WITH INCENTIVES, INVESTMENTS IN LICENSED WAREHOUSE GAVE SPEED

WITH INCENTIVES, INVESTMENTS IN LICENSED WAREHOUSE GAVE SPEED

• 22.05.2017

A series of incentives brought by the government to licensed warehousing, which is important to ensure price stability in agricultural products, accelerated investments in this field. Thanks to the incentives, not only those who are interested in the grain business, but also Ceynak and Reys Inc. Real estate agents as well as logistics companies such as 'licensed warehouse' invested in. Eren Günhan Ulusoy, President of the Turkish Flour Industrialists' Association (TUSAF), said that the government's incentives, as well as KGF loans, increased the appetite of the investor.

KGF MOVED

Explaining that TMO will transfer it to the private sector, which is out of the storage business, Ulusoy said that the lowest price will build a warehouse and lease it to TMO. Explaining that there is a serious investment in this business, Ulusoy said, “Currently, the warehouse capacity of which license has been obtained and operating throughout Turkey has exceeded 900 thousand tons. There is 1 million tons under construction. TMO also signed 2.6 million tons of contracts in the leasing tenders it made. If all of these are completed, the total capacity will reach 4.5 million tons. Eren Günhan Ulusoy, who is also the President of Ulusoy Un’s Board of Directors, said that they also made a licensed warehouse investment of 23 thousand tons for 12.5 million liras in Çorum Alaca.

Eren Günhan Ulusoy said, “We will also make a separate application for 20 thousand tons. We are also planning to build another 60 thousand tons of licensed warehouse in Yozgat Sorgun. This will be an investment of 16.5 million liras. Our target is to reach a total capacity of 100 thousand tons in 2018. Our 5-year target is to increase it to 320 thousand tons,” he said. Eren Günhan Ulusoy, who also explained that the convenience brought in KGF loans was effective in their investments, said, “When we finished the warehouse investment in Yozgat, we were planning 60 thousand tons of warehouses in Samsun, we brought it forward. The introduction of a 5-year loan facility with KGF increased the investment appetite. There are people in the industry who behave this way. This loan motivated those who were planning to invest," he said. Ulusoy also stated that Turkey has a total grain production of 36 million tons, 22 million tons of which is wheat, and pointed out that the capacity of TMO is 5 million tons.

THE FARMER'S PRODUCT WILL FIND THE VALUE

Turkish Flour Industrialists' Association (TUSAF) President Eren Günhan Ulusoy stated that they are hopeful about the licensed warehouse business and explained the benefit of the system as follows: “The farmer will bring his product to these licensed warehouses, and either trader, Ind.ci or TMO will buy from here. But TMO will not buy and transport the product, it will only assume ownership. An electronic product voucher will be created here. The products will become electronic. Farmers and traders will be able to sell their product stock on the stock exchanges. Thus, there will be no unnecessary displacement or transportation of the product. The main benefit of the system is this: The farmer borrows money for things like diesel and fertilizer during the winter. When the threshing comes, he has to turn his wheat and barley into money as soon as possible. When there is a licensed warehousing, electronic bills, banks will be able to accept collateral and lend the farmer. Thus, the farmer will get rid of the pressure of selling the product cheaply. The industrialist will also be able to connect the raw material in the future. As the storage conditions will improve, the waste will also decrease.”

NEW FACTORY TO SAMSUN

Explaining that they channeled the money from the public offering into investment, Ulusoy also said that they will increase the capacity by 60 percent by building a new flour factory in Samsun. Explaining that the first phase of the factory will be built for 30 million TL, Ulusoy said, “There will be additional employment for 100 people. We currently have 250 employees. 400 together with the other companies of the group," he said.

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