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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farm system discouraged private initiative; equipment in general and the irrigation system, in particular, were outdated; modern technology had not been introduced widely; and administration of agricultural programs was ineffective.[1]
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 for the 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.[1]
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.[1]
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.[1]
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. The remaining crops are sold in the private sector.[1][2]
Government
The Azerbaijani government tries to play an active role in the development of agriculture. For this purpose, it applies various measures including import substitution, tax exemptions, subsidies of machinery (combines, tractors, harvesters, and irrigation equipment), 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 the agricultural sector. As a result of these promotions, the Azerbaijani government aims to increase productivity, technical and technological renewal, growth and diversification of agricultural exports, an efficient organization of state support, improvement of the mechanism for subsidizing, development of large farms, provision of support to small farms, etc.[3]
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 operate in the agricultural sector of Azerbaijan.
In 2012, the state allocated 468.2 million AZN (US$596.4 million) to the agricultural sector. In 2011, this number was 444.7 million AZN (around US$566.5 million). 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 the agriculture sector in 2012, was around 611 million AZN (more than US$778.3 million- 100 US Dollars = 78.5000 Azerbaijani Manats on 12/31/2012).[4]
The overall funds 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 spent on the 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 in the agricultural sector, in January 2013, agricultural production increased 4.5 percent in Azerbaijan to 187.5 million AZN (growth in vegetable and crop production by 4.9 percent and in livestock by 4.5 percent). The exports of agricultural products (fruit and vegetable) 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 provided with loans worth 10 million AZN to through the State Service on Management of Agricultural Projects and Credits under Azerbaijan's Agriculture Ministry.[5]
The Food Safety Agency of the Republic of Azerbaijan which is a central executive authority is an additional attempt of the Azerbaijani government in order to develop agriculture further. The Agency regulates food safety standards (preparation and adoption of sanitation norms and hygiene 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 protects the rights of consumers of agricultural products at all stages of the food supply chain.[6]
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" [7] and the establishment of the Agrarian Insurance Fund.[8][9]
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 the control of the Ministry of Agriculture of the Republic of Azerbaijan;[10]
The State Program for the Intensive Development of Livestock and the Effective Use of Pasture Areas;
The State Program for the Development of Grain-Growing;
The State Program for the Development of Seed Growing;
The State Program on Citrus Fruit Development in the Republic of Azerbaijan for 2018–2025;
The State Program for Development of Tea-growing in the Republic of Azerbaijan for2018-2027;
The State Program for Development of Rice Growing in 2018–2025;
The State program for the Development of Azerbaijan Silkworm Breeding and Sericulture in the Republic of Azerbaijan for 2018–2025;
The State Program on the development of cotton growing in the Republic of Azerbaijan for 2017–2022;
The State Program on Development of Agricultural Cooperation in the Republic of Azerbaijan for 2017–2022;
The Strategic Road Map for the Production and Processing of Agricultural Products in the Republic of Azerbaijan;
The State Program on socio-economic development of regions of the Republic of Azerbaijan for 2014–2018;
The State Programme on reliable food supply of population in the Azerbaijan Republic (2008-2015);
The State Program on the development of viticulture in the Republic of Azerbaijan in 2012–2020;
Labor practices
Azerbaijan has the seventh highest proportion of women working in agriculture, forestry and fishing in the world.
In addition to smaller productions of other agricultural products, like melon (94 thousand tons), pear (52 thousand tons) and apricot (28 thousand tons).[13]
The overall agricultural product value with general prices was estimated to be 3290.4 million manat in January–July 2016. The production of January–July in the 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 the previous year. However, the overall production from the agricultural industry decreased by 6.3% in relation to the previous year.
In 2016, the majority of products of the agricultural industry was increased in production capacity in comparison to the previous year, but the capacity of vegetables and vegetable garden production was decreased.
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.
In January–July 2016, the amount of 6073,4 thousand manats as credit was given to 77 different agricultural producers working at 25 different regions under the belated department of the Ministry of Agriculture. The credits were given 78,7% to the cattle-breeding industry, 2,5% to the plant-growing industry, and 4,6% to the 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
In the 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 the 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 the Republic Quarantine Expertise Center.
Animals based products projects
In July 2016, in order to improve the quality of controlling the animals based products safety, a general check-up was held, and consequently, 3573 kg of meat (cow, sheep, ham and birds), 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.[15]
^ abSamadov (www.anarsamadov.net), Anar. "Agriculture, forestry and fishing". The State Statistical Committee of the Republic of Azerbaijan. Retrieved 2019-09-08.
^ abİn Azerbaijani Language: Kənd təsərrüfati, 2016. file:///C:/Users/uzer/Desktop/2016-N7-az1473840464.pdf.{{cite book}}: CS1 maint: numeric names: authors list (link)
^FOOD BALANCES OF AZERBAIJAN. file:///C:/Users/uzer/Downloads/food_balances_2017.pdf.
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