Milk and milk productions prepared by

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

Table 2:Dairy Firms in Turkey Which Get Confirmation Number from EU for Exporting to EU

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)

Table 4: Consumption Amount of Dairy products (1000 ton)

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

• 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)

• 2) Import

• directly related to cattle farming

• climatic change or a government decision affects

Table 6: Dairy products Import of Turkey (Tone)

Table 7: Import of Milk Powder from Important Country Groups (Tone)

CONDUCT of FIRMS in DAIRY INDUSTRY

• PRICING POLICY

• MARKETING ACTIVITIES

• R&D ACTIVITIES AND PRODUCT 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

• TECHNOLOGY

• QUALITY STANDARDS OF PRODUCTS AND SERVICE

• GROWTH OF SALES & CONSUMPTION

• 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

GROWTH OF SALES & CONSUMPTION

• -Higher income level

• -Higher education level

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