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Food-Processing Sector
Despite the setbacks of the war, the food-processing
sector of Karabakh's economy is recovering and has great potential for
further development. The following are the major sub-sectors:
- Wine Processing
- Wheat Milling and processing
- Meat processing
- Milk processing
- Fruit and vegetable canning
Wine Processing
There are many wine distilleries throughout Nagorno-Karabakh. A number
of these have recently been privatized and are expanding. One plant
in the Askeran region, for instance, produces a wide variety of grape
wines, mulberry vodkas and brandies from local material. The output
is exported to Armenia, Newly Independent States and a host of other
countries. This company's current processing capacity is:
- mulberry processing 1,000 metric tons
- grape processing 1,500 metric tons
- wheat processing 500 metric tons
Wheat Milling and Processing
Between the years 1996 and 1997, a new mill was built in an area called
Hasanabad. This mill has a capacity of processing 20,000 tons of wheat
and produces different types of flour and bran. Currently, it is operates
within 30% of its capacity. As a consequence of the mills operating
below its capacity, farmers export their wheat to Armenia and import
flour, at a cost of 100-120 million drams ($172,400-$207,000).
Meat Processing
Overall, the meat processing industry in Nagorno-Karabakh is underdeveloped.
For the most part, the Republic exports fresh meats and usually imports
sausages and other processed meats (approximately 103 tons/year). If
the imported processed meats were being produced locally, state revenues
would increase by almost $30,000 in the form of value-added taxes alone.
Milk Processing
The food-processing sector has sharply declined in the NKR. In the 1980s,
40,000 tons of milk was produced annually, of which 35,000 tons (87%)
were processed. In 2002, only 7.5% of the produced milk was processed
into dairy products. Due to a lack of collection and primary processing
facilities in the villages, much of the output is spoiled and never
reaches the cities. In 2002, the urban population consumed only 2,116
tons of milk.
Fruit and Vegetable Canning
In 2002, two new canneries were built — one in Stepanakert, the
other in the village of Berkadzor. Using local fruits, the canneries
produce jams, preserves, pickled vegetables, natural and concentrated
juices. The production facilities are equipped with modern machinery,
which enables the management to widen the variety of produced items
and increase output. A considerable portion of vegetables is imported
from Armenia due to the limited local production, at a great cost in
transportation.
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