Consumer Attitude and Behaviour towards Organic

Food

Cross-cultural study of Turkey and

Germany

Nihan MUTLU

Supervisor: Prof. Dr. Tilman BeckerInstitute 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)

Product numbers, ETO, 2007

Organically managed area (ha) and producer numbers , ETO, 2007

5

Organic Agriculture in Germany

Organically managed land and farms , ZMP, 2006

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

Spatial distribution of organic farming in

Germany in 2001, Bichler et al., 2005

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

Literature Research

Questionnaire design

Sampling (Only organic consumers)

Consumer Survey (Interviews in Germany, online survey in Turkey)

Conducting the results (SPSS, Excel)

8

Results - Demographic Distribution

Turkey Germany

Age 25-50 (74%)0-24 (13%)50-64 (13%)

25-34 (32%)50-64 (24%)35-50 (22%)0-24 (12%)

Over 64 (10%)

Gender female(52%) female(70%)

Household number 3 or over 4with kids

1 or 2

Children age over 6 years over 14 years

Education university(88%) university(52%)

Socio-economicstatus

Full-time workingmiddle / low-middle

income

Full-time workingmiddle / low-middle

income

Source: Own Calculations

9

Results – Buying Behaviour

Frequency & first purchase time of organic food products Turkey Germany

less thenmonthly

monthly2-3 permonth

1-2 perweek

5-7 perweek

frequency

20

15

10

5

0

Re

sp

on

de

nts

last 6months

last year1-3 years3-5 yearsmore then5 years

time

20

15

10

5

0

Resp

on

den

ts

less thenmonthly

monthly2-3 permonth

1-2 perweek

5-7 perweek

Frequency

30

25

20

15

10

5

0

Resp

on

den

ts

last 6months

1-3 years3-5 yearsmore then5 years

Time

40

30

20

10

0

Re

sp

on

de

nts

Source: Own Calculations

10

Results – Shopping Place Preferences

Turkey Germany

Today Future Today Future

Supermarket 1 1 2 2

Organic shops 3 2 1 1

Bazaar 4 3 3 3

Farm 2 3 4 5

Discount 6 5 5 4

Specialized shops 5 4 6 5

Comparison of ranking in shopping place preferences

Source: Own Calculations

11

Results – Product Preferences

Demand differences between products of today and future in Turkey

0102030405060

Product groups

Res

po

nd

ents

Today's product choice

Future product choice

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 in Germany

0102030405060

Product groups

Res

pond

ents

Today's product choice

Future product choice

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

Results – Product Preferences

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.

14

Results – Organic Food Description

Comparison of overall ratings in organic food description

Turkey Germany

Healthy 4.6 4.4

High Nutritional Value 4.3 4.2

Products are grown in harmony with nature 4.3 4.4

Free from chemical pesticides and

fertilizers4.4 4.3

Produced with environmentally /

animal friendly techniques

4.4 4.4

Free from GMO 4.4 4.4

Products must be certified 4.7 3.6

(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

Source: Own Calculations

DE

DE

DE

TR

TR

TR

16

Results – Consumer Motivations

TurkeyMotivations

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 4.50Support organic

movement / sustainability

4.48 2

4 4.36 Food safety 4.08 8

5 4.27 High quality 4.20 7

6 4.23 Taste 4.42 4

7 4.16 Environment 4.44 3

8 4.13 Support local / small farmers 4.26 5

9 4.00 Animal welfare 4.22 6

10 3.92 Freshness 3.60 10

11 3.91 Positive image 3.53 11

12 3.67 Against big companies 3.44 12

13 2.63 Fashion 2.56 13

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

17

Results – Consumer Barriers

TurkeyBarriers

Germany

List order Average rating Average rating List order

1 4.56 Price 3.96 1

2 4.45 Availability 3.78 2

3 4.39 Assortment 3.42 6

4 4.06 Lack of media information < 3 -

5 4.06 Seasonality 3.49 5

6 4.05 Income 3.67 4

7 3.93 Durability < 3 -

8 3.69 Trust < 3 -

9 3.63 Regional origin 3.69 3

10 3.43 Packaging < 3 -

11 3.31 Time to look for < 3 -

12 3.30 Recognition < 3 -

13 3.27 Appearance and taste < 3 -

14 3.06 Cooking conditions

< 3 -

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

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Conclusion

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

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

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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

THANK YOU

Nihan MUTLUMSc “Organic Food Chain Management”