Approach to Market of Ice Cream with Cold Mind

Behind is the hot summer, so we can analyze the situation on the ice cream market with a cold mind, especially because the processes occurring there cannot be understood merely from the love of this delicacy.

The season of ice cream in Azerbaijan consists of only 100 days. According to experts, in the summer workshops for the production of ice cream work especially hard, wanting to satisfy the taste and whim of lovers of this delicious dairy traditional and new views. But, oddly enough, the product that fills mobile refrigerators, whose number has reached 30 thousand across the country, does not appear in the financial statements of companies. According to the State Statistics Committee, not more than 500 tons of ice cream is made in Azerbaijan per year. Official picture of ice cream market has not changed for the past 10 years, which is not trusted by the producers themselves. "500 tons of ice cream per year is an outright lie!" said the head of AER, Elshan Sharifov to Turan’s reporter. However, the representative of the company, which is among the five leading producers in Azerbaijan, declined to name its own production capacity in 2014.

The contradictory character of official statistics is also proved by the data from the Statistics Department of the Nakhchivan Autonomous Republic. Last year, they allegedly produced 138.7 tons of ice cream, which is 5.2% more than in 2012. It turns out that in the exclave they produced 27% of the total production in the country that is in doubt not only for professionals, but also for the market participants.

According to experts, in the summer the daily production volume of ice cream is not less than 100-120 tons. Ice cream is offered for dessert and in the homes of celebrations in wedding ceremonies until the end of September. The market is mainly distributed between companies SABA, Camal ltd. and AER, which put on the market about half of the consumption (60 tons). There are still about 10 businesses that sell 7-10 tons a day. The remaining plants in Baku and regions are content that they can compete with the "giants", and offer consumers several tons of ice cream per day. Thus, according to experts, the annual volume of the ice cream market in Azerbaijan is measured approximately 10,000 tons, and unaccounted turnover is not less than 40 million manat. Given the profitability of the market in 2015, there will be another party, Ltd. Zehmet- Ruzi (trademark - SAB), which is a producer of dairy and meat products.

According to the State Customs Committee, in 2013, imports of ice cream increased by 43.3 tons. However, in monetary terms, imports fell by 600 000 dollars to $ 1 127 500. The dominance of local production can be also proved by the fact that in the recent 2010 Azerbaijan imported 1,096.2 tons of ice cream with a total declared value of $ 2,679,700. As importers act the same producers (SABA, Camal ltd., etc.). For example, the company Camal Ltd, which is known for the brand Iceland, implements in Azerbaijan such world brands as Mars (France), Nestle (Switzerland), McCain (Canada), and Talosto (Russia).

Note that the local production has long been exporting ice cream. Only in 2013 19 tons of Azeri ice cream was exported. --08B--