Armada Food/Sonmez: Anticipating a 10% Revenue Increase with the Return of the Syrian Market

Forex - With the end of Bashar al-Assad's regime in Syria, the suspended relations between Turkey and Syria are expected to be reassigned. Fethi K. Sönmez, Chairman of the Board of Armada Gıda, analyzed the developments in Syria in terms of pulses and grains exports. Emphasizing the significant responsibility of Turkish companies in restoring Syria’s economy to its former strength, Sönmez stated that this responsibility would reflect serious commercial opportunities, especially in the food export market. He noted, “Syria was one of Turkey's important export markets until 2010. About 250 million USD obtained from Turkey’s exports of processed pulses, rice, bulgur, and grains before the war was a strong indicator of trade between the two countries. Most of the Syrian companies executing this import volume nowadays manage their operations through Turkey. We believe that the return of these companies to their homeland will inevitably increase Turkey's share of food imports from Syria.”

“We expect the share of pulses, rice, and bulgur imports to rise to 45%” Fethi Sönmez highlighted that the year 2010 serves as a strong benchmark for analyzing Syria’s commercial performance, as it was the last "normal" year before the war. He stated, “During that period, Turkey covered a significant portion of Syria’s import volume in this category. Considering the agility, capacities of Turkish food industry companies like Armada Gıda, and regional conjunctural changes, we expect Turkey’s share of Syria's pulses, rice, and bulgur imports to increase to around 40-45% post-war.” Sönmez emphasized that as Armada Gıda, they aim to take a leading role in this restructuring process with both production capacities and logistics infrastructures, stating, “Our investments in capacity expansion exceeding 60 million USD will come into play right at the time this demand increase is anticipated. During this process, we aim to be not just an industry player but also a business partner supporting the region's reconstruction. We forecast an increase of about 8-10% in our revenue with the return of the Syrian market.”

“Significant increase expected in UN food aid tenders” Fethi K. Sönmez also underscored that Armada Gıda aims to be a partner supporting the region’s reconstruction besides being an industry player. He stated, “In addition to the private sector, there is an expectation of significant increases in the UN's food aid tenders. The anticipated recovery in Syria’s imports of processed pulses, rice, and bulgur will provide a considerable advantage to the Turkish food processing sector. With the complete end of the war and the re-establishment of social order, we predict that the average exports of pulses, rice, and bulgur from Turkey to Syria in the next three years will be around 93,000 tons. Armada Gıda aims to capture about 15-20% of this trade volume.” Sönmez indicated that these developments would have important implications not only commercially but also for regional stability and economic growth, noting, “The return process to the Syrian market offers significant opportunities for the Turkish food processing sector. As Armada Gıda, we are ready to take advantage of these opportunities with our strategic investments and operational strength. This will be a significant gain not only for our company but also for Turkey. The normalization of trade with Syria opens the door to a new era in the economic relations between the two countries.”