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TMCNet:  Russia intends to expand its presence in the tea market of Azerbaijan, after agreeing with the monopoly [Turan Information Agency (Azerbaijan)]

[April 08, 2014]

Russia intends to expand its presence in the tea market of Azerbaijan, after agreeing with the monopoly [Turan Information Agency (Azerbaijan)]

(Turan Information Agency (Azerbaijan) Via Acquire Media NewsEdge) Baku/08.04.14/Turan: harmless looking statements regarding plans for expanding its presence in the tea market in Azerbaijan, uttered by General Director of the Russian Association of Tea and Coffee (Rusteacoffee) Ramaz Chanturia last week at a press conference, not forced to wait long for an answer. The leading company in the packaging of tea LLC Azersun Holding said Mr. Chanturia is insufficiently informed about the state of the tea market in Azerbaijan.


"In Azerbaijan, there is an informal quotas for tea, and actually work without the permission of the monopolist in this market impossible. We are negotiating an increase presence in the country," said the head of the Russian association. In the role of the monopolist he meant Azersun Holding. In turn, the representative of the company Afig Safarov told state newspaper Respublika that the tea market in Azerbaijan has all conditions for healthy competition. "To meet the need for tea in the country supplied more than 150 brands of these products. In the role of importers were several competing companies," he said.

Tea manufacturers in Russia do not hide concerns on the threats to stop shipments to Ukraine from Russian tea. As you know, 64% of Russian export of packed tea falls to Ukraine, which had become seriously strained political relations, which may also affect trade between the two countries. Therefore, to reduce the risk of falling supplies to Ukraine," Russia needs to diversify exports of packaged tea and one of the most attractive markets is Azerbaijan," said Tchanturia to the Russian media.

Russia supplied to foreign markets 8.5 thousand tons of tea on the results in 2013 compared to 7.5 thousand tons a year earlier. Russian exports to foreign markets for about 5% of the domestic production of tea. Rusteacoffee appealed to the Russian government plans to support capacity supplies to Azerbaijan. Association members can potentially supply the market of Azerbaijan 5-7 thousand tons of tea.

According to Rusteacoffee, in 2013, Russian companies exported to Azerbaijan 134 tons of tea, while from that country to the Russian Federation received 2.9 thousand tons of tea. In 2011, before the launch of Krasnodar Azersun holding its own production of packing, import volume in Russia was much higher - 4.1 thousand tons. It is noteworthy that in contrast to the Azerbaijani tea exports to Russia, the State Statistics Committee on imports of packaged tea in the opposite direction are substantially different. According to the Azerbaijani State Statistics Committee, in 2013, was imported from Russia 65.1 tons of green and black tea. The total declared value of the Russian tea was $ 605.6 thousand tea and the customs value averaged $ 9-9.24 per 1 kg. Into Russia was exported 2,933.5 tons of fermented and partially fermented green and black tea with total customs value of $ 15 892.2 million, with this tea comes at a price 5-6 $ / kg.

According to the State Statistics Committee compiled balance tea market, in 2012 the domestic consumption of tea in Azerbaijan made 11,698 tons, falling by 323 tonnes or 2.7%.

Production of tea, years 2005 2006 2007 2008 2009 2010 2011 2012 Thousands of tons 7.5 7.7 7.9 7.1 10.7 10.9 11.0 10,7 The main producers of tea are active in Azerbaijan since 1996, LLC Sun Tea (included in the group of companies Azersun Holding), which has a filling factory in Baku, Lankaran and Astara, and Cahan Tea (Nakhchivan), LLC Ova (trademark Beta Tea), Gilan Tea (both act in Lankaran), etc. In this sector, except for the sphere of tea cultivation in plantations, employing over 700 people. On its production facilities only reports Ltd. Sun Tea (9,000 tons of packed tea per year).

Regional structure of packed tea production, 2005-2012 Tea, tons 2005 2006 2007 2008 2009 2010 2011 2012 Baku 6 949 7 152 7 553 6 687 7 372 8 024 7 606 7340 Nakhchivan AR, kg N/A N/A N/A N/A N/A N/A 14260,8 14560,3 Lankaran 434.2 476.3 274.1 434.2 333.2 107.6 174.9 248.0 Zagatala 17.6 13.6 13.0 5.5 5.9 2.5 5.6 8.8 Astara 76.5 98.0 55.4 7.9 12.6 6.2 5.6 4.2 Need of Azerbaijan for tea at 95% is met by imports. In 2013, it was collected 567.7 tons of tea. The volume of production of tea farmers remained at the level of 2012. Production rate was maintained at the expense of increase in productivity: In 2013, the yield was 12.1 quintals per 1 ha, which is 15.2% more than in 2012.

Tea consumption in 2007-2012 Consumption, years 2007 2008 2009 2010 2011 2012 Tons 10 197 9 708 12 005 12 187 12 021 11 698 At the beginning of 2013 the area of tea plantations amounted to 873 hectares, an increase in 2011-2012 to 48.7%. In the fruitful age are 543 hectares. Note that in 2000 under the tea plantations were about 5,400 hectares. In subsequent years, due to the lack of state support for the industry, tea bushes have been annihilated.

State Statistics Committee and the State Customs Committee (SCC) for imports of tea vary considerably.

Tea imports, years 2007 2008 2009 2010 2011 2012 Tons 12 145 11 037 11 752 14 471 14 211 12 650 (Data from State Statistics Committee -editor) State Statistics Committee reports that in 2012 the import of tea in Azerbaijan fell by 1,561 tonnes to 12,650 tonnes. According to the same information from the SCC, in 2013 Azerbaijan imported 8,955.5 tons of tea, which is 17.3% more than in 2012 (7635.1 tons). The volume of imports in 2013 amounted to $ 20 million 321.9 thousand (+ $ 3 877.8 million or 23.5%). Kilogram of tea delivered to Azerbaijan in the average price of $ 2.27 per 1 kg. Over the past year were exported from the country 7,585.8 tons of tea on the total declared value of $ 44 million, 343 thousand (+ $ 6 911.6 million or 18.7%). Thus, 1 kg of tea was exported at $ 5.84.

2013, tons Imports Thsd $ Exports Thsd $ Green tea, not fermented, in package not exceeding 3 kg 16,8 126,7 0,0 0,0 Other green tea, not fermented 157,2 349,4 79,0 437,0 Black tea, fermented, in package not exceeding 3 kg 295,9 1646,1 5859,5 35527,0 Other black tea, fermented fully or partly 8485,6 18199,7 1647,3 8379,0 2012, tons èìïîðò â òûñ.$ ýêñïîðò â òûñ.$ Green tea, not fermented, in package not exceeding 3 kg 0,6 13,4 - - Other green tea, not fermented 96,9 236,6 39,9 208,4 Black tea, fermented, in package not exceeding 3 kg 249,0 1182,4 5883,9 33221,1 Other black tea, fermented fully or partly 7288,6 15011,7 1112,1 4001,7 (Data from State Statistics Committee - editor) Thus, taking into account data on the SCC import and export operations and local consumption in 2012 do not reach more than 11 thousand tons of tea. In the retail prices it is over $ 100 million.

Import and export trade of tea made ​​with the following countries: (in tonnes) Country Sort of tea Imports, tons $ thousand Exports, tons $ thousand Belarus Other green tea, not fermented 0,0 0,0 0,1 1,9 Belarus Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 4,1 38,8 China Green tea, not fermented, in packages not exceeding 3 kg 0,3 1,5 0,0 0,0 China Other green tea, not fermented 72,9 152,1 0,0 0,0 India Green tea, not fermented, in packages not exceeding 3 kg 1,0 12,7 0,0 0,0 India Black tea, fermented, in packages not exceeding 3 kg 15,4 86,7 0,0 0,0 India Other black tea, fermented fully or partly 931,9 1904,0 0,0 0,0 Iraq Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 4141,8 24850,7 Iran Other black tea, fermented fully or partly 308,8 515,9 0,0 0,0 Kazakhstan Other green tea, not fermented 0,0 0,0 3,8 18,6 Kazakhstan Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 73,6 376,2 Russia Green tea, not fermented, in packages not exceeding 3 kg 10,4 96,1 0,0 0,0 Russia Other green tea, not fermented 0,6 3,9 70,5 368,3 Russia Black tea, fermented, in packages not exceeding 3 kg 53,7 483,1 1220,3 7213,2 Russia Other black tea, fermented fully or partly 0,4 22,5 1642,7 8310,7 Sri Lanka Other green tea, not fermented 2,3 10,8 0,0 0,0 Sri Lanka Black tea, fermented, in packages not exceeding 3 kg 141,6 694,7 0,0 0,0 Sri Lanka Other black tea, fermented fully or partly 7082,8 15180,9 0,0 0,0 Turkey Green tea, not fermented, in packages not exceeding 3 kg 4,3 4,3 0,0 0,0 Turkey Other green tea, not fermented 62,5 93,3 0,0 0,0 Turkey Black tea, fermented, in packages not exceeding 3 kg 9,7 24,2 0,0 0,0 Turkey Other black tea, fermented fully or partly 0,2 1,8 0,0 0,0 Tajikistan Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 5,4 13,6 Turkmenistan Other green tea, not fermented 0,0 0,0 0,2 1,5 Turkmenistan Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 3,5 21,7 Ukraine Other green tea, not fermented 0,0 0,0 3,5 36,6 Ukraine Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 50,8 402,7 Ukraine Other black tea, fermented fully or partly 139,0 308,2 0,0 0,0 Not identified Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 8,9 123,4 Not identified Other black tea, fermented fully or partly 0,0 0,0 4,6 68,3 Luxembourg Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 0,1 0,3 Germany Green tea, not fermented, in packages not exceeding 3 kg 0,7 10,6 Germany Black tea, fermented, in packages not exceeding 3 kg 0,3 5,9 Germany Other black tea, fermented fully or partly 19,8 209,3 Australia Other black tea, fermented fully or partly 0,2 3,8 0,0 0,0 UAE Other green tea, not fermented 18,7 86,7 0,0 0,0 UAE Black tea, fermented, in packages not exceeding 3 kg 73,6 342,1 0,0 0,0 UK Other green tea, not fermented 0,1 0,6 0,0 0,0 UK Black tea, fermented, in packages not exceeding 3 kg 0,4 4,4 0,0 0,0 Georgia Other green tea, not fermented 0,0 0,0 0,9 9,6 Georgia Black tea, fermented, in packages not exceeding 3 kg 0,0 0,0 351,1 2486,3 According to the State Statistics Committee, the average price of tea in 0.5 kilogram packages in the country made in December 2013 4.42 manat, which is 5% higher year on year. And two months of this year rose tea by 1.3%, and is offered in retail at 4.48 manat (4.6% annualized). Minimum retail price of tea weight is 0.85 manat or $ 1 per 100-gram box.

Dynamics of retail prices for black and green tea in Azerbaijan in 2006-2012, as a percentage of the previous year (State Statistics Committee - editor): Name of product 2006 2007 2008 2009 2010 2011 2012 Black and green tea 103,1 103,5 119,7 80,2 149,8 104,1 101,9 08A Â (c) 2014 Turan News Agency. All rights reserved. Provided by Syndigate.info, an Albawaba.com company

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