Poultry Feed Company Initiates Sector-Wide Growth in Ganja, Azerbaijan

From the outset, Central Area Economic Opportunity Project (CEO) staff identified the poultry sector in Ganja, Azerbaijan as an industry prime for market chain development. The sector was critically underdeveloped and yet demand was high for poultry products. Through its outreach activities ACDI/VOCA discovered Alovsat Husseinov, an out of work engineer, who was already capitalizing on the opportunities within the sector and displaying a great deal of ingenuity.

For Alovsat, it all began with a dream that he could transform an unused by-product into a profit. After reading an article about the use of bone meal in chicken feed, he began collecting bones discarded by the local meat processing industry and fashioned a small homemade mill from the transition gear of a car. He extracted bone oil and ground dried bones into meal and found a ready market for both: poultry feed suppliers and farmers. Demand was swift, and in a short time he had hired three employees and his business was running around the clock.

At approximately the same time, Alovsat became increasingly active in the CEO project through his local Community Economic Recovery Group. He demonstrated a strong understanding of the market chain concept and due to his apparent business acumen, Alovsat was selected to administer a broiler production pilot project. He distributed broiler chicks and high quality feed to 33 families composed of Internally Displaced Persons (IDP). The families raised and sold the chicks, repaid expenses and retained the profits. The project was a great success and it became immediately clear that given a choice, local consumers preferred the higher quality broilers chickens to the local breeds.

Alovsat recognized that the growing demand for broilers would result in a larger market for his high-quality feed and he developed a business plan to expand his business. His plan was well-prepared, complete with a market analysis and sales projections and he was awarded a Core Enterprise Technology Enhancement in-kind grant. Alovsat used the money to construct an 8 ton/shift feed mill and processing plant. Alovsat attended a CEO marketing training program and chose the name Golden Feed. Golden Feed continues to thrive and now employs seven people.

As a key player in the poultry sector market chain, Golden Feed has passed on benefits to other businesses as well. Local wheat, soy, corn and amaranth farmers now have a guaranteed market for their goods. Poultry producers have come to rely on the his feed and as a result their businesses have grown, in turn creating a higher demand for equipment and packaging supplies. The whole industry has expanded, resulting in higher incomes and more jobs at every level of the market chain. Consumers have also gained as a larger supply and better selection of poultry products is now available.