Dear Distinguished Guests, Thank you everyone for attending , may I take the opportunity to introduce myself, I am Nurdan Erbug, Founder and General Director of Anadolu Hayvancilik. 400 YEARS OF RELATIONS I like you to stop for a moment and take a picture of this very moment. We are here today with delegates from Turkey and the Netherlands .. representing the dairy sector of both countries... the relations between the two countries dates back 400 years. Today, we intend to continue working to boost this cooperation. The year 2012 will be the top year for cooperation between the two countries. IMPORTANT ROLE OF REPUBLIC OF TURKEY’S MINISTRY OF FOOD, AGRICULTURE AND LIVESTOCK In recent years, the livestock industry in Turkey has seen important growth. The Ministry of Food , Agriculture and Livestock is subsidizing farmers with loans of O% interest ; 2 years non-payment and totally 7 years credits. Therefore farmers are able to develop their dairy farms and buy equipment and machinery. The Ministry subsidizes milk production, artificial insemination and calf birth, milking equipments and roughage in cattle feed. Subsidies such as these certainly enable the dairy farms to be more profitable and sustainable. Ministry organizes School Milk as they process 1,7 Million tons Milk. The exports are subsidized which enable the milk prices to become more stabilized. IMPORT OF BREEDING CATTLE AND SEMEN In the last decade, Turkey has imported great numbers of cattle for breeding from the EU and the US. The herds of cattle and the genetic quality of the sperm imported to Turkey has created a large population of excellent quality cattle on Turkey’s dairy farms. This has enabled the farmers to increase the production of milk and meat per head of cattle, thus creating a more profitable dairy industry. 1 LIVESTOCK SECTOR The recent reorganization of the Turkish Ministry of Agriculture has greatly encouraged private investment in the livestock sector. Large companies from different sectors are investing in the livestock breeding to support its development. Today the investors are constructing large and technologically advanced, progressive dairy farms with a high capacity for milk and beef production. DAIRY FARMS IN TURKEY Since the year 2000, Turkish dairy farming has been transforming very rapidly. This transformation is most noticeable in the increase in the number of dairy farms. In 2000, there were only approximately 20 farms with 100 heads or more. In 2011, the number of farms with 500 milking cows or more rose dramatically to 150, while now the number of dairy farms with 100 heads or more is around 3,000. This is astounding growth, and has created greater opportunities and room for further development. Moreover, these dairy farms with more than 100 milking cows are increasing in number, and they principally belong to investors who come from different sectors. 2 COOPERATION POSSIBILITIES BETWEEN HOLLAND AND TURKEY At the same time, due to the quota applications and high value of agricultural lands in Holland, Dutch farmers who have been in the dairy farming industry for 3 or 4 generations have now started to invest in other countries. Thus, the current environment in both countries is favorable to closer agricultural cooperation between Turkey and Holland, and indeed these Turkish investors and Dutch farmers have the opportunity to cooperate very productively. Moreover, because of the rapid developments in Turkish dairy farming, there are many opportunities for qualified workers. Therefore, there is also a big potential for cooperation between the Netherlands and Turkey because the two countries could cooperate on Training, Livestock Breeding, Animal Welfare Development, Maintenance of Higher Fertility Rate, Feeding, Treatment of Diseases, Health and Hygiene, Farm Management, Manure Management and Biogas Installations. IMPORTANCE OF TRAINING What is more, we as Anadolu Hayvancilik are continuously training our team and also the Turkish breeders, veterinarians, animal scientists and technicians involved in the dairy industry . We organize the trainings in Holland, and in the United States, and in doing so we are further strengthening ties with the experienced and wellknown Dutch companies. 3 First of all Koepon Holding & Alta Genetics, the group that we are working with, is very experienced in providing training as they are welcoming thousands of breeders every year for the interactive training tours. We believe that Seeing is Believing ! TURKEY’S YOUNG POPULATION Turkey has a population of 74 million people and is growing with a rising income. 40% of the population are under 23 years old. This makes Turkey one of the largest markets in its region, and the changing consumer habits of the younger generation boost domestic consumption. TURKEY OFFERS Turkey offers a fertile agricultural investment environment to the entrepreneurs on the back of the following: Ideal geographical location ; Suitable ecological conditions and good climate for agricultural production ; Competitive labor force ; Availability of almost all raw materials for the industry ; Continued government investments ; Government support for agricultural investments ; Increasing production efficiency due to progressive automation ; Increased interest in organic farming ; The strong and attractive relationships with the Middle Eastern countries ; Increased interest in Turkish agriculture and livestock sector in recent years from investors from the Middle East and elsewhere. 4 Turkey’s strong financial balances, stabilizied economy, employement outlook, low interest rates and domestic consumption might attract the Dutch companies to invest in Turkey. Thank you distinguished guests for the opportunity to be here today, and I hope for greater cooperation between our two countries in the future. 5