Competition in Azerbaijani market of meat and dairy products

Baku, Azerbaijan, July 22

By Matanat Nasibova – Trend:

The number of participants greatly increases in the Azerbaijani market amid the emergence of new companies producing meat and dairy products in the country.

In general, this has a positive effect on the development of the market as the product range becomes wider for consumers as a result of the emergence of new trademarks.

On the other hand, an increase in competition stimulates the companies to work more efficiently. In particular, producers seek to expand the range of products, increase the customer base in Azerbaijan and gradually master the foreign market.

Presently, the main players in the local market of meat and dairy products are such companies as SAB, Atena, Oz Sud, Nur Sud, Alsana and Oz Dad.

All six companies are seeking to increase production, arrange export of products to the markets of the post-Soviet countries and Europe. It is clear that it is difficult to maintain leadership in the market in terms of competition, especially if the number of new participants is growing.

Therefore, judging by the performance indicators, among the six leaders, the products of Nur Sud and SAB companies are in the greatest demand in the market. These companies, especially in recent years, actively increased their production volumes, expanded the range and possibilities of export of their products.

In particular, new types of sausages produced by SAB company will appear in the local market in autumn 2019. Moreover, the range of sausages will be widened thanks to new types of products, such as sausage chips and chicken chips, dry cured sausage, envisaged mainly for export.

Presently, SAB company produces 60 types of meat products, of which about half is envisaged for export. The company exports sausages to Russia, Georgia, Turkey and plans to export more products to the Central Asian countries.

The company is also working to expand the range of dairy products. The new types of fermented milk yogurts are planned to be produced until the end of this year as the company intends to increase milk production. About 200 tons of milk are processed in the company daily. This figure is planned to be increased up to 300 tons. Presently, the company, located in Khirdalan city, produces 50 types of dairy products under the SAB brand.

Another company, Nur Sud, which has proved itself as a fierce competitor in this market segment, is expanding its range of products by arranging the production of new types of cheese and yogurts. The company's production volumes increased by 50 percent during six months of 2019 compared to the same period of 2018.

At the same time, the company plans to increase this figure by 30 percent by the end of 2019. The export of products to the markets of the post-Soviet countries, namely, Russia and Georgia, is being arranged. The prospect of supplying the products to the markets of the Central Asian countries is being considered.

Meanwhile, another producer of dairy products, Atena, which appeared in the market relatively recently, works well. It may become a fierce competitor for SAB and Nur Sud in the near future. Several factors point to this, namely, the company already has a fairly solid client base and dairy products under the Atena brand are sold in the local market well (90 percent).

The company is actively working to produce new types of dairy products, yoghurts, cream and cheese. The company has launched the production of cheese under the Gouda and Mozzarella brands by using the latest foreign technologies. The company intends to increase production up to 40 percent by the end of the year, which is also a good result.

At the same time, the negotiations on the export of products have been launched with partners in the CIS countries. The products are expected to be exported in the coming months. Another advantage is that Atena’s production facilities in the country’s Aghjabadi district include its own dairy farm and a land plot, which guarantees the production of environmentally friendly products.

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Follow the author on Twitter: @MatanatNasibova

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