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COMPARATIVE ANALYSIS FOOD INDUSTRY OF THE AZERBAIJAN REPUBLIC AND CALIFORNIA STATE OF USA

COMPARATIVE ANALYSIS FOOD INDUSTRY OF THE AZERBAIJAN REPUBLIC AND CALIFORNIA STATE OF USA
Nabiyev Alpasha, senior lecturer

Nazifa Ali Abasova, Senior Lecturer; Ulyana Rostislavovna Makhankova, Student; Xalida Ilgar Gadjimuradova, Student

Guler Akif Novruzova, Student; Nurana Binyami Mammadli, Student; Ulviya Nariman Mammadova, Student

Gular Yashar Khankishizade, Student; Nermine Magammed Qarali, Student; Nurana Nuraddin Agayeva, Student, student

Ulker Vidadi Memmedova, Student; Leyla Aliyar Qasimova, Student; Fidan Sakhavat Aliyeva, Student, student

Xanimbaci Ilgar Alizada, Student; Aytaj Vugar Mammadzada, Student, senior lecturer

Baku State University, Azerbaijan

Conference participant

This article describe problems of food industry in Azerbaijan Republic and California State of USA and its similarities. Also give main food industry fields in both country.

Keyword: industry, manufactures, fruits, mineral waters,dairy products industry,fish production

 

There are differences and similar branches in food industry of Azerbaijan and California. Comparison of these two countries was taken on the basis of their location at the same latitude and similarity of climate condition. Azerbaijan is located between 38°25' northern latitude and 41°54' northern latitude, California is located between 32°30' northern latitude and 42° northern latitude.

California food industry.

In California are developed such industries as wine industry, canned – foods industry, refreshment beverages, juices, beers and strong alcohol. In this state is made 4/5 of wine and raisins, 1/3 of dry fruits, canned and deep frozen fruits and vegetables of the country. There are four main wine producing regions in California: North Coast, Central Coast, South Coast and Central Valley of California. Also there are headquarters of big food companies and beverage manufacturers in this state. Among major employers in this sphere such companies stand out as Nestle in Glendale, Grimmway Farms inBakersfield (3,5 thousands), Bolthouse Farms in Bakersfield (2 thousands), Del Monte Foods in Hanford (0,4 thousands), PepsiCo inHanford (0,4 thousands).

Azerbaijan food industry.

Food industry in Azerbaijan takes first place among industry branches by a quantity of manufactured goods and people who are working there. Wine, canned food, tobacco and mineral water are main products of food industry.

One of the highly developed industries in the country is winemaking. Plants on primary machining of grape are located in regions of Azerbaijan, where this grape is cultivated. Wineries of Azerbaijan are produced more than 60 wine brands.

Fruits, vegetables and fish products are also processed on these canning factories. A large number of factories producing canned fruits and vegetables are located in Khachmaz economical region next to raw material base.

Tobacco factories on primary machining of tobacco are located in Shaki, Zagatala, Gabala, Belokany, Yevlakh, Sharur and Masalli. One tobacco factory is located in Baku.

Packaging of mineral waters of Azerbaijan also has significant importance. For these purposes could be used such mineral water as Istisu, Sirab, Badamli, Vaykhir, Daridagh.

Besides the above-mentioned industries there are also meat processing plants, dairy factories; bakery; breweries; tea manufacturing factory etc.

Winegrowing and winemaking.

Favorable environment of California allows cultivating grape and developing industry. According to statistics of 2011 it was gathered 6.11 million tons of grapes in California including 3,343 million tons of technical kind of grape, 0,829 million tons of table variety of grape and 1,939 million tons of raisin grape. 3,86 million tons of all these kinds of grape were sent on manufacture of California wines. While in Azerbaijan indicators differ significantly. Vintaging of 2011 was 137 million tons, but this indicator significantly higher than in previous years. This data changes and harvesting is rising each year. The area for grape cultivation in California is 181 thousand hectares. According to the data of 2013 the area for grape cultivation in Azerbaijan is 16,1 thousand hectares. Thus it is a noticeable difference in these indicators, as the territory of Azerbaijan is less than territory of California.

According to Nizami Garayev, the expert in agriculture, the rapid growth is connected with adopting of the law on Winegrowing in Azerbaijan. According to him, this sphere began to get investments. «In it’s turn, investments led to growth of planted acreage and production of grapes. As a result a part of cultivated grape was sent for winemaking».

N. Garayev says that winegrowing in Azerbaijan has rich tradition."But after Azerbaijan gained independence, due to the drop in production, there was a vacuum in the field of winegrowing. And despite rapid growth this vacuum exists even today, and still reflects in the price of grape. This means that Azerbaijan is not able to provide itself with grape. But on the other hand there were built factories on industrial processing of grapes in Azerbaijan. All of the above mentioned indicates us a high demand for grapes in our country".

According to the State Statistical Committee of the Republic of Azerbaijan in 2013 it was used 165,080 million of grape. Of the total index 63,890 million tons(38,7%) were sent for winemaking, 94,977 million tonsof grape were sent as foodstuffs. During the reporting period, the production of alcoholic beverages was also increased. For example in 2005-2012 manufacturing of whiskey, cognac and brandy from were increased from 17,5 up to 87,4 million of deciliters in the country. Winemaking in Azerbaijan for the same period were increased from 400,5 up to 1060,8 million deciliters.

In order to improve grape production, it is necessary to use new various technical means. The using of technical means will help to improve the quality of the grape, as well as its quantity. It is necessary to use mechanical means, such as in the United States. All work on the soil cultivation including pest control and illnesses are completely mechanized and this is a characteristic feature of winegrowing US. In California even the grafting on phylloxera resistant rootstock is made with the help of apparatus. Vaccination machine designed by Jacob then was improved by Ellie, the engineer. In order to cut some furrows to plant some grafting they use subsoilers. When installing bearings on large areas stakes are hammered with the help of mechanical hammer or by a press.

The decline of winegrowing and winemaking in Azerbaijan is also connected with the history of our country. After the collapse of the Soviet Union because of a violation of economic relations with the Soviet republics and other reasons, winegrowing and winemaking in Azerbaijan fell into decline. But now the government of Azerbaijan is taking steps to revive this industry. The state allocates loans at minimal interest for the successful functioning of the activities of farms. Benefits to the necessary funds are provided.

We do hope that in the near future winegrowing and winemaking in Azerbaijan again will achieve a high level of development, and this will bring them back erstwhile power and glory.

Fish production.

Plants on the use of fish resources of the Caspian Sea and the Kura River are functioning in Aran economic region (plant for the production of canned fish) which includes Mingachevir, Hadzhigabul and Khilli. Besides Lankaran fish factory in Lankaran-Astara economic region and Narimanbadsky fish factory. Fish factory in Khudat in Guba-Khachmaz economic region, and fish factory in the village named after Z.Tagiev on Hovsan in Absheron economic region are the main enterprises on processing of fish products. There are a lot of fish breeding plants in republic, and most of them are located in Neftchala region at the mouth of the Kura river.

Fish production in California is situated along the Atlantic coast and is located in such cities as Los Angeles, San Diego, San Francisco, Seattle. Los Angeles is located in the south west of the country.The water area of anchorage of the outer harbor is 356 hectare, water area of the inner harbor 320 hectares. The width of the main channel is 305 meters, the depth is 10,7 meters. This water area is the sardine fishing center. There are strong shipbuilding and repair yard, and fish canning company in this port.

San Diego is the base of tuna vessels near the border with Mexico, based on port 72 vessels base in the port. The harbor is well protected. The water ares of harbor is 56 km2. The width of the sea channel is from 91 to 762 meters, the depth is from 5,5 to 21,3 meters. Total length of moorings is more than 2,5 km. There is a special fishing stage, shipbuilding and repair companies and fish canning plant in the city.

San Francisco is located in San Francisco Bay, the length of it is 65 miles, the width from 4 up to 10 miles. The area for the safe anchorage is 200 km2 with a depth from 5.5 up to 24 m. This is the center flatfish and tuna fishing. There are the largest shipbuilding and repair enterprises, and fish canning company.

Seattle is the center of salmon, halibut, and flounder fishing, with a comfortable and safe Puget Sound harbor. The port consists of marine and freshwater parts. The water area of main sea port in Elliot Bay harbor is 8,5 miles2. There are 80 different berthing facilities in the port. Large inner harbor is consists of freshwater lakes – Washington lake and Union lake connected to Puget Sound with channel of minimum depth of 8.8 meters and a length of 8 miles. There are the largest shipbuilding and repair enterprises, and fish canning company.

Dairy products industry.

Dairy products companies are located in Baku, Sumgait, Ganja, Mingachevir, Lankaran, Khirdalan Shamahy, Barda, Zardab, Salyan and Siazan. According to the Head of department of Ministry of Agriculture of Azerbaijan Chingiz Farajiyev, there are herds consisted of 2.7 million of cattle and 55 dairy products companies in the country. « The total yield reaches 1.7 million tons of milk per year. However, only 30% of the consumption of dairy products in the country is home-produced, and 70% of consumption provides import. Milk production does not reach 72 liters per head, and there is a great need for new dairy enterprises. In this regard, the Ministry of Agriculture is going to provide full support to the Turkish entrepreneurs who are ready to begin operations in the dairy sector and the dairy industry» – Farajiyevsaid.

Dairy industry of USA it is also places of work and and the possibility of active work for a large part of the population of the country. The total number of farms in the country is 65 000. They provide milk products, cheese and yogurt, to the territory of the country and also for export. About 99% of farms are family-owned. On adairy farm numbers of head is 135 cows. 75% of farms have numbers of head less than 100 cows. Those farms where number of heads are more than 100, produce 77% of the total milk production in the country. Dairy farms of USA produce 79 400 000 000 liters of milk annually. Dairy farms are located in 50 USA states and Puerto Rico. Most part of produced milk in the USA is not transported over a distance of more than a hundred miles from the farm to the store - the end point of sale. In California they produce more milk than in other states. Its milk production is 21.3% of total production in the country. Besides California, in states such as Wisconsin, New York, Pennsylvania, Idaho, Michigan, New Mexico, Vermont and Maine milk processing is the main branch of agriculture. Farmers buy equipment, trucks, fuel, and other necessary for goods and services business, generating a profit of used sectors. Dairy farms are source of job places for those people who are engaged in the breeding of cows, forage manufacturer, veterinarians, insurance companies, bankers, and so on. From farms milk is transported to manufacture, where it is processed into dairy products. Production cycle is completed by packaging manufacturers and sales system, where there is also a significant number of jobs.

Take all these points together it is wrong to consider the profitability of dairy farming without regard to the entire cycle, including the production of the final dairy product and its sale. Only considering the process as a whole thing, we can talk about the profitability of the milk industry. Today the profitability of dairy industry in the US is 250%.

Canned foods industry

This industry is considered to be one of the most promising, and also the main segment of the economy, where our country is able to take a good niche. Even during the economic crisis investment of such sectors was actualized, because they can be competitive. And this competitive industry is the establishment of plants for canning fruit and vegetable crops. Remarkably that only the processing of fruits and vegetables in our country today more than 80 plants work and the production capacity of which reaches nearly a million conditional units food in a year. In the processing of fruits and vegetables our country completely covers domestic needs, and almost half of the production is exported to the CIS countries and Europe.

Among the largest manufacturers we can note Azersun Holding with factories in Khachmaz, Lankaran, Zagatala, Gilan Holding canning plant in Gabala, and a number of canneries in Sheki-Zagatala region Geychay and in other regions of the country.

The products from such companies as Azersun, AzNAR, Bakfem, Gilan and others are known abroad. There are some companies who are engaged in the processing of olives in Absheron peninsula (These companies are mostly owned by Azersun and Gilan Holding). There are factories on the production of tomato paste, and processing in jams and preserves and subtropical citrus fruit: tangerine, pineapple guava, lemon, orange, grapefruit and kiwi in the southern areas of the country.

Dried fruit of California.

Champion dried fruits are produced in California by National Raisin Company (NRC), which was established in 1969. This manufacturer of weight and packed dried fruit is one of the largest not only in California but also in the world. NRC annual production is 75 thousand tons of raisins and 18 thousand tons of prunes. Deliveries of finished products are carried out in 23 countries. The main difference of Champion dried fruit from other brands that production process of the National Raisin Company is organized as a single technological cycle from growing fruit before packing into retail ready package of dried fruit. This allows the manufacturer to provide consistently high quality products and competitive prices.

All Champion dried fruits are tested to 35 purification steps on the modern equipment that allows the manufacturer to minimize the addition of preservatives that are required for the storage of dried fruit and strictly control the process of using automated systems. The slogan of National Raisin Company is "Premium quality at an affordable price".

Champion prunes has a refined taste and thin skin. Dried fruit market specialists confirm the high palatability of California prunes. It is worth noting that in Champion prunes the remains of the nucleus after its removal are not found.

Champion raisinsare produced from unique grade of seedless grapes. The problem of many packers of raisins is fruit stalk - part of the remaining branch on grapes after removing it from the tree. Thank for the use of modern technology there are no more than 12 small fruit stalks in 500 g, which in turn are indicators of high quality.

Champion apricotspass multiple cleaning, calibration and are moisturized in order to enhance palatability of the product.

Production of dried fruit on the territory of Azerbaijan can also be developed, but this industry still is not sufficiently developed.

Problems in the food industry of Azerbaijan.

There are many problems in this strategic sector of the economy. One of them is compliance with standards in this industry which affect not only the health of individual citizens but also the safety of society. Recently, several normative and legal acts have been adopted in this direction, where monetary penalties and other punishments were determined. The remarkable thing is that the Law "On ecologically clean agricultural products" was approved by the President of Azerbaijan. It is intended to regulate relations in the sphere of production, processing and trafficking of ecologically clean agricultural products produced without the use of chemicals and other synthetic substances. 
The important prerequisite for increasing of products export of our agricultural industry is the creation of certification and laboratory systems in the country which meet the EU standards. According to foreign experts, the main problem that prevents the export of products of domestic food industry to world markets is connected with the problem of standards. It is indicative that the laboratory of food products investigation of the State Service for Consumer Market Control is established under the Ministry of Economic Development. Thus, the facilities from government budget have already been allocated for these purposes; project and estimated documents are prepared as well as modern equipment is purchased.

 

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