Turkey set to be the next major market for dairy farmers, according to a new report by Dutch financial services company Rabobank.
Its analysts say that its growing cities and increasing disposable income present an attractive proposition for dairy farmers and producers looking for new opportunities. Its dairy market is currently worth around €5.2bn and is set to rise to around €9.2bn by 2018.
There are some challenges, however, especially since it is still an emerging market. Political conditions can be volatile, immediately impacting economic conditions for those exporting to the country or operating local subsidiaries. Tariffs may also be applicable for importing Turkish products. Rabobank recommends partenering with local firms and using local supplies to help establish a business in the country.
Their analysts say: "Taking advantage of the opportunities in the domestic market or in exports will require a secure milk supply source, especially as Turkish imports are subject to tariffs."