The topic “Risk Management in Food Sector” laid before the table at the meeting held on 14 September 2010

The 7th of Traditional “Nart Risk Management Forum”, an international event organized by Nart Sigorta ve Reasürans Brokerliği, took place at Istanbul Ritz Carlton Hotel on 14 September 2010 with 280 participants. Executives of food and insurance sectors and of risk management circles, coming from 16 countries, discussed about risks and ways of solution.

Participants of this 7th forum debated on “Risk Management in Food Sector”. Among the participants of this year’s forum are representatives of Ministry of Agricultural and Rural Affairs of Turkey, Ministry of Environment and Forests of Turkey, Treasury Undersecretariat of Prime Ministry of Turkey, German-Turkish Chamber of Industry and Commerce, Turkish – French Association of Commerce, TABA/AmCham (Turkish American Business Association), TÜSİAD (Turkish Businessmen’s and Industrialists’ Association), TÜGİAD (Turkish Young Businessmen’s Association), ISO (Istanbul Chamber of Industry, TSRŞB (Turkish Insurance and Reinsurance Companies’ Association), TGDF (The Federation of Food and Drink Industry Associations of Turkey), TPF (Turkish Federation of Retailers), AMPD (Shopping Centers’ and Retailers’ Association), TMSD (Pasta Industrialists Association of Turkey), TÜGİDER (All Food Importers’ Association), MEYED (Fruit Juice Industry’ Association), GİMDER (Food and Consumer Goods Distributors’ Association), TARSİM (Agricultural Insurances’ Pool), PAKDER (Agricultural Products Cereals and Pulses Processing and Packaging Industrialists’ Association), ORGÜDER (Organic Product Growers’ and Producers’ Association), NÜD (Starch and Glucose Producers’ Association), BUMÜD (Beer and Malt Producers’ Association), as well as all institutions providing services for such sectors.

"Risk Management in Food and Beverage Sector, and Problematic Aspects”

Taking the floor at the outset of meeting, Mr. Levent NART, President and CEO of NART Insurance and Reinsurance Broking Services , said that world’s population is growing fast and that risks in food and beverage sector would go up fast, well, in the years to come in parallel with this growth. Pointing out that they are dealing with “Risk Management in Food Sector” at this year’s NART Risk Management Forum for this reason, Levent NART underlined that the forum is hosting participants from 16 countries and thanked sponsors for their contributions.

Mr. Franz KOLLER, President of Executive Board of German – Turkish Chamber of Commerce and Industry, Mr. Oliver GUILLAUME, President of Executive Board of Turkish – French Association of Commerce, and Mr. Yavuz CANEVİ, President of Advisory Board of NART Insurance and Reinsurance Broking Services , underlined during the opening speeches that this forum has now become a traditional event and said that they are happy with high level of support provided to the forum from the very the beginning.

"Food & Beverage Policies in World and Turkey "

At a session chaired by Mr. Erdal BAHÇIVAN, President of the Parliamentary Chamber of Industry of Istanbul and General Manager of Bahçıvan Gıda, new dimensions and trends which developed in the world and in Turkey with respect to food & beverage policies have been discussed.

Mr. Rint AKYÜZ, President of TÜSİAD Agriculture and Food Group, and acting Vice Chairman of the TGDF (Federation of Food and Drink Industry Associations of Turkey), took an in-depth look at the sector and touched on developments likely to be experienced by the sector during the EU process as well as on management of accounts receivable and market risks and finally added: “The EU food & beverage industry achieved a good rate with its spare of 12,9% in whole manufacturing industry of Europe. When we take a closer look at details of the EU’s import and export data, we can see that 3 countries are standing out in the crowd in imports, in particular. These are Brazil, Argentina and the U.S.A. Imports from all three of them account for 30% of total EU food & beverage imports. And Turkey ranks 8th in the EU’s food % beverage imports with its score of 1 billion 75 million Euros. And the U.S.A. accounts for 17% in the EU’s food % beverage industry exports, which is a big share, thus ranking 1st. The U.S.A. is followed by Russia and Switzerland, respectively. When we look at our beverage industry, we can’t see a significant growth compared with 2008. In 2009, 13,2 million liters of beverage have been produced, and mineral waters get the biggest share with its 6,6 billion liters.”

A.Bülent Bora, General Manager of TARSİM, pointed out that risks in agricultural production threatens revenue stability of producers and that it is very difficult and costly to manage such risks, underlining the necessity of enabling producers to achieve a revenue stability for enhancement of agricultural production.

Mr. Levent NART, President & CEO of NART Sigorta ve Reasürans Brokerliği, taking the floor as last speaker of the first session, talked on institutional risk management in food & beverage sector and, in this context, on value-added which they are providing to companies as a broker, with real-life examples.

He also indicated that agriculture, which is the source of food sector, is consuming 70% of world’s water reserves and that such reserves are quite limited and he then portrayed a second terrifying picture. He said that cereal reserves are quite limited and that Russia and Argentina have imposed a ban on wheat exports, while Vietnam and Thailand imposing a similar ban on rice exports. He pointed out that the world needs to make use of wider arable areas for biofuel production and that world’s population now being 6,5 billions would reach 7,2 billions in 2015, and 9 billions in 2050, according to a recent United Nations prediction, and that this makes food sector strategically more important in today’s world and that this, in turn, renders matter of risk management more important for food & beverage sector risks.

“Challenges and Risks Associated with New Technologies”

“Golden Rules to be Remembered for Accounts Receivable Risks”

During the second session chaired by Mr. Levent OĞUZ from Bloomberg HT and attended by many top-level speakers, both from domestic and foreign institutions, food & beverage sector representatives, sectoral organizations, risk managers and insurance sector’s dignitaries; challenges and risks associated with new technologies and cost advantages have been laid before the table with participation of Mr. Eşref HAMAMCIOĞLU, CEO & General Manager of Sodexo and Mr Alfred HENNEBÖHL, CUO Liability Deputy Global Head of Allianz Global Corporate & Speciality AG. After briefing given by Mr. David SANTOS, Euler Hermes Country Manager of Turkey, with respect to management of accounts receivable risks, he shared golden, always-to-be-remembered rules with the participants.

"Food & Beverage Risks and Solution Scenarios "

During the last session chaired by Mr. Thomas BARON, General Manager of Ergo Sigorta A.Ş., Mr. Eusoph Deriza KANYENDA, IFC Risk Manager, and Mr. Michael BRENNAN, European Commercial Risk Manager of Aviva Institutional, touched on recent solution scenarios giving examples from management of sectoral risks in world and British markets. At the cocktail held after closure of NART Risk Management Forum 2010, the NART Insurance and Reinsurance Broking Services Inc team enjoyed the pleasure of a successful forum along with their guests.