Broad Exposure Yields Big Sales for Small Azerbaijani Jam Maker
A small jam maker and hazelnut processor in northwest Azerbaijan first approached USAID for help in building its business back in 2004. The company relied on manual production carried out by just 25 employees to produce walnut, cherry, wild apple, and cornel jams and to dry and pack hazelnuts for sale in Russia. Despite the simplicity of its production process, the company paid careful attention to quality and food safety issues. Yet, it suffered because of its low capacity.
Mirnail Misalahov, a specialist with the Azerbaijan Agribusiness Center (AAC)—a part of USAID’s Rural Enterprises Competitiveness project—met with the company director and counseled him on ways to maximize his operations and earnings. One of his recommendations was to concentrate resources by streamlining production to focus on walnut jam—a product for which there is considerable demand in Russia. Misalahov also invited the company to display its wares at high-profile trade fares throughout the region.
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| USAID expertise helped this jam maker focus its operations and attract major buyers, which have resulted in a dramatic sales increase |
In November 2005, the company chose to participate in AAC’s booth at the Interfood Moscow trade fair. The director met many serious buyers, including the representative of a Russian market chain who, upon tasting samples of the walnut jam, signed a $28,000 USD contract for 28,000 jars. As a result, the company doubled its production capacity for walnut jam in 2006.
Six months later, the jam maker displayed products at an AAC booth at the InterFood Baku Fair. During this fair, Misalahov met an interested buyer from Moscow and convinced him to visit the company’s operations. After touring the facility, the buyer agreed to buy 60,000 jars of walnut jam for $80,000. This purchase represented the company’s entire production for the year.
The company has also taken advantage of other services offered by AAC, including training sessions on sanitation, finance, and business planning. Meanwhile, Misalahov is continuing to work with the director to find buyers for the company’s hazelnut business.
Thanks to USAID, the small jam maker is now enjoying large profits and expanded production capacity. In the future, the director hopes to purchase some new equipment for processing and to switch part of the company’s operation to juice production.
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