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September 30, 2022

DORUK has aim of growing above 400% with an investment of 59.5 million US Dollars in five years

Doruk Un (Doruk Wheat), one of Turkey's biggest wheat flour producers and exporters, aims to grow above 200 percent in wheat and bakery products and 400 percent in its other investment and business branches, with its investment of US $59.5 million (Turkish Liras 1.1 billion) that it plans to realize mainly in retail sales and agriculture and seed growing, noodle and pasta, feed and feed raw materials in its 5-year projection. 

Additionally, Doruk Un is planning to make RES and GES investments for needing its own energy and is getting ready to dominate the retail wheat market with Panpan brand, in addition to its export to 41 countries. The brand, with its advance in the retail market, will develop special products for needs and uses in a wide range from domestic use to bakeries and restaurants, from hotels to baklava and dough shops.

Doruk Un, one of the three biggest brands of Turkey in wheat and wheat-based products, holds a strong place in the Turkish economy with its wheat breaking capacity of 438,000 tons annually, annual 350,000 tons wheat production, 60,000 tons wheat capacity, its 20,000 m2 advance technology facility and its sales & distribution network getting wider every year. Doruk Un realized export to 41 countries in Africa, Asia, South America, and the Middle East, and aims to increase its US $97.3 million (Turkish Liras ₺1.8 billion) turnover that it achieved in 2021, to approximately US $392 million (Turkish Liras ₺7.25 billion) in 5 years with its new investments. They plan to develop a product for domestic use with its retail brand Panpan and will proceed in this area with its feed facility established. Especially considering that there is an increase in fast-food consumption in the works, the brand will influence with its pasta and noodle investment in export markets and is starting an energy investment. Gürsel Erbap, who is CEO and Chairman of the Board of Directors of Doruk Un, indicated that they started from the point where energy is a big expense item after the situation in the world in terms of energy prices, and they plan to meet their own consumption with a solar energy facility that they will establish and that they will minimize their costs. Doruk Un was 324th in a row in the Fortune 500 list prepared by Fortune Magazine, with a 102,6 percent change in its turnover compared to the previous year, meanwhile, it took 316th row in net sales in the 2021 ISO 500 list and 471st row in Capital 500 list.

60 percent of production is for export

Gürsel Erbap, CEO and Chairman of the Board of Directors of Doruk Un, highlighted that 'Panpan will be our power in our retail sales section…'

Erbap stated that 'Our biggest success in export is that we meet requests of end users with our R&D team. We select wheat according to consumption habits and bread variations of each country, we grind wheat and localize it with the new technology we created.', indicating that they directed 60 percent of their production to export and that they realized special production for their customers with 7 different brands in the export market.

Erbap also stated that the wheat sector is going through a serious test, coming in the front lines of the food sector and fundamental foods, especially after narrowing commercial networks due to the pandemic and the quick increase in foreign exchange rates. Despite this, they left a period behind full of success and a productive harvest. Erbap shared the aims of the company by stating that 'Wheat sector that has a strategic importance in economy of the whole world, went through difficult days due to exchange increases, climate effects, the pandemic and economical uncertainties caused by the pandemic. There was serious price unbalances in global scale and it is still ongoing. In 2021 that we left behind, we achieved our targets Doruk Un despite of all these conditions. In the process where we take place, raining amount that we had in last winter and climate conditions ensured to have a productive harvest period. Our short-term aim is to deepen our power in the sector by making production and logistic investments that will support our supply chain. Additionally, in line with correct market, correct product and request, we realize our plans regarding management of wheat requirements in different categories. Panpan, our power in retail section, will be an important part of this plan.'

2022 has been a productive year in terms of wheat harvest in Turkey

Erbap stated that 19 million tons of wheat harvest was realized approximately in 2022, and said that 'Turkey is a country sufficient for itself in wheat production… If it is moved with correct agriculture policies in Turkey and if TMO continues its agriculture supports as it did in this year especially, there will be a significant increase in wheat production. Current production can be increased in 60 percent rate by combining agriculture lands and bringing land that are not planted into agriculture through making land consolidation and by making investments for productivity and by integrating it to technology. It means that it is possible to create a value added economy by reaching to export capacity without making import'. While it is estimated that there will be 19,883,000 tons of wheat production in Turkey in 2022, it is expected that this figure will exceed 22 million tons in 2025.

Size of planting area, productivity, and logistic advantage bring Turkey forward

Erbap, who attracted attention to the importance of the Marmara Region and Thrace lands for wheat harvest for Turkey, highlighted that approximately 3,120,000 tons of wheat harvest in Turkey (which was 19,800,000 tons in 2022 wheat harvest) was obtained from the Marmara Region. Marmara Region, and especially Tekirdağ province as one of the important locations for wheat in terms of productivity and with its planting area size, ensure a logistic advantage for use, as a result of their proximity to ports, and also stated Marmara Region as the second region after Central Anatolia Region to meet the wheat harvest of Turkey.

Turkish wheat will increase its existence with the 'Grain Corridor'

Turkey is one of the 10 biggest wheat exporters in the world, with its wheat export of approximately 7 million tons, according to United States Department of Agriculture (USDA) data. Erbap stated that 'Its proximity to the Black Sea basin and being a critical interim point in wheat production, especially after the Russia-Ukraine war, bring Turkey forward in terms of export. We, as Doruk Un, realize 13 percent of total wheat export of realized from Turkey, except Iraq and Syria. Making only border export carries a serious risk for Turkey in further period, therefore we moved to different markets'. They also stated that Turkish wheat will increase its existence in export markets with the 'Grain Corridor Agreement'. Since the agreement will ensure secure dispatch of grain and foods from Ukraine, with hosting provided by Turkey, it will ensure balancing food prices on a global scale, which will be followed with attention by the whole world.

Image Credit: DORUK

 

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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