Local Bread Producer Sees Sales Rise
In recent years, a small bread producer in Goranboy, central Azerbaijan, has lost market share because of its inability to keep pace with the changing preferences of consumers. Hoping to reverse this decline, the company’s director turned to the Azerbaijan Agribusiness Center—part of USAID’s Rural Enterprises Competitiveness project—for help.
At first glance, the most obvious problem was that the company continued to bake bread in an old brick oven which was slow and consumed a large amount of energy. This inefficiency prevented it from producing new varieties. The AACs’s first step was to put the owner in contact with an oven supplier from Agjabedi, a financial institution to help secure a loan for the equipment upgrade, and installation specialists to set up the new ovens. The company invested $18,000 in the purchase and installation of two new ovens.
Since the company started using its new equipment in May 2006, production has increased significantly and the company has expanded its reach beyond Goranboy into Terter, Yevlax and Naftalan. Sales have now increased by $8,300 per month, enabling the company to hire three new employees.
To accommodate its growth, AAC is working with the company on improving its distribution system, which will include the purchase of new delivery vehicles.
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| The employees working with Baykal bread producing company bake bread in the new ovens thanks to the American people |
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