Category: Business

  • Turkish agricultural production over-relying on seed imports, report says

    Turkish agricultural production over-relying on seed imports, report says

    ANKARA – Vatan

     Turkey imports nearly 4.7 tons of tomato seeds, according to a report by the Ankara Chamber of Commerce. AA photo
    Turkey imports nearly 4.7 tons of tomato seeds, according to a report by the Ankara Chamber of Commerce. AA photo

    Turkey’s agricultural production is heavily reliant on seed imports, according to a recent report by the chamber of commerce in the capital city of Ankara. Turkey is paying the price for its low agricultural technology, the report says

    Turkey’s seed import costs have reached $860 million over the last eight years, according to a recent report from the Ankara Chamber of Commerce, or ATO.

    The country is “paying the cost of its low agricultural technology by importing seeds,” mainly from France, United States, Germany, the Netherlands, Germany and many other countries, the report said, adding that Turkish agricultural production was dependent on these imports.

    Turkey imports tomatoes seeds from France, cucumber, gherkin and watermelon seeds from the United States and cabbage seeds from Germany, the chamber’s report said.

    According to data from the Agriculture and Rural Affairs Ministry, Turkey produced 385,000 tons of seeds last year, 290,000 tons in 2008 and 324,000 tons in 2007.

    Insufficient production

    Although wheat ranked first on the ministry’s seeds production list at nearly 227,800 tons last year, Turkey’s annual wheat seed demand remains approximately 600,000 tons, the report said, thus meaning Turkish production has only been able to meet 40 percent of current demand.

    The ministry also said Turkey produced 36,000 tons of barley seeds, 29,000 hybrid corn seeds, 58,800 tons of potato seeds, 10,800 tons of cotton seeds, 9,300 hybrid sunflower seeds, 5,000 tons of rice seeds, and 2,700 tons of vegetable seeds in 2009.

    Top seed import: tomatoes

    The Turkish seed market posted a total value of $650 million last year with total imports worth roughly $158 million, according to official data.

    Turkey recorded total exports of $339 million between 2002 and 2008, but the total import of seeds reached $860 million over the same period, the report said.

    Moreover, Turkish seed imports reached $158 million while exports remained at $70.7 million last year, the report said, adding that tomatoes led the way on the imports list.

    Accounting for nearly 40 percent of total vegetable production in Turkey, tomato cultivation in the country heavily relies on foreign seeds.

    Turkey ultimately produced nearly 10.7 million tons of tomatoes last year, the report said, adding that most of the seed demand was met by importing nearly 4.7 tons of tomatoes seeds, mainly from France.

    Cucumbers and gherkins, meanwhile, were second on the report’s list. Turkey grew nearly 1.74 million tons of cucumbers last year and produced 8.98 tons of cucumber seeds. In the same year, the country imported nearly 37.2 tons of cucumber or gherkin seeds, mainly from United States.

    Despite the heavy reliance on imports, ATO noted that there had been promising developments in the production of local seeds, such as those of green peppers. According to the ministry, nearly 80 percent of green pepper production is conducted with Turkish pepper seeds.

    Turkey imported 1.83 million tons of green pepper seeds and exported nearly 11.8 tons of green pepper seeds in 2009, according to the ministry.

  • İMKB on its way to breaking IPO record

    İMKB on its way to breaking IPO record

    Lucrative days in capital markets have led to successive initial public offerings (IPO) these days, with the number of public offerings expected to exceed 30 by the end of this year.

    The IPO movement has been fruitful so far and is expected to attract a total number of 30 new companies to the İMKB in 2010.
    The IPO movement has been fruitful so far and is expected to attract a total number of 30 new companies to the İMKB in 2010.

    The İstanbul Stock Exchange (İMKB) and the Capital Markets Board (SPK) started an IPO campaign in May under the auspices of the government in order to increase the number of companies listed on the bourse. Following Torunlar GYO, one of Turkey’s largest real estate investment partnerships, İhlas Yayın Holding and Katmerciler have been offered to the public over the last three weeks.

    It seems that the spring season in IPOs will continue as the markets move upward. But what is an IPO and how does the market work in Turkey? When a company reaches a certain stage in its growth, it may decide to issue stock to the public, known as an IPO. The goal may be to raise capital or to provide liquidity for existing shareholders as well as a number of other reasons.

    According to the İMKB, there are two markets for trading stocks on the İMKB: the stock market and the Emerging Companies Market (ECM). Companies to be traded on the stock market may choose to offer part of the stock representing existing capital through the sale of shares or to increase capital, restricting the pre-emptive rights of shareholders, or apply both methods concurrently.

    The shares eligible for trading on the ECM include those issued by joint stock companies in capital increases by partially or fully restricting the pre-emptive rights of the shareholders, and in the case of secondary offerings, the shares acquired by exercising the rights attached to such shares. The shares of current shareholders that are not included in the ECM directory may not be traded on the primary or secondary market of the ECM; yet, there are no restrictions on the purchase of the shares by the present shareholders from the ECM primary or secondary market and subsequent sales thereof. This restriction aims to channel the funds raised by issuing shares on the ECM to the company and directly contribute to the financial structure of the company.

    A frequently asked question arises when the number of IPOs is increasing. Is there enough demand that can support the companies rising on the İMKB day by day? It is true that some companies create demand for their own shares, only to have the İMKB slump afterwards, as evinced by İMKB data. When considering the previous periods in the İMKB where the number of IPOs skyrocketed, the İMKB data show the bourse indices started ebbing. Time periods like the years 2000 and 2007-2008 are some examples of this case when the bourse steeply declined.

    Whether the same tendency will prevail again is a matter of question, though. Experts say it is too early to talk about a downturn in the market. Furthermore, many companies are waiting their turn to be traded on the İMKB, which means new entries to the bourse are not over yet.

    Campaign calls companies in

    The İMKB and SPK have started a campaign that aims to increase interest in IPOs and the number of companies traded on the İMKB to 1,000 by 2023. SPK President Vedat Akgiray said more than 40 companies have applied for an IPO this year, making 2010 the year with the highest number of IPOs launched in Turkey. Akgiray pointed to current economic data and said that Turkey’s gross domestic product (GDP) has reached 1.5 percent of the world’s GDP, but when looking at the İMKB, it only represents 0.4 percent of the entire volume of the world’s stock exchanges. He said they have the responsibility to increase this stake and have therefore started a promotion to attract more companies to the İMKB. The SPK president stated that there are more than 300 companies listed on the İMKB and that by 2023 they want that figure to reach 1,000.

    Current İMKB data show that 18 companies launched IPOs between January and November of 2010. Lokman Hekim Hospitals applied on July 5 for an IPO to trade 20 percent of its paid-in capital of TL 11.13 million. Approximately one month later, on Aug. 17, Emlak Konut GYO applied to float 25 percent of its paid-in capital, a total of TL 2.5 billion. Akfen GYO, Global Securities and Despec Computer all applied for an IPO to trade 28.75, 33.33 and 39.35 percent of their paid-in capital.

    The price of one share of Uyum Food, a large supermarket chain, was set at TL 8.75 and a pre-IPO was conducted on Nov. 4-5. Investors showed strong interest in the food company, which expects to raise TL 52.5 million in capital. The company’s general manager, Sait Koç, said they will use these funds to open more stores. He added that the food sector will be dominated by 10 big chains in 10 years’ time and that they therefore aim to grow through the IPO. Koç noted that they expect to have 73 stores in 10 years, up from their current 33.

    Investors also showed strong interest in the Katmerciler pre-IPO, which was held on Nov. 3-5. A total of 3,122 investors applied to buy a share in Katmerciler — a nominal demand of TL 9.29 million. According to the Public Disclosure Forum (KAP) of the İMKB, 85 percent of the current demand for Katmerciler, where the IPO price is listed as TL 6, was from domestic individual investors. A 24 percent share of Katmerciler started to trade on the İMKB on Nov. 11.

  • A futuristic Turkish taxi cab with a see-through roof for gazing at the skyline is among three finalists in New York City’s search for the “Taxi of Tomorrow.”

    A futuristic Turkish taxi cab with a see-through roof for gazing at the skyline is among three finalists in New York City’s search for the “Taxi of Tomorrow.”

    A taxi crosses Times Square after a snowstorm blanketed the eastern United States with as much as a foot of snow, in New York March 2, 2009. Credit: Reuters/Chip East (UNITED STATES)

    By Bernd Debusmann Jr.

    NEW YORK

    (Reuters) The model V1 by Turkish automaker Karsan Otomotiv made the short list along with models by Nissan Motor Co and Ford Motor Co, the city announced.

    The city’s Taxi and Limousine Commission launched the “Taxi of Tomorrow” competition in 2007, searching for a fuel-efficient and wheelchair-accessible car to win an exclusive contract to provide cabs for at least 10 years. The city has not said how much the contact would be worth.

    “The yellow cab is one of the most iconic symbols of New York City. Taxis have been an important part of our mass transit system and we are going to create a new taxi for our city that is safer, greener, and more comfortable than the ones we have today,” Mayor Michael Bloomberg said.

    The Turkish model V1, which also features a wheelchair ramp that can reach the curb, has its advantages but will have to overcome a lack of experience in producing and selling vehicles in the United States, said David Yassky, chairman of the Taxi and Limousine Commission.

    The Ford entry, known as the Ford Transit Connect, is a compact van of the kind more commonly found in Europe. The Transit Connect was awarded the “North American Truck of the Year 2010” at the North American International Auto Show in Detroit.

    Nissan’s entry is similar to Ford’s in that it resembles a small van, based on Nissan’s NV200 model. Unlike the other two models, there are plans in the works to make it fully electric, Yassky said.

    The city expects to announce the winner in early 2011 with the new vehicles on the road no later than 2014. The new taxis would be phased in as older models retire.

    New York City has 13,237 licensed taxicabs with 16 different models from nine manufacturers.

    , Nov 17, 2010

  • Turks consider Pakistan as their home, says Shahbaz

    Turks consider Pakistan as their home, says Shahbaz

    LAHORE: Punjab Chief Minister Muhammad Shahbaz Sharif has said that the Turkish delegation, by celebrating Eid with the flood victims, has proved that Turks really consider Pakistan as their home.

    Addressing a reception hosted in honour of a 75-member Turk delegation at CM Secretariat on Friday, he thanked the people of Turkey for not only donating money and relief goods but also sparing time for the calamity-stricken people. Business Tuskon Confederation Vice President Dogan Kanak, Hatem Sayki of Hatemoglu Company Istanbul, Turgat Puyan, Senior Adviser Zulfiqar Ali Khan Khosa, members National and provincial assemblies, Punjab Investment Board vice chairman and senior officers were also present.

    The chief minister said Pakistan and Turkey have deep rooted religious and cultural relations, which are unparalleled in history. He said that next year, when he would visit Turkey, along with his trade delegation, he will go to every Turkish city to tell the Turk people how much Pakistani people were indebted to them for their help and assistance to the flood victims. app

    via Daily Times – Leading News Resource of Pakistan – Turks consider Pakistan as their home, says Shahbaz.

  • Apple trying to eliminate Turkish partner, daily claims

    Apple trying to eliminate Turkish partner, daily claims

    ISTANBUL – Hürriyet Daily News

    ipadU.S.-based technology giant Apple is looking to break its relations with Bilkom, a local Turkish partner, daily Milliyet reported Friday.

    Apple founded an Istanbul-based company under the name of “Apple Technology,” in May, Milliyet said, adding that the company was managed by Apple Europe.

    The executives of Koç Holding, Bilkom’s parent company, announced that the new company would act in concert with Bilkom, Milliyet said.

    But the fact that iPad, one of Apple’s most prominent recent products, is still not distributed in Turkey raises question on the relations between the two companies, it said.

    The reason for the delay is Apple’s efforts to eliminate Bilkom, the paper said.

    Koç Holding had said the new Apple branch in Turkey would aim to speed up the operations in the fast-growing local market.

    The record-breaking iPad is not officially sold in Turkey despite having been on the market for seven months in other countries.

  • OECD forecasts Turkey growth as 8.2 pc in 2010

    OECD forecasts Turkey growth as 8.2 pc in 2010

    The biannual OECD report on economic outlook by countries said Turkey’s recovery which started in the second quarter of 2009 has remained strong during 2010.

    Thursday, 18 November 2010 16:10

    oecdThe Organization for Economic Cooperation and Development, OECD, forecast that Turkey would grow by 8.2 percent in 2010, 5.3 percent in 2011 and 5.4 percent in 2012.

    The biannual OECD report on economic outlook by countries said Turkey’s recovery which started in the second quarter of 2009 has remained strong during 2010.

    “GDP growth is projected to exceed 8 percent this year, and to remain above 5 percent in 2011 and 2012 as the post-crisis rebound of exports, consumption and investment tapers off,” the report said.

    The authorities have announced that both fiscal and monetary policy will be tightened gradually, and a prudent medium-term economic program was published in October, it recalled.

    “Any additional gains from stronger-than-projected growth should be saved, to avoid pro-cyclical spending. Continuing with structural reforms to boost productivity and job creation in the formal sector would help anchor more balanced and sustainable growth,” it said.

    The report forecasts that Turkey’s current account deficit would increase until 2012. It estimates the deficit will stand at 5.1 percent this year, 5.7 percent in 2011 and at 6.3 percent in 2012.

    According to the OECD report, unemployment rate will be seen at 12 percent in 2010, and then show a gradual decline at 11.7 percent in 2011 and 11 percent in 2012.

    It also sees hike in consumer prices at 8.5 percent this year, 6.9 percent in 2011 and 6.4 percent in 2012.

    AA