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 fat– containing 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 fat– containing crops. However, at this stage, the company does not have the financial capability to implement this plan.