Food industry in Azerbaijan

Food industry in Azerbaijan is a branch of industry that processes, prepares, preserves and packs agricultural raw materials with appropriate methods in the country. Regarding to the volume of industrial production agrarian (food, beverage and tobacco) ranked the first among the other procession industries.

Cannery industry[]

When it comes to fruit and vegetable processing, Azerbaijan covers its requirements. Main canneries are located in Quba, Qusar, Khudat, Khachmaz, Lankaran, Zagatala, Qabala. Goychay, Sheki and et cetera.

In 2003, the first cannery of the AzerSun Group of Companies - Caucasian Cannery started its activity in Khachmaz region.^[1] Some enterprises (e.g. Azersun, Gilan Holding) are engaged in the processing of olives. In the southern regions of Azerbaijan, there are several factories for the manufacture of tomato paste and for the processing of fruit into jams and jellies.

Bakery[]

Production of bread and bakery products is mostly carried out in Baku.^[2] There are various bread and pasta factories in Baku: “Aghsu”, “Karmen”, “Mughan”, “Karabakh”, “№1” (Gilan Holding).^[3]

Beverage industry[]

One of the most popular beverages in Azerbaijan is pomegranate juice. In 2009, pomegranate juice named “Grante” (AzNAR, Goychay district) was avarded three gold medals at the 16^th international food exhibition “Prodexpo 2009”.

Furthermore, there are many companies specialized in the carbonated and non-gasified water sector: “Shollar”, “TAC”, “Khayal”,” Veysaloglu” and others. In Shahbuz and Nakhchivan, there are two mineral water enterprises: «Badamli», built in 1949 and «Sirab», built in 1976. On October 1, 1999, the "Pepsi-Cola" water production plant was opened in the village of Sulutepe (Baku)^[4].

Azersun Holding and Beta Group of Companies account for 62.2% and 32.1% of tea market, respectively. Azerbaijan is popular with Lankaran tea. At the international competition held in Madrid in 2002, Azerbaijani tea was awarded the Gold Prize of Europe. Similarly, in 2005 at the competition «On Quality and Technology» Lankaran tea was awarded gold medal.^[5]. Black tea accounts for 98% of tea production in Azerbaijan.^[3]

There are wine and cognac factories in Gandja, Goychay, Shamkir, Khanlar, Shamakhi and Nakhchivan. In total, there are 60 brands of wines (“Bayan”, “Medrese”, “Novruzlu”, “Shamkhor” and others). Among 44 enterprises producing alcoholic beverages, 35 of them are focused on producing beer.^[4]

Dairy and livestock industry[]

46% (about 4 million hectares) of the total territory of the country is farmland, half of which is pasture. According to statistics, in 2017, the volume of meat production in Azerbaijan amounted to 316,8 thousand tons. In December 2008 this number was 25,3 thousand tons. According to statistics, meat production in the country has grown by 0.5%. Meat processing is mostly carried out in Baku, Gandja, Sheki, Mingachevir, Nakhchivan, Agdam, Imishli, Lankaran and Xirdalan.^[4]

Milk processing plants are located in Baku, Sumgait, Gandja, Mingachevir, Lankaran, Xirdalan, Shamakhi, Barda, Zardab, Salyan and Siyazan. There are more than two dozen large milk factories and 128 small dairy enterprises in the republic. In 2008 Palmali Group of Companies opened a dairy factory “NurSud” in Lankaran. Another milk factory named “Agro” has been operating in Bilasuvar district.^[4]

Fishing[]

Fishing is considered an important industry in Azerbaijan. On 25-27 May 2009, the 2nd Caspian International Exhibition «Marine Products and Fishing» was held with the aim of presenting the potential of the Caspian region to international circles engaged in the fishing sector. Fish stocks of the Caspian Sea and the Kura River are operated in Mingachevir, Hajigabul, Hilli, Lankaran, Absheron Economic Region. There are fish breeding plants in the country, most of which are located in the Neftchali region, Khudat and Hovsan.^[4]Azerbaijan has ratified 12 international conventions in this field, after making 120 amendments to the Law «On Fishing».^[6]

Overview[]

State Food Industry company called “Azeryeyintisenaye” was founded according to Presidential Decree “On establishment of State Company of Food Industry of Republic of Azerbaijan” dated May 3, 1993. Vagif Musayev was appointed as president of the company.^[7]

Statistics reveal that the production of food, tobacco products and beverage reached to 2.7 billion manats in 2014. In that period oil production was listed in the second place with 2.6 billion manats. Over the last decade the volume of the agricultural industry increased an average of 2.7 times in Azerbaijan. Overall, more than 22 thousand people and 631 enterprises are operated in this field. Although the number of enterprises and employees declined during the global crisis in 2008, a reverse tendency was observed in 2012. In that year more than 30 new enterprises and 2.5 thousand working places were created. Furthermore, per capita productivity has increased by 1.7 times in the food industry in 2003 – 2012. Creation of the large enterprises based on new technology is considered as the main reason of increased productivity. Nowadays, self-sufficiency level of canned vegetables and fruit, sugar, flour, bread, bakery and meat products is higher than 90%.

Recently established enterprises[]

In recent years a number of enterprises was launched in the food industry. They are indicated below:

Governmental support[]

In 2014 seventy projects were financed by National Support Fund of Entrepreneurship. 57 of them were food production projects.

• 6 logistics center with capacity of 152 thousand tons
• 3 specialized green markets, including 3 logistics center with capacity of 9 thousand tons and 500 farmer shops
• 5 poultry plants with capacity of more than 3 thousand tons of meat 11 million breeding and 26.4 million marketable eggs
• 6 breeding complexes with 2700 livestock
• 6 large farms
• 9 greenhouses
• 6 bakeries with capacity of 97 tons per day
• A fruit and vegetable processing factory with million tons of annual production capacity
• 2 dairy factories with 25 thousand tons of procession capacity
• A flour production facility with annual procession capacity of 22 thousand tons
• 5 gardening farms
• A vineyard
• A tea plantation and tea processing plant^[15]

WorldFood Azerbaijan[]

Since 2007 Azerbaijan has hosted Azerbaijan International Food Industry Exhibition every year in May. Every year more than 150 companies participate in exhibition from about 20 countries such as Azerbaijan, Russia, Turkey, Kazakhstan, Belarus, Spain, Italy, Belgium, Greece, Latvia, Hungary, Sri Lanka, Mexico, Poland, Ukraine, Lithuania, Japan etc.^[16] Azerbaijani companies actively participate in exhibitions and there are a number of permanent local attendants: Gilan Holding, Azersun Holding, Metak, Amoris and Buta Group. Companies demonstrate their products in the areas such as, refrigeration systems, laboratory and food industry equipment, beverages, confectionery and bakery products, vegetables and fruits, groceries, dairy products, coffee, tea, meat and poultry products in the exhibition. Iteca Caspian LLC is the organizer of the exhibition.^[17]

Azerbaijan Federation of Agricultural and Food Industry Worker's Trade Union[]

Federation provides bilateral negotiations with employers in the provision of in the socio-economic rights of employees. To accomplish improvements in this field federation cooperates with the same facilities from several countries – Russia, Ukraine, Turkey, Moldova, Uzbekistan and Georgia.

History[]

Worker's Trade Union was established in 1906. In that time Union covered 230 members that were food processors. In subsequent years Worker's Trade Unions were established in several fields individually. In 1917 Trade Unions of Beer and Kvass, Tobacco-growers, Millers, Confectioners and Bakers were launched in Baku. In 1920 these unions were assembled in the following three Worker's Trade Unions – Agriculture and forestry workers, Food products manufacturers and Tobacco-growers. However, these three unions were also united in two Trade Unions in 1953. They were Workers of Agriculture and Delivery and Workers of Food Industry. After the establishment of USSR Agrarian-Industrial Complex in 1986 Trade Union of Agrarian Complex Workers was established.^[18]

See also[]

Food Safety Agency (Azerbaijan)

References[]