The Turkish flour industry has been the world flour export champion for 9 years. So, will the milling sector, which managed to maintain its market dominance even during the pandemic period when there was a worldwide container crisis, be able to maintain this success in the coming years? To what extent do Turkish millers follow the food trends in the world and how do they adapt to the technological transformation in the industry? We discussed all these issues with Haluk Tezcan, Chairman of the Turkish Flour Industrialists’ Federation (TFIF), the umbrella organization of the industry.

Speaking to Miller Magazine after the TFIF 17th International Congress and Exhibition held in the Turkish Republic of Northern Cyprus, Tezcan shared crucial messages for the industry. Underlining that it is not a coincidence that the title of this year’s congress is ‘Technological Transformation in Production’, Tezcan states that it is not possible for companies that cannot achieve this transformation to survive. “Those who cannot keep up with the change will, unfortunately, be left behind,” warns TUSAF President and emphasizes that sector stakeholders should closely follow the population and consumption trends in the world. “We cannot stay out of these trends while there are so many success stories in our milling sector,” says Tezcan, adding that government support is a must for R&D and P&D investments at that point. 

Here are the answers given by TFIF Chairman Haluk Tezcan to our questions:

First of all, may God never again allow such a catastrophe to happen to our nation. This disaster has revealed to us that we should be prepared for all kinds of disasters in advance and that we should build our infrastructures in a planned and solid way considering various scenarios.

As TFIF, we, together with our industrialists, worked in coordination with the institutions of our state, especially the Turkish Grain Board (TMO), to overcome this difficult period and delivered flour and bread to the disaster area. TFIF Board of Directors visited millers affected by the earthquake and carried out observations. We listened to the demands of the millers and worked with all our institutions, especially our ministries, to heal the wounds and for our businesses to get back on their feet as soon as possible.

With the awareness that flour and bread form the basis of our nutrition, we mobilized all our means to the earthquake region in order to avoid problems in access to basic necessities in such a disaster. On the evening of the first day, we started to deliver bread to the region from the surrounding provinces. Then, as the bakeries in the region started to open gradually, we supplied flour. We stood by our state and nation by sending these flours to the region as donations. We are continuing these aids.

Regarding the effect of the earthquake on the flour industry in the region…13 flour factories in 4 provinces in the earthquake region were damaged to the extent that they could not be used. We have observed moderate damage in 7 factories and light damage in 3 factories. 13 destroyed factories need to be rebuilt in a new location.

During our visit to the region, we observed that the destroyed factories were mostly located in rural areas, in the agricultural fields. The factories in organized industrial zones were also damaged but not destroyed. In Iskenderun, Hatay and Malatya, there are not many problems in the factories in organized industrial zones. However, we observed major damages in the facilities built in the fields in the counties and villages. We supported the transportation of wheat and flour in these factories in order not to deteriorate. I would like to thank TMO for their support in solving this problem.

After our visit to the disaster-affected area, we went to the Ministry of Industry. The Ministry issued a 6th Region Investment Incentive for our flour industrialists in the region. As you know, this incentive is not granted to flour factories under normal circumstances. Since it is an earthquake zone, our damaged industrialists were included in the stimulus. The only problem we have not solved so far is the problem of location for the reconstruction of the destroyed flour factories. Since there is a lot of demand from other sectors for organized industrial zones, we have difficulties finding a place. However, we are in contact with our governorships and related organized industrial zone presidents for the solution to this problem.

We know that we will never be able to compensate for the moral losses of this disaster. There is a long road ahead for the region to get back on its feet. On this path, we, as the actors of the agricultural sector and the non-governmental organizations representing them, will continue to provide continuous support. 

Starting with climate change, followed by the pandemic and the Russia-Ukraine war, the crisis that affected the whole world brought countries face to face with a severe food shortage. However, the grain corridor agreement, signed on 22 July 2022 with the mediation of Turkish President Recep Tayyip Erdoğan, both removed the risk of a global hunger crisis and relieved the grain markets. And the renewal of the agreement for the second time on 17 May reassured the markets.

The grain corridor is really a great success story for Turkey. Of course, it is our utmost hope that the war will end, relations between the two countries will normalize and there will be no need for the grain corridor. Thanks to Turkey, Ukrainian grain was transported to world markets and many poor countries. Turkey acted in the spirit of humanity, without expecting anything in return. During the pandemic, we have seen how extremely valuable grain, wheat and food products are. Without Turkey’s diplomatic efforts, God forbid, the world would have been faced with hunger.

Here, however, I would like to emphasize a crucial point: It is very important for global food security that farmers in Russia and Ukraine, which account for 30 percent of the world’s wheat exports, continue to cultivate their fields. If the farmers in these two countries, which are the world’s granaries, cannot continue production and export what they produce to the world markets, I cannot even imagine the extent of the problems that may arise. Everyone should be aware of this situation and support the farmers there to ensure sustainable production. At this point, the United Nations has an important role to play. It is necessary to help the producers in those regions to reunite with the land.

Frankly speaking, I do not want wheat prices to fall because farmers need to earn money for sustainable production. When farmers cannot earn money, both production and planted area decrease. This causes problems in the availability of wheat. At a time when we are discussing the negative effects of climate change on yields, if we discourage the farmers, we will have other problems that we will have to face with greater costs tomorrow. Therefore, I do not want wheat prices to go down much further, I want them to remain at a certain level. It is much more valuable for us if farmers earn money and continue production. Because we, as industrialists, need to be able to access raw materials. This gives us more reliability. For example, we expect wheat production in Turkey to be higher this year. We estimate that our stocks are also sufficient. This has a significant positive effect on our bargaining and sales power. We can say to our customers around the world: “We have no shortage of raw materials. We can always deliver flour to you.”

To summarise, I do not wish prices to go back much further. On the contrary, it is more valuable for us that farmers earn money in order to ensure stability in production.

I would like to assess this topic under three main categories: Firstly, human resources and land. Secondly, technological transformation. The third is production and marketing. First of all, we need to plan production very well in our existing arable lands. We need to realize a predictable production. Our cultivation areas need to be classified within a planning scheme. Because competitiveness starts from there. The yield on small areas is not the same as the yield on large ones. In large fields, you can produce better quality products at a more competitive cost. Therefore, under the leadership of the Ministry of Agriculture, we should make the most efficient use of each square meter of land with legal regulations if necessary.

The second one is technology. We need to bring technology together with the soil. At this point, we need to make use of our universities, research institutes of the Ministry of Agriculture and agricultural engineers. Which seed should be used in which region? How can we use pesticides and fertilizers more effectively? Under what conditions should we do irrigation? We should provide this information to our farmers. Today, spraying and fertilization are done with drones in the world. We should mobilize all the tools offered by technology to increase production.

With proper management in these areas, increasing our annual wheat production from 20 to 32 million t is not a dream. If we carry out this whole process with the right management approach and the right decisions in line with the interests of the country, we can achieve these production volumes. If we do so, believe me, there will no longer be any discussion about “Is Turkey self-sufficient in wheat?”. In addition to being self-sufficient, we can meet the export demand of the Turkish flour industry with local wheat production. Turkey is already writing success stories in flour, pasta, biscuit and bulgur exports. With the right planning and management, we can become the flour and bakery products country of the world.

Firstly, Turkish flour industrialists are already doing world-exemplary work. Turkey has been the world flour export champion for 9 years. This is not a success achieved in a short time. If you take a look at the Turkish milling industry, you will see a tradition passed down from grandfather to grandchild, from generation to generation. There are many such companies in the sector. There are many companies in our country where third and even fourth-generation members are in charge of the business. And these young people to whom we hand over our business are very conscious, very smart and follow the world very closely.

If we cannot accomplish this technological transformation, it is not possible for us to stay in charge of our companies. I am one of the witnesses of this in the milling sector. Those who cannot keep up with the change will, unfortunately, be left behind. Those who keep up with the transformation will come to much better positions. Our friends who were at the top of the sector yesterday are not among us now. For example, there were 13 flour mills in Izmir previously. But now there are only 3 flour mills left. If we cannot adapt to the transformation, if we do not foresee the future, if we do not prepare the next generations for the future, others will come and take over the business.

Technology is developing very rapidly. We should both adapt to this evolving technology and closely follow the trends in the world and take action accordingly. The demand for nutritious and healthy foods is increasing worldwide. The world population is getting older and new products will be needed for this elderly population. People do not want to spend too much time preparing food. Therefore, the demand for fast-consuming foods such as frozen foods is increasing. Companies that follow these trends and produce innovative and sustainable foods will survive. Companies that cannot prepare for the future will most likely close their doors.

As there are so many success stories in our milling sector, we cannot stay out of these trends. However, in order for us to maintain these successes, our government should be with us economically. We need to have a very serious R&D and P&D in order to make production in the fields I have listed above. Our economic structure does not have the means to realize these revolutionary infrastructure investments. We will need low financing funds for such investments. At this point, we should receive the support of our state so that we do not miss these trends in the world. As Turkey, we need to take this journey one step ahead of the developed countries.

The Turkish flour industry has not gained its place in the world markets easily. Even during the pandemic, when there were many problems, especially logistical issues, we have not lost these markets. We entered these markets with flour and then supported them with many other products. If we could deliver one kilo of flour to every family in a world of 8 billion people today, Turkey would not have a current-account deficit. More or less everybody consumes flour. We touch everybody and we must continue to do so. That is why we demand support from our government in this regard.

Such organizations are very important for the sector’s stakeholders and the public sector to come together to express the sector’s problems and offer solutions. In this respect, I believe that our event in Kyrenia was a success. My board of directors put in a lot of effort. The record attendance shows us the strength of the unity we have achieved in the sector.

The fact that the congress is international in nature increases the significance of this event even more. Our aim here is to make TFIF congresses a global platform where grain, wheat and flour are discussed. The themes, sessions and speakers we have chosen are in line with this goal.

I have observed that many more young participants attended this year’s congress, and many of them even brought their families. I was very happy with this picture. The interest in the sessions and workshops was also high. This was another issue that made me happy. The interactive nature of the presentations and the interest of the audience increased our excitement even more. I have no doubt that next year’s congress will be more successful.

I would like to express my thanks once again to the entire TFIF family via Miller Magazine. They have been very supportive of us and are always with us. I would also like to thank our esteemed sponsors who enabled us to realize this great event.