TABAN GIDA’S 3rd SHIP TAKES ANCHOR
Performing transit trade to nearly 20 countries in Asian, African, European and American markets, Taban Gıda, the leader of the wheat supply market in Türkiye, made significant investments in 2021 and closed the year with a growth of more than 50 percent. Continuing its rapid rise with the investments it has made, Taban Gıda has added its third ship to its fleet. With the group company Vivalon AG’s total investment of 11 million dollars, the third dry cargo ship will anchor as of February, Taban Gıda aims to realize new ship purchases, silo and production investments in 2022. While the company targets an ambitious growth in the feed raw materials market, it plans an investment of 100 million dollars in a 3-year period.
In the grain, feed group and oilseed supply market, performing transit trade for needs and demand, Taban Gıda has increased its trade volume to over 1.5 million tons in the 6 years since its establishment, and reached a turnover of 4.5 billion TL as of the end of 2021. The company, which has grown by more than 50 percent compared to the previous year, targets 20 percent growth based on tonnage and 30 percent growth based on turnover in 2022. Taban Gıda, which is among the top 200 in the “500 Biggest Companies of Türkiye” rankings aims to increase its power in the global market and expand its supply structure by investing 100 million dollars in production, logistics and storage areas in a 3-year period. Taban Gıda, which makes leasing with high storage capacity in many ports of Türkiye, stated that the wheat import carried out in the ports where high tonnage trade flows in Türkiye has a capacity utilization of 26% in Karasu and 24% in İskenderun. Taban Gıda, which uses 15 percent of its total wheat import capacity in Samsun port, where it makes long-term rentals, rolled up its sleeves for its own silo investment. In its 2022 growth strategy, it has set its sights on the feed raw materials market.
Ship investment of totally 25 million dollars……
In the first month of 2022, Taban Gıda has added a new one to its ship investment move, which it started by purchasing 2 dry cargo ships in 2021. Taban Gıda expanded its fleet with a 35,000 DWT dry cargo ship purchased with an 11 million dollar investment from Vivalon, the group company. The new ship of Taban Gıda, which has invested $25 million in ships to date, will anchor in February. Stating that, “We plan to continue our ship investments in 2022 in order to control maritime transportation costs, which is one of our important cost items, and to turn this into an advantage,” Taban Gıda CEO Hasan Hacıhaliloğlu said, “At the same time, we own our own storage capacity, which we are currently trying to solve with the long-term rental method. We aim to increase with investments. We are planning a flour factory investment in Russia, especially in order to use the regional advantages in Russia and to develop our production power. The fluctuations in agricultural commodity prices in the world and the exchange rate fluctuations in the domestic market caused us to protect ourselves in 2021. To put it bluntly, the rise in global commodity prices and the exchange rate fluctuation in Türkiye have a large share in the rise in turnover. We have achieved an estimated increase of 5 to 10 percent in our commercial volume in 2021 compared to the previous year. We have drawn our roadmap to have a 10% growth in the Turkish wheat market by the end of 2022 on a tonnage basis and a 7 to 10% share in the feed raw materials market. By the end of 2021, we plan to increase our global trade volume from 350 thousand tons to 1 million tons. We focus on new and emerging markets. We have come to a very strong position in the West African market. This year, we aim to grow in the European market and to have a stronger place in the Asian market.”
In the long run, the balance will change.
Türkiye ranks first in the world in flour export and second in pasta export. This refers to a large industry and sector. Hasan Hacıhaliloğlu said, “As Taban Gıda, we support almost all producers of medium and higher scales by supplying wheat. We are importing for export. Wheat policies must be managed correctly in order not to lose this power and to develop and support exports. We are becoming a more and more dependent country in terms of agricultural commodities. The recent increase in fertilizer prices has caused a serious decline in fertilizer use. This will negatively affect the harvest figures next year. Agricultural practices in our country also negatively affect the cultivation of grain products. It has been observed that the negative effects of climate changes on a periodic basis have also been observed in previous years. There are still many uncultivated areas in the world. Currently, there is production to meet the need. But in the long run, the balances can change very seriously,”
In the last 10 years, most countries are trying to increase their stocking capacity.
Stating that there are opinions that countries’ desire to keep stocks has increased during the pandemic period. Before the pandemic, many methods were being developed in order to increase the stock holding capacity and to store the product in a healthier way Hasan Hacıhaliloğlu, CEO of Taban Gıda, said “The biggest problem facing us is climate change. Due to the increase in air temperature, there are very serious changes in yield. This situation will have many consequences, including the differentiation of cultivation areas and perhaps the change in consumption habits. I think that this situation is more effective in the efforts of countries to keep stocks. In the last 10 years, most countries are trying to increase their stocking capacity. For example, while Russia produced 36 million tons of wheat 10 years ago, today it produces over 75 million tons of wheat. The necessary infrastructure for these is being improved day by day. To explain with an example, Russia, the world’s largest wheat exporter, and the Egyptian state, one of the largest wheat importers, are in the process of making a new agreement in order to reach a very high storage capacity in Egypt with a joint project.”
Coarse wheat production and use is expected to be higher in Australia, EU and Russia.
In the wheat analysis of the US Department of Agriculture USDA’s December report containing the World Agricultural Supply and Demand Estimations (WASDE) it was stated that the upward trend in wheat supply, consumption, trade and closing stocks continued according to the previous report. With an increase of 4.3 million total supply increased to 1,067 million tons. According to the report published by the Australian Ministry of Agriculture, wheat production reached a record 34 million tons with an increase of 2.5 million tons. According to the data of the Ministry of Agriculture of Russia, with an increase of 1 million tons, it reached 75.5 million tons. According to the latest report published by the Canadian Statistical Institute, it has increased to 21.7 million tons with an increase of 700,000 tons. It was stated that although there was an increase in the wheat production of Russia and Canada, it was significantly below the last year’s production data. Global wheat consumption increased by 1.9 million tons to 789.4 million tons. It was announced that the share of feed and fodder wheat consumption was higher in this increase. With the long-term rains affecting the wheat quality during the wheat harvest; coarse wheat production and use is expected to be higher in Australia, EU and Russia. Global closing stocks reached 278.2 million tons with an increase of 2.4 million tons in Australia, Canada and the USA.
World Grain Information (Million Tons) | ||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
Production | 1879 | 1829 | 2043 | 2092 | 2058 | 2187 | 2142 | 2139 | 2185 | 2226 |
Consumption | 1862 | 1841 | 1956 | 2045 | 2013 | 2126 | 2152 | 2164 | 2190 | 2235 |
Trade | 274 | 271 | 310 | 322 | 346 | 353 | 369 | 364 | 395 | 416 |
Stock | 431 | 420 | 506 | 553 | 598 | 658 | 648 | 625 | 617 | 609 |
World Grain Production Amounts (Million Tons) | ||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
Wheat | 701 | 659 | 718 | 732 | 740 | 757 | 763 | 732 | 762 | 774 |
Sweetcorn | 907 | 901 | 1032 | 1061 | 1023 | 1132 | 1090 | 1129 | 1125 | 1140 |
Barley | 134 | 131 | 145 | 144 | 150 | 148 | 145 | 139 | 156 | 159 |
Oat | 23 | 21 | 24 | 23 | 22 | 24 | 24 | 22 | 23 | 26 |
Rye | 13 | 14 | 17 | 15 | 13 | 13 | 13 | 11 | 13 | 15 |
Other | 101 | 103 | 107 | 117 | 111 | 112 | 105 | 105 | 106 | 112 |
World | 1879 | 1829 | 2043 | 2092 | 2058 | 2189 | 2139 | 2141 | 2185 | 2226 |
World Wheat Information (Million Tons) | |||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
Production | 701 | 659 | 718 | 732 | 740 | 757 | 763 | 732 | 762 | 774 | 778 |
Consumption | 147 | 142 | 157 | 153 | 166 | 177 | 176 | 168 | 184 | 189 | 206 |
Trade | 704 | 679 | 698 | 716 | 720 | 736 | 740 | 738 | 743 | 763 | 789 |
Stock | 191 | 172 | 192 | 208 | 227 | 248 | 271 | 265 | 278 | 289 | 278 |
Wheat Import Information on Country Basis (Million Tons) | ||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
Egypt | 11,6 | 8,2 | 10,1 | 11,1 | 12,2 | 11,3 | 12,4 | 12,4 | 12,7 | 12,9 |
Indonesia | 6,2 | 7,2 | 7,5 | 7,4 | 10,3 | 10,2 | 10,8 | 10,9 | 10,4 | 10,4 |
China | 3 | 3,3 | 6,8 | 2,2 | 3,6 | 4,8 | 3,9 | 3,3 | 6,8 | 10,1 |
Türkiye | 4,8 | 3,7 | 4,1 | 5,3 | 4,4 | 4,3 | 5,2 | 5,8 | 9,8 | 9,8 |
Philippines | 4 | 3,6 | 3,5 | 5,0 | 5,0 | 5,8 | 6,2 | 7,7 | 7,0 | 7,0 |
World Sweetcorn Information (Million Tons) | |||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
Production | 907 | 901 | 1032 | 1061 | 1023 | 1035 | 1091 | 1120 | 1125 | 1140 | 1208 |
Consumption | 99 | 100 | 122 | 125 | 136 | 137 | 153 | 165 | 174 | 185 | 205 |
Trade | 886 | 887 | 972 | 1031 | 1000 | 1090 | 1116 | 1148 | 1154 | 1166 | 1195 |
Stock | 199 | 212 | 273 | 303 | 325 | 370 | 344 | 326 | 297 | 271 | 305 |
Sweetcorn Import Information on Country Basis (Million Tons) | ||||||||||
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | |
China | 4,7 | 3,7 | 3,9 | 5,1 | 4,1 | 2,5 | 4,2 | 4,9 | 6,6 | 25,0 |
Mexico | 11,6 | 5,6 | 9,8 | 10,8 | 13,8 | 13,8 | 15,7 | 17,0 | 16,6 | 16,6 |
Japan | 14,5 | 14,5 | 15,2 | 14,2 | 14,7 | 15,5 | 16,0 | 16,5 | 16,3 | 16,0 |
EU | 5,8 | 10,8 | 15,7 | 8,9 | 13,7 | 13,2 | 18,5 | 24,4 | 19,6 | 14,2 |
Vietnam | 1,2 | 1,5 | 3,7 | 5,6 | 7,2 | 8,6 | 9,0 | 10,9 | 12,5 | 11,9 |
South Korea | 7,2 | 8,2 | 9,2 | 10,1 | 9,6 | 9,1 | 9,9 | 9,8 | 11,4 | 11,5 |
Egypt | 6,7 | 5,8 | 7,7 | 7,7 | 8,5 | 8,2 | 10,4 | 9,3 | 10,6 | 10,2 |
Persia | 3,7 | 4,0 | 4,8 | 6,5 | 5,7 | 8,4 | 7,9 | 9,2 | 6,9 | 7,4 |
Türkiye | 0,6 | 1,0 | 1,8 | 1,7 | 1,8 | 0,8 | 2,3 | 2,4 | 3,9 | 2,4 |
About the Group Company Vivalon AG:
Vivalon AG, founded in Switzerland in 2019, manages the supply chain for commodity trade in global markets by making the right pricing in line with the right market, the right product and demand. Operating in nearly 20 countries in Africa, Asia, America and Europe, Vivalon AG expanded its business area with the metal, energy and mining sectors within the framework of its growth strategy in global markets, which it started with grain and oilseed trade; It continues to grow by constantly improving its product range, by supplying the right product from the right markets according to customer demands and expectations, and adding new countries to its route. The group includes Taban Gıda, which supplies grain, feed group and oilseeds, especially wheat, in the domestic market, Lanes Logistics, which operates in the field of road, sea, air, project transportation, rail and combined transportation, and Dubai-based Robigo Trade DMCC, which operates in food supply.