Sustainable trade relationships between companies in different Central Asia countries have been fraught with many challenges. USAID/Pragma’s Regional Trade Promotion service has helped Azim Pasta Company of Dushanbe to tame those challenges in securing a $13,000 deal with Kazakh flour supplier TOO Akbidai. The companies have further agreed on terms for additional orders totaling $120,000 over next 12 months, saving Azim $20,000 on its supply costs.

USAID/Pragma’s Regional Trade Promotion (RTP) has once again helped “Azim Ltd” increase its capabilities. Less than a month after finding Azim much needed pasta-drying machines and assisting close a deal worth $22,000 with the Russian supplier, RTP has helped Azim secure a $13,000 deal for the purchase of 68 metric tons of Kazak wheat flour. Zarif Rajabov, director of the local producer, hopes to place similar orders every six weeks. Pragma Corporation invited Zarif to the World Food Tech and Ingredients Exposition, which was held in Kazakhstan from 29 October to 1 November. Already convinced of the benefits of regional trade and of the Pragma network, Zarif was determined to make the most of this exposition. One of the firms that Zarif contacted was “TOO Akbidai” from Pavlador, Kazakhstan. “Akbidai” is a flour processor and flour is the critical ingredient for “Azim”. The price of 1st class flour in Dushanbe is approximately $11.50 per 50kg. Including taxes and shipping, Zarif could purchase flour directly from Akbidai for $10 per 50kg. On every order of 68 metric tons “Azim” would save $2,250. For a small macaroni producer that makes a significant difference. In addition, by buying directly from the producer, Azim has assurances on the product quality and composition. A Pragma trade representative in Pavlador is assisting secure the deal by making sure that the correct shipment goes out on time. Zarif has stated that having someone he could depend on in Kazakhstan has made it much easier to finalize the deal. If he can complete this deal without significant problems, Zarif will make an arrangement with this supplier to provide the flour on a regular basis. If this happens, the arrangement would amount to $120,000 in regional trade and over $20,000 in savings over the next 12 months. Zarif now expresses a very positive outlook on the future of Azim. “Just a few months ago I had not considered buying flour directly from Kazakhstan. Working with Pragma has created opportunities for our firm. I look forward to finding more ways to grow the business.” Due to his improved quality Zarif is currently selling all the macaroni he can produce. Things are definitely looking a little brighter in the macaroni business.