Erhan Özmen
Chairman of the Board
Özmen Un

 "As the flour industry, we have had a very clear global dominance since 2005. However, from now on, I believe that the sectoral bar will be raised both at home and abroad. I believe that our industry will contribute to the development of the bakery products sectors both at home and abroad with its innovative and creative approach, and will continue on its way by increasing and strengthening its innovative capabilities."

In the ancient lands of Anatolia, the homeland of wheat, companies that transform grain into flour stand out with their success. Özmen Un, a globally recognized brand that has played a major role in making the Turkish flour industry a global player, is taking firm steps into the future with half a century of experience, advanced technology and innovative investments. We talked to Erhan Özmen, Chairman of the Board of Özmen Un, who introduced Industry 4.0 technology to the milling industry and established Turkey's first "untouched dark mill".

Erhan Özmen said that many global brands use their products in all parts of the world, especially in Europe and the Middle East, thanks to their rich diversity in different groups from lavash to pita bread, baklava, kadayif (shredded wheat in syrup), whole wheat flour and croissant flour. Erhan Özmen said that many famous chefs in the world cuisine use their flours.

Özmen stated that they produce the flours of the future with confidence in the agricultural industry and craftsmanship as a sign of their respect and gratitude to the fertile lands of Anatolia.  We leave you with the interview of Mr. Erhan Özmen, a doyen of the industry.

Dear Mr. Erhan, first of all, thank you for accepting our interview request. Could you give us information about the activities of Özmen Un?

Özmen Un is about to complete 50 years since its establishment. Considering the structural changes and difficulties that companies in our country face in the natural life process, I regard the completion of half a century as very valuable. When my son Oğuz Özmen and my daughter İpek Özmen Develi, who are our 4th generation managers after my grandfather, uncle and father Şakir Özmen, completed their education and started to work at Özmen Un; our widened perspective, increased energy and rising vision started to reflect very positively on our company. With these creative, positive contributions, we started to move more effectively towards the goal of becoming a Turkish brand, which I had envisioned years ago. First of all, we identified the local and traditional bakery product cultures and the product richness in the vast geography of Turkey, the top bakery product consumer in the world. Subsequently, we made significant progress by developing special flour varieties that perfectly suit each product. We continue to move forward with our corporate vision to embrace our country and raise the quality of our local values with our special flours for bakery products on the one hand, and to reach universal goals on the other.

Could you give us some information about Özmen Un's factory equipped with Industry 4.0 technology, which introduced dark milling to Turkey?

When we decided to move our mill, which was located in the inner city, to the OIZ, we went through a detailed research process by visiting both the mills established in the country and the mills established in Europe based on foreign technologies. As Özmen Un management, we had set working targets for new generation bakery products. We aimed to produce special flours and customized flours for different products. Therefore, we decided to proceed with Bühler, which has one of the most comprehensive Industry 4.0 technologies.

ADDITIONAL INVESTMENT IN SOLAR ENERGY

What about your efforts for the retail market?

As Özmen Un, we aim to spread our quality flours, which we produce with our industry 4.0 technology that enables flexible production, to the entire sector, including retail, industrial and out-of-home consumption, and to make them accessible to everyone and every segment.

Could you tell us about your investment in solar energy to solve the energy problem, which is one of the biggest input costs of the flour industry?

We are currently actively obtaining a significant portion of the energy required for our production from renewable energy sources. In addition to our 2 MW solar energy investment, we are also working on a new 8-MW-project.

HISHVAHAN AND FIRIN'O R&D KITCHEN

Apart from renewable energy, will you have other investments as a company?

In addition to renewable energy, we already have two other investments: The first of these is Hışvahan, which has been in operation since 2016 and serves as a hotel and restaurant. Especially with the great efforts of my spouse and our board member Mine Özmen. It has become one of the important values not only of Gaziantep but also of our country. Our other investment is FIRIN'O, which started to serve with 2 branches with its first branch in 2022 and the second branch in 2023 with the concept of artisan bakery in Gaziantep. The strong teams and wide product ranges we have in both investments have enabled us to fully master the journey of wheat from seed to the final product. We consider both projects not only as investments in the lands where we were born and raised, but also as R&D kitchens that enable us to produce the most qualified products as Özmen Un.

Could you share with us the data on Turkey's wheat production and consumption?

Turkey's wheat production declined slightly as some wheat producers opted to produce fruit or other crops. We meet some of our domestic wheat consumption needs through wheat imports.

What do you think about the future of Turkish agriculture?

For Turkish agriculture, citing the advice from the line "Yesterday has passed, my dear, today we need to say new things", I believe, and I am sure everyone else does too, that Turkey's agriculture possesses a very high potential, and that it can be transformed into a great added value with fundamental system changes. For this, it would be sufficient to discuss only the models of countries that have achieved agricultural success globally.

What are the risks facing Turkish agriculture?

The fragmentation of agricultural land, down to an average of 40 decares, and its consequent inefficiency.

What is your wheat yield expectation for this year?

The wheat yield for this year looks good. But we will utilize carryover inventories for a while to meet the yearly wheat needs, and then we will import some wheat to complete the year.

TMO FOLLOWS THE MARKETS VERY CLOSELY

What steps should be taken to prevent wheat and flour shortages in Turkey?

First, we need to produce more than our wheat consumption. Secondly, our country will not have a wheat or flour shortage because TMO is following the markets very closely as an institution. By always staying in close dialogue with sectoral organizations such as TFIF, it ensures stability by intervening in problems either through its own intervention or through the permissions it gives to the private sector, often with accurate predictions before a problem occurs.

What kind of price policy do you expect this year to encourage farmers to shift to wheat production?

We will see whether TMO's aggressive price intervention last year will be repeated this year or not. However; I think that a price that will definitely satisfy the farmers in wheat production will be announced.

How did TMO's wheat purchase prices and subsidies announced last year affect the sector?

TMO's wheat price announcement, which is above the expectations of the entire sector, is of course the most important reason for the high wheat yield this year.

How do you evaluate the recent investments of some flour producers in bakery products and pasta production?

It is a natural and wise approach. I expect that there will be consolidation in the flour industry on the one hand, and on the other hand, the bakery products and pasta sectors will become sectors integrated with the flour industry.

Especially after the pandemic, there have been changes in many areas. What has changed in your sector? What gains did the sector make during this period?

The concept of food safety, which has always been of great importance to us, has permanently entered our lives. We can say this both in terms of the hygiene standard in production environments and the healthy presentation of the product produced. In addition, high standard certification of flour production has also gained importance.

BRAIN POWER INSTEAD OF MUSCLE POWER

What changes have taken place in the technology used by the sector in production?

In the flour industry, high-tech hardware and software such as robots, sensors and automation have started to replace manpower, which is crucial for sustainable quality and shipment. Unlike muscle power, brain power and qualified human resources continue to gain importance.

The war between Russia and Ukraine, which has been going on for more than a year, has caused great turmoil in the food sector apart from its humanitarian dimension. The huge increases in prices have been reduced with the Grain Corridor agreement signed with Turkey's intervention. What does the ongoing war cost the sector? How does it affect you?

The fact that the grain corridor has remained consistently open for a long time has undoubtedly contributed significantly to the societies of developing countries, both in terms of access to food and food costs. Of course, the grain corridor has also had a positive impact on our country.

EARTHQUAKE-STRICKEN COMPANIES MUST BE SUPPORTED BY THE STATE

How did the disaster of the century, which occurred in a geography where important players of the sector are located, affect the sector?

On February 6, the earthquake, which was "truly" the worst disaster of the century, deeply wounded the flour industry, just like every other sector and every other segment. Unfortunately, the majority of our flour mills, especially in Hatay, Kahramanmaraş, Adıyaman and Malatya, are unable to operate. These enterprises must be revived and activated with the strong support of our state.

FLOUR REGULATORY POLICY IS VERY SUCCESSFUL

The flour regulation of the Turkish Grain Board, which has been ongoing for more than a year, will continue until this harvest period. What is your view on flour regulation?

I, like everyone else, find TMO's intervention very accurate and successful. The fact that everyone has access to flour and bread without any problems in the face of the high inflation that has been going on for a long time, as well as the fact that price stability and bread quality are not discussed, shows how successful this project has been. In addition, the fact that the public and the flour industry have been able to sustain this project for a long time in unity is a significant success for both parties.

What are your thoughts on the congress titled "Technological Transformations and Global Risks in Production" to be organized by the Turkish Flour Industrialists Federation in Cyprus?

TUSAF is a strong sectorial organization that has always successfully represented our flour industry. In this period, it continues its duties under the successful leadership of our dear president, Haluk Tezcan. I have no doubt that our international congress in Cyprus will contribute to all of us individually and to our businesses in the corporate sense and will add value to our industry. I congratulate everyone who contributed to this organization and my dear brother Mesut Çakmak, who is the head of the organization, and I thank everyone.

Is there anything else you would like to add?

As the flour industry, we have had a clear global dominance since 2005; however, I believe that from now on, the sectorial bar will be raised both domestically and internationally. I foresee that our industry will contribute to the development of the bakery products sectors both at home and abroad with its innovative and creative approach, and will continue on its way by increasing and strengthening its innovative capabilities.