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Biggest tea producer in Azerbaijan’s Nakhchivan suspends activity

Business Materials 24 January 2019 15:26 (UTC +04:00)

Baku, Azerbaijan, Jan. 24

By Matanat Nasibova – Trend:

Cahan Tea company, the biggest tea producer in Azerbaijan’s Nakhchivan Autonomous Republic, had to suspend activity against the background of high competition in the tea market of Azerbaijan, the company’s director Etibar Safarov told Trend Jan. 24.

He said that the monthly production of tea at the company is about 30-35 tons. At the same time, the company has the opportunity to increase these volumes, considering the sufficient production potential and the necessary conditions, he noted.

However, the problem of Cahan Tea is exclusively related to the sale of products in Azerbaijan, especially in Baku, he added. For this reason, the company hasn’t been producing anything for the fifth month in a row, he said.

“The company’s products fully cover the demand in Nakhchivan, but this isn’t enough for the sale of the entire produced volume,” he noted. “We supplied most of the tea to Baku, but due to the great competition in this segment, our products don’t sell well. To a certain extent, the increase in cost of tea, which is associated with transportation costs, contributes to this.”

He added that all tea products, which are in the warehouses of the company, are being sold in Nakhchivan.

As for the possibility to export products, the company’s management has no such plans, he said. However, Safarov didn’t rule out that this option may be considered in the future.

“We are planning to solve the problem in the near future,” he said. “After the company starts operating at full capacity, we will consider new interesting options for exporting products.”

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