Share of Nakhchivan Accounted for 78.5% of Footwear Production in Azerbaijan

In the first quarter of this year, production of leather and leather goods, including footwear, amounted to about 5 million manat, which is 2.4 times higher than in the same period last year. Experts attribute this mainly to the difficult situation in the livestock in winter, when they experienced difficulties with fodder.

According to the committee, within three months of this year there was produced 271.7 thousand m2 of leather and 30,400 pairs of shoes, which is 2.8 times, respectively, and 56.7% higher than the figure for the period 2014. Enterprises' warehouses accumulated more finished products (291.2 thousand m2) by 1 April, indicating the difficulties of sale.

It is noteworthy that comparative data on the volume of production in the tanning industry by region indicate the presence of shadow economy here. According to the SSC, in 2014, it produced more than 1.2 million m2 of leather (+ 39.2%) and leather products and 70.2 thousand pairs of shoes (-76.2%). According to the State Statistical Committee of the Nakhchivan Autonomous Republic, during this period in the region with an official population of over 400 thousand, there were produced 55,124 pairs of leather footwear (+ 3.1%) and processed about 290 thousand pieces of leather (+ 2.6%). This represents 78.5% and 24.2% of shoes and treated leather of all produced in the country for 2014. Throughout the country, the official production of leather products in the past year fell by 41% to 19 million manat.

In 2014, there was exported 3 million 14.9 square meters of treated leather totaling $ 24 million 69.4 thousand. Export in commodity terms increased by 1.4% and in monetary terms - 41.8%, according to the State Customs Committee.

According to the State Procurement Agency, in the past year through tenders by public bodies (State Border Service, the Ministry of Defense, the Ministry of the Interior, the Baku Metro) shoes totaling 2.6 million manat were purchased. The suppliers are Ltd. BOT, ME.GA.AN, Techizat-GN, etc..

According to official data, the average monthly wage in the leather industry is over 510 AZN. In the past year wage in this sector was added 8%. ----08B

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