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Azeri Company Trying to Monopolize the Georgian Soy Market

A soybean processing plant is talking about an attempt of a foreign company to gain a monopoly on the Georgian market.
“Unigrain Georgia Ltd.”  is forced to  work in  a toughcompetition. According to the plant  Director GeorgeAdeishvili,  the Azerbaijani company is trying to minimize the profitability on the Georgian market, to establish  prices and   remove small companies from the market. After that, remained a monopoly, it will set its own market prices.

Adeishvili  says that the current situation puts small entrepreneurs in  a disadvantage situation. In his opinion, protection level of local producers is  quite low. There are no rules of business ethics.

He is a supporter of the adoption of the same law which operates in Turkey.

In  Turkey,  the importer is obliged to pay the customs tax in the amount of VAT to bring  raw materials for the further  processing. But, in a case of imports of  the manufactured product, the import  duty of7% and  VAT is imposed. In Georgia both local and foreign importing companies pay only VAT.

“Unigrain Georgia Ltd ” is a fatcontaining  crops processing factory. The factory is located in Poti and has been operational since  January 20, 2014. The plant can process 60 000 tons of  soybean per year butsince the opening has processed only 8 000 tons of soybeans.

Soybean meal is a concentrated source of protein and energy, and is mainly used for making fodder actively consumed by  livestock and poultry factories.

Soybeans processed by the company are sold in  Georgia and Armenia. At the end of October, it  will be exported to Azerbaijan as well. Adeishvili notes  that soy has a large export potential.

“Georgian Grain Ltd. ”  invested  GEL  2 800 000 in the enterprise. Of this amount,  the state has assumed the payment of the bank interest for GEL 1 million in the  frames of the preferential agro-credit project.

The fatty crops processing plant is focused only on soybean processing. However,  if  small aggregatesare changed , soy beans can be  replaced by other fatcontaining crops. However, at this stage, the company does not have the financial capability to implement this plan.