OYAK Extends Sustainability Plans to Include Food Sector

OYAK, which signed a purchase agreement with Sanset Gıda, has applied to the Competition Authority to integrate the Tadelle, Saralle and Gol brands into OYAK Group Companies together with Sagra, a long-established brand in Turkey's chocolate products market.

Saying that the importance of agriculture and food sectors has increased further with the pandemic, OYAK General Manager Süleyman Savaş Erdem stated "We are already operating in the agriculture sector. We will also grow in the food sector. We will take Sagra, a rooted value of 85 years, even further." An important move has come in the food sector, which has become increasingly important worldwide with the pandemic, exceeds 120 billion lira in Turkey, and has a 40 billion lira export target for 2023. OYAK, which continues to contribute to the Turkish economy through its strategic investments, has included the food sector in its sustainable growth plans. By signing a purchase agreement with Sanset Gıda, OYAK has integrated the Tadelle, Saralle and Gol brands into OYAK Group Companies together with Sagra, which was established in Ordu in 1936 and transformed hazelnuts from sacks into industrial products. Noting that food is the market least affected by the pandemic, Erdem said, "With the Covid-19 outbreak, the importance of agriculture and food sectors in the world has increased further. We have seen that these non-cyclical sectors are unaffected during crises. We have significant investments in the agriculture sector. With this move, we have had the opportunity to demonstrate OYAK's commitment and innovative perspective in the strategically important food sector. According to 2018 Food and Agriculture Organization (FAO) data, while 75 percent of the world's hazelnut production areas are located in Turkey, according to the same report, Turkey only meets 60 percent of hazelnut production. We aim to increase productivity by using our R&D capabilities in this area and to grow this sector," he said and added:

By bringing together OYAK's strength with Sagra's 85 years of knowledge accumulation and experience, we aim to take the brand even further, increase product diversity by capitalizing on market opportunities, and particularly achieve significant export volume in the food sector.

Erdem said that they aim to reach a rich portfolio by quickly increasing categories, product range and brand numbers with Sagra, and to have a say in export markets both domestically and internationally with high value-added products. The food sector that OYAK has entered with Sagra is among the leading strategic sectors in the world and Turkey. Global food giants estimate that the potential of the food sector will be several times the figures currently cited in the future. In a statement from OYAK, it was recalled that agriculture and food exports are targeted at 40 billion lira in Turkey's 2023 goals, stating: "Although the agriculture and food sector are intertwined and complementary to each other, only the food sector in Turkey grew by 25 percent in 2020 to reach TRY 122.7 billion. In the food sector, beverages take the largest share, followed by snacks. The OYAK group also plans to expand Sagra's product range to the entire snacks market. It is noted that the snacks market, which is currently TRY 27.5 billion in size in Turkey, has high growth potential in both export and domestic markets. "In hazelnuts, which Sagra processes after removing from sacks, Turkey is the global market leader. According to 2018 Food and Agriculture Organization (FAO) data, while hazelnut production in the world reached 1 million tons, Turkey, which meets 60 percent of this production and ranks first, is followed by Italy with 15 percent and Azerbaijan with 6 percent. "Turkey is the world leader in exports as well as in production. According to FAO data, Turkey carried out 68 percent of world hazelnut exports in 2019. In 2020, despite the pandemic, Turkey's hazelnut exports amounted to USD 1.9 billion. On the other hand, among the 39 provinces in Turkey where hazelnut production is carried out, Ordu, where Sagra's factory is also located, ranks first with 217 thousand tons. "With Sagra's integration into OYAK Group Companies, it is aimed to add new products to high value-added products, and also to increase the export of in-shell and raw hazelnuts. This goal will be an important step not only for the sector but also for Turkey."   Source