Milk

MILK and MILK PRODUCTIONSPrepared byNazmiye ULU 2001431035idem Deniz DALAKLIOLU 2002431010

HISTORY OF DAIRY PRODUCTS INDUSTRY

A mosaic frieze was foundFirst milk users are nomads from Central Asia. (Mongolians, Persians and Turkish)Louis Pasteur discovered pasteurization in 1860Atatrk Forest Farm

MARKET STRUCTURE of DAIRY PRODUCTS in TURKEY

INSTITUTIONS in the INDUSTRY THREATS FOR NEW ENTRANTS OF DAIRY INDUSTRYINSTITUTIONS in the INDUSTRYSUPLIERS in the INDUSTRYCONSUMERS in the INDUSTRYGOVERNMENT POLICIES in TURKEY for DAIRY INDUSTRYEXTERNAL 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

Source: DPT, 8. BYKP, Gda Sanayii K Raporu,St ve St rnleri Alt Kom. Raporu

THREATS FOR NEW ENTRANTS OF DAIRY INDUSTRYunregistered production and sale8% value added tax ratehighly priced and inefficient bait instability in raw milk prices.

SUPLIERS in the INDUSTRYseveral 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 INDUSTRYCalcium Consumption is rather low

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

Table 4: Consumption Amount of Dairy products (1000 ton)Source: DPT, 8. BYKP, Gda Sanayii K Raporu,St ve St rnleri Alt Kom. Raporu

GOVERNMENT POLICIES in TURKEY for DAIRY INDUSTRYhelp 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 ExportLow export because of inefficiency and quality standardsMain 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)Source: DEMRBA,KARAGZL, AKBULUT,(2002), Dnya ve Trkiyede St ve St rnleri Sanayiinde Gelimeler.

2) Importdirectly related to cattle farming climatic change or a government decision affects

Table 6: Dairy products Import of Turkey (Tone)Source:DPT(2000) St ve St Mamulleri zel htisas Komisyonu Raporu, VIII. Be Yllk Kalknma Plan

Product NameYears% Change1995199619971998199619971998Milk & Cream2073079915148-6853Milk Powder6.2558.3868.2287.743342-6Butter3.2073.4443.8215.32271139

Cheddar127960.002558-92-100

White Cheese1.9211.485202336-23-8666Other Cheese8522.4821.0692.041191-5791

Table 7: Import of Milk Powder from Important Country Groups (Tone)Source: DPT(2000) St ve St Mamulleri zel htisas Komisyonu Raporu, VIII. Be Yllk Kalknma Plan

CONDUCT of FIRMS in DAIRY INDUSTRY

PRICING POLICY

MARKETING ACTIVITIES

R&D ACTIVITIES AND PRODUCT DIVERSIFICATIONS OF FIRMSMERGERS

PRICING POLICY

There is not a stable pricing policy Arguments between the milk producers and manufacturers. Manufacturer:-High price of raw milk, low demandProducer:-High cost & risky production -High bait pricesStreetsellers

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 DairyIntroduce new products-no lactose milk, different age group milk.Traditional products with modern techniques-Ayran, KaymakForeign products-Fruity milk & yoghurt,dairy for digestion.Ice-Cream

MERGERSStructural problems such as high cost and low demand -need mergers to finance their activitieshaving 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 TECHNOLOGYQUALITY STANDARDS OF PRODUCTS AND SERVICE GROWTH OF SALES & CONSUMPTIONGROWTH of CAPACITY

TECHNOLOGYA 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

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

ProductsYears1995-96 1996-97 1997-98Milk11,718,76,6yoghurt6,88,15,5White Cheese6,94,24,3Cheddar67,35Other cheeses7,10,510,2Butter2,62,92,9Milk powder9,411,5-5,7Total7,27,14,8

GROWTH of CAPACITY Government subsidiesCapacity 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 consumptionPolicies mainly tries to obstruct unregistered production It will take a long time to achieve efficiency and quality

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