BMI's Executive Summary

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Belgian-based UNIVEG Group, has recently announced that it has become a strategic shareholder in Turkish fruit company ALARA. According to the deal, the two companies will partner to export cherries and figs worldwide, with UNIVEG gradually purchasing shares in the Turkish company. UNIVEG operates in 23 countries and is one of the largest fresh produce distributors in the world, with an annual turnover of EUR2.2bn (US$3.2mn), while ALARA is the world's biggest fresh fig exporter, and a major cherry exporter to Europe. The two companies will work together to improve growing techniques, packaging, and to further develop Turkey's export potential, while also looking to grow the Turkish market share. 'Thanks to its 225 ha of orchards, its high quality product, its strong brand name and its innovative agricultural practices, ALARA has an excellent expertise in the field of growing, packing and exporting cherries and fresh figs through worldwide distribution channels', said Hein Deprez, CEO of the UNIVEG group of companies.

The Turkish food and drink sector has increasingly been attracting attention from a number of foreign operators who are drawn to the significant opportunities, and UNIVEG's decision to invest in the agricultural sector comes as no surprise, given this sector's vast potential. Turkey has one of the world's strongest agricultural sectors thanks to its ecological diversity and climate. It is among the world's leading exporters in almost all of the major agricultural product sub-sectors, and has a significant place among the world's biggest cereal-producing countries, as one of the top six wheat exporters in the world. Furthermore, Turkey holds a competitive advantage in sub-sectors such as organic foods, thanks to its large, cheap workforce. As the majority of Turkey's farmers still use traditional methods, most of their farms have always been de facto organic, as are now starting to become certified as such.

A major drive behind the recent strong growth in the economy in general and the food and drink industry in particular has been the mounting rates of foreign direct investment (FDI). As Turkey's economic and political risk profile improves, net foreign capital inflows are set to remain at high levels through to 2009. Net foreign direct investment, which hit a record US$19.8bn in 2006 is likely to be similarly robust in 2007, with the figure for the first seven months of the year totalling US$12.7bn, an 18.7% year-on-year (y-o-y) increase. Our view is underpinned by an expectation that Turkey's export sector is set for a major expansion going forward, on the back of production-oriented foreign investments. With labour costs accelerating rapidly in the new EU accession states, Turkey is going to become an increasingly attractive destination for export-oriented investments, such as those made by a growing number of food and drink firms. Not only do we expect the country's regulatory environment to improve in tandem with the structural reforms likely to be enacted under the pro-business government, but food and drink companies will favour the country's large and growing domestic market, as well as Turkey's strategic geographic position with access to both the EU and the Middle East.

Competitive Landscape for Middle East & Africa Food & Drink Reports: Sample of  
Companies Ranked

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At-a-glance perspective on the strengths, weaknesses, opportunities and threats facing each market’s food & drink industry. BMI also provides similar economic and business environment studies. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) covering all leading food and drink companies operating in each market, including competitive intelligence on geographic presence and competitive positioning of multinationals against local companies; leading products, services and brands; sales and local market share; foreign direct investment, projects, partners and acquisition strategy. Illustration of the industry via rankings tables comparing revenues, number of outlets, number of employees and registration dates. BMI analyses each company’s performance, market position, strategy and investment potential.

Network of Middle Eastern & African Food Sources

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BMI's Middle Eastern & African Food Reports are based on an extensive network of multilateral organisations, government departments, food industry associations, chambers of commerce and company reports. Information sources include: