Corrupt Ice Cream

August, heat ... It seems that ice cream season is in full swing, but the leading manufacturers of ice cream in Baku virtually halted the production of this product.

In Azerbaijan, in contrast to other countries, ice cream is consumed only in the summer season, and all year round. This year has been significant for the ice cream market in two events. First, at the request of the State Committee for Standardization, Metrology and Patents, in Baku, a laboratory was set up, used by medium and small shops. This will improve the quality and reduce the release of marriage. Second, the market is composed of two new players - the companies A-Class and Milla.

 "Rules of the game" on the ice cream market in Azerbaijan is mainly dictated by the companies SABA, Camal ltd., AER, Pal Food. There is a public organization and dairymen, which in anticipation of the season negotiates prices for the products. According to a representative of one of the companies, this is a kind of cartel, which aims to protect the interests of the major producers of dumping prices of small shops that offer quality products below.

The assortment of ice cream has more than 100 species. Package with 70 g depending on the financial capability and consumer taste is offered from 0.20 to AZN 2.

Over the past 5 years, the manufacturers of ice cream expanded their retail network: experts estimate that today the number of mobile refrigerators for sale of ice cream is about 30 thousand. Ice cream makers do not disclose sales data, both monetary and weighted terms, noting only that the profitability of the industry is not high. They also vaguely hint that sales for this year are about as much as in 2011. And they evaluate this past year as bleak for ice cream trade.

But statistics refutes allegations of low profitability of production of ice cream. According to statistics, the per capita consumption of ice cream in the U.S. is 30 kg in Europe - 10-12 kg, Russia - 5 kg, Belarus - 4.3 kg. If you believe the government statistics, the average person who is resident 9000000th Azerbaijan consumes 200 grams of ice cream a year. Statistics confirm that the volume of imports in 2011 amounted to 1,198 tons, and the local production of 753 tons. So the total volume of ice cream was within 1,951 tons. But even if we consider that in Azerbaijan with a population of 9 million people, as in Armenia (population 3 million) are about 1 kg per capita per year, the consumption must be not less than 9 tons. It turns out that the volume of gray market exceeds 4.6 times legal. If we take into account that today the price of 70 grams of ice cream is around 0.6 manat, we can come to the conclusion that the market turnover is not less than 54 million manat per year, of which over 40 million manat falls on the shadow market.

However, one of the participants of the production of ice cream did not agree with the volume of the market of 9,000 tons, and called the real number, as he said, 3,000 tons.

This year's ice cream makers are at odds with the Public Service for Antimonopoly Policy and Consumer Protection under the Economic Development Ministry. Last summer MED test conducted in all enterprises of ice cream, and found all sorts of disadvantages from not meet national standards, and ending with the discovery of the bacteria Escherichia coli.

At the same time, it should be emphasized that the scope of the ice cream is criminalized and riddled with corruption. Part of the ice cream is hidden from the statistics, but not from the "watchful eye" of the tax authorities, who do not notice the concealment of the commodity for solid rewards. - 08A-