Informed Analysis by AAC Assures Optimized Investment Decisions by Azeri Businesses Equipment Upgrades
The Azerbaijan Agribusiness Center assured that Azeri agribusiness companies maximized their business investments by assisting them in gathering and assessing critical information on construction and equipment before funds were expended.
Two of Azerbaijan's agribusiness companies, a meat processor and a poultry processing facility, were in the process of expanding their businesses. The meat processing company had the capacity to produce 3 to 5 tons of high quality meats per day, and had established a retail network that sold its products at more than ten outlets. Demand for the company's products was growing, but production capacity was at its limit. The company needed to expand its plant and buy new equipment, and also wanted to meet HACCP requirements. HACCP certification (Hazard Analysis Critical Control Point) represents a rigorous system that identifies and prevents hazards of food contamination. Adherence to these regulations would require further adjustments in plant construction and production practices.
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Despite the $1 million the company expected to invest in the expansion, management was not aware of critical choices and decisions it needed to make. The AAC consulted with company management, explained HACCP building requirements, and advised that standard, locally available building materials being considered by the company would not meet HACCP requirements. As a result, the enterprise invested $19,700 for materials and appliances that would help the building conform to HACCP requirements. This included special antibacterial cement for tiles, floor and wall paint; ceiling covering materials; and, washing stands. In addition, at the urging of the AAC, the company ordered new uniforms for plant workers to improve cleanliness and sanitation.
The poultry processing company is the second largest poultry producer in Azerbaijan, and is located in the Davachi region, 125 kilometers from Baku. The company was committed to improving its facilities and installing new processing equipment. Evaluating the alternatives and choosing the best equipment for its needs, however, proved a complicated exercise because of the variety of equipment and prices available. The AAC assisted the enterprise in making the best decision possible by sponsoring a visit, by a company representative, to the International Forum and Trade Show for the meat and poultry industries in Moscow, Russia. Many poultry processing equipment companies exhibited at the event. AAC advisor, Vugar Akhmedov, assisted the Azeri company representative in discussions with the equipment suppliers. Even after the exhibition concluded, the AAC's representative continued to collect information and assess purchasing options to help the company reach an informed decision. With the AAC's assistance, the poultry processor was able to narrow its choice of suppliers to two manufacturers. A final decision will be made after the manufacturers are visited in the Netherlands.
The AAC's advice and guidance have demonstrated to Azerbaijan's agribusiness companies that while commitment to growth and access to financial resources is critical, it is also imperative that all technical requirements are researched and all construction, equipment, and procedural options are carefully assessed in order to invest effectively.
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