Consumer Attitude and Behaviour towards Organic Food

1. Consumer Attitude and Behaviour towards Organic Food Cross-cultural study of Turkey and Germany Nihan MUTLU Supervisor: Prof. Dr. Tilman Becker Institute for Agricultural Policy and Markets University of Hohenheim

2. CONTENTS • Introduction • Organic Agriculture in Turkey • Organic Agriculture in Germany • Research Objectives • Methodology • Results • Conclusion

3. Introduction • Why organic food? Food safety, quality, ethical movements…etc. • Different market structures between western and eastern Europe (emerging, growing, established) • Necessity of consumer studies in organics; • Lack of information in Turkey • Continuous change in German consumer trends • Cross-cultural example between west and east

4. Organic Agriculture in Turkey Start-up: mid 80’s with export orientated production First Regulation: 1994, based on (EEC) No 2092/91 and IFOAM Basic Standards. Last revision has done in 2005. Certification: 11 Agents ( 5 national) Export: 37 countries: Germany (61%); USA (15%); UK (5%) …etc. Domestic market: Urban area (Big supermarkets, a few organic shops and bazaar) Organically managed area (ha) and producer numbers , ETO, 2007 Product numbers, ETO, 2007

5. Organic Agriculture in Germany Import: Biggest importer of Europe with 38% Domestic market: Organic food market share 3%, 4.5 billion € Marketing channel: Supermarkets, organic shops, direct marketing, bazaar, discounts, health stores Start-up: Early 20th century Regulation: First EU Regulation 2092/91 based IFOAM Basic Standards, private organic agriculture associations (Demeter, Naturland..etc) Certification: 22 inspection bodies Spatial distribution of organic farming in Germany in 2001, Bichler et al., 2005 Organically managed land and farms , ZMP, 2006

6. Research Objectives • Socio-demographic distribution (age, gender, household structure, education, income…) • Buying behaviour (frequency, shopping place and product preference) • Organic food and label knowledge • Motivations and barriers What are the similarities and differences between Turkish and German consumers?

7. Methodology

8. Results - Demographic Distribution Source: Own Calculations

9. Results – Buying Behaviour Frequency & first purchase time of organic food products Turkey Germany Source: Own Calculations

10. Results – Shopping Place Preferences Comparison of ranking in shopping place preferences Source: Own Calculations

11. Results – Product Preferences Demand differences between products of today and future in Turkey Maximum Changes Meat products: +58% Textile: +50% Bakery, sugar and baby products: +40% Beverages: +36% Pulses: +31% Milk products: +27% Herbs & spices: +24% Oil products: +18% Cereals: +14% Minimum Changes Fresh fruits and vegetables, dried fruits and nuts: +2-3% Source: Own Calculations

12. Results – Product Preferences Demand differences between products of today and future inGermany Maximum Changes Cereals: +16% Pulses and meat products: +14% Textile: +12% Herbs & spices: +8% Minimum Changes Milk products, dried fruits & vegetables oil and sugar products: +6% Vegetables, baby products: +4% Beverages and bakery products: +2% No Changes Fresh fruits: 0% Source: Own Calculations

13. Most preferred products in Turkey & in Germany: Fresh fruits and vegetables Milk and milk products, cereals Less preferred products inTurkey & in Germany: Baby products and textile Results – Product Preferences • Strategies for future organic market • Turkey’s organic market is satisfied with fresh fruits and vegetables & dried fruits and nuts or conventional products are also charming. • Meat products can easily find consumers in Turkey. Herbs and spices, pulses, beverages, bakery, cereals and sugar products expected to expand demand in Turkey. • Germany is a saturated market with all categories and will be difficult to introduce new product to the market. Cereals, pulses and meat products can be important goods to gain new consumers.

14. Results – Organic Food Description Comparison of overall ratings in organic food description (5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

15. Results – Label Knowledge Government Logos; “Bio-Siegel” great success “Turkish logo” needs further actions Private Logos; Should be carefully introduced to both markets Danger of confusion DE TR DE TR DE TR Source: Own Calculations

16. Results – Consumer Motivations (5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

17. Results – Consumer Barriers (5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

18. Turkey; Need more research and development Production should be enlarged (to reduce high price, to raise availability and accessibility) Production aims should turn to domestic market Subsidies will be useful More organic shops should be established Germany; Harmonisation of private labels Raising awareness of consumers to regional products should be taken into account! Discounts are overtaking the place of direct marketing from farms Conclusion • Both countries; • Should invest to inform consumers about certification and true labels • Demographic distributions and future product expectations are important for market actors

19. References • Aksoy, U. 2002. Turkey. Report on Organic Agriculture in the Mediterranean Area – Mediterranean Organic Agriculture Network, Options Méditerranéennes, Series B: N°40, CIHEAM- IAMB, Bari. Al-Bitar (Ed.). p. 147 - 159. • Babadogan, G. and Koc, D. 2005. Organik Tarım Ürünleri Dış Pazar Araştırması. IGEME, Turkey • Bichler, B., Häring, A. M., Dabbert, S. and Lippert, C. 2005. ‘Determinants of Spatial Distribution of Organic Farming in Germany’. Paper presented at Researching Sustainable Systems, Adelaide/Australian, 21. - 23. 09. 2005, p. 304-307. ISOFAR / FIBL. 1 June 2007, available at: http://orgprints.org/6322/ • BMELV, 2007. Verzeichnis der in der Bundesrepublik Deutschland zugelassenen Kontrollstellen, 1 June 2007.available at: http://www.bmelv.de/cln_044/nn_750590/DE/04-Landwirtschaft/OekologischerLandbau/VerzeichnisKontrollstellen.html • BLE, 2006. At a glance information about the Bio-Siegel. Federal Agency for Agriculture and Food (BLE), Bonn, Germany. 1 June 2007, available at: http://www.oekolandbau.de/fileadmin/redaktion/bestellformular/pdf/BMVEL_Verbrau._engl_flyer.pdf • Bolten, J., Kennerknecht R. and Spiller, A. 2006. Perspectives of small retailers in the organic market: Customer satisfaction and customer enthusiasm. Paper presented at 98. Seminar of the European Association of Agricultural Economists EAAE, Crete, 29 June - 2 July 2006. 1 June 2007, available at: http://orgprints.org/10198/ • Dempsey, T. 2007. Turkey. 1 June 2007,available at: http://www.photoseek.com/Turkey.html • ETO, 2007. Ecological Agriculture in Turkey (in Turkish). Ecological Agriculture Organisation. 1 June 2007, available at: http://www.eto.org.tr/tureko.asp • Güler, S., 2006. Organic Agriculture in Turkey. Journal of Faculty of Agriculture. OMU, Vol. 21, No.2. p. 238-242 • Haccius, M. and Immo L., 2000. Organic Agriculture in Germany, Stiftung Ökologie & Landbau (SÖL), Bad Dürkheim, Germany. 15 June 2007, available at: http://www.organic-europe.net • Hamm, U., and Gronefeld, F., 2004. The European Market for Organic Food: Revised and Updated Analysis. Organic Marketing Initiatives and Rural Development: Volume 5, Aberystwyth, UK

20. References – cont. • Kenanoğlu, Z. and Karahan, Ö. 2002.Policy implementations for organic agriculture in Turkey. British Food Journal, Vol. 104, No. 3/4/5, p. 300-318 • Latacz-Lohmann, U. and Foster, C. 1997. From niche to mainstream strategies for marketing organic food in Germany and the UK. British Food Journal. Vol. 99, No. 8, p. 275-282 • MARA, 2005. Organik Tarimin Esaslari Ve Uygulanmasina İlişkin Yönetmelik, Turkey Ministry of Agriculture and Rural Affairs. 15 June 2007, available at: http://www.tarim.gov.tr/uretim/organiktarim/organik.doc • Padel, S. 2004. ‘Main Findings of the Delphi Survey on the market for organic food’ In: O. Schmid, J. Sanders, P. Midmore (Ed.), Organic Marketing Initiatives and Rural Development. Vol.7, University of Wales Aberystwyth, UK, p.24-25 • Rehber, E. and Turhan, S., 2002. Prospects and Challenges for developing Countries in trade and production of organic food and fibres - The case of Turkey, British Food Journal, Vol. 104 No: 3/4/5, p.371-390 • Richter, T. 2005. ‘The Organic Market in Germany – Overview and information on market access, BLE. 15 June 2007, available at: http://www.oekolandbau.de/fileadmin/redaktion/bestellformular/pdf/031105.pdf • Richter, T. and Hempfling, G. 2003. Supermarket Study 2002: Organic Products in European Supermarkets, FIBL. 10 June 2007, available at: http://orgprints.org/8356 • Willer, H. 2007. Organic Agricultural Land and Farms in Europe, FIBL Survey 2007, 1 May 2007, available at: http://www.organic-europe.net/country_reports/germany/default.asp • Zanoli, R. (ed), Baehr, M., Botschen, M., Laberenz, H., Naspetti, S., Thelen, E., 2004.The European Consumer and Organic Food. Organic Marketing Initiatives and Rural Development: Vol. 4, Aberystwyth, UK • ZMP, 2006. Marktüberblick. Oekomarkt Jahrbuch 2006. 1 May 2007, available at: http://www.oekolandbau.de/fileadmin/redaktion/dokumente/haendler/marktinformationen/zmp_jahrbuch_2006.pdf

21. THANK YOU Nihan MUTLU MSc “Organic Food Chain Management”