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

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CONTENTS

      

Introduction Organic Agriculture in Turkey Organic Agriculture in Germany Research Objectives Methodology Results Conclusion

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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

Organic Agriculture in Turkey

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Product numbers, ETO, 2007 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

Organic Agriculture in Germany

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 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

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Spatial distribution of organic farming in Germany in 2001, Bichler et al., 2005 Organically managed land and farms , ZMP, 2006

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Research Objectives What are the similarities and differences between Turkish and German consumers?

    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

Methodology

7 Literature Research Questionnaire design Sampling (Only organic consumers) Consumer Survey (Interviews in Germany, online survey in Turkey) Conducting the results (SPSS, Excel)

Results - Demographic Distribution

Age 8 Gender Household number Children age Education Socio-economic status

Source: Own Calculations

Turkey 25-50 (74%) 0-24 (13%) 50-64 (13%) female(52%) 3 or over 4 with kids over 6 years university(88%) Full-time working middle / low-middle income Germany 25-34 (32%) 50-64 (24%) 35-50 (22%) 0-24 (12%) Over 64 (10%) female(70%) 1 or 2 over 14 years university(52%) Full-time working middle / low-middle income

Results – Buying Behaviour

Frequency & first purchase time of organic food products Turkey Germany 9

Source: Own Calculations

Results – Shopping Place Preferences

10 Comparison of ranking in shopping place preferences Today Turkey Future Germany Today Future Supermarket Organic shops

1 3 1 2 2 1 2 1

Bazaar Farm Discount Specialized shops

Source: Own Calculations 4 2 6 5 3 3 5 4 3 4 5 6 3 5 4 5

Results – Product Preferences

11 Demand differences between products of today and future in Turkey

60 50 40 30 20 10 0 m ea t a nd m ea t p ro du cts te xt ile ba su ke ga ry r p ro ba du ct by s pr od uct be s ve ra ge s pu lse s m ilk an d m ilk he pr rb od uct s a nd s sp dr ice ie s d fru oil its ce an re d al ve s ge ta ble ve s ge ta ble s fru its Today's product choice

Product groups

Future product choice Source: Own Calculations

Minimum Changes Fresh fruits and vegetables, dried fruits and nuts: +2-3% 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%

Results – Product Preferences

12 Demand differences between products of today and future in Germany Maximum Changes

60 50 40 30 20 10 0 m ce ea re t a al nd s pu m lse ea t p s ro du ct he s rb m te s ilk xt an dr an ile ie d d d sp m fru ice ilk it s pr an od d uct ve s ge ta bl es su ga oi r p l ro du ve ct s ge ta ba bl by es pr od uct be s ve ra ge s ba ke ry fru it Today's product choice

Product groups

Future product choice Source: Own Calculations

No Changes Fresh fruits: 0% 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%

Results – Product Preferences

13 Most preferred products in Turkey & in Germany: Fresh fruits and vegetables Milk and milk products, cereals Less preferred products in Turkey & in Germany: Baby products and textile 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.

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Results – Organic Food Description

Comparison of overall ratings in organic food description Healthy High Nutritional Value Products are grown in harmony with nature Free from chemical pesticides and fertilizers Produced with environmentally / animal friendly techniques Free from GMO Products must be certified Turkey

4.6

4.3

4.3

4.4

4.4

4.4

4.7

Germany

4.4

4.2

4.4

4.3

4.4

4.4

3.6

(5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

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Results – Label Knowledge

DE TR DE Government Logos; “Bio-Siegel” great success “Turkish logo” needs further actions Private Logos; Should be carefully introduced to both markets Danger of confusion TR DE TR

Source: Own Calculations

Results – Consumer Motivations

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(5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

Turkey Motivations Germany List order Average rating Average rating List order

1 4.64

Health

4.52

1 2 4.61

Saving resources

3.86

9 3 4.50

Support organic movement / sustainability

4.48

2 4 5 6 7 4.36

4.27

4.23

4.16

Food safety High quality Taste Environment

4.08

4.20

4.42

4.44

8 7 4 3 8 4.13

Support local / small farmers

4.26

5 9 10 11 4.00

3.92

3.91

Animal welfare Freshness Positive image

4.22

3.60

3.53

6 10 11 12 3.67

Against big companies

3.44

12 13 2.63

Fashion

2.56

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Results – Consumer Barriers

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(5: Strongly agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strongly disagree) Source: Own Calculations

Turkey Barriers Germany List order Average rating Average rating List order

1 4.56

Price

3.96

1 2 3 4.45

4.39

Availability Assortment

3.78

3.42

2 6 4 4.06

Lack of media information

< 3 10 11 12 8 9 5 6 7 4.06

4.05

3.93

3.69

3.63

3.43

3.31

3.30

Seasonality Income Durability Trust Regional origin Packaging Time to look for Recognition

3.49

3.67

< 3 < 3 3.69

< 3 < 3 < 3 3 5 4 13 3.27

Appearance and taste

< 3 14 3.06

Cooking conditions

< 3 -

Conclusion

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    

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 Both countries;

•Should invest to inform consumers about certification and true

labels

•Demographic distributions and future product expectations are

important for market actors

References

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           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

References – cont.

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          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

THANK YOU

Nihan MUTLU

MSc “Organic Food Chain Management”