Caspian Energy (CE): Mr. Rasulov, could you please tell about the main activities of the company?
Elshad Rasulov, Chairman of the Board, Atropatena: Atropatena Company was created in 1992 and has been operating in the market for almost 23 years. We have completed the process of establishment and now we may move forward boldly. As you know not only our company but the country as a whole managed to make a big leap in development throughout just over 20 years. In parallel, our company developed throughout these years, especially over the past 10 years when the economic situation of the country improved and big financial resources were flowing into the infrastructure projects. So, we also joined this process. As you know, the State Program on Development of Regions has been underway in Azerbaijan for 12 years. The main objective is to create in regions the same conditions that are provided in the center. It is what the distinctive feature of a developed country is. Living conditions, communications, working places have to be the same throughout the whole territory in developed countries so that to prevent the necessity of moving to the center.
The appearance of our regions is changing along with their infrastructure. All areas are supplied with gas and electricity. New roads have been built. Water supply projects are being implemented currently. Thus, the state is creating favorable conditions for business development. These conditions concern the taxation field as well. As a business entity, we also must invest mainly into our country since it creates conditions for further development. We are also actively engaged in these processes. Since 2008 we have been involved in the State Program on Development of Regions.
In 2008 we launched the milk production project that was completed in 2011. Within three years we managed to turn into a serious player in the market of dairy products. We are developing the crude products base in parallel. We commissioned a large stock-raising facility where over 2,000 milch-cows regularly provide more than 50 tonnes of the cleanest milk on a daily basis. It was the hardest period. When we opened the plant we realized that it was difficult to find a qualitative crude product. This is the reason why we launched this process. In general, it is good. We understood that we are on the right path.
CE: What are main achievements of the company over the past years?
Elshad Rasulov: This issue has to be considered from two aspects: development of the country and our company in particular. Favorable conditions ensuring economic development of the country are contributing to the rapid development of the business as well. In 2013 President Ilham Aliyev visited our facility. He took part in official opening of our farm on August 29. He gave advice, expressed his support and added that we were on the right path and should proceed with the development. A maximum rate of investments made into the economy of Azerbaijan both by the state and the business was fixed in 2014. We see the results of these investments both in the capital and in the regions of the country. The last years were successful for the company too. Firstly, as I have noted we held an official opening of our farm. Secondly, we concluded an agreement with the French company Danone for manufacturing of its products in our plant. It is of great importance for us especially when we speak about the development of the non-oil sector of the country.
Now, the state is attaching big importance to the development of this sector of the economy. Besides, the task is to supply the country with qualitative products and set a ground for export. Therefore, the contract we signed with the Danone Company is very important for the development of the non-oil sector. We have created a good platform. Qualitative products meeting standards of Danone are produced.
Markets of Georgia, Turkmenistan and Western Kazakhstan are mainly considered for export. At the same time, we plan to commence export of our brand products Atena. Thus, we are accessing the external market that the head of our state always speaks about. President Ilham Aliyev emphasizes the necessity of bringing new technologies into the country, producing high-quality products, reducing import and gradually switching to export. The work that we are currently doing fully conforms to the development of the non-oil sector.
CE: Which innovations does the company introduce in the field of dairy products?
Elshad Rasulov: Many enterprises on production of dairy products were opened in Azerbaijan. It is good since no markets are able to develop without competition. On the other hand, we also have a trade network developing. In general, all of it leads to the development of the market. Innovative technologies and innovations must be regularly introduced for maintaining positions in the market and always being one step ahead. Therefore, we are now commencing production of Danone products along with implementation of other plans.
CE: What is your overall production and the level of quality of manufactured products?
Elshad Rasulov: Considering opportunities of our production, it makes 250 tonnes of milk per day. Our present production makes only 50 tonnes. We have to increase production volume up to 250 tonnes within two years. Apart from the quality of crude milk, it is necessary to produce qualitative products. Our enterprise meets all international standards, we received ISO 22000 standard (hygienic and management standard) as well as British standards BRC. We considered them as early as at stage of planning in order to be able to receive them. The Danone Company which has big experience in this direction supported us in this process.
Besides, our lab received international accreditation. I.e. we managed to create a platform, introduce technologies and train the human resources. We will manage to enter other markets through production growth and support of such strong partner as the Danone Company.
With regard to dairy products, we have a high-level logistics. It is fully “cold” starting from milking up to store shelves, we try to keep the temperature conditions of 2-4 degrees Celsius. We would recommend our consumers to observe this thermal regime since we manufacture fresh products. Milk is a very wholesome product if it is fresh. It should be used for food only if it is fresh.
As far as the distribution is concerned, I would like to emphasize that we do our best to render our services on the highest level. With regard to dairy products, we attend large stores every day and small ones every other day. We make sure that there are always fresh products on the shelves of stores. Our motto is freshness.
CE: What are the prospects of development for coming years?
Elshad Rasulov: Considering the milk market, it consists of different segments. It is production of traditional milk products that we are currently engaged in, it is production of modern milk products that we are going to launch together with Danone. There are also other niche products that concern cheese products. We intend to continue developing in this direction as well, especially in the field of production of the Dutch cheese which is currently imported to our country.
Creation of the food reserve is another important issue that is also to be solved. Now we are thinking of construction of the plant for production of forage in order to reduce production cost price. It will improve the condition of animals since the composition of forages is controlled that results in growth of the output ratio. As far as other projects are concerned, we are currently conducting the market analysis.
