Capital: A EUR 1.6 billion opportunity in blueberries

In her report for Capital, Nilüfer Gözütok Ünal writes that high added value and export potential are making blueberries one of the newest growth areas for agricultural investment. Rapidly expanding production with investment from Letven Capital, Alova Farm is focusing on exports, and Türkiye is expected to become a significant producer of the crop on a global scale.

From 5,000 pots to 200,000

Alova Farm’s story began when Levent Sarılgan set up a 10-decare soilless strawberry greenhouse on his land in Yalova. High production costs and the pricing structure of the market pushed him to look for a different crop, and while examining berry varieties at trade fairs abroad he saw the potential in blueberries. The turning point for growth was the Letven Capital investment. Production that began with 5,000 pots in 2022 rose to 125,000 within three years, and the plan is to reach 200,000 by the end of the year. “We aim to produce 1,000 tonnes of fruit in two years’ time. That means meeting 10 percent of Türkiye’s total blueberry output on our own. Our real dream is to expand production to 500 decares — which means 250,000 pots and 1,500 tonnes of fruit,” says Sarılgan, founder and chairman of Alova Farm.

“Lidl came to visit us”

According to figures given by Sarılgan, blueberry demand in Türkiye rose 35 percent last year while the increase in production remained at 15 percent. Annual consumption per capita stands at roughly 100 grams in Türkiye against 3 kilograms in Europe. One of the developments that accelerated the company’s decision to scale was demand from international retailers: “When we were still at 25,000 pots, Lidl came to visit us. They liked the operation very much and said, ‘Let’s do business together.’ When I asked about their capacity expectations, the answer was, ‘We need 5,000 tonnes a year.’ At that time all of Türkiye was already producing 5,000 tonnes, and I only had 100 tonnes of product. That was the moment we said, ‘We need to scale fast.’”

“We work with a global partner”

The company places exports at the centre of its growth strategy. Sarılgan expects production in Türkiye to reach 20,000 tonnes after 2030, with domestic prices levelling out as supply rises: “We foresee that after 2030 production in Türkiye will reach 20,000 tonnes, prices will settle domestically and overseas prices will stay higher. That is why we work with a global partner. From next season our target is to export 100 percent of our production. Our biggest markets will be Europe and the UK in particular.”

A USD 2 million packing investment

Rising production capacity also prompted new investment on the packing side. Alova Farm built a new packing facility using AI-supported grading and sorting systems with an investment of roughly USD 2 million. With a capacity of about 2.5 tonnes per hour, the facility grades fruit by size, colour, firmness, surface quality and shelf life. Sarılgan says capacity will rise further: “Next year another 12-lane line will arrive and our annual capacity will reach 7,000 tonnes. That will let us serve two separate global customers at the same time.”

“200,000 tonnes in four years”

Kamil Kılıç, General Manager of Letven Capital, believes the potential extends far beyond the scale of a single company. Drawing attention to the Black Sea belt in particular, Kılıç says: “Türkiye has enormous capacity in blueberry production. If we set this production up properly across the eight provinces along the northern strip, we could comfortably reach a volume of 200,000 tonnes within just four years. There is a great deal of high-potential land right along the Black Sea belt, starting from Artvin and running this way.”

For Kılıç the real issue is combining that natural advantage with technology and capital: “Türkiye’s problem is not a shortage of resources but a low multiplier. If we raise the multiplier, we can turn our natural advantage into a strategic one. The strength of countries is no longer measured only by how much they produce, but by how much technology, innovation and added value they build into what they produce.”

The EUR 1.6 billion revenue calculation

Under the scenario Kılıç sets out, reaching 200,000 tonnes of blueberry production across 100,000 decares would require an investment of roughly USD 2 billion. “This investment could amortise itself completely within three to four years. From the third year onwards we are talking about a scale capable of generating EUR 1.6 billion in revenue and EUR 800 million in net profit,” he says.

A second fund on the way

Letven Capital is also preparing for a new chapter in agricultural investment. Noting that the TARS Venture Capital Fund, which received its first investment in July 2021, grew 43-fold over five years, Kılıç says they are preparing to launch a second fund. Work is also under way on a new agricultural technologies fund based in Türkiye with one leg in Luxembourg: “Our basic aim is to carry domestically developed agricultural technologies abroad and to bring advanced global technologies here, building a two-way bridge. We will formally launch this joint fund before long.”