Turkish prime minister Recep Tayyip Erdogan described South Africa as his country's “strategic partner” in the African continent while on a two-day official visit to Pretoria this week.
Turkey was among countries identified by Wesgro, the Western Cape investment and trade promotion agency, on Wednesday, as offering opportunities for exports by local food processing companies.
Buyers and import agents in Turkey, Poland, Russia and Mexico gave presentations on Skype on Wednesday to senior executives of companies looking for new markets for food products at a seminar organised by Wesgro at which Turkey was described as “a huge potential market with a young population open to trying new brands and products.”
Total exports to Turkey from the Western Cape rose by 104 percent from 2009 to 2010.
The main food export to Turkey last year was fish - particularly lobster and shellfish - accounting for 65.7 percent, worth R13.9 million, followed by fruit and nuts accounting for 17.9 percent, worth R3.8 million.
The leading food imports from Turkey were fruit and nuts accounting for 61 percent worth R1.7 million.
Michael Platt of Atid ETI, which carries out market research in the Middle East, North Africa, Greece and Cyprus, said Turkey had a young workforce, its gross domestic product was growing at a rate of 9.2 percent a year and its market was booming with “unprecedented capital investment”mostly from the Arabian Gulf and Europe.
But high protectionist measures were in place to protect local industry. It had rebounded from recession last year and was now “definitely on the upswing.”
To do business there it was necessary to be familiar with local regulations and be able to deal in Turkish.”There is low English comprehension and it is best to have an interpreter.”
It was also best to have a network of contacts and there were opportunities to take part in joint ventures with local companies.
Perin Gunesoglu, chairperson of the Ghana-Turkish Business Council, said there was an increasing demand in Turkey for processed foods but there were difficulties with bureaucracy and legal restrictions.
According to trade fact sheets given out at the seminar exports of liqueur and spirits from the Western Cape to Poland grew by 110.74 percent from 2009 to 2010.
Big changes have taken place in Polish eating and spending habits over the last 20 years with the switch to a free market economy resulting in rising disposable incomes.
The changes have led to two opposite trends - the popularity of convenience foods and snacks and a new interest in healthier living. Fast growing commodities include muesli and breakfast cereals, dairy products, frozen and chilled foods, ice cream, frozen yoghurt and ready to eat meals.
Consumption of red meat has declined and that of sea food risen. The food supplement market has risen and juices fortified with vitamins, minerals and fibres are becoming more popular.
The top food and beverage exports from South Africa to Poland last year were wine, fruit and vegetable juices, liqueurs, spirits, denatured ethyl alcohol, , fresh or dried grapes and fresh or dried citrus.
Exports from the Western Cape to Russia increased by 40.5 percent in 2010. The leading export from this country to Russia last year was citrus fruit valued at R785 million followed by manganese ore at R351.6 million and apples, pears and quinces valued at R 144,9 million.
Mexico is a net exporter of processed food and beverage. Last year two-way trade between the province and Mexico in this sector totalled R59.9 million with the Western Cape the net importer.
But the province exported wine, jams, jellies, marmalades, fruit, nut pastes and purees to Mexico. It accounted for 99 percent of South Africa's total food and beverage imports from Mexico.
These included beer, bottled water, non-alcoholoc beverages, sugar, liqueur, spirits and chocolate. - Audrey D'Angelo