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Doruk Un to grow with frozen bakery products production

06 March 20246 min reading

Gürsel Erbap, the Chairman and CEO of Doruk Un, has disclosed the company’s performance in 2023 and its expectations for 2024. Meeting with journalists at the historic venue Olden 1545 in Istanbul, Erbap outlined their aim to achieve a 20% growth in the current year. He also stated that they will be initiating investments in frozen bakery products and warehouses.

Gürsel Erbap
Chairman and CEO | Doruk Un

Doruk Un, one of Turkey’s largest wheat flour producers and exporters, stands out, particularly with its emphasis on “sustainable agriculture and efficiency-driven production” in wheat cultivation, which has become a critical commodity for the entire world due to the climate crisis, decreasing cultivation areas, inflation pressures, and wars. In 2023, Doruk Un recorded a historic turnover of 8.14 billion TRY, with a 100% growth in TRY terms compared to the previous year, and a 35% growth in dollar terms, continuing its growth with new investments on the agenda. In 2024, the brand will activate a healthy flour portfolio, frozen bakery product production, and warehouse investment with an additional total investment of 25 million dollars, aiming for a minimum growth of 20% by the year-end. 

Doruk Un’s Chairman and CEO, Gürsel Erbap, who met with journalists in Istanbul to provide information about the brand’s goals, stated that they continue their investments with the aim of creating a value chain by managing an integrated process from the farm to the fork in agricultural production. After showcasing a robust performance in 2023, Erbap signaled that in 2024, they would commence the production of frozen bakery products in addition to introducing a healthy flour portfolio that combines the taste of white flour with the health benefits of wheat. Announcing the initiation of warehouse investment for a silo capacity of 20 thousand tons, Erbap highlighted in the five-year plan a focus on production investments in innovative and value-added product categories, ranging from noodle production to storage and logistics investments, as well as solar energy investments. With an annual wheat milling capacity of 438 thousand tons and flour production of 350 thousand tons, Doruk Un, Turkey’s third-largest flour exporter, conducts exports to 41 countries. As the sole flour producer developing its own seeds, Doruk Un aims for a 56% increase in tonnage in the domestic market in 2024 with its retail brand Panpan, marking its entry into the market. 

24 million tons of wheat production expected for 2024-2025 MY 

Erbap, highlighting the increase in commodity production both in Turkey and globally in 2023, especially noting that wheat and corn production surpassed the averages of the past five years, stated, “We observe that global wheat flour exports were approximately 11.5 million tons in 2023. We assume it will increase by approximately 1 million tons with a 10% growth in 2024. We anticipate a 4-5% growth in the Turkish flour market. Turkey produced around 20 million tons of wheat in the 2023-2024 period, with most being sold to the Turkish Grain Board by producers. The closure of the grain corridor hindered the entry of stocks held by Ukraine into the global market. Turkey sustained its competitive edge, leveraging shipments via small vessels from 1 or 2 ports. Currently, Turkey holds its highest inventories in 15-20 years. With ongoing favorable climate conditions, we anticipate wheat production reaching approximately 24 million tons in the 2024-2025 season.” 

Turkey has achieved above-average yields through seed breeding initiatives 

“Global climate change is a significant factor shaping the world’s food trends... With climate change and global warming, production dynamics are shifting. At Doruk Un, we focus on adapting to this process by prioritizing high-yield and sustainable varieties. Companies investing in the future of sustainable food supply will play a crucial role,” Erbap said adding that they have made substantial efforts in this regard. Under Doruk Un’s subsidiary, Doruk Tohumculuk has successfully developed around 80 seeds including wheat, barley, oats, corn, sunflower, and bitter vetch in a total of eight separate fields – three in the Marmara Region, five in the Central Anatolia and Southeastern Anatolia regions. The company has excelled in tests for disease and drought resistance, as well as in terms of quality and yield. When compared in terms of Turkey’s wheat yield, varieties exhibiting three times higher yields have also surpassed the country’s average protein value, a critical parameter for quality, by approximately 25%. Discussing Doruk Tohumculuk’s ‘Seeds for the Future’ initiative, which the company has primarily launched in earthquake-hit regions, Erbap stated that within the project, they will host awareness campaigns on the significance of certified seeds and agricultural activities each year in different regions and elevate agriculture and certified seeds to the deserved value. As the first step of the project, Doruk Un collaborated with the Agriculture Provincial Directorate to distribute free bread wheat seeds in Kırıkhan, Hatay and played a crucial role in bringing 1000 hectares of land into cultivation in the earthquake-hit region.  

Rising in retail with the power of ‘PANPAN’

Besides exporting to 41 countries, Doruk Un is gearing up to dominate the retail flour market with the Panpan brand, a long-standing choice of Turkey’s largest industrial bakery product producers. With its retail initiative, the brand’s short-term goal is to deepen its industry strength by making production and logistics investments that support the supply chain, catering to a wide range of needs and purposes—from household use to bakeries, restaurants, hotels, and pastry shops. Additionally, the brand’s agenda includes plans to manage flour requirements in different categories based on the right market, right product, and demand. Erbap, signaling the entry into frozen bakery products in addition to the healthy flour portfolio that combines the taste of white flour and the health of wheat in 2024, noted that they aim for a 56% increase in tonnage in the domestic market with the Panpan brand. Having finalized agreements with national chains and digital platforms, the brand will strengthen its penetration in the first quarter of 2024. 

Integrated processes include production, storage, logistics and custom product development

Doruk Un, bringing technological agricultural data and R&D studies to farmers, offers solutions by detecting potential losses in seed, planting, spraying, fertilization, and harvest stages. Positioned among the largest companies in wheat flour export in Turkey, Doruk Un continues its growth with an annual capacity of 438,000 tons of wheat milling, 350,000 tons of flour production, a 20,000 m2 advanced technology facility, and a sales and distribution network expanding every year. Doruk Un exports to 41 countries in Africa, Asia, South America, and the Middle East, showcasing a robust integrated structure from production to storage, logistics, and custom products with a quality-oriented approach. Doruk Un develops a wide range of products tailored to various needs and purposes, spanning from household use to bakeries and restaurants, hotels to pastry shops. Doruk Un, directing 65-70% of its capacity to export markets, accelerated its growth in 2023 by expanding its market network, increasing volume, and transitioning to value-added products in its product portfolio.

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