Azerbaijani fruit & vegetable producers scores big win on Russian market

In a major move for the newly formed body, Azerbaijan’s Fruit and Vegetable Producers and Exporters Association (AMTIIA) has chalked up its first landmark Russian deal. 

Member companies of AMTIIA will be able to directly export their products to Russia via the X5 Retail Group. X5 is Russia’s second largest food retailer. A joint venture is set to be established between AMTIIA and X5 for the export of Azerbaijani produce into the Russian market.

The agreement was outlined at a September 2016 meeting between representatives of X5 and AMTIIA. Azerbaijan’s government funded promotion foundation AZPROMO was responsible for bringing together these two organisations. 
Russia has been searching for other markets from which to source quality fruit and vegetables to its citizens since 2014’s ban on Western and EU food imports.

The agreement with X5 is huge news for AMTIIA as the association was only established very recently in August 2016. AMTIIA’s goal is to promote Azerbaijan produce across the globe, as well as to greatly increase produce export levels – a move indicative of Azerbaijan’s shift away from dependence on natural resources for the nation’s economic prosperity.

Before this deal is finalised, only 14 Azerbaijani companies are presently allowed to export agriproducts into Russia. Russia is notorious for the level of regulations and standards it requires foreign producers to meet with their foodstuffs.

X5 Retail Group operates a number of well-established retail chains and formats across Russia, including Pyaterochka, Perekrestok and Karusel. 

Azerbaijan has enjoyed a fruitful trade partnership with Russia for some years. In fact, the country is Russia’s fifth largest foreign trade destination in the CIS countries, behind Belarus, Kazakhstan, Ukraine and Uzbekistan. 

Trade turnover between the two states hit $1.06 billion across the first half of 2016. $212.9 million of this accounted for Russian exports to Azerbaijan.

Source: Azernews.az 


 

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