Azernews.Az

Azerbaijani poultry factories have been facing the threat of shutdown for some time, citing their inability to compete in the domestic market, the head of the Poultry Society says.
Aydin Valiyev said that although local poultry factories are not taxpayers, they pay the Value Added Tax (VAT) due to the delivery of raw materials required for production from abroad.
"Equipment is expensive, and there is no breeding facility available. Everything is delivered from other countries. Local companies cannot develop in these conditions, and all of them are operating with losses. Imported poultry is packed onto store shelves, and domestically-produced poultry does not sell."
Valiyev said imports of raw materials were among key factors driving up the cost-value of local produce, and if the troubling trend persists, even major poultry companies that have taken a firm place in the domestic market may face a shutdown.
Proposals have been forwarded to the government on ways of preventing bankruptcies of local poultry businesses. The suggestions from entrepreneurs include making concessions to the companies operating in the field and lifting the VAT on imported raw materials.
Some economics experts say the bankruptcy of several poultry factories in Azerbaijan resulted from the impact of the global economic crisis. This impact will not be limited to the poultry business, but will also cause serious problems for other sectors of the national economy, they warned.