Food Trade Differences between Germany and Turkey - Example

Food trade differences between Germany and Turkey Abstract The purpose of this paper is to compare food industry in Germany and Turkey. There are variable factors in the way food is produced and processed in these two countries. This involves the production of food (agriculture), processing, packaging and distribution in these two countries and in other nations. The two countries have relatively good climate which makes it easy for agricultural activities. This industry is adversely affected by crisis like drought and other economic hardships which greatly influences the cost of the products. Food industry employs many people directly and indirectly and is a very sensitive industry to ensure food security to enhance the well being of people in a nation and the world at large. Introduction Food industry is one of the most important sectors to humans and is the interlinking of agriculture and all the associated industries. Food industry is so important that without then there would be no mankind. In most parts of the world there at least some people or communities who specialize in either farming or livestock keeping or even both. Raw materials from crops and domestic animals are taken to industries where they are processed. When processed the manufactured or processed products can then be sold locally or exported to other nations earning the nation foreign currency. Germany and Turkey have not been left out in this sector and they are involved in production of both farm produce and animal products. These two nations have a relatively good climate which enhances good agricultural practices. However, production of the farm crops and related products vary from time to time because of climatic changes. The variation in climate and other factors that alter food production leading to low yields have been curbed. This has been facilitated by advancement in science and technology for instance biotechnology. Utilization of biotechnology has been embraced in many countries for more food production and of desired quality. Food Industry in Germany Germany is the largest economy in Europe with over 80% of the total land viable for farming or for agricultural practices. This country is among the largest food producers with the industry being worth about 155 billion Euros. The main food products from Germany include meat, alcoholic beverages, confectionary food and dairy which account for 22%, 9%, 9% and 18% respectively. Temperate or marine climatic conditions are experienced in Germany with relatively moderate climatic conditions, and there are no extremes experienced. As time continues to unwind there have been numerous changes in the agricultural sector due to advancement in technology. Today most of the work in German farms is done by utilization of machinery which has led to decrease in casual jobs but an increment in the yields. Industrialization also made many farmers to leave this career and went to major cities for the better paying industrial jobs. Most of the produce is from small family farms which account for about 90% of the total especially in western Germany. The type of produce being produced in this country depends on the region for instance if the area has hilly terrain or flat. Sugar beets and cereals dominate the more flat terrain while meat, milk and vegetables are mostly grown in the hilly regions. Germany is also a key producer of wine and beer and vineyards can be found in almost all regions especially near cities. The government has supported many regions by construction of better infrastructure to enhance better yields of agricultural produce to be able to sustain this important sector. By adopting the environmental policy the government also introduced environmentally friendly farming means and fertilizers. In recent years there has been an increase in price of many food products due to the tax increment by the government. This has led to high costs of other industries which greatly influence this industry for instance the transport industry. Fishing has also been practiced for a long time within Germany but not any more because most of the fishing overfished and no longer able to produce fish. This has made this country to depend entirely on imports from other nations because it cannot be able to produce enough fish to even sustain the local demand. Most of the country especially the southern parts of the country are covered with forest cover. The forest cover produces approximately two thirds of the country’s timber need which is mostly composed of soft wood trees and therefore Germany has to obtain most of the hard wood trees from other nations. Policies were introduced to ensure that the forest cover does not diminish. Those in the forested areas are supposed to re plant trees when they cut down tress especially for timber. Food industry in Germany mainly earns from the exports of the finished products. Transforming of raw materials in to finished products (processing) is vital for humans to be able to consume without any risks involved. There are various ways in which food is processed and they include; one off production in which a customer gives specifications as to how a product should be made for him or her. Mass production is another means which is utilized when there is a high demand for that particular product. When the target market is unclear there is production of batches In Germany there are many industries which are involved in processing depending on the source of the raw material for example raw materials from animals for instance milk and meat and raw materials from crops for instance fruits, vegetables and potatoes. The German processing industry is one of the largest in the world accounting for about 26% of the world’s production. Since the early 1890s German has the largest industrial sector in Europe with approximately 3000 companies which are divided into 38 specialized sectors. Food processing process involves harvesting and collecting raw products from the crops and animals, transporting them to the industries where they are processed. The harvested raw materials are sorted and inspected before processing to ensure high quality products. There is also strict supervision during processing to guarantee smooth running of the process. There are several ways and means of processing raw materials and they also depend on the nature of the raw material and the source. These processes include removal of unwanted parts for instance carrots and potatoes, liquefaction and gasification. The raw material may be divided into small parts and cooked that way or even packaged in form of pasty in which spices can be added to add flavour to the pasty. Depending on the raw material there are different machines involved in food processing. They include juicers for extracting juices from fruits, mixing machines, pressure flyer for chicken, gutting machines for fish, large freezers and silos for storage to name but a few. Some of the processing equipments are made here but due to a lot of competition from emerging industrial nations like Turkey this sector has been on decline in the last few years. This is greatly contributed by the fact that the machinery from the emerging or developing nations is relatively cheaper or consumes less power and fuel and therefore preferred over the expensive. Fermentation is another processing procedure and it involves keeping juices from crops for example barley under anaerobic conditions for a period of time thereby producing ethanol. Food especially cereals can also be fermented to add flavour and also to help in preservation by utilization of the lactic acid produced during fermentation. This process was used by ancient Germans and other tribes in central Europe at around 1000 B.C. Proofing is another processing method that is widely used not only in Germany but also all over the world. This involves use of yeast in cooking mostly in baking which allows the rising or leavening of the dough. The starch and other carbohydrates in the dough release carbon dioxide which is responsible for the rising of the dough. There are also traces of alcohol produced during this process which is consumed by the microorganisms present in the dough. At times food products can be passed through a machine which is used for drying or converting liquid substance for instance milk into powder. A model of this is an atomizer which utilizes hot air to produce powder milk. This process is widely known as spray drying which is also widely used in pharmaceutical industry during the manufacture of tablets or powder drugs which are incorporated into capsules. Food substances are subjected to microbes which can be very dangerous to humans if they find their way in to the human system. Some processes are therefore used to reduce microbial growth on food substances because microbes multiply very fast. The process which is mostly used is pasteurization especially in the milk industry. This greatly reduces the growth of microbes by exposing the milk to very high temperatures reducing possible risks like diseases to humans. There are numerous food processing industries most of them being found in Bavaria which is one of the key economic centers in Europe. This region is located towards southern Germany and is one of the largest states with approximately 12 million people. It is located at a central place with easy access to all parts of Europe. There is good infrastructure in this region and has very many food processing industries because of its large agricultural output. Apart from the food products produced in Bavaria and other parts of Germany there are a lot of food imports from other countries within the European Union and the United States. In fact Germany is one of the largest importers of food products like beverages, cereals and other food stuffs. This has been facilitated by the introduction of the free trade among the European nations with low cost. There are many machines utilized in the processing of food in Germany depending on the source of the raw materials. They include beverages production machines, dairy machines, machinery for processing vegetables and fruits, meat processing machines and bakery machines. There are many organizations which have been formed in Germany to ensure safety of the food substances being manufactured or to ensure that they are of high quality. Other organizations were formed to ensure that the raw materials are bought from the farmers at a good price and also to look for the best processing companies to sell the raw materials to on behalf of the farmers. Processing food is important in reducing the cost and risks associated with food consumption. This is done by reducing fat in the food thereby reducing the risk of health which is caused by excessive fats in the body. Food processing is also important for conservation purposes for instance food substances which have to be stored for a long period of time. This has been the trend in many societies since the biblical times just in case there is a shortage of food in future. Conservation is important for food products which are exported to far lands by especially ship which take relatively longer to reach their destination. Distribution of the processed food stuffs follows from the processor to the consumers through a chain which includes wholesalers and retailers. This is vital because the processing companies could not reach the consumers well and therefore intermediaries between the processor and the consumer had to be introduced. In Germany there are many companies, wholesalers and retailers who are involved in distribution of food products throughout the nation and exporting to other nations. These companies and the wholesalers package the food products for easy transportation and for the wholesalers they are also involved in repackaging so that consumers can be able to buy any quantity from the retailers. There are also supermarkets in almost all the regions which facilitate easy movement of food products to the consumers. Germany is situated in a central place with easy access to all other regions of Europe. There are numerous companies and industries which are associated with food industry which makes it easy for consumers to easily access food products throughout the nation. The German government is involved in both processing and distribution by introducing incentives. Good infrastructure has also been constructed over the years to facilitate easy and smooth movement of both raw and processed food products. Introduction of food related courses in most universities in Germany and in most nations is also a major boost to the food industry as there is an assurance of skilled personnel in this sensitive industry. The courses offered in these institutions include those who supervise the production and processing of the food products. They ensure that all the necessary measures, rules and regulations are followed accordingly. This facilitates production of high quality final products which of course will have high demand and therefore subsequent large volume sales. Combination of the above factors and the technological advancements in Germany has made most of products produced in this nation to have very high demands not only in Germany but also in Europe. In fact Germany is now the largest economy in Europe and the second major producer of food related products. The major industries and companies associated with agriculture and food production have employed many people directly and indirectly there by helping in reduction of joblessness and raising the standards of living of its citizen. Location of Germany has also facilitated easy trade with the other European nations with easy access to these nations through waterways, train services, road and air travel. This has enhanced better movement of the food products processed or manufactured in Germany to the other nations. Food Industry in Turkey The food industry is also a very important industry in Turkey but varies in some factors from that of Germany. Climatic conditions in Turkey differ from region to region because of the varied landscape for instance high attitude in the mountainous regions which are parallel to the low attitude coastal regions. Crops are mainly grown around the coastal region while animal keeping is the main activity in the mountainous regions of Turkey. Agriculture is practiced in almost all areas in Turkey apart from the hilly and mountainous regions where an animal keeping is the main activity. In fact agriculture is the main activity which is depended upon by most of the Turkish people. Turkish agricultural products and crops are used by many people all over the world. Most are the cereals which account for about 90% of the total agricultural production in Turkey. Tobacco from this country is preferred by many people in both the European region and in most other countries because it is believed to be mild and light. This country is among the most trusted in growing food crops because of its self sufficiency and was given the right by the United Nations to grow opium which is utilized in healthcare services. Most of the plants grown in the coastal region which divided into three main regions; west, central and east in which each tends to specialize in the crops they grow. In the central regions the main crops grown are the cereals for instance wheat, maize and rice, beans, sugar beets, potatoes and sunflower. The eastern region mainly produces hazelnuts, apples, avocado and kiwi while the western region the main activity is animal keeping because of its mountainous nature with dense forests. Main domestic animals which are kept in Turkey include sheep, cattle and the poultry. Poultry farming is the most practiced and accounts for most of the income in the animal husbandry sector. In fact Turkey is the main producer of poultry meat not only to the European Union but also to other nations of the world. This country is among the world’s major producers of poultry meat, wheat, vegetable products, raisins, figs, grapes, hazelnuts, tea and apricots. Unlike Germany some of the land in Turkey is irrigated to increase the yields of the food crops cultivated in these areas. Irrigated land in Turkey accounts for about 18% of the total 26 million hectares cultivated in the last five years. Agricultural land has been increased year after year in Turkey since the 1940s which has led to increased production of agricultural and food related products. Turkey now competes with the developed nations like Germany and other developed nations in the production of food products. The increased yield and production of the main food products is greatly influenced by the government which provides pricing support, low taxation of food products, crop subsides, providing farming essentials to the farmers on credit and also introducing education and research programs especially in the institutions of higher level. These incentives introduced by the government have made many Turkish people to embrace agriculture and in one way or another has helped to curb the rural urban migration. People used to move to the urban areas in search of better paying jobs because the agricultural and food industry did not pay well. The policies and incentives introduced supported agriculture and therefore the farmers could get all the necessities for agricultural activities and they did not need to look for other jobs or activities. Fishing and sea food industry is am important sector in Turkey and is mostly practiced in the areas and regions along the black sea. The sea food industry is developing at a very fast pace in Turkey. This has been facilitated by interaction and integration of the key players in this industry and they include retailers, wholesalers, hotels, supermarkets and the exporters and importers of the sea food. This has led to increased seafood processing industries and increased output which has of course increased employment and living standards of the citizens. There has also been an increased foreign exchange as a result of increased exports of the sea food. There has been a major boost to this industry in Turkey as it is mandatory for people and professionals within the Middle East region to have a visa to be able to attend the vast sea food exhibitions in Turkey. The Turkish government has been playing a pivotal role in the food and agricultural industry. It has also put into place policies and strategies which have been attracting international investors to this nation. There has been funding of small and emerging agricultural and food industry projects by the European Bank for Reconstruction and Development (EBRD). The funding and government involvement in the agricultural industry has led to strong links between Turkey and other nations of the Balkans, Asia and as far as the United States of America. Massive investment in both the agricultural and food industry has strengthened these sectors and Turkey is now exporting many food products not only in the European region but also to the most of other world nations. The government has also supported most farmers by funding irrigation projects and has also improved the infrastructure making it easy for the smooth movement of goods within the nation and to the exporting nations. Exportation and movement of the food stuffs within the country is regulated by the government, the government in fact is the only exporter of some of the products for instance the cereals. This is one of the major variations from Germany where the government does not export but well structured companies are responsible for exportation of food products in Germany. Turkey is a developing nation and therefore the demand for most products is increasing. Through government policies and support this country is able to produce enough for its citizen’s demand and also exports to other nations. These policies and government support have made Turkey to be one of the few self sufficient countries in the world in the food sector. Turkey is an Islamic country and therefore there are halal markets established and constructed all over the country which are common in most Islamic countries. Halal food industry is mostly found in Islamic countries and if found in non Muslim countries like Germany the industry is very small and can only account for a small percentage of the earnings. In these countries they are also introduced by the Muslims who live there. It is very rare to find a halal market where there are no Muslims. This is another disparity of the many in food industry between Turkey and Germany. These markets provide food products which are recognized by the sharia and the Islam and every Muslim has to be bound to it. The Halal market is one of the major earners in Turkey accounting for a substantial income and foreign exchange. This is because most of the Islamic people have to at least feed on halal food per day. Halal restricts the food taken by Muslims, the food should be pork free and amphibians like frogs and crabs for the meat. Halal market is involved with processing and packaging of the halal food stuffs for easy distribution to those who buy in both small and large quantities. The halal market sell all sorts of products some of which are not made or manufactured by the halal and those not made in the halal. However, the halal and non halal products are separated in the stores and also during transportation to avoid contamination. Halal food products contribute very much to the Turkish economy just like the other Islamic countries. The success of this market is development of favourable policies and a lot of funding from the government, banking, financial sector, the Muslim communities and organizations. Whenever raw materials from food crops and animals are harvested and collected processing has to be done to ensure that they can be stored for a long time. Good environmental and climatic conditions have greatly influenced the fast growth of the food processing industry in Turkey. The most developed is the vegetable industry because vegetables are highly perishable and would therefore need good transportation and storage facilities. This industry in Turkey has been faced with some problems like fluctuations in the market, raw materials handling and storage facilities. These problems however have not made this country to reduce its production of most products associated with the food industry. Instead this country is not only able to sustain the demand but also is able to export large volumes of food products. In fact Turkey is one of the self sufficient nations in the world, does not depend much on other countries’ products. Processing enhances easy transportation of food products around the country and even far away lands without alteration of the quality or contents. Different raw materials are processed in different ways depending on the source and its lifespan. Raw materials from vegetables, fruits and milk should be processed fast as they are highly perishable. There are many food processing industries in Turkey which are involved in food processing and manufacture of food related products. These processing industries create employment to the Turkish people thereby raising the standards of living of the citizens. Most of the industries specialize in the food they process ranging from farm produce, meat and sea food. Food products in Turkey are mostly made from wheat and therefore there are many bakeries and wheat processing industries. This is because the staple food in Turkey is bread and therefore there have to be much wheat related processing industries to cater for the local demands. Most of the wheat products can be found in the halal market. The extras or the wheat product to be exported is entirely the responsibility of the government. There are many reasons for food processing the main being preservation or the ability to keep the food products for a long period of time without spoiling. Many preservation procedures include dehydrating the food materials because they tend to spoil fast with high water content. Salting and drying are mostly used in dehydrating the food materials. New technologies like the use of freezers and microwaves have been embraced in the recent years in most nations including Turkey. Use of vacuum and microwave dehydrates food products also but does not alter the nutritional contents of that product. Freezing on the other hand involves subjecting microorganisms which are responsible for food spoilage to extremely low temperatures which reduce their reproduction rate and therefore the chances of food spoilage are greatly lowered. Food processing in Turkey and all the nations under the European region is regulated by laws which are passed by the Union through some organizations under it. These rules are adopted to ensure safety of the humans who feed on these products. The regulations are applied to all the sectors involved during food production from production in the farms, transportation, food processing, storage and sale to the consumers. There is also advice on the new scientific technologies which increase the yields and reduce the pests and insects attack to the food crops. The union with the conjunction of the individual governments has been involved in organising exhibitions in most of the countries under this umbrella in which the different nations can learn from each other in the different sectors associated with the food industry. There is free movement of the food products of food products between the member states increasing trade and exchange of skills. This has been facilitated by the reduced tariffs on the products in the member states. Machinery for food processing are either locally made or made by foreign companies and manufacturers. Husmak is one of the machinery manufacturers in Turkey and is in fact the largest machinery manufacturer in Turkey. The major machines utilized in most of the industries depend on what that particular industry specializes in. They include crushers for wine and sugar industries, bakery ovens, sorting machines, dairy machines, meat and poultry processing machines sterilizators and confectionery machinery. Turkish machine manufacturers are progressing well and in the few recent years they have been able to export machinery to other nations accounting for about 20 billion dollars. Most of the machinery exported includes the machines used for grain milling, bread ovens, beverage preparation machines and extraction machines mostly used for extracting oils from especially nuts. These industries utilize packaging materials like sacks and sacks which are also made in this country. There are numerous companies and industries which specialize in making packaging materials. In the last decade this industry has increased and factors such as including involving women in business and in all industries. Packaging machines made in Turkey have been exported to more than 90 nations around the world including even the developed nations for instance Germany. The kind of packaging materials are cans and tins, plastics, metal, wood, cartons and wrapping film. Machines produced in turkey vary depending on the kind of food being processed. The industries that produce these machines also manufacture accessories for the machines just in case they are faulty while working after purchase. Machinery made here is used in many industries like for sealing cans, vacuum and gas packaging, filling and closing bags and cleaning machines. This industry is growing at a very fast rate and they are now following the European standards. Plastics and nylon are the widely used form of packaging in Turkey. There are more than four thousand companies that manufacture plastics. The major plastics include polypropylene, polyethylene, high density polyethylene and polyvinyl chloride. Once food is processed like in most other nations the products have to get to the target group which mostly comprises the consumers. There have to be well devised and structured methods of ensuring that these products get to consumers the right way, that is their nutrition is not affected at all. In Turkey the key players of making sure that food gets to the consumers the right way include supermarkets, wholesalers, retailers and the exporters. Halal markets are very important in processing most of the food products and ensure high standards of the products being manufactured or produced. Proper hygiene is followed accordingly in the halal markets and the quality of the products is high of course because these products are made there, no movement of the products from place to place and therefore they are taken while fresh or immediately after production. The main distributors of the food products are the wholesalers who are specialized in the different food industry products. The most wholesalers are the Asian food, herbs and spices, seafood, organic food, tea, wine, beer, fast food, groceries, meat, nuts and grains. Asian foods processed in Turkey include noodles and wasabi while meat is mainly poultry and beef. Dried fruits include raisins, sultanas, figs, tomatoes, bananas and apples. These wholesalers sell these products to the retailers who in turn sell to the retailers and those customers who buy in bulk. The wholesalers are sometimes involved in repackaging the products from the manufacturers to be able to sell to all classes of people for instance the rich, middle class and the poor. Supermarket chains are common in Turkey and they mostly obtain the food products directly from the manufacturing and processing industries. These distributors ensure that the food products get to all the citizens within the country without a hitch. The Turkish government is involved in the food industry and regulates the amount of food that is being exported to other nations. This measure ensures that food products are not exported leaving their own citizens with hunger. This characteristic has been observed in some nations in which capitalists export food products to other nations while there is insufficient food in their country. The government is actively involved in funding, construction and maintenance of good infrastructure to ensure that the products get to the target market within the country and abroad as required. By this the Turkish government secures the much needed foreign exchange and local levies which are utilized in the funding of these sectors and other sectors which influence the food industry directly and indirectly. Conclusion Food industry is one of the most important sectors not only in Germany and Turkey but in all nations and each and every community. In most countries the governments have worked tirelessly to make sure that this industry is always stable for the sustainability of each country’s citizens. If the production of the food products in a country surpasses that country’s demand then that particular nation can sell the excess to other nations to acquire the much needed foreign exchange. The foreign exchange obtained can be used to buy whatever that country does not produce or is not well developed in. Nations like Turkey have taken measures and policies that ensure that the country produces almost all things and therefore relies less on other nations. Research and financial support to the main producers for instance the farmers has encouraged many people to embrace farming and therefore increased yields. References Food science and technology retrieved on 20th May 2009 from www.annualreviews.org Holah, J. White, B. Hygiene in Food processing. 2nd Edition. Woodhead Publishing, 2003. Pat, C. Michael, L. The EU and Turkey: a glittering prize or a milestone? 2nd Edition. The federal Trust for Education and Research, 2005. Resit, E. About Turkey: Economy, Politics, Culture, Geography and Religion. Pilgrims Process, Inc, 2002. World of Information. Europe review. 5th Edition. Kogan Page Publishers, 1999. Read More