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Viewing cable 07ADANA3, ADANA COMPANY BLAZES TRAIL FOR TURKISH ORGANIC FOOD

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Reference ID Created Released Classification Origin
07ADANA3 2007-01-08 11:30 2011-08-24 01:00 UNCLASSIFIED Consulate Adana
null
Dianne Wampler  01/08/2007 09:46:04 PM  From  DB/Inbox:  Dianne Wampler

Cable 
Text:                                                                      
                                                                           
      
UNCLAS        ADANA 00003

SIPDIS
CX:
    ACTION: ECON
    INFO:   PMA FCS POL DCM CONS PA RAO FAS MGT AMB

DISSEMINATION: ECON /1
CHARGE: PROG

VZCZCAYO346
RR RUEHAK
DE RUEHDA #0003 0081130
ZNR UUUUU ZZH
R 081130Z JAN 07
FM AMCONSUL ADANA
TO RUCNMEM/EU MEMBER STATES
INFO RUEHDA/AMCONSUL ADANA 1011
UNCLAS ADANA 000003 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD
SUBJECT: ADANA COMPANY BLAZES TRAIL FOR TURKISH ORGANIC FOOD 
EXPORTERS 
 
 
Summary 
----------- 
 
1. (U) Despite reduced demand this year for Turkish citrus, one 
Adana-based company has successfully entered the European 
organic foods market with produce from farms in the region.  Pan 
Tarim's director, Zeynep Oztekin, cited two main challenges: 
convincing local growers to endure the difficulties of 
transitioning to chemical-free farming and managing the 
extensive auditing that is required for produce to be labeled 
organic.  She anticipates further growth in Europe, but believes 
the more mature U.S. market will be harder to enter.  Though 
organics are not a panacea, Oztekin's success shows there is a 
place for Turkey in the growing market for high value-added 
agricultural products.  End summary. 
 
A First for Turkey 
--------------------- 
 
2. (U) She told us that Pan Tarim is a pioneer in Turkey to 
specialize in growing, packing, and exporting organic produce, 
primarily tomatoes and citrus.  Her company, Pan Tarim, was the 
first in Turkey to have its produce certified as organic by the 
Institute for Markey Ecology, a gate-keeper for European organic 
food sellers. 
 
3. (U) Oztekin explained that securing certification from the 
IMO requires growers to demonstrate they have been operating 
without chemicals for at least two years.  In addition, the 
produce must pass through subsequent links in the supply chain - 
harvesting, storage and shipping - without exposure to 
chemicals.  Finally, organics require "traceability" from the 
seed to the market shelf as well as stringent labeling and 
worker safety requirements.  As a consequence, Oztekin has a far 
more intense relationship with her growers than other exporters 
would have.  She noted that this lengthy audit process demands 
accurate record-keeping and technology-intensive information 
management.  To improve efficiency, Pan Tarim is opening a 
packing house in February 2007 in the Adana Organized Industrial 
Zone.  Despite the administrative challenges, the rewards are 
high: currently, the farm price for organic citrus is about 
double that for conventionally grown fruit. 
 
4. (U) One of Pan's early success stories was achieved by 
working with growers from an Armenian village, Vakifli, in the 
Samandag District of Hatay.  Because the village had 
traditionally never used fertilizers or pesticides, they were 
able to gain organic certification without the usual transition 
period.  In cooperation with Oztekin, the villagers established 
a cooperative and their organic broke the Spanish monopoly in 
the UK market by exporting to Tesco, and Sainsbury.  As a 
result, the village was awarded "the Exporter of the Year" by 
Turkish Exporters Assembly (TIM) in 2004. 
 
Plenty of Room for Growth 
--------------------------------- 
 
5. (U) The market for Turkish organics is almost exclusively in 
Europe.  Pan's largest customers are the UK-based Tesco and 
Sainsbury's supermarkets.  Her produce is also sold in Carrefour 
markets in France - but not in Carrefour's Adana store.  The 
organic market in Europe is growing by about 20-30% annually and 
the global trade volume is expected to increase from $25 billion 
to $100 billion the next five years.  This year, Pan Tarim plans 
to double its citrus exports to 4,000 tons.  Oztekin is also 
applying for organic certification from the USDA, which will 
open up the American market as well.  Based on a visit she made 
to the U.S. under the Cochran Fellowship, Oztekin concluded that 
the technical requirements for organics in the U.S. are easier 
to achieve, but the sophisticated distribution and marketing 
systems of American food companies make the market very 
competitive.  Other markets include Korea, which imports "black" 
carrots, and may buy nuts and other produce as well. 
 
GREEN