Value Chains research report Tajikistan final - Microfinance Centre

5.1.3. Apricots Processed by Canning Factories
The Characteristics of Apricot Processing
Another direction for processing fresh apricots in Tajikistan is to process them into juice.
Canning factories collude to reduce the purchase price. As a result, the only apricots
that are sent for processing are those that could not be sold fresh, as well as those that
are not suitable for drying.
Table 11. Average Apricot Purchase Price by Canning Factories, in somoni, by Year
Item 2005 2006 2007 2008 2009 2010 2011
Fresh apricots 0,25 0,25-0,40 - 0,25-0,50 0,30-0,50 0,30-0,50 0,50
Source: LLC Market Plus.
The low prices are lobbied by canning factories10 under pretence of paying taxes. Thus
the farmers are forced to sell fruit below cost. In turn, the farmers provide the canning
factories with the lowest quality raw product including apricots unsuitable for drying.
The export characteristics processed apricots
Most of the juice produced in the country is exported. In 2010, more than 1,56 million
USD worth of juice was exported; most of this was apricot juice which is very popular
among the population of Tajikistan and key export markets for juices – Kazakhstan and
Russia. All of the fruit and vegetable juices were exported from Sughd Region.
Table 12. Export of fruit and vegetable juices from Tajikistan, 2006-2010
2006 2007 2008 2009 2010
In 000’ In 000’ In 000’ In 000’ In 000’
tons USD tons USD tons USD tons USD tons USD
Total 12905 3732 12581 4050 9 005 3 316 7001 2649 3825 1563
Kazakhstan 10121 2933 10410 3359 8259 3010 6302 2388 3472 1400
Russia 2571 734 2171 691 746 306,4 612 239 353 163
Uzbekistan 151 49
Kyrgyzstan 96 22
Source: State Statistic Agency of Tajikistan
The volumes exported by canning factories are reduced annually due to the
deteriorated state of canning facilities, problems with raw materials, lack of crates, lack
of packaging material, low product quality due to outdated equipment and technologies.
The root of all problems in the canning industry is the absence of markets and lack of
10 Fruit Industry of Tajikistan, except for a few new businesses, was created in Soviet times. Most enterprises are
large-scale manufacturing, have old equipment and technologies, which are not capable of producing competitive
products for both domestic and international. In Soviet times, most processed fruits and vegetables were
forwarded to other Soviet republics, after the Soviet Union collapse the supplies declined sharply and production
dropped to less than 20% of production capacity. The decline in production capacity is continuing, the equipment
is unsuitable for modern production; little new investment is occurring and creditor debts are increasing. Many
companies are on the verge of bankruptcy.
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