MILK and MILK PRODUCTIONS

1. MILK and MILK PRODUCTIONS Prepared by Nazmiye ULU 2001431035 Çiğdem Deniz DALAKLIOĞLU 2002431010

2. 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 pasteurizationin 1860 • Atatürk Forest Farm

3. 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

4. INSTITUTIONS in the INDUSTRY -divided into 3 groups • their size • their capacity • their technology -Encouragement Premium

5. Table 1: Premium Paid Amount of Milk

6. Table 2:Dairy Firms in Turkey Which Get Confirmation Number from EU for Exporting to EU Source: DPT, 8. BYKP, Gıda Sanayii ÖİK Raporu,Süt ve Süt Ürünleri Alt Kom. Raporu

7. 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.

8. 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

9. CONSUMERS in the INDUSTRY • Calcium • Consumption is rather low

10. Table 3: Per Capita Milk Consumption (kg/person) Source: ITO, Dairy products Industry, ITO Publication no: 65, İzmir,1999

11. Table 4: Consumption Amount of Dairy products (1000 ton) Source: DPT, 8. BYKP, Gıda Sanayii ÖİK Raporu,Süt ve Süt Ürünleri Alt Kom. Raporu

12. 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

13. EXTERNAL TRADE of TURKEY in DAIRY PRODUCTS INDUSTRY • 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

14. Table 5: Export of Dairy products (Tone) Source: DEMİRBAŞ,KARAGÖZLÜ, AKBULUT,(2002), Dünya ve Türkiye’de Süt ve Süt Ürünleri Sanayiinde Gelişmeler.

15. 2) Import • directly related to cattle farming • climatic change or a government decision affects

16. Table 6: Dairy products Import of Turkey (Tone) Source:DPT(2000) Süt ve Süt Mamulleri Özel İhtisas Komisyonu Raporu, VIII. Beş Yıllık Kalkınma Planı

17. Table 7: Import of Milk Powder from Important Country Groups (Tone) Source: DPT(2000) Süt ve Süt Mamulleri Özel İhtisas Komisyonu Raporu, VIII. Beş Yıllık Kalkınma Planı

18. CONDUCT of FIRMS in DAIRY INDUSTRY • PRICING POLICY • MARKETING ACTIVITIES • R&D ACTIVITIES AND PRODUCT DIVERSIFICATIONS OF FIRMS • MERGERS

19. 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

20. MARKETING ACTIVITIES • Different types of marketing activities -Big firms -Medium Sized -Small seasonal or family firms

21. 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

22. 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

23. V.PERFORMANCE OF FIRMS in DAIRY INDUSTRY • TECHNOLOGY • QUALITY STANDARDS OF PRODUCTS AND SERVICE • GROWTH OF SALES & CONSUMPTION • GROWTH of CAPACITY

24. TECHNOLOGY • A lot of unsregistered firms mostly using primitive techniques • institutional firms in the industry achieve state-of-the-art dairy technology

25. 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

26. Table 8:TS EN ISO 9001 Certificated Dairy Firms in Turkey

27. GROWTH OF SALES & CONSUMPTION -Higher income level -Higher education level

28. Table 9: Increase in Demand of Dairy products (%)

29. GROWTH of CAPACITY • Government subsidies • Capacity usage ratio is increased from 17% to 28%

30. 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

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