FROM GROWING OF COTTON TO FABRIC MANUFACTURE

Traditional for agrarian sector of Azerbaijan, cotton has new period of growth. Agrarian reforms' successes made during last decade pawned under exist material-technical base of market relations done the growing of cotton very profitable and high cost effective business. It confirms expansion from year to year areas aimed for stated culture: in 2005, there was sewn approximately in 113,0 ha. with cotton in twenty regions of state that for 35,2.000 ha more than in 2004. According to forecast of specialists, this autumn will possible to collect no less than 200.000 tons of raw cotton. Cotton field could pass the period of fall in 90s caused with sharp price reduction to raw material in the world market. Analyzed situation, the management of country decided that negative tendency's breaking is possible only by privatization of cotton scraper plants and due to it the stimulation of farmers to cotton growing. By the end of 90s totally 19 companies on processing of cotton were successfully privatized. In result of fulfilled privatization, "MKT Istehsalat-Kommersiya" LLC manage with 14 cotton plants and three more are managed by "Jecot", two plants "Kurdamir-Pambig" and "Agdam-Pambig" are under the management of separate juridical persons.

Presently, instead of 14 old cotton plants only 7 new technological plants are under operation and 4 mln. USD was spent for their reconstruction. Three of them were built by Azerbaijan-American JV "Azercot" Ltd. we had to stop the operation of more loss technologies. After upgrading the processing, "MKT Istehsalat-Kommersiya" LLC and "Azercot" began to provide with financial and technology assistance to farmers and agricultural cooperatives, separate producers stimulating them to pay attention for giving of more place under cotton field.

Farmers do not have facilities for independently realizing cotton growing, processing and collection, therefore almost whole culture and cooperatives are received assistance for sowing and looking after cotton. In this connection it is impossible to re-estimate "MKT Istehsalat-Kommersiya" LLC activity representing to farmers technique and necessary raw materials - cotton seeds, fuel, kaliums and phosphate fertilizer and pesticides, including loans percent free. According to agreement in exchange of culture they return their debt with cotton supplying to cotton scraper plants belonging to "MKT Istehsalat-Kommersiya" LLC. Not less important selection activity of the company: "MKT Istehsalat-Kommersiya" LLC beginning from 1998 became to import from Turkey 7 new high fruitful, dry and stable against disease new sorts of cotton, 5 of which could get Azerbaijan climate. In result of new sorts' introduction the cotton field became bigger and bigger from year to year and due to this the fruitfulness of culture began increase. For example, 60.000 ha were sewn with cotton in 2002 and approximately 80.000 tons of cotton was collected. Last year 78,0.000 ha was given under cotton's control that allowed collect more than 135.000 tons of crop. It is remarkable that more than 75% of whole collected crop belong to share of economy concluded the contract with cotton scraper companies of "MKT Istehsalat-Kommersiya" LLC. "MKT Istehsalat-Kommersiya" LLC is effective agrarian-industry complex, including all necessary directions for cotton culture development. The improvement of technology process allowed reduce the cost of processing and increase the exit of cotton-fibre from 29,5% to 39,5%. And we can say that company's production meets to all international standards of quality. Company's successes did not stand as unknown on behalf of famous international organizations and since 2003 "MKT Istehsalat-Kommersiya" LLC joined to associative members of Liverpool Cotton Association. Today more than 90% of processed by company cotton-fibre is being sold in abroad: Switzerland, USA, Liechtenstein and mainly in Russia. Only "Ivanovo-Tekstiltorg" purchases 10-12.000 tons of cotton-fibre annually. The main part of cotton yarn in six types is supplied to Russia and the product is processed by "MKT Istehsalat-Kommersiya" LLC at "Gandja-Pambig Ayiridji".

2005 - Azerbaijan year in Russia. In this connection, Azerbaijan entrepreneurs participated at exhibition held in Saint Petersburg. At stated exhibition "MKT Istehsalat-Kommersiya" LLC took part and its partner in Russia - "Ivanovo-Tekstiltorg". Detail information stated at stand and the production processed and exposing by company during exhibition showed successful cooperation between Azerbaijan and Russia. Stand visited the President of the Republic of Azerbaijan, Mr. Ilham Aliyev.

Presently, the specialists of company complete the root technical upgrading of fat and oil mill in Ali-Bairamli belonging to "MKT Istehsalat-Kommersiya" LLC. Today, the plant processes about 4000 tons of qualitative and not expensive cotton oil. In perspective, after launching new technologies the production of plant is supposed to export to the Russia and other markets of CIS nations. For recreation of whole processing chain from cotton field to fabric's processing, company builds in Baku modern textile mill on processing of cotton-fibre and fabrics. In Sumgayit will be set the lines for output of acryl and half-woolen yarn. There is purchased for new mill the equipment made in Germany and whole project is valued at more than 5 mln. USD. Remarkable that main market of selling of stated production will be Russian.