Short report on activities of AFVE in the second six months of 2006.
1. Meetings with trade companies
Association of Fruit and Vegetable Enterprises participated in preparation of a working seminar with commercial enterprises of Russia and Kazakhstan organized by Project "Local market development" of Helvetas - ICCO on 3 - 5 October 2006.
In preparation to this meeting, a trip to Almaty city was carried out for familiarization and research of the market, making contacts with Kazakh commercial enterprises. From 26 till 28 of July, brand name manager of AFVE Kim Svetlana and specialist of Project "Local market development", Helvetas - ICCO, Nazgul Nurjanova visited 5 trading companies: "ARDAGER", "Pulsar", "Efi Neroli", "Dostar", company "Mojaev", Union of food manufacturers of Kazakhstan and visited a wholesale trade marketplace.
Following monthly meeting of members of the Association was held in August in the office of AFVE, where a report on the trip was given, and in the light of new proposals and requirements, one more time, a level of readiness of enterprises to enter the Kazakh market was discussed. Price lists of enterprises were prepared, volumes of produced goods and assortment were specified.
After the meetings in Issyck-Kul on October 20 and November 10, now in the office of AFVE, meetings of representatives of "ARDAGER" and stock company "Dessert" and private enterprise "Sokoev" took place, where perspectives of further co-operation were discussed.
2. Second International exhibition "Agro Prod Expo"
Association of fruit and vegetable enterprises with support from Project "regional development of agriculture" participated in the second international exhibition "Agro Prod Expo - 2006" which took place on 12 - 15 September 2006 in Bishkek. More than 45 display stands were presented, with 40-45 thousand people visiting the exhibition.
Participation in the exhibition helped in promoting of Kyrgyz products in the domestic market of Kyrgyzstan and outside, in creating a positive image of fruit and vegetable processing industry. The main objective of participating of AFVE in the exhibition was achieved, it is increasing awareness and interest of consumers to products of "Vkus Solnca" trademark. A proposal from a network of "Narodnyi" supermarkets was received to sell salads of "Vkus Solnca" trademark quality of which were appreciated at degustation carried out at the exhibition. Before, any salads were not considered profitable and were not accepted for selling at "Narodnyi" network.
Products of the following enterprises were displayed at the exhibition stands: stock-company "Kuntuu", stock-company "Dessert", "Tokmok fruit and vegetable" Ltd., private enterprise Sokoev, private enterprise "Ponasenko" and others. Products of the south branch of the Assocation were presented by: "Rahmonberdi" Ltd. Activity of the Association was awarded with a Diploma for contribution in development of fruit and vegetable industry of Kyrgyzstan.
3. PRODEXPO - 2007
At present time, AFVE with Program "Promotion of trade in Kyrgyz Republic" are preparing enterprises - members of AFVE (Sizeable Enterprise "Kirbi" and "OSKO" Ltd.) for participation on the 14th international exhibition of food items and raw foods needed for its production - "PRODEXPO - 2007", which will take place on 6-20 February 2006 in Moscow, Russia.
4. New design
All the enterprises producing products under "Vkus Solnca" trademark bought "brand-name" "twist-off" caps, of european and german-russian making, with their own logos on them, ordered at FOOD-SYSTEMS.
5. Promotion of "Vkus Solnca" trademark
Plan of activities of AFVE was compiled and discussed on working meetings, and also plan of "Vkus Solnca" trademark promotion for 2007. Design of advertisement materials is being developed. Annual plan of actions and budget of AFVE was developed, which was discussed and coordinated with partners of AFVE: Project "Local market development" /Helvetas-ICCO/, Project of Regional Development of Agriculture /ADB/, Project "Promotion of regional Trade in Central Asia" /ITC/.
6. Situation with VAT
Taking into account, that at this time, all previous attempts of solving the problem at all stages of development of the Tax Code project did not give wanted results, and that the mechanism of a fixed tax with a 3% rate does not conform with economic realities and is a discrimination to processing industry of the republic and that it cannot ensure not only fast, but just effective development, this problem was submitted for discussion to the sitting of the Public Board on development of economy and entrepreneurship under the President of Kyrgyz Republic. An assignment was given to the Committee on development of agriculture and processing industry, (APC) by the President of KR K.S. Bakiev, to discuss this problem one more time with a business-community and representatives of Ministry of Finance and State Tax Inspectorate, and to prepare a final solution.
7. Protection of domestic producers
Legal analysis of laws and regulations on protection of domestic producers is being implemented in connection with flooding of the domestic market with contraband tomato paste sold at low prices. For comparison - 21 som against domestic at 30-35 som.
LAW of KR as of 31 October 1998 N 139 "On antidumping"
LAW of KR as of 31 October 1998 N 141 "On protection measures"
RESOLUTION of the GOVERNMENT of KR as of 20 January 2001 N 14 "On approval of the Provision on order of antidumping investigation and of investigation on identification of subsidies subject to compensation"
RESOLUTION of the GOVERNMENT of KR as of 20 January 2001 N 15 "On approval of the Provision on implementation of an investigation preceding introduction of protection measures"
RESOLUTION of the GOVERNMENT of KR as of 11 September 2002 N 622 "On measures on further protection of the domestic market of Kyrgyz Republic".
