Turkey builds reputation to become key UK supplier

A basket of fruit and vegetables make up the backbone of the agri-food scene in Turkey, where growers and exporters are working hard to open new markets and build on existing relationships with long-term destinations such as the UK.

The country, which lies between temperate and sub-tropical climates, stands as a geographical, cultural and economical link between Europe and Asia and enjoys the advantages that this location brings, serving the markets of Europe, the Middle East and North Africa.

According to Turkey’s Export Promotion Centre, the value of agri-food exports reached $10.8 billion (£7.1bn) in 2008 and accounted for eight per cent of the country’s total export earnings.

However, it has taken time and effort for Turkish growers and exporters to get to the stage where they can both meet the high standards required by supermarkets in European powerhouses such as the UK and Germany, as well as trade speculatively with more eastern markets such as Russia and Ukraine.

Turkish growers and exporters have had to face up to a number of challenges, from improving their reputation on the international market to boosting infrastructure and streamlining the produce industry, as well as working out transport and logistics.

One of the more recent obstacles has been the exchange rate, with the strong Turkish lira hitting trade. This has combined with exporters increasingly looking at speculation in rival markets, at the expense of more traditional European destinations such as the UK.

A more long-term challenge has been to improve Turkey’s international reputation so that new and existing markets can continue to source from the country without hesitation, safe in the knowledge that fruit and vegetables will be produced consistently and to high standards.

Another major obstacle is transport, because the bill from Turkey has gone up by 17 per cent on last year.

Ozbek Ozler, marketing director at Ozler Tarim, is confident that concentrating on the UK and Europe will pay off in the long term and insists that the family firm will continue to build on the long-standing relationships that it has built up in this market. “We believe that loyalty and programmed business with the big retail chains will be sustainable,” he says. “We are here to add value to the supply chain.

“This season, it has been quite warm but there has been a lot of rain, which caused fruit to mature earlier than normal and the loss of some harvest days.

“However, generally European prices are getting significantly lower than in countries such as Russia. Some Turkish companies are split between these regions, but we are heavily leant towards the UK and Germany, so this can make it difficult from time to time. However, it has not been a bad season - it just hasn’t been as straightforward as it was before.”

The firm accounts for up to 40 per cent of UK citrus imports out of Turkey and also focuses on cherries and apples, sending around 15 per cent of its total fruit offer to the UK each year. A long-term supplier to the UK and the rest of Europe, the company was one of the first to implement GlobalGAP, British Retail Consortium and Tesco Nature’s Choice certifications, among others.

However, Ozler warns that even though his family firm is, like many Turkish operators, keen to make the most of its offer and respond to the needs of the market, there are still growers who have not yet taken steps in this direction. This, in turn, has hit the reputation of the Turkish fresh produce sector as a whole and those who are making an effort are keen to differentiate themselves on what is a competitive market.

“The main problem is in Turkey in general,” says Ozler. “Some European countries consider Turkey a high-risk area and there are some companies that don’t know what Europe expects of them. This has caused a country-wide image that has affected all companies in Turkey.

“This issue is being addressed more and more and the country’s image is getting better. Growers are getting the right certification, as well as understanding the substance and essence of it.”

This progress works both ways and some of the more forward-thinking UK companies have partnered with Turkish representatives to make the most of their offer and forge a secure relationship with the source.

Peter Davis from Davis Worldwide is working Turkish leeks, citrus and iceberg lettuce, ahead of courgettes, white courgettes, cabbage, peppers and tomatoes, which will come on stream in the coming weeks. “The market is very good at the moment,” he says. “We have the advantage of having our own growers out there that are controlled by Muge Odezmir, who formerly worked as an agronomist with Edeka supermarkets before returning back to Turkey to take care of our exports into Europe.

“Turkey has excellent relationships with both the UK and Germany, where there are of course a lot of Turkish and Kurdish people living,” he continues. “We have good demand from the UK for their products, such as the likes of white courgettes and large watermelons in season.

“This year, we have had an excellent season for leeks and citrus and we are also very careful to make sure that all our growers stick to GlobalGAP protocols. Muge will visit our growers and will sit down with them and plan seasons, including crop rotations, spray records and due diligence, seed purchases and making sure that even before the crop is planted we have everything in place…

“Turkey’s infrastructure is still very fragmented, but it has had a lot of help from outside sources, and a lot of German and US companies have invested heavily. Indeed, some of the packhouses that we run have some of the most modern equipment, most of which has been sourced either from Germany or Italy.

“Turkey will continue to be a major player in the market; it has some of the cheapest labour in Europe, which makes it more advantageous for us to plant labour-intensive products there, and they are willing to invest in the future of their country and the category.”

But with the country growing stronger and increasing its presence in a range of international markets, how will the UK fit in with this in future? Already, it seems, there is a question mark over whether increasingly low returns and the same high standards are worthwhile for Turkish senders. However, many well-established growers and exporters are keen to keep in with the UK as a long-term and reliable market.

“Turkish growers and exporters are pulling away from the UK and finding it to be more work than other markets, with all the certifications and quality standards, but they are not returning anything better than other markets,” says Ozler. “However, there are companies, such as ourselves, who are being loyal to the UK and I believe that we will win out in the long term. At the same time, growers are developing more rapidly than anyone else in the sector, looking at earlier varieties, improved quality and better sizes. Turkish growers have it in their minds what consumers are looking for and as a result of this, exporters will be more dominant in the market in years to come.”