HE BUILT THE FIRST FACTORY WITH THE CRITERIA OF 'THE CUSTOMER SEE'

HE BUILT THE FIRST FACTORY WITH THE CRITERIA OF 'THE CUSTOMER SEE'

• 02.01.2018

While working in his father's grain shop in Samsun, Fahrettin Ulusoy took his jacket and left for Istanbul one day. He worked as a worker in various places for 2 years. He saved some money and returned to his hometown Samsun. He started the flour-bran trade. In 1969 he opened his own grain shop. He always dreamed of establishing a flour factory.

In fact, the profit margin in flour production was very low, but the truck traffic in the factories was effective in the investment decision. Then came the day when Ulusoy would establish the first factory. While choosing the factory location, it was decided to be born in Tekkeköy (Samsun). In particular, a point above the road was chosen:

- Those who come to Tekkeköy should pass in front of our factory.

I heard the story of Ulusoy Un's first factory from Eren Günhan Ulusoy, President of the Turkish Flour Industrialists' Federation. Günhan Ulusoy, President of Ulusoy Un’s Board of Directors, stated that the disintegration of the Soviet Union helped the factory in its early stages:

- We learned about exports thanks to Russia. Today we export to more than 80 countries. We are in the top 5 in flour export. Our exports were 42 million dollars in 2016. Over $50 million this year.

He mentioned the total flour export of Turkey:

- 3.5 million tons were exported in 2016. 1 billion 78 million dollars export income was provided. The export value of flour per kilo is around 30 cents.

He emphasized that the sector had a current account surplus:

- Export value per kilo is low, but there is a current surplus of 400 million dollars in flour.

He went back to Ulusoy Un's story:

- In 2003, we established a factory in Çorlu for export to markets far from Ambarlı Port. In 2006, we had a turnover of 60 million TL. We went public in 2014. In 2016, our group turnover increased to 1 billion 130 million TL. It may reach 1.6 billion liras this year.

He noted the expansion of the group's trading network:

- We buy agricultural products from Argentina and sell them to Vietnam. We send what we buy from Ukraine to Malaysia.

He explained that the group also operates in the tea sector:

- My brother Erhan Ulusoy manages our tea factories.

He stated that new flour factories will be commissioned in Samsun OSB in 2018:

- Our daily production capacity will increase to 1500 tons and then to 2 thousand 100 tons. We will be in the top 3 in Turkey.

He then drew attention to licensed warehousing investments:

- We invested 43 thousand tons of grain storage for 13 million liras in Çorum Alaca. The 60 thousand-ton warehouse in Yozgat Sorgun, which will cost 16 million liras, will be put into service in June 2018. 60 thousand tons of warehouse excavation started in Samsun. It will end at 18 million liras. Tekirdag is next.

He reminded that the 5th region support was given to the licensed warehouse investment:

- Half of the rent is from the state to the farmer who leaves his product in the licensed warehouse. There is also shipping support. Until 2016, 880 thousand tons of licenses were obtained. This year it increased to 1.4 million tons. At the end of 2018, it reaches 3.5 million tons.

The group, whose flagship is Ulusoy Un, seems to have left the "on the road" criterion far behind in investment...

While the sector works with an average capacity of 48 percent, the fact that this rate is around 90 percent in Ulusoy Un shows the development provided by the second generation.

The path they take in licensed warehousing is also remarkable.

Happy New Year...

This interview was published in the column of Vahap Munyar from Hürriyet Newspaper. Please click here to go to the related article.