6.5 Billion Dollars of Export Value From Packaging Industry

Turkish Packaging Industry closed last year with 6.5 billion dollars of export value with 26 percent increase in value. Mr. Zeki Sarıbekir, President of ASD Turkish Packaging Manufacturers Association said: “It is very important that imported products Türkiye are produced in country as substitutes. We need to focus on substitution, not on opening imports. We need this for more value-added production and increased exports.”

The packaging industry, which focuses on production, export and employment, continues to contribute to Türkiye's total exports. ASD Turkish Packaging Manufacturers Association published its 2021 exports figures report. The industry closed last year with 6.5 billion dollars of export value and 26 percent increase in value. The top three receivers of exports were United Kingdom, Germany, and Iraq respectively. These countries were followed by the USA, Israel, Italy, France, the Netherlands, Egypt, and Iran. Plastic packaging group formed 66 percent of 2021 exports. While paper/cardboard packaging had 23 percent export share, metal packaging group had 7 percent, glass packaging had 3 percent, and wooden packaging had 1 percent share.

WE MUST EXPORT HALF OF WHAT WE PRODUCE

Commenting on export figures, Mr. Zeki Sarıbekir, President of ASD said: “Export value of our industry in 2021 was 6.5 billion dollars and had a 2.7 billion dollars of foreign trade surplus to increase its positive contribution to current account deficit. As packaging industry we are targeting to increase our exports every year and export at least half of the packaging we produce in Türkiye.”

PRODUCTION COSTS INCREASED 3 TIMES, VAT DISCOUNT IS REQUIRED IN PACKAGING

Drawing attention to the fact that energy and production costs increased by 3 times. Mr. Zeki Sarıbekir said: “There are problems with supply. The problems in our region, the war between Russia and Ukraine, raw material and container problems are among the main factors that have a considerable and negative effect on our exports. There are significant increases in commodity prices. On the other hand, VAT rate in food was decreased. Packaging industry is a branch of industry that serves the food sector. In this context, I believe there can be a VAT regulation for our industry. Rate of VAT must be decreased from 18 percent to 8 percent.”

WE MUST FOCUS ON EXPORT SUBSTITUTION

Mr. Zeki Sarıbekir, President of ASD emphasized that the packaging industry exports from 5 different exporter's associations and continued: “If we want to increase the competitiveness of our products in the global market, we need to minimize the capital we spend on energy. Exporter's associations should deal with exports, not imports. It is very important that imported products Türkiye are produced in country as substitutes. We need to focus on substitution, not on opening imports. We need this for more value-added production and increased exports. We must sweat for new Free Trade Agreements, pursue new markets.”

SUSTAINABILITY CANNOT BE POSTPONED

Noting that they are not against import of waste Mr. Zeki Sarıbekir said this must be gradually reduced and eliminated. “I would like to underline that it is very important to recycle waste material. We bury our own waste, but buy the waste that someone else decomposes. We need to encourage using our own waste, just like China. In order to develop its recycling industry, China bought plastic waste from the world and developed its industry following which it slowly brought it to zero. Thus, we must deal with the systems that will improve the collection and recycling in our country. We support the green organized industrial zone (OIZ) issue. The products produced here will also have a bright future. When the ISO 9000 first came about, those that were not ISO 9000 certified could not export. In the future, similarly exporters with poor carbon records will be unable to export. This situation progresses in parallel with the increase in exports. Industry can be gathered in OIZs and removed from the cities. We always support this. As ASD, we believe this must be kept on the agenda. Sustainability, environment-friendly production is the future of Türkiye. When we prioritize environmental sustainability, our logistics, production quality and competitiveness will improve. We are entering a new era and those who cannot adapt to it will not survive.”

Sincerely,

ASD Turkish Packaging Manufacturers Association