Established in 1979 and privatized in 1993, Dostyk JSC from the Jalal-Abad region of Kyrgyzstan, used to produce component parts for radios and televisions, but after the collapse of the Soviet Union the company rapidly lost their Russian customers and was forced to look for alternative business opportunities.

The company decides to switch from production of consumer electronic components to the production of toothbrushes, and in 1998 they received a credit to enable them to purchase the toothbrush production equipment they required.

Dostyk successfully sold their produce under private label to several Russian importers and retailers. By January 2005, the company noticed a distinct decline in sales, and it was at this juncture that they were approached by Osh EDC Manager Nilufar Umaralieva.

It soon became apparent that Dostyk faced a number of issues: high inventory levels, high accounts receivables and poor marketing. The first two issues were attributed to how Dostyk, its suppliers, and clients operated. Russian buyers would generally buy on credit and only pay Dostyk once the product was sold to Russian customers. In addition, Dostyk would purchase raw material from its European suppliers in bulk without forecasting exactly how much would be needed. USAID EDP consultants advised the client to seek cheaper raw materials from closer markets such as China and therefore reducing transportation costs. In addition, this would benefit Dostyk because the company would not need to buy expensive raw materials in bulk which would improve its liquidity and working capital.

Currently the company is also developing a marketing plan with the assistance of USAID EDPs Marketing Practice Specialist; the plan is focusing on decreasing Dostyks reliance on the Russian market by increasing the number of Central Asian customers.

In addition, Regional Trade Promotion (RTP) specialist Atay Almanbetov took the first steps to help Dostyk establish stronger trade relations with businesses within the Central Asian market, and in August 2005 Atay assisted the Director of Dostyk, Bekmat Joomartov, in organizing a trip to Astana and Karaganda in Kazakhstan. During the trip Mr Joomartov signed two agreements to supply toothbrushes to both cities, this represents a major success for Dostyk with the deal worth approximately $200,000.

Mr Joomartov is thrilled with the assistance provided by USAID EDP thus far, commenting; "In the beginning I didn't expect such results. USAID EDP showed me new ways of doing business."