Turkey is a country that has faced numerous natural disasters over the years, including earthquakes, floods, and landslides. The latest disaster to hit the country is the Turkey-Syria earthquake, which has affected the lives of countless Turks and Syrians. Leaving a trail of destruction in its wake that affected everything in both countries. One of the sectors that have been severely hit by this earthquake is the food industry, as many companies have suffered significant damage to their facilities and equipment. In this article, we will take a closer look at the ten largest food companies by revenue in Turkey that have been most affected by this disaster. Also, how some of them are coping in the aftermath.
The Turkey-Syria earthquake, which occurred in January 2023. A magnitude of 7.8 and its epicenter was located in the Aegean Sea, near the city of Izmir. The earthquake caused significant damage to many buildings and facilities in the affected areas, including the food industry. The top 10 food companies in Turkey that have been most affected by this disaster are:
These companies are some of the largest and most well-known food manufacturers in Turkey. Collectively, producing a wide range of products, including snacks, confectionery, beverages, dairy products, and more. The earthquake has had a significant impact on their operations, causing damage to their factories, warehouses, and distribution networks.
The impact of the Turkey-Syria earthquake on Turkey’s food companies has been substantial. Many companies report damages to their facilities, equipment, and products. Ülker, one of the largest confectionery and snack producers in Turkey, has reported a loss of around 220 million Turkish Lira or approximately USD $27 million due to the earthquake. Yıldız Holding, the parent company of Ülker, and a major player in the Turkish food industry has suffered damages to its factories and warehouses.
Marsan Gıda, another major food producer in Turkey, has reported damages to its olive oil and pasta factories, which are located in the affected area. The company has estimated that the earthquake will cause a loss of around 40 million Turkish Lira or approximately USD $5 million in revenue.
The Turkey-Syria earthquake has affected Turkey’s food companies in several ways, including damages to facilities, interruption of production, and disruptions to supply chains. Many companies have had to suspend their operations temporarily. Pushing the issues back to later in 2023. Including the reduction of production due to damages that struck the facilities and equipment. This has resulted in a shortage of certain food products in the market, affecting both consumers and businesses.
Furthermore, the earthquake has caused significant disruptions to the transportation and distribution networks of food companies. Roads and bridges have been damaged or destroyed. This has made it difficult for companies to transport their products to different parts of the country, causing delays and increasing costs. Specifically, the drivers of these trucks live in the worst affected areas.
According to the Turkish Trade Ministry, the food industry accounts for around 11% of the country’s total exports. Making it a crucial sector for the Turkish economy. Turkey has a place as one of the largest food producers in the world. Behind countries including the USA, China, Germany, and Brazil.
The earthquake has had a significant social impact. The lives of many people who work in the food industry are simply gone. Those numbers have yet to start counting, but they will release that data someday. With factories and warehouses damaged or destroyed, many workers have lost their jobs. If they are working then they have to work under difficult conditions. Moving them out of the country. This has created a challenging situation for these workers and their families, who depend on their income from the industry.
Prices have been rising for many food ingredients worldwide. It is Turkey’s companies have lost their inventory and raw materials, leading to a shortage of supplies. This has caused prices to rise even more dramatically. Making it difficult for consumers and businesses to afford certain food products. Losing access to healthy food has a psychological impact in the aftermath of the disaster. The uncertainty and disruption caused by the earthquake have created challenges for these companies. They are trying to resume their operations as quickly as possible.
While many food companies in Turkey have been affected by the earthquake, some have suffered more than others. Ülker and Yıldız Holdings are two of the most affected companies because they are two of the biggest in terms of revenue. They each are reporting damages to their facilities and a significant financial loss. Marsan Gıda, Doğuş Çay, and Hayat Kimya are also among the most affected companies. Reporting damages to their factories and warehouses. All four companies estimate years to rebound from the issues they are facing in 2023.
Pınar Süt, a dairy products company, has also reported damages to its storage tanks and cold storage facilities. This affects its ability to store and distribute its products. As you can imagine, dairy is fragile in the face of an earthquake. Söke Un, a flour producer, has reported damages to its flour mills, leading to a shortage of flour.
The financial losses of Turkey’s food companies following the Turkey-Syria earthquake are significant. Estimates by the Turkish Trade Ministry tell the overall economic story. Damage caused by the earthquake is around 6.5 billion Turkish Lira or approximately USD $800 million. The food industry accounts for a significant portion of this amount.
The earthquakes affecting food companies would be responsible for direct damages to facilities and equipment affecting every type of company. All companies are suffering from indirect losses due to the disruption to supply chains. The shortage of certain food products in the market has led to a decrease in sales for many companies.
The earthquake has also highlighted the need for disaster preparedness and risk mitigation in the food industry. Specifically, this will require even more investment to move forward. Many companies have realized the importance of having contingency plans and being prepared for natural disasters. That can be more earthquakes or floods and fires.
Operation is still suspended at Turkey’s Iskenderun Port (Limak). According to Reuters, the fire that engulfed hundreds of shipping containers had been extinguished. Currently, it was not clear when operations would resume at the port but they will. The blaze forced freight liners to divert vessels to the Port of Mersin in Turkey and Port Said in Egypt. Ocean carriers are using their offices in Istanbul and Izmir for documentation and operational processes. In some cases, halting the servicing of vessels would be temporary. Delays in vessel arrivals and omits are expected. Some carriers are holding containers in nearby ports or delivering cargo to other operational Turkish ports and waiving certain fees.
