Agriculture in Azerbaijan


The primary crops produced in Azerbaijan are agricultural cash crops, grapes, cotton, tobacco, citrus fruits, and vegetables. The first three crops account for over half of all production, and the last two together account for an additional 30 percent. Livestock, dairy products, and wine and liquors are also important farm products.

History

In the early 1990s, Azerbaijan's agricultural sector required substantial restructuring if it was to realize its vast potential. Prices for agricultural products did not rise as fast as the cost of inputs; the Soviet-era collective farm system discouraged private initiative; equipment in general and the irrigation system in particular were outdated; modern technology had not been introduced widely; and administration of agricultural programs was ineffective.
Most of Azerbaijan's cultivated lands, which total over 1 million hectares, are irrigated by more than 40,000 kilometers of canals and pipelines. The varied climate allows cultivation of a wide variety of crops, ranging from peaches to almonds and from rice to cotton. In the early 1990s, agricultural production contributed about 30 to 40 percent of Azerbaijan's net material product, while directly employing about one third of the labor force and providing a livelihood to about half the country's population. In the early postwar decades, Azerbaijan's major cash crops were cotton and tobacco, but in the 1970s grapes became the most productive crop. An anti-alcohol campaign by Moscow in the mid-1980s contributed to a sharp decline in grape production in the late 1980s. In 1991 grapes accounted for over 20 percent of agricultural production, followed closely by cotton.
Production of virtually all crops declined in the early 1990s. In 1990 work stoppages and anti-Soviet demonstrations contributed to declines in agricultural production. The conflict in Nagorno-Karabakh, the site of about one-third of Azerbaijan's croplands, substantially reduced agricultural production beginning in 1989. In 1992 agriculture's contribution to NMP declined by 22 percent. This drop was attributed mainly to cool weather, which reduced cotton and grape harvests, and to the continuation of the Nagorno-Karabakh conflict. The conflict induced blockade of the Nakhichevan Autonomous Republic also disrupted agriculture there.
An estimated 1,200 state and cooperative farms are in operation in Azerbaijan, with little actual difference between the rights and privileges of state and cooperative holdings. Small private garden plots, constituting only a fraction of total cultivated land, contribute as much as 20 percent of agricultural production and more than half of livestock production. Private landholders do not have equal access, however, to the inputs, services, and financing that would maximize their output.
The Ministry of Agriculture of Azerbaijan runs procurement centers dispersed throughout the country for government purchase of most of the tobacco, cotton, tea, silk, and grapes that are produced. The Ministry of Grain and Bread Products runs similar operations that buy a major portion of grain production. Remaining crops are sold in the private sector.

The role of the Government

The Azerbaijani government tries to play an active role in development of agriculture. For this purpose, it applies various measures including import substitution, tax exemptions, subsidies of machinery, pesticides, and fertilizers. Land improvement, support and development of rural infrastructure, development of villages and improvement of agricultural management are considered to be part of government support in agricultural sector. As a result of these promotions, Azerbaijani government aims to increase productivity, technical and technological renewal, growth and diversification of agricultural exports, efficient organization of state support, improvement of the mechanism for subsidizing, development of large farms, provision of support to small farms, etc.
According to the statistics of 2013, there were 871,220 rural farms and households, 2,343 agricultural enterprises, 2,593 farms of individual entrepreneurs, and 531 ventures that operates in agricultural sector of Azerbaijan.
In 2012, the state allocated 468.2 million AZN to the agricultural sector. In 2011, this number was 444.7 million AZN. It was estimated that in 2012, $247 was spent from the state budget per hectare of land suitable for agricultural production, including both crops and livestock. Additionally, the volume of direct and indirect subsidies allocated by the government to agriculture sector in 2012, were around 611 million AZN.
The overall funds that allocated from the state budget to the agro-industrial complex was 878.9 million AZN in 2011-2012. 485.7 million AZN which was accounted for 55.3 percent of total funds that spent on agro-industrial complex from the state budget was due to loans provided under state guarantee and irrigation and water management. 13.7 percent of this fund was in the form of direct subsidies, 9 percent on soft loans, 6.3 percent on fertilizers, machinery and breed animals, 4.4 percent on forestry, fishing, hunting and environmental measures and so on.
As a direct result of state intervention to the agricultural sector, in January 2013, agricultural production increased 4.5 percent in Azerbaijan to 187.5 million AZN. The exports of agricultural products from Azerbaijan amounted to US$276.7 million in January–June 2018 and it was 27 percent more than in 2017.
For 2019, the farmers will be provide with loans worth 10 million AZN to through the State Service on Management of Agricultural Projects and Credits under Azerbaijan's Agriculture Ministry.
The Food Safety Agency of the Republic of Azerbaijan which is a central executive authority is an additional attempt of Azerbaijani government in order to develop agriculture further. The Agency regulates food safety standards, implement risk assessment, formal registration of agricultural products and the materials that used for packaging. Moreover, it issues food safety certificates to exported food products, carries out state control over food safety and protect the rights of consumers of agricultural products at all stages of food supply chain.
On August 19, 2019, President Ilham Aliyev has signed a decree on the application of the Law of the Republic No. 1617-VQ dated June 27, 2019 "On Agricultural Insurance" and the establishment of the Agrarian Insurance Fund.

State programs on the development of agriculture

The following state programs have been designed by the government of Azerbaijan in order to be implemented under control of Ministry of Agriculture of the Republic of Azerbaijan;
In a 2013 U.S. Department of Labor report on Azerbaijan's labor conditions, research showed that children "are engaged in child labor in agriculture and street work." In fact, evidence of child labor has been observed in the agricultural sector as far as the production of cotton, tea and tobacco is concerned.
In 2014, the Bureau of International Labor Affairs issued a List of Goods Produced by Child Labor or Forced Labor and Azerbaijan was listed among the countries resorting to child labor when it comes to cotton production.

Production statistics of agriculture industry for 2015-2016

The overall agricultural products value with general prices was estimated to be 3290.4 million manat in January–July 2016. The production of January–July in agricultural industry was 51% and 49% and related to cattle-breeding industry and plant-growing industry respectively.
The production from cattle-breeding and plant-growing industries were increased in respect to the same period of previous year. However, the overall production from agricultural industry was decrease by 6.3% in relation to the previous year.
In 2016, the majority of products of agricultural industry was increased in production capacity in comparison to the previous year, but the capacity of vegetables and vegetable garden production was decreased.
ProductionUnitJanuary–July
2016		January–July
2015		Per previous year, %
MeatThousand ton.263.6256.9102.6
MilkThousand ton.1168.81144.8102.1
EggMillion947.8898.0105.5
WoolThousand ton.15.915.6101.6
VegetableThousand ton.732.7765.495.7
PotatoThousand ton.577.2506.8113.9
Fruits and berriesThousand ton.180.1179.7100.2
GrapeThousand ton.3.53.2110.0
Melon productionThousand ton.343.2356.496.3
Cereals and dried pulsesThousand ton.2816.02783.3101.2
Sunflower for seedThousand ton.1.61.4114.3
Green tea leavesTon.608.1363.6167.2
TobaccoThousand ton.2.11.5140.0
CocoonThousand ton.70.70.236299.6

1628,9 thousand hectares or 2.7% more in relation to the previous year planting was taken place on 1 August.
Cultivated area for spring plants, 1000 ha:
ProductionsJanuary–July
2016		January–July
2015		Per previous year
%
Total cultivated area1628.91585.0102.7
Including:
Cereal and dried pulses997.5951.6104.8
Wheat590.7539.7109.4
Barley352.4361.097.6
Grain maize36.036.998.9
Cotton51.518.72.8 d.
Sunflower for seed8.210.776.6
Sugar beets7.14.9144.8
Tobacco2.41.4171.4
Potato62.861.0102.9
Vegetable73.677.195.4
Melon production26.427.894.9
Annual Grass Crops7.99.880.6

Production in 2018:
ProductUnitAmount
Meattons265.3
Milktons2 080 437
EggThouthand units1 676 213
Wooltons15,8
Vegetabletons1 521,9
Potatotons898 914
Fruits and berriestons1 010 816,3
Grapetons167 591,4
Melon productiontons94 668
Cereals and dried pulsesthsd.tons3 309,2
Sunflower for seedtons23 586
Green tea leavestons868,6
Tobaccotons6,3
CocoonThsd.tons513,9

Cultivated area, 2018:
ProductTotal cultivated area
Cereal and dried pulses1 083,1
Wheat679,1
Barley19,4
Grain maize31,7
Cotton132,5
Sunflower for seed11 566
Sugar beets8 562
Tobacco?
Potato59 318
Vegetable69 499
Melon production20 913

Market of agricultural products

The agricultural products with the value of 204,7 million USA dollars was exported between January and July 2016. The export of agricultural products was increased by 29,7% in comparison with previous year.
The export of agriculture:
The wholesale value of products such as bean, carrots, garlic, potato, apple and strawberry was increased in current year, however the value of other products in this industry was either decreased or remained the same.
The change of wholesale price of agricultural products in July in relation to the previous month price :
The wholesale value of products such as cucumber, garlic, apple, pear, cornelian cherry, sloe, strawberry, cherryplums, peach and apricot was increased in current year, however the value of other products in this industry was either decreased or remained the same.
The change of wholesale price of agricultural products in July 2016 in relation to the previous year price :

Governmental support to agricultural industry

“Aqrolizinq” OJSC in 2016 provided 1097 agricultural machineries with discounted leasing opportunities to 605 legal entities and individuals.
The agricultural machineries provided for leasing
Agricultural machineriesTotal
Agricultural machineries provided for
leasing in first seven month of 2016
Total18866776
Combine harvester78461
Tractor1366
Excavator1333
Other machineries11278346

According to the requests of agricultural producers, 3255 breeding animals were bought and brought to the country and distributed between producers.
The imported and provided to leasing breeding animals
Stud animal speciesTotalDuring the first seven month of 2016
Cattle and buffaloes, total215073255
Swiss cows380-
Simmental49482610
Holstein Friesians15283645
Aberdeen Angus25-
Charolais624-
Sheep and goats, total5947-
Saanen goat4643-
Alpine goat393-
Assaf sheep911-

In January–July 2016, the amount of 6073,4 thousand manats as a credit was given to 77 different agricultural producers working at 25 different regions under belated department of Ministry of Agricultures. The credits were given 78,7% to cattle-breeding industry, 2,5% to plant-growing industry and 4,6% to fishing industry. In addition, the amount of 8049 manats was credited to 22 different entrepreneurs by Governmental line together with international parties.

Summary food balance of Azerbaijan in 2016, by crop products, ton

Nutrition safety

Plant-derived products projects

In period January–July 2016, the exported 628 agrochemical substance samples with 2512 quality indicators and 34 pesticide samples with 136 quality indicators, the imported and exported agricultural products of 2270 pesticide samples, 1271 samples of Nitrate and Nitrite residues, observed mycotoxin in the 286th sample and concentration of heavy metals in the 2657th sample were determined in Republic Toxicology and Quality Control Center laboratory of Governmental Fito-sanitary Control. 28588 appraisals by experts were held based on the 13098th sample of imported and exported plants and plant-growing products and 1624 protocols of appraisals by experts were created in Republic Quarantine Expertise Center's laboratory. The 791239 m3 wooden material, objects and empty containers of 13863 tonnes technical load was neutralized by Republic Quarantine Expertise Center fumigation department. According to Republic Quarantine Expertise Center's laboratory, the agricultural product samples analyzing let 1 held quarantine and 17 harmful organisms neutralization. 9.2 tonnes of nectarine was destroyed
due to being in quarantine for observed harmful organisms. In 2016, 23.3 tonnes of fruit and vegetable products were removed from the sales and destroyed due to not being within the limits of standards provided by Republic Quarantine Expertise Center.

Animals based products projects

In July 2016, in order to improve the quality of controlling the animals based products safety, general check up was held and consequently 3573 kg of meat, 5038 kg of internal organs of small and big horned animals, 404 kg of fish, 1489 kg of milk and milk-based products and 3935 eggs were destroyed according to internal rules due to not being within the standards. Besides that, during the checkup regarding the safety of animals based products in July, 150 kg of unknown horse meat was identified and destroyed.