Azerbaijan’s diverse climate paves way to development of agrarian sector (ANALYTICS)

Azerbaijan has a diverse climate, allowing for the cultivation of various crops such as wheat, barley, cotton, and fruits: grapes, pomegranates, citrus fruits, and so on.

Azerbaijan implements various state programs aimed at promoting the efficient use of the country's economic potential and the promotion of export-oriented production has accelerated the development of the agrarian sector.

Implementation of state programs on the development of wine growing in Azerbaijan in 2012-2020, a strategic roadmap on the production and processing of agricultural products in Azerbaijan, the state program on the development of cotton growing for 2017-2022, a state program for the Development of Cocoon Production and Sericulture for 2018-2025, approval of the state program on development of paddy growing for 2018-2015, state program on the development of tea growing for 2018-2027, "state program on development of citrus fruit-growing in Azerbaijan in 2018-2025" resulted in achievement in the agricultural sectors.

Measures promoting the production of export-oriented agricultural products have paved the way for significant results in the development of traditional agriculture in the country.

In 2023, Azerbaijan will export agricultural and agro-industrial products to the value of $969.2 million, which is 6.2 percent more than in the previous year, according to Analysis of Economic Reforms and Communication (CAERC) calculations. The export dynamics of 2022 ($912.4 million worth of products exported abroad with 11.8 percent growth) is considered a record for the entire period of the republic's independence.

In 2023, the share of exports of fresh agricultural products was $768.2 million (+ 7.1 percent), while the share of processed agricultural products was $201 million (+ 3.2 percent).

Azerbaijan exported 21,382 thousand tonnes of hazelnuts worth over $111.5 million in the first 11 months of 2023. Compared to the same period in 2022, hazelnut exports increased by 14.4 percent in value terms. However, the industry could become even more profitable if Azerbaijan were to export processed hazelnut products as opposed to raw hazelnuts. "The Sheki and Zagatala districts, which have fertile land, account for about 95 percent of hazelnut production. But 60 to 70 percent of the country's hazelnut production is carried out by small-scale farmers, whose orchards are a secondary source of income," says a recent report by the Food and Agricultural Organisation.

Over the past three years, Azerbaijan has achieved geographical and nomenclature diversification of exports, supplying 326 types of agricultural products to 88 countries of the world.

During the last years, the increase of the country`s export potential and innovative capacity of small and medium-sized entrepreneurs in agricultural products processing, achieving high productivity played a crucial role in terms of creating agro-parks. Also, the formation of integration between producers, processors, and consumers in the widespread application of intensive methods in agricultural production and processing paved the way for the creation of agro-parks.

Measures were taken in the agrarian sector of Azerbaijan for the creation of the Agro-parks and these measures successfully continue.

New forms of agricultural development are emerging in the world. Azerbaijan takes appropriate measures to benefit from these experiences. Agro-parks are one such progressive method.

The agropark business model is an economic entity that surrounds the production, processing, logistics, and other services of agricultural products. The processes of production of agricultural products in agro-parks, agro-technical and logistics, sanitary and phytosanitary, marketing, sales (domestic market and export) and other services, production of raw materials, and processes are carried out in high profitability.

One of the main duties of Azerbaijan is to build the agro-industrial sector, which is a leading part of the non-oil sector, along with innovative criteria, including the creation of agro-parks.

Creation of agro-park in Azerbaijan continues and there are almost 40 agro-parks in Azerbaijan.

Territories that were under occupation for almost 30 years have great agricultural potential. Azerbaijan developed a “Strategic Action Plan” for liberated territories. New mechanisms and criteria were created for the land reform. It aims at the development of liberated territories. Work is underway to develop important agricultural sectors such as stockbreeding floristry, olericulture, viticulture, and grain growing.

Azerbaijani President Ilham Aliyev on February 2018 signed an order approving the state program for the development of citrus fruit growing for 2018-2025 to meet the demand for citrus fruits in the country, expand exports of these products, and increase the employment level and financial well-being of the rural population.

President Ilham Aliyev on January 16, 2024, visited the country’s Lankaran district and viewed the conditions created in the newly established citrus orchard owned by “Lenk Fruit” LLC. The orchard, spanning a total area of 150 hectares, is home to 141,000 citrus fruits, peach, and nectarine trees, mainly imported from Türkiye.

Analytic group of News.az

The article focuses on the theme of "Socio-economic development of regions"

The article was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)


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