MILK and MILK
PRODUCTIONS
Prepared by
Nazmiye ULU
2001431035
Çiğdem Deniz DALAKLIOĞLU
2002431010
HISTORY OF DAIRY PRODUCTS INDUSTRY
• A mosaic frieze was found
• First milk users are nomads from Central
Asia. (Mongolians, Persians and Turkish)
• Louis Pasteur discovered pasteurization in
1860
• Atatürk Forest Farm
MARKET STRUCTURE of DAIRY PRODUCTS
in TURKEY
• INSTITUTIONS in the INDUSTRY
• THREATS FOR NEW ENTRANTS OF DAIRY
•
•
•
•
•
INDUSTRY
INSTITUTIONS in the INDUSTRY
SUPLIERS in the INDUSTRY
CONSUMERS in the INDUSTRY
GOVERNMENT POLICIES in TURKEY for DAIRY
INDUSTRY
EXTERNAL TRADE of TURKEY in DAIRY
PRODUCTS INDUSTRY
INSTITUTIONS in the
INDUSTRY
-divided into 3 groups
• their size
• their capacity
• their technology
-Encouragement Premium
Table 1: Premium Paid Amount of Milk
Years
Milk Production Total Amount
(Tone)
Milk
of Paid
Premium
(%)
1995
10.601.550
22.863.464
2,15
1996
10.760.915
1.516.618.237
14.09
1997
10.076.526
1.785.911.924
17.72
1998
9.970.531
994.409.032
9.97
end
August
of
Table 2:Dairy Firms in Turkey Which Get Confirmation Number
from EU for Exporting to EU
Name of Institution
City
Yörsan Gıda Mam.San. ve Tic. A.Ş.
Balıkesir
Mis Süt A.Ş.
Balıkesir
Teksüt Mam.San.ve Tic. A.Ş.
Balıkesir
Tarım Taç A.Ş.
Edirne/İpsala
Mamsan Gıda San. Ve Tic.A.Ş.
Edirne/Havsa
Mis Süt. San .A.Ş.
İstanbul
Pınar Süt Mam.San .A.Ş.
İzmir
Kiraz Süt Mam.San .A.Ş.
İzmir
Bahçıvan Gıda Süt Mam.San. ve Tic. A.Ş.
Kırklareli
Tikveşli Mak.San.ve Tic. A.Ş.
Kırklareli
Yaşar Don. Gıda Mad.
Kahraman Maraş
Unilever San. Ve Tic. A.Ş.
Tekirdağ
Kars Karper Peynir ve Gıda San. Ve Tekirdağ
Tic.A.Ş.
Source: DPT, 8. BYKP, Gıda Sanayii ÖİK Raporu,Süt ve Süt Ürünleri Alt Kom. Raporu
THREATS FOR NEW ENTRANTS OF DAIRY INDUSTRY
• unregistered production and sale
• 8% value added tax rate
• highly priced and inefficient bait
• instability in raw milk prices.
SUPLIERS in the INDUSTRY
• several actors (Livestock farms, milk marketing
cooperatives, additive stuff production firms, dairy industry
machines production firms, construction firms, energy suppliers,
package producing firms, transportation vehicles )
• Additive stuff is usually imported from
abroad
• Dairy industry machines are imported
CONSUMERS in the INDUSTRY
• Calcium
• Consumption is rather low
Table 3: Per Capita Milk Consumption (kg/person)
COUNTRY
CONSUMPTION
Turkey
6
Saudi Arabia
14
Greece
43
Italy
61
Germany
67
USA
88
Switzerland
98
Spain
104
England
107
Sweden
120
Norway
138
Finland
158
Source: ITO, Dairy products Industry, ITO Publication no: 65, İzmir,1999
Table 4: Consumption Amount of Dairy products (1000 ton)
Products
Milk
Yoghurt
White Cheese
Cheddar
Cheese
Other Cheese
Butter
Milk powder
Total
1995
230
637
168
1996
257
680
180
1997
305
735
190
1998
325
775
195
41
38
119
11
3.075
43
41
122
12
3.297
47
41
126
14
3.530
49
45
129
13
3.700
Source: DPT, 8. BYKP, Gıda Sanayii ÖİK Raporu,Süt ve Süt Ürünleri Alt Kom. Raporu
GOVERNMENT POLICIES in TURKEY for
DAIRY INDUSTRY
• help industries to increase their income
• The premium can be given over 1000
tones a year
• 1300 milk firms get the premiums
EXTERNAL TRADE of TURKEY in DAIRY
PRODUCTS INDUSTRY
1) Export
•
•
•
•
•
Low export because of inefficiency and quality
standards
Main exportable products are cheese and butter
‘tulum’ and ‘white cheese’ are exported to Saudi Arabia
a great decrease in export of butter because of the
economic crisis in Russia and herbal nutrition tendency
ice cream export started to increase
Table 5: Export of Dairy products (Tone)
1996
1997
1998
1999
2000
Cheese
4369
5770
4338
4676
4571
Butter
396
188
83
103
80
IceCream
1118
1254
1616
1084
1554
Other
747
839
468
855
1048
Source: DEMİRBAŞ,KARAGÖZLÜ, AKBULUT,(2002), Dünya ve Türkiye’de Süt ve Süt Ürünleri Sana
2) Import
• directly related to cattle farming
• climatic change or a government decision
affects
Table 6: Dairy products Import of Turkey (Tone)
Product Name
Years
% Change
1995
1996
1997
1998
1996
1997
1998
Milk & Cream
207
307
99
151
48
-68
53
Milk Powder
6.255
8.386
8.228 7.743
34
2
-6
Butter
3.207
3.444
3.821 5.322
7
11
39
Cheddar
12
79
6
0.002
558
-92
-100
White Cheese
1.921
1.485
202
336
-23
-86
66
Other Cheese
852
2.482
1.069 2.041
191
-57
91
Source:DPT(2000) Süt ve Süt Mamulleri Özel İhtisas Komisyonu Raporu, VIII. Beş Yıllık Kalkınma Planı
Table 7: Import of Milk Powder from Important Country
Groups (Tone)
Countries
Years
% Change
1995
1996
1997
1998
1996
1997
1998
EU(15)
5.008
5.851
5.780
5.163
16
-2
-11
ICC
986
1.463
1.026
584
48
-30
-43
USA
244
255
60
84
4
-77
31
S. Africa
-
-
-
100
-
-
-
Poland
60
309
925
129
4,5
199
-86
Czech
Republic
-
325
-
60
-
-
-
New Zealand -
-
375
-
-
-
-
Romania
-
19
12
-
-
-37
-
Source: DPT(2000) Süt ve Süt Mamulleri Özel İhtisas Komisyonu Raporu, VIII. Beş Yıllık Kalkınma Planı
CONDUCT of FIRMS in DAIRY
INDUSTRY
A. PRICING POLICY
B. MARKETING ACTIVITIES
C. R&D ACTIVITIES AND PRODUCT
D.
DIVERSIFICATIONS OF FIRMS
MERGERS
PRICING POLICY
• There is not a stable pricing policy
• Arguments between the milk producers and
manufacturers.
• Manufacturer:
-High price of raw milk, low demand
• Producer:
-High cost & risky production
-High bait prices
• Streetsellers
MARKETING ACTIVITIES
• Different types of marketing activities
-Big firms
-Medium Sized
-Small seasonal or family firms
R & D ACTIVITIES AND PRODUCT
DIVERSIFICATIONS OF FIRMS
• To increase consumption level of Dairy
• Introduce new products
-no lactose milk, different age group milk.
• Traditional products with modern techniques
-Ayran, Kaymak
• Foreign products
-Fruity milk & yoghurt,dairy for digestion.
• Ice-Cream
MERGERS
• Structural problems such as high cost and
low demand
-need mergers to finance their activities
• having a dynamic market is an advantage
in long-term
-Foreign firms’ main strategy is to capture
the market by using big firms name
-Danone
V.PERFORMANCE OF FIRMS in
DAIRY INDUSTRY
A. TECHNOLOGY
B. QUALITY STANDARDS OF PRODUCTS
AND SERVICE
C. GROWTH OF SALES & CONSUMPTION
D. GROWTH of CAPACITY
TECHNOLOGY
• A lot of unsregistered firms mostly using
primitive techniques
• institutional firms in the industry achieve
state-of-the-art dairy technology
QUALITY STANDARDS OF PRODUCTS
AND SERVICE
• ISO 9000 series were created as
internationally accepted standard
• Turkey applies the standards as TS EN ISO
9001
• 4 firms certificated with TS EN ISO 9001
and 28 firms with ISO 9002
Table 8:TS EN ISO 9001 Certificated Dairy Firms in Turkey
Firm
Content of Certificate
Certificat
e
Date
Pınar Süt Mamulleri Sanayi A.Ş.
Dairy Products
1998
Mis Süt sanayii A.Ş.-Gönen
Tesisleri
Milk, Aromatic Milk,Other milks 1999
(mother, children calcium plus
ect), Ayran,
Butter, Cheese, Milk Powder
Mis Süt sanayii A.Ş.-İstanbul
Tesisleri
Pasteurized milk, Ayran, Yoghurt,
milk, Butter, Milk Powder
1999
Unilever Sanayi ve Ticaret Türk
A.Ş.- Algida
Ice Cream
1999
GROWTH OF SALES & CONSUMPTION
-Higher income level
-Higher education level
Table 9: Increase in Demand of Dairy products (%)
Products
Years
1995-96
1996-97
1997-98
Milk
11,7
18,7
6,6
yoghurt
6,8
8,1
5,5
White Cheese
6,9
4,2
4,3
Cheddar
6
7,3
5
Other cheeses
7,1
0,5
10,2
Butter
2,6
2,9
2,9
Milk powder
9,4
11,5
-5,7
Total
7,2
7,1
4,8
GROWTH of CAPACITY
• Government subsidies
• Capacity usage ratio is increased from
17% to 28%
VI. CONCLUSION
• Confused structure by comprising the most
•
•
•
•
modern and most primitive techniques together
Dilemma obstructs the dairy sector of Turkey to
achieve EU quality standards and to compete in
international area
Inefficient and Unhealty consumption
Policies mainly tries to obstruct unregistered
production
It will take a long time to achieve efficiency and
quality
Thanks for Listening