global market; increase per capita consumption of tea in Turkey; develop new product groups in black, green, and oolong tea varieties; prevent environmental pollution resulting from waste tea; prevent the use of waste tea for any purpose other than its intended use; increase the income of tea growers; increase organic tea production plants and to ensure that they are certified; enhance service quality in the industry; 5 5

6 put the R&D center which will offer services to tea growers into operation; increase the value of Turkish tea and its unit prices; create tea by-products and to conduct researches in that area Rize Tea Industry SWOT Analysis Strengths Availability of a sufficient quantity of raw materials near factories. A large part of cultivated areas in Rize consists of tea fields. Tea grown by farmers is completely consumed in our country. Tea can be grown and harvested by family-owned enterprises. Existence of a full-fledged tea industry (automation and production according to HACCP). Popular belief among local people that tea farming is indispensable. Absence of a substitute product that could be an alternative to tea. Transition from producing tea by using seeds to seedling. Tea farming is the driving force behind regional economy in various fields, including health, education, and sports. It is an important source of employment. Information on production, industry, and the sector is gathered in the same center. Existence of a strong marketing network. There is a sufficient number of technical personnel in the tea industry. Industrialists in that sector are open to innovations. Intensified efforts to diversify tea in the past couple of years. 6 Weaknesses All tea fields are cultivated by using seeds. Deterioration of vegetative structure and product quality depending on soil composition because of wrong utilization of inputs. Absence of medium-, long-, and short-term programs in the industry. Some companies in the industry do not sufficiently comply with tea production standards; Raw materials cannot be collected in a timely fashion (fresh). Differences in fresh tea leave buying standards applied by public and private sector companies. Insufficient exchange of information among companies. Existing capacity of the private sector cannot be utilized. High initial investment costs in developing new products. Public responsibility and workload is assumed by Çaykur because policies related to tea farming are implemented by Çaykur. Some private sector companies produce without a marketing unit. Lack of optimization in production processes throughout the industry. Insufficient in-service training in businesses. Tea experts not used during the purchase of tea leaves. 6

7 Insufficient legislation in the tea industry (absence of a purchase and payment program between tea growers and private sector companies). Family-owned companies are not managed based on the concept of institutionalization. Vagueness regarding authority, power, and responsibility centers in the tea industry. Lack of comprehensive (institutional) efforts aimed at conducting market researches in the tea industry. Insufficiency of R&D efforts in the industry. Consumer profile across Turkey has not been established through scientific works. Persons and organizations concerned do not meet and devise plans for finding solutions to problems in the tea industry; personal interests are accorded priority. Inefficiency of growers' unions. Failure to switch to contract production. Insufficiency of inspections and inadequacy of auditors in terms of quantity and quality. Tea farming is not carried out by using scientific methods. Fields cannot be cultivated because of high labor costs. Businesses do not have sufficient resources. There are many factories in the private sector. Insufficient cooperation between the academia and the industry. Problems in developing brands. Waste tea cannot be put to use. The tea industry cannot provide raw materials for non-food industries. Tea leaves grown on different elevations cannot be processed by using different methods during production. Lack of communication among businesses and tea growers. Absence of sufficient publications regarding tea production, growing, and culture. Problems experienced at the phase of transportation of raw materials because of the fact that businesses concentrate in a specific region. The industry does not have social amenities in and outside of the region. Fields are divided into very small parts. 7 Opportunities Turkey is the only tea producer among EU countries. Rize is a port city. Tea drinking as not a part of culture in some other countries. China and India face the risk of not meeting demand for tea. There is a global tendency to stop drinking gaseous beverages. A National Tea Council has been founded. Consumption is triggered by the fact that tea contains some components beneficial to human health in its chemical composition. Transition to organic tea farming can be easy. Facilities are provided for using good farming practices for conventional growing. Turkish people like tea. Tea plant can prevent erosion when terracing is done in accordance with proper techniques. Harmony between the social structure of local people and geographical structure. 7

8 Climate and topography are suitable for growing tea. Threats Smuggled tea. Consumption of products alternative to tea has increased. Lack of inspections on teas purchased for exportation. Packaging factories are built outside of the tea-growing region. The origin of tea packages are not printed on some tea brands available in the market. Ingredients increasing extracts are used by some businesses during the production of dried tea leaves. Imitations of some brands are produced. Increased use of herbicides. Global warming and climate change. Constant rise in production costs. More buildings are built on tea fields. Farming activities (weeding, fertilizer application, etc.) cannot be carried out sufficiently and in a timely manner because the majority of growers do not live in the region. Mechanization is not used on fields Factors Related to Variables of Brand Image for Tea Companies in Light of a Research 8 Factor 1: Quality and Meeting Expectations I feel that I can fully trust this brand. This brand is honest toward its customers. People say that this brand is not good. This brand is sincere toward its customers. This brand has a good reputation. I have heard negative comments about this brand. This brand offers what it promises in its advertisements. The products of this brand that I have purchased is covered by a warranty. This brand takes an interest in its customers' expectations. People say that this brand is trustworthy. I trust the quality of the products of this brand. This brand sells products of promised quality. Factor 2: Diversity and Being Suitable for Human Consumption The packaging of this brand captures attention. The packaging of this product can be easily used. I like the advertisements related to this tea brand. Aroma in this tea brand does not contain substances hazardous to health. This brand offers small gifts (e.g. glasses) with its products. 8

9 This brand has products targeting all people with different tastes. I believe that this brand conducts inspections and controls at its production facilities. This brand always tries to meet customer needs. The product quality of this brand always meets the same standards. I believe that hygienic and healthy production is performed at the production facilities of this brand. This brand has different aroma teas. This tea brand preserves its taste without staling. The price of this tea brand is consistent with its quality. This brand has products of different sizes meeting all preferences. This tea brand has coarse leaves and does not include small particles. Turkey occupies one of the top places in the list of countries in terms of the quantity of tea produced because Turkey is a major producer of tea and this is also important for exports to other countries. Elimination of shortcomings in creating brands and brand image in the Turkish market where tea of high quality, which could easily compete against many brands throughout the world, and determining the positions of brands would bring about success at national and international levels and bring them to the fore. Turkey is one of the leading tea producer countries. Turkey is one of the top five countries in terms of the quality of tea produced and tea consumption is significantly higher than some other countries. Considering that there is an intense brand competition in the tea market, steps to be taken by local tea brands in order to gain visibility in both local and international markets and to secure a place in those markets is an important issue. Thus, exploring brand building strategies to be pursued for penetrating into international markets would make significant contributions. It is clear that brand image is the most important advantage in competition. Issues that would help Turkish tea brand build a strong image in international markets should be accorded priority. It is, therefore, suggested that efforts focusing on building a brand image should be intensified. In addition, how national tea brands can consolidate their places in international markets may be determined. 9 Inter-cultural studies may be conducted in order to compare tea consumption habits in Turkey with those in some other countries. Habits of consumers from different cultures may be compared and purchasing habits and consumption habits and quantities of new consumers in international markets may be determined before making proposals about how they can be rendered different Some key issues related to a research conducted in order to discover black sea consumption habits of households are as follows: Interviews were conducted with 150 persons who make the decision to buy tea in households as part of the survey. Relationship between the quantity of tea consumed 9

10 by households and their socioeconomic characteristics was analyzed during the research. The relationship between the quantity of tea consumed and the number of individuals within the household was found to be statistically important. Women make the decision to buy foodstuff in 64% of the households interviewed. Educational background of the individual making the decision to buy foodstuff and his or her paid employment affect the quantity of tea consumed by families. A large part of the households (75.33%) prefer the same brand of tea and quality is the most influential factor in preferring a specific brand, according to the outcome of the survey. Global consumer expectations increased in parallel with technological advances over time. As a consequence of this trend, consumers began buying more diversified products of high quality. Rapid structural and social transformation in Turkey brought about a new life style and rules. More and more family members joined the workforce amid a rise in the percentage of employed women which also changed consumption habits depending on their life styles. Products in the tea market go through many phases between the producer and the consumer which is the case in all markets. Increasing number of tea producers active in the Turkish tea industry intensified competition in that industry. More competitive environment in the food industry highlighted the need for researches taking account of customer expectations. The outcome of researches related to consumer behavior regarding food products will steer producers and marketing firms and they will be able to increase their sales thanks to marketing strategies developed. Tea ranks first among mostly consumed beverages, including alternative beverages such as gaseous drinks, coffee, and fruit juice, in all the households surveyed. It was found out that households spent 19.2 % of their monthly average income to buy foodstuff. This percentage is close to the ratio of money spent by households in urban areas in Turkey for buying food and non-alcoholic drinks to their income (19.8%). Per capita tea consumption in Turkey is estimated to be 3.26 kg. The research showed that 64% of decisions to buy foodstuff for households is influenced by women. Households consume other herbal teas (green tea, linden, rose hip) after black tea. Instant coffee and Turkish coffee are among alternatives to tea. Considering that consumers have a limited income, it can be assumed that food prices affect consumers' purchasing behavior. Tea brands available in the market have different prices based on the brand, places where they are sold, discounts, and promotions like other food products. Ninety three percent of the consumers interviewed as part of the survey said that price is the main factor that they take into consideration while buying tea. Packaging is one of the main factors affecting consumer preferences. Packaging is an important service that protects products against negative external factors until they are purchased by consumers while affecting the promotion and purchase of products. Consumers have information about the firm whose name is printed on the packaging as well as the content of the product. Brand is a key factor affecting consumers' purchasing behavior regarding food products. Firms which intend to maintain their existence in the market for a long time should focus on efforts aimed at ensuring and maintaining consumer loyalty so that there will be longterm demand for their products. According to the results of the survey, 75% of the households prefer the same brand of tea while 25% buy different brands. It was found out that quality is the most important factor in terms of customer loyalty for a tea brand. 81 % of the households, which prefer the same tea brand, do not buy another product 10 10

11 because of their confidence in its quality whereas one of two households, which buy different brands, prefer another brand because of a deterioration in the quality of a specific brand. In addition, households keep buying the same brand or switch to another one by taking account of tea prices and factors such as accessibility. Like any other area of the economy, there is stiff competition between food producers in countries with a free market economy. Companies need to adopt a consumercentered production and marketing approach in order to increase their profits and survive in this highly competitive market. For this purpose, companies have begun strategies based on research results as a matter of priority. Tea is widely consumed during breakfasts in Turkey, which made it a traditional beverage. This phenomenon heightens competition among tea producers in Turkey. Thus, researches aimed at determining household preferences for tea consumption are needed in order to steer production and marketing strategies. Households analyzed as part of the research mostly consume black tea. Herbal teas are the most preferred alternatives to black tea. Thus, companies may boost their sales by broadening their range of herbal teas other than black tea. The fact that women are more influential over decisions to buy foodstuff indicates that women play a key role in the household economy. Thus, messages in foodstuff commercials targeting women may have a positive effect on sales. It was established that quality is the most decisive factor regarding household behavior toward tea brands. Thus, it is necessary to achieve a certain level of stability in the quality of tea offered in the market and the perception of a product of high quality on the consumer's mind should be preserved. Tea prices and accessibility to the product are among key factors affecting brand behavior. This finding will steer companies' decisions on determining the sale price and sale points. It was found out that tea consumption did not vary in parallel with income and that a certain quantity of tea was consumed by households in every income level. It may be attributed to the fact that tea consumption habit has transformed into a culture in Turkey throughout history. Sustainability of demand for tea is a crucial factor attracting new companies to the industry. If the companies in the industry make efforts to meet expectations and devise strategies taking account of those expectations will provide the opportunity to increase their profits in the competitive environment while contributing to maintaining their existence in the industry over the long term and to build customer loyalty

12 Figures on Importation and Exportation of Tea Products (trademap) If the following figures on imports and exports are examined, the following countries may be identified as targets: Potential countries where market researches may be conducted for export purposes Potential countries where market researches / business visits can be carried out for comparison purposes 1- Russia 2- Saudi Arabia 3- Iran 4- Egypt 5- United Arab Emirates 1- Kenya 2- Sri Lanka 3- India 4- China 5- United Arab Emirates Criteria: Geographical proximity Cultural proximity Size of quantities imported by countries PS: Figures related to black tea packages weighing more than 3 kilograms were taken as a basis. Criteria: Size of quantity exported by countries PS: Figures related to black tea packages weighing more than 3 kilograms were taken as a basis

13 Importation Figures for Tea Products GTIP Number: Green tea (not fermented) (in ready-to-use packaging weighing less than 3 kilograms) Total Imports in 2016 Total Imports in the Past 5 Years Main Importers of Turkish Tea Imports from Turkey in 2016 Main importers of Turkish tea Total imports from Turkey in the past 5 years USA 77,963 Morocco 307,580 Israel 157 Azerbaijan 713 Morocco 75,296 USA 682,309 Germany 126 Israel 659 Ghana 74,649 France 132,077 Free Zones 80 Free Zones 363 France 63,012 Canada 300,061 Turkmenistan 61 Germany 361 Vietnam 39,969 Ghana 42,032 USA 44 United Kingdom 162 Algeria 38,318 Algeria 118,698 Azerbaijan 34 Turkmenistan 127 Canada 30,774 Mali 169,561 Iraq 24 USA 106 The Netherlands 25,240 UAE 96,278 United Kingdom 22 Iraq 72 Mali 22,496 Russia 113,275 Belgium 15 Lebanon 57 Italy 18,538 The Netherlands 74,339 Bulgaria 14 Belgium 51 United Kingdom 17,786 Belgium 59,555 Lebanon 11 Saudi Arabia 39 Belgium 14,805 Germany 92,851 Norway 7 Norway 29 Spain 13,914 Italy 56,321 Qatar 5 Greece 24 Germany 13,090 Libya 77,700 Austria 3 Bulgaria 23 Mauritania 13,055 United Kingdom 44,445 Georgia 3 Georgia 21 13

14 Importation Figures for Tea Products GTIP Number: Green tea (not fermented) (in packaging weighing more than 3 kilograms) Total Imports in 2016 Total Imports in the Past 5 Years Main Importers of Turkish Tea Imports from Turkey in 2016 Main importers of Turkish tea Total imports from Turkey in the past 5 years Morocco 118,168 USA 335,861 Azerbaijan 43 Germany 69 USA 66,183 Germany 282,923 Free Zones 24 Azerbaijan 67 Germany 62,100 Morocco 240,071 Germany 22 Free Zones 58 Russia 42,807 Uzbekistan 221,316 Saudi Arabia 18 United Kingdom 38 Vietnam 31,929 Russia 212,361 Georgia 11 UAE 31 Uzbekistan 30,771 Japan 92,572 Jordan 7 Saudi Arabia 18 Taipei (China) 17,823 France 91,584 Lebanon 6 Georgia 18 France 17,296 Taipei, China 77,744 Belgium 5 Lebanon 12 Pakistan 16,871 United Kingdom 59,462 United Kingdom 4 USA 12 Japan 16,676 Poland 56,850 Sudan 3 Ukraine 10 Hong Kong (China) 14,545 The Netherlands 48,189 United Arab Emirates 3 Iraq 8 Poland 13,129 Singapore 46,550 Australia 2 Jordan 7 United Kingdom 12,383 Pakistan 46,054 Qatar 2 Belgium 6 14

15 Importation Figures for Tea Products GTIP Number: Black tea (not fermented or semi-fermented) (in ready-to-use packaging weighing less than 3 kilograms) Total Imports in 2016 Total Imports in the Past 5 Years Main Importers of Turkish Tea Imports from Turkey in 2016 Main importers of Turkish tea Total imports from Turkey in the past 5 years Saudi Arabia 215,198 Saudi Arabia 1,041,101 Belgium Belgium USA 139,518 USA 626,331 Germany 4795 Syria Australia 77,769 Australia 431,873 Syria 3066 Germany 8651 Canada 74,454 Canada 442,511 Iraq 1752 Free Zone 4026 France 70,701 France 398,181 Free Zones 1085 USA 3940 Iraq 68,193 Iraq 133,822 USA 1058 Iraq 3618 Russia 52,503 Russia 482,613 France 894 The Netherlands 2514 Kuwait 49,694 Kuwait 270,727 Saudi Arabia 527 France 2474 United Kingdom 49,419 United Kingdom 247,242 The Netherlands 412 Saudi Arabia 1765 UAE 48,718 UAE 1,561,127 Austria 282 Georgia 995 Italy 48,628 Italy 231,144 Georgia 263 Turkmenistan 885 The Netherlands 47,650 The Netherlands 265,205 Turkmenistan 230 Israel 820 Libya 45,992 Libya 201,842 United Kingdom 206 United Kingdom 695 Belgium 41,138 Belgium 183,220 Israel 204 UAE 327 Germany 39,619 Germany 178,398 Poland 150 Austria

16 Importation Figures for Tea Products GTIP Number: Black tea (not fermented or semi-fermented) (in ready-to-use packaging weighing more than 3 kilograms) Total Imports in 2016 Total Imports in the Past 5 Years Main Importers of Turkish Tea Imports from Turkey in 2016 Main importers of Turkish tea Total imports from Turkey in the past 5 years Russia 444,777 Russia 2,341,468 Germany 955 Germany 1789 United Kingdom 283,683 United Kingdom 1,631,983 Azerbaijan 254 Syria 962 Egypt 266,989 Egypt 1,474,702 Georgia 149 Azerbaijan 553 Iran 230,236 Iran 1,313,476 Iraq 110 Turkmenistan 489 USA 199,550 USA 1,062,344 Saudi Arabia 68 Georgia 397 Germany 111,682 Germany 600,921 Free Zones 56 Iraq 376 Japan 106,310 Japan 587,294 Sweden 51 Free Zones 158 Kazakhstan 87,643 Kazakhstan 495,227 Iran 45 United Kingdom 130 UAE 79,698 UAE 883,302 Australia 32 Sweden 128 Kenya 73,511 Kenya 255,638 Afghanistan 23 Saudi Arabia 124 Poland 64,887 Poland 326,030 Morocco 22 Russia 67 China 63,221 China 250,229 Qatar 12 Australia 65 South Africa 46,620 South Africa 234,254 Austria 12 Canada 60 Azerbaijan 42,694 Azerbaijan 106,843 UAE 11 UAE 54 The Netherlands 42,180 The Netherlands 212,779 Congo 10 Iran 43 16

17 Exportation Figures for Tea Products GTIP Number: Green tea (not fermented) (in ready-to-use packaging weighing less than 3 kilograms) Total Exports in 2016 Total Exports in the Past 5 Years Main Exporters to Turkey Exports to Turkey (2016) Main exporters to Turkey Total exports to Turkey (in the past 5 years) China 648,695 China 3,120,760 Morocco 38 China 101 Japan 64,636 Japan 242,474 France 10 USA 85 Germany 53,373 Japan 235,965 China 5 France 83 Poland 40,946 Sri Lanka 219,884 Japan 1 Morocco 38 Sri Lanka 38,652 Poland 180,819 India 1 Germany 36 Indonesia 38,041 Indonesia 172,044 United Kingdom 1 Taipei, China 14 USA 27,421 USA 127,113 India 11 France 23,589 France 113,218 Sweden 6 United Kingdom 21,731 Belgium 107,295 United Kingdom 5 Belgium 16,388 United Kingdom 102,297 Sri Lanka 3 The Netherlands 14,694 UAE 65,115 Saudi Arabia 3 Morocco 13,019 The Netherlands 59,405 Belgium 2 Taipei, China 12,070 Russia 57,381 Egypt 2 UAE 10,413 Morocco 53,978 Japan 1 Hong Kong, China 10,178 Taipei, China 53,429 17

18 Exportation Figures for Tea Products GTIP Number: Green tea (not fermented) (in packaging weighing more than 3 kilograms) Total Imports in 2016 Total Imports in the Past 5 Years Main Importers of Turkish Tea Imports from Turkey in 2016 Main importers of Turkish tea Total imports from Turkey in the past 5 years China 463,907 China 1,842,329 China 467 China 2,410 Japan 41,724 Vietnam 467,821 Kenya 144 Germany 575 Germany 41,402 Germany 199,649 Indonesia 108 Kenya 516 Vietnam 33,120 Japan 158,591 Germany 93 Indonesia 471 Indonesia 14,054 India 55,490 India 45 Singapore 159 The Netherlands 10,961 Poland 40,448 Sri Lanka 21 India 51 United Kingdom 9,224 The Netherlands 38,422 Morocco 9 Georgia 38 USA 8,517 United Kingdom 38,115 Sri Lanka 21 Sri Lanka 5,113 USA 36,576 USA 11 Poland 4,971 Sri Lanka 26,138 Morocco 9 Indonesia 4,540 France 25,202 Finland 6 Uganda 4,384 Indonesia 20,507 United Kingdom 1 France 4,330 Uganda 19,361 Taipei, China 4,035 Taipei, China 14,887 Hong Kong, China 3,908 Hong Kong, China 9,672 China 463,907 China 1,842,329 Japan 41,724 Vietnam 467,821 18

19 Exportation Figures for Tea Products GTIP Number: Black tea (not fermented and semi-fermented) (in ready-to-use packaging weighing less than 3 kilograms) Total Exports in 2016 Total Exports in the Past 5 Years Main Exporters to Turkey Exports to Turkey (2016) Main exporters to Turkey Total exports to Turkey (in the past 5 years) Sri Lanka 563,868 Sri Lanka 3,177,626 Poland 117 Poland 356 UAE 263,111 Poland 709,194 Sri Lanka 102 Sri Lanka 255 China 158,323 UAE 696,223 Azerbaijan 84 Germany 148 Poland 141,025 United Kingdom 581,696 India 27 India 89 United Kingdom 93,892 China 577,863 Italy 20 Azerbaijan 86 USA 76,658 Germany 376,541 Morocco 19 France 64 Germany 75,280 Russia 345,298 France 11 Italy 62 India 66,275 India 318,725 United Kingdom 10 USA 46 Russia 64,183 USA 297,411 China 2 China 33 Belgium 51,079 Belgium 276,278 The Netherlands 2 United Kingdom 28 Turkey 26,845 France 141,634 Morocco 19 Canada 26,445 The Netherlands 124,231 Belgium 13 Taipei, China 25,867 Canada 119,585 Sweden 3 France 24,439 Taipei, China 106,875 The Netherlands 2 The Netherlands 22,503 Turkey 91,385 Free Zones 2 19

20 Exportation Figures for Tea Products GTIP Number: Black tea (not fermented and semi-fermented) (in packaging weighing over 3 kilograms) Total Exports in 2016 Total Exports in the Past 5 Years Main Exporters to Turkey Exports to Turkey (2016) Main exporters to Turkey Total exports to Turkey (in the past 5 years) Kenya 1,067,309 Kenya 5,645,615 Sri Lanka 30,274 Sri Lanka 56,325 Sri Lanka 644,098 Sri Lanka 3,690,993 Kenya 5,194 Kenya 24,398 India 579,047 India 3,103,222 India 1,257 India 8,368 China 214,097 China 886,687 India 1,201 India 3,210 Argentina 93,709 Argentina 512,245 Tanzania 554 Vietnam 2,684 Vietnam 75,762 Vietnam 483,560 Germany 321 Germany 1,412 Malawi 75,314 Indonesia 476,086 Iran 283 The Netherlands 1,366 Indonesia 68,605 UAE 446,719 Vietnam 281 Tanzania 857 Germany 62,677 Malawi 370,380 The Netherlands 274 Iran 584 Ruanda 55,435 Germany 356,987 Argentina 105 Argentina 304 Uganda 52,383 Uganda 278,328 China 7 Malawi 9 Tanzania 43,666 Ruanda 261,369 United Kingdom 2 China 8 The Netherlands 37,747 Tanzania 242,638 United Kingdom 8 UAE 24,704 The Netherlands 179,227 Georgia 4 Taipei, China 21,894 Taipei, China 63, Exportation Figures for Tea Products GTIP Number: Green tea (not fermented) (in packaging weighing over 3 kilograms)

21 Total Exports in 2016 Total Exports in the Past 5 Years Main Exporters to Turkey Exports to Turkey (2016) Main exporters to Turkey China China Morocco China Japan Japan France USA Germany Japan China France Poland Sri Lanka Japan Morocco Sri Lanka Poland India Germany Indonesia Indonesia United Kingdom Taipei, China USA USA India France France Sweden United Kingdom Belgium United Kingdom Belgium United Kingdom Sri Lanka The Netherlands UAE Saudi Arabia Morocco The Netherlands Belgium Taipei, China Russia Egypt UAE Morocco Japan Russia Taipei, China Total exports to Turkey (in the past 5 years) 21