The territory of Guba is 2.6 thousand square km and its population is more than 140,000 people. Guba and its villages have 144 schools, 16 kindergartens, a central hospital, 92 polyclinics, 107 libraries, 25 palaces of culture and 62 clubs. Since 1999 a great amount of municipal rehabilitation works have made Guba more attractive. Guba is a major flower and carpet production centre. The town started to expand at the end of the seventeenth century when it became the capital of a khanat, fighting Persian invasions with Russian support. Highlights include three eighteenth and nineteenth-century mosques, and ancient covered baths, or hammams. Continue to the suburb of Krasnaya Sloboda inhabited by "mountain Jews", whose origin is much debated. Guba is also famous for its historic places and its very unique nature. Lodging in a chalet located in the Long Forest resort, which offers open-air activities in a relaxing environment. Walk in the forest to the inviting village of Qashresh, known for its suspension bridge and "shaslik houses" (brochette restaurants). Lunch there, then excursion to the spectacular Tangy Alty Canyon and cascade sites - the Afurdja cascade is 30 metres high… The region is a natural reserve full of winding torrents and remote villages. Brown bears and ibexes live in the surrounding Caucasus mountains. The village of Khinalig 3,500 m above sea level has a ninth century fire temple, while in Guba Town boasts a Cupol Bath, the "Sinakhanim" mosque and the "Guma" mosque. There are a various ethnic groups, represented in this diverse region. Agriculture in Azerbaijan is largest sector next to oil and gas, with over 40% of the population engaged in agriculture. Azerbaijan's agricultural sector has undergone a dramatic transition since the breakup of the collective/state farm system and the privatization of agricultural land starting in 1996. Before the collapse of the former Soviet Union, Guba region of Azerbaijan was a net agricultural exporter, exporting fresh and canned fruits and vegetables to all the republics of the ex-USSR. With the disintegration of the Soviet Union and the breakup of economic ties, trading relationships collapsed and sellers were cut off from buyers. The Guba region is developing its agricultural sector with its apple-tree gardens, the symbol of the picturesque region. You will find here apples of any color and taste and Guba is the leading fruit-farming region in the republic. The apple gardens of Guba are famous not only within Azerbaijan but also in Georgia and Southern Russia. Other branches of agriculture are grain crops and sheep breeding. The processing industry is primarily focused on canning.
Guba's Agriculture today
Today, 98 percent of the nation's agricultural land is in private hands, an important achievement in Azerbaijan's privatization program. Guba has benefited from this privatization, but cash flow and access to affordable credit are major obstacles to business development for Azeri agribusiness. There is great potential for development of the food processing industry supported by a wide variety of Azeri crops and excellent climatic conditions and extended growing seasons. Fruits (apples, cherries, grapes, olives, lemons, persimmons, melons, watermelons, raspberries, strawberries, currants, plums, peaches, pears, quince, pomegranates and tomatoes); vegetables (potatoes, carrots, beets, cabbage, cucumbers, and onions), grains (wheat, maize, barley), tea leaves, and nuts are of high quality, have minimal unit production costs, and have strong brand recognition in former Soviet markets and in Eastern Europe. The Guba region features much of this agricultural production. Azerbaijan can regain its edge as a supplier of processed and packaged food products throughout the former Soviet Union, however this will be only be possible through procurement of new or refurbished equipment. Several upstart Azeri private firms including the Guba Tinning Factory (based in Guba), Mpro, and the Azerbaijan Dairy Corporation have already made the move to European equipment and are interested in further sourcing of U.S. equipment. Best prospects for U.S. exporters are: v Machines for the preparation of fruits, nuts, and vegetables; v Machines for cleaning, sorting, grading seeds, grains, and vegetables; v Juice extractors; v Machines for filling, closing, and & sealing bottles, cans, boxes, or other containers v Fruit dehydrators.
Overview of the food processing and packaging equipment sector
There is great demand for food processing and packaging equipment, especially for processing of meat products and fruits and vegetables. There is also a need for production of packaging materials for different market segments given the lack of a broad-based food processing and packaging equipment industry. In interviews with the U.S. Embassy Commercial Service, several food processing and packaging companies located in Guba have expressed interest in purchasing U.S. equipment to produce high quality food products for local consumption and for export. This market is limited, however, to a handful of credible buyers given the lack of financing for the deal. U.S. firms are best advised to work with well-established firms with a proven market track record. Start-ups are quite difficult to sell to and finance in this challenging market, requiring the sharp focus of potential U.S. suppliers and patience. Cash flow remains a chronic problem for Azeri importers including those in the Guba. The Azeri government recognizes this problem and plans to establish credit unions in every village to help Azeri farmers access credit. The World Bank has a pilot program in six regions to teach farmers how to use credit. While this is a longer-term development strategy of little practical relevance to U.S. suppliers interested in immediate sales, a credit scheme will help this key sector to re-establish itself. The key industry weakness, however, is the failure to convert Azerbaijan's agricultural wealth into value-added product ready for export to European and Middle Eastern markets. For example, Russian and Georgian buyers purchase large amounts of high-quality fruits and vegetables from the Guba region, to be dried, canned or packed in Georgia or Russia. These products are then sold to other CIS buyers - at a handsome profit and with all value added done offshore. A U.S. project developer and equipment supplier could take advantage of this and leverage minimal operating costs for such an attractive project.
Canned Fruits and Vegetables in Guba
Only two out of the 43 canning factories in Azerbaijan are operating, and they produce primarily tomato paste, natural fruit juices, and apple concentrate. The Guba Tinning Factory, located in Guba town, is one of the two remaining operating factories. Given reduced domestic demand and the initial re-opening of Russian and Turkish export markets, Azeri canneries do not work to full capacity, and their equipment is outdated and in dire need of replacement. Azeri canneries continue to use glass jars and bottles instead of plastic containers or tetrapaks that are less susceptible to damage in transit, have greater shelf life, and store better. For development of this sector, Azerbaijan needs the establishment of service structures and processing plants for packaging, preservation and transportation of fruits and vegetables. Based on market research of the U.S. Embassy Commercial Service, the largest canning and packaging opportunities lie in tomato paste, apple juice and other natural fruit juices. Azerbaijan seeks about $20 million in investment in this sector, however there are niche supplier opportunities available now with selected Azeri importers. There are two major processing areas in Azerbaijan: the northern region of Guba for fruits and the southern region of Lankaran for citrus fruits and vegetables. As crops are seasonal, the two operating canneries can process more than one type of crop. One such canning facility is the Guba Canning Factory, which was privatized in 1991 and turned into the "NABRAN" Joint Stock Company. "NABRAN" uses modern technology for producing juice in Tetrapak sterile, long life containers. These juices are then sold in various upscale Azeri food store under the brand name "SAF" with an extended shelf life. "SAF" juices are also exported to CIS countries and markets as far away as Texas, New York and California. "NABRAN" produces "SAF" brand products including jam, salads, and pickles. The packaging, however, is in glass jars, which makes exporting of these tasty products beyond NIS countries challenging and expensive. Located in Guba town, which is famous for its apples, "NABRAN" can process 200-250 tons of apples daily. Azerbaijan does not produce food processing and packaging equipment. Recently, "NABRAN" Company has imported new processing equipment from Yugoslavia, two pressing machines from Austria, and juice aseptic containers from Finland and Austria. Azerbaijan imports most of its food processing equipment from CIS countries, primarily from Russia, as well as from other European countries - the U.K., Turkey, Germany, Austria, Holland, Italy, etc. Small companies sell their products on the street and arrange door-to-door delivery, which many Azeri homemakers find very convenient. Affluent Azerbaijanis and foreigners prefer to buy meat and dairy products at specialized western type supermarkets, like Ramstore, Citimart, Continental, etc. The majority of fruit and vegetable processing enterprises sell their produce at open-air markets. "NABRAN" is an exception. Since 1985, it exports 100% of its apple concentrate to Germany. It also exports jam and pickles to Russia and Israel. The rest of its processed fruits and vegetables line is sold to specialized shops in Azerbaijan via its exclusive distributor Victory Ltd. "Taimex", a multi-profile company, in addition to Baku and Sumgait, supplies various regions of Azerbaijan with the dairy products and tomato paste.
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Guba
The territory of Guba is 2.6 thousand square km and its population is more than 140,000 people. Guba and its villages have 144 schools, 16 kindergartens, a central hospital, 92 polyclinics, 107 libraries, 25 palaces of culture and 62 clubs. Since 1999 a great amount of municipal rehabilitation works have made Guba more attractive. Guba is a major flower and carpet production centre. The town started to expand at the end of the seventeenth century when it became the capital of a khanat, fighting Persian invasions with Russian support. Highlights include three eighteenth and nineteenth-century mosques, and ancient covered baths, or hammams. Continue to the suburb of Krasnaya Sloboda inhabited by "mountain Jews", whose origin is much debated. Guba is also famous for its historic places and its very unique nature. Lodging in a chalet located in the Long Forest resort, which offers open-air activities in a relaxing environment. Walk in the forest to the inviting village of Qashresh, known for its suspension bridge and "shaslik houses" (brochette restaurants). Lunch there, then excursion to the spectacular Tangy Alty Canyon and cascade sites - the Afurdja cascade is 30 metres high… The region is a natural reserve full of winding torrents and remote villages. Brown bears and ibexes live in the surrounding Caucasus mountains. The village of Khinalig 3,500 m above sea level has a ninth century fire temple, while in Guba Town boasts a Cupol Bath, the "Sinakhanim" mosque and the "Guma" mosque. There are a various ethnic groups, represented in this diverse region. Agriculture in Azerbaijan is largest sector next to oil and gas, with over 40% of the population engaged in agriculture. Azerbaijan's agricultural sector has undergone a dramatic transition since the breakup of the collective/state farm system and the privatization of agricultural land starting in 1996. Before the collapse of the former Soviet Union, Guba region of Azerbaijan was a net agricultural exporter, exporting fresh and canned fruits and vegetables to all the republics of the ex-USSR. With the disintegration of the Soviet Union and the breakup of economic ties, trading relationships collapsed and sellers were cut off from buyers. The Guba region is developing its agricultural sector with its apple-tree gardens, the symbol of the picturesque region. You will find here apples of any color and taste and Guba is the leading fruit-farming region in the republic. The apple gardens of Guba are famous not only within Azerbaijan but also in Georgia and Southern Russia. Other branches of agriculture are grain crops and sheep breeding. The processing industry is primarily focused on canning. 
