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Innovation Norway – Istanbul Caglar Erdogan, Senior Market Adviser Ali Basol, Senior Market Advisercaglar.erdogan@innovationnorway.noTel: +90 212 284 4362Mobile: +90 532 2358254Fax:+90 212 284 4364

Turkish Aquaculture Sector

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Overview of Turkish AquaculturePopulation : 79,9 million (2012 estimate)Area : 814.000 km²Coast Line : 8.333 kmMarine Area : 24 million hectareInland Water Area: 1 million hectare (lake, river, dam, reservoir)

33 rivers : 177.000 km length

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History of Aquaculture in Turkey

Dalyan fisheries in the Mediterranean lagoons

1960s : Modern aquaculture began (rainbow trout)

1970s : Common Carp farming initiated

1985 : Gilthead Seabream & European Seabass.

1990s : Mariculture trials with rainbow trout and Atlantic

salmon in the Black Sea. Kuruma prawn on the Mediterranean

and Mussels in the Northern Aegean. Atlantic salmon failed.

2000s : New species such as sharpsnout Seabream, common

Seabream, common dentex and blue fin tuna fattening started.

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Aquaculture Potential of Turkey

Resources Number Area (ha)Naturel Lakes 200 906,118Dam Lakes 206 342,377Man-made Lakes 952 27,032Seas (Total Surface) 4 24,607,200TOTAL 1,362 25,882,727

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Total Fisheries Production in 2010

tons 2010Catch of Sea Fish 366,210Catch of Other Sea Products 41,638Catch of Fresh Water Products 33,337Inland Aquaculture Production 78,568Sea Water Aquaculture Production 88,573TOTAL 608,326

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Catch vs Aquaculture

6Source: Statistical Institute of Turkey

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Catch of Sea Fish

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tons 2006 2007 2008 2009 2010Anchovy 270,000 385,000 251,675 204,699 229,023Sprat 7,311 11,921 39,303 53,385 57,023Pilchard 15,586 20,941 17,531 30,091 27,639Horse Mackarel 14,127 22,991 22,134 20,373 14,392Whiting 9,112 12,940 12,231 11,146 13,558Atlantic Bonito 29,690 5,965 6,448 7,036 9,401Scad 11,800 9,030 10,043 7,895 6,055Blue Fish 8,399 6,858 4,048 5,999 4,744Gray Mullet 8,915 8,291 3,345 2,987 3,119Hake/European Hake 3,460 3,337 1,252 1,557 1,256TOTAL 378,400 487,274 368,010 345,168 366,210

Source: Statistical Institute of Turkey

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Catch of Other Sea Products

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tons 2006 2007 2008 2009 2010Striped Venus 48,344 47,215 36,896 24,574 26,931Sea Snail 11,613 13,791 11,442 6,085 8,437Prawn 3,856 3,917 4,668 4,614 4,705Squid 972 844 537 576 528Carpet Shell 1,266 1,334 1,255 68 56Mediterenean Mussel 9,234 1,493 342 6,261 981TOTAL 75,285 68,594 55,140 42,178 41,638

Catch of Fresh Water Productstons 2006 2007 2008 2009 2010Tarek 11,978 11,623 11,758 10,685 11,382Common Carb 12,116 12,286 11,625 10,964 12,058Transcacusian Barb 967 985 993 891 962Pike Perch 1,656 1,586 1,346 1,234 1,476Sand Smelt 6,677 6,540 6,630 6,184 4,438Snail 1,462 1,397 1,007 2,227 1,991Cray Fish 797 816 783 734 1,030TOTAL 35,653 35,233 34,142 32,919 33,337

Source: Statistical Institute of Turkey

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Total Aquaculture Production in 2010tons 2010Trout (Freshwater) 78,165Carb 403Trout (Sea) 7,079Sea Bream 28,157Sea Bass 50,796Mussel 340Other 2,201TOTAL 167,141

Source: Statistical Institute of Turkey

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Aquaculture Production in Turkey

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-Inland Water (tons ) 2006 2007 2008 2009 2010Trout 56,026 58,433 65,928 75,657 78,165Carb 668 600 629 591 403Subtotal 56,694 59,033 66,557 76,248 78,568-Sea Water (tons ) 2006 2007 2008 2009 2010Trout 1,633 2,740 2,721 5,229 7,079Sea Bream 28,463 33,500 31,670 28,362 28,157Sea Bass 38,408 41,900 49,270 46,554 50,796Mussel 1,545 1,100 196 89 340Other 2,200 1,600 1,772 2,247 2,201Subtotal 72,249 80,840 85,629 82,481 88,573TOTAL 128,943 139,873 152,186 158,729 167,141

Source: Statistical Institute of Turkey

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Aquaculture Production in Turkey

11Source: Statistical Institute of Turkey

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Number of Fish Farms as of 2011

12Source: Republic of Turkey, Ministry of Food, Agriculture & Husbandry, Directorate General of Fisheries & Aquaculture Products

Capacity Capacity Average CapacityYEAR: 2011 (tons/year) (tons/year) of a Producer (tons)Inland Waters (Fresh Water) 1,720 197,002 231 38,015 115Sea Production 368 174,521 133 38,934 474TOTAL 2,088 371,523 364 76,949 178

Present Investment Stage

Number Number

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Fish Farms

13Source: Republic of Turkey, Ministry of Food, Agriculture & Animal Husbandry, Directorate of Fishing Water Products

Year Number of Producers* ChangeCapacity*

(tons/year)Change

2002 1,245 - 50,104 -2003 1,273 2.2% 57,908 15.6%2004 1,314 3.2% 77,706 34.2%2005 1,489 13.3% 112,418 44.7%2006 1,368 -8.1% 130,367 16.0%2007 1,528 11.7% 158,296 21.4%2008 1,748 14.4% 199,360 25.9%2009 1,855 6.1% 238,750 19.8%2010 1,894 2.1% 297,750 24.7%2011 2,088 10.2% 371,523 24.8%

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Top Marine Aquaculture Producers as of January 1st, 2011

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Producer Capacity (ton/yr) Species Farmed Internet Page1 Kilic Sea Products 9830 Seabream, Seabass, Corb, Red Coral, Dentex, Grouper http://www.kilicdeniz.com.tr/2 Fjord Marin Sea Products 8800 Seabream, Seabass, Common Bream, Red Coral, Dentex http://www.fjord-marin.com.tr/3 Gumusdoga Water Products 6550 Seabream, Seabass http://www.gumusdoga.com.tr/4 Sürsan Water Products 5800 Seabream, Seabass http://www.sursanaqua.com/5 Ege Marin Water Products 5150 Seabream, Seabass, Common Bream, Red Coral, Dentex

Source: Republic of Turkey, Ministry of Food, Agriculture & Animal Husbandry

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Structure of the Aquaculture Industry

90% of all sea farm production is Seabass and Seabream

95% of the Seabass & Seabream are produced in Aegean Sea

About 40% of the Seabass & Seabream are produced in Mugla region (on shores of Aegean Sea)

In terms of amount of production, Black Sea Region follows Aegean Sea followed by Marmara Sea and Mediterranean and Central Anatolia (freshwater trout)

Aquaculture support services (feed plants, equipment providers/distributors and consultants) are based in the western part of the country close to Aegean Sea.

Inland (freshwater) producers are generally small in size

There are some large sea/marine producers mainly producing Seabass and Seabream.

15Source: UN Food & Agriculture Organization, Statistical Institute of Turkey

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Positive Trend in Aquaculture in Turkey

Turkey is 3rd in the world in growth of Aquaculture production

Turkey has 25% market share in Europe in Seabass & Seabream trade

Turkey is leader in Trout (fresh water) production in Europe

The share of Turkey in Aquaculture production in the world has increased from 0.03% to 0.3% in 10 years

The Aquaculture production has increased 30%; the production capacity has increased 128%; the value of the production has increased 39% (2006-2010).

Although still not at desired level, there is an increasing trend of establishing processing plants which will increase processed products hence value added products.

16Source: Food & Agriculture Organization of UN; Aquaculture Producers Central Union of Turkey

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Challenges in Aquaculture in Turkey

Instability of prices

Prejudiced approach to aquaculture products vs. catch products from domestic consumer

Time consuming bureaucracy, specially in rental applications (assessment of environmental effects etc.) (IN note: Ministry claims to have solved this problem as of 2012)

Conflict of users of shore such as tourism, aquaculture (IN note: There seems to be extra publicity about the effects of farms to sea shores; industry and municipality effects are much higher)

Unavailability of experienced labor (cheap labor is highly available when experience is unnecessary)

17Source: Aquaculture Producers Central Union of Turkey; Mugla Aquaculture Producers Association

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Laws & GoverningAquaculture production is governed my Ministry of Food, Agriculture and Husbandry (previously Ministry of Agriculture and Rural Affairs)

All fisheries and aquaculture activities are regulated by the Fisheries Law No. 1380, enacted in 1971 and amended by the Fisheries Law No. 3288 of 1986

«Aquaculture Regulation» was first issued on 29.06.2004 and was amended in 2005, 2007, 2009

The Directorate General of Fisheries & Aquaculture Products in Ministry of Food, Agriculture & Husbandry is responsible of governing aquaculture production

All producers must have a licence from Ministry of Food, Agriculture & Husbandry (has offices in all 81 provinces)

Applications for trout, carp, seabass and seabream on growing farms and hatcheries, for these species up to two million fry/year capacity can be submitted to the Provincial Directorates (the rest should apply directly to directorate in Ankara)

18Source: Directorate General of Fisheries & Aquaculture Products, UN Food & Agriculture Organization (FAO)

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«Aquaculture Regulation», 2004

This regulation (with amandments in 2005, 2007, 2009) covers and sets out rules for the following issues:

Site selection for inland and marine farms.Application and evaluation procedures for fish farming licenses.Approving the projects and issuing licenses.Improving production capacity, species etc., site changes and sales. Other aquaculture activities (tuna fattening, organic farming, etc.).Importing broodstock fish, egg and fry.Compulsory technical staff employment.Fish health management.Environmental impacts and protection.Monitoring and control of farming activities.Fish welfare.

19Source: Directorate General of Fisheries & Aquaculture Products, UN Food & Agriculture Organization (FAO)

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«Renting Water and Water Areas for Aquaculture Production in Seas and Inland Waters Regulation», 2011

There is a Regulation issued in 01.06.2011 about «Renting Water and Water Areas for Aquaculture Production in Seas and Inland Waters»

Provincial directorates are responsible of rentingRental durations are up to 15 years and determined by the provincial directorates according to the conditions of the actual locationWith this regulation the duration of the bureaucratic process has shortenedMore equal pricing in all regions and provinces of TurkeyLonger lease durations

20Source: Directorate General of Fisheries & Aquaculture Products

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Research about AquacultureThere are 13 fisheries faculties and 5 departments at agriculture faculties providing undergraduate and graduate education in fisheries (including aquaculture) and aquatic sciences

Fisheries programs in vocational high schools

«The Central Fisheries Institute» associated with Ministry of Food, Agriculture & Husbandry is in Trabzon (north east Black Sea coast of Turkey)

Second Fisheries Institute is on the Mediterranean Coast established by a UN Food and Agriculture Organization project

Two other institutes are in Egridir/Isparta and in Elazig concentrate on inland fisheries (freshwater)

«Fisheries Production and Development» Center is in Antalya (Med coast)

21Source: UN Food & Agriculture Organization (FAO)

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Projections For FutureAccording to Republic of Turkey, State Planning Organization in 2023* the aquaculture production of Turkey is planned to be600 thousand tons (167 thousand tons in 2010, estimate for 2012 is 175 thousand tons)

Consumption per capita is expected to increase to 16 kg of sea food in 2023 (approx. 7 kg 2010 and estimated 9 kg in 2012)

Exports of aquaculture is aimed to be 1 billion USD in 2023 (est. approx. 500 million USD in 2012)

* 2023 is the 100th year of the Turkish Republic which was declared in 1923 after the decline of Ottoman Empire in the aftermath of World War I.

22Source: Republic of Turkey, State Planning Organization; Aquaculture Producers Central Union of Turkey; Mugla Aquaculture Producers Association

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Aquaculture Related Exhibitions

• Future Fish Eurasiao June 07 – 09, 2012o International Izmir Fair Centero Organizer : Eurasia Trade Fairso www.eurasiafairs.com

• Sea Expo Turkeyo June 14 – 17, 2012o Istanbul Expo Centero Organizer : HKF Trade Fairso http://www.seaexpoturkey.com/

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