10 mportant events in the field of agriculture in 2022

I.01. 02. 2022 -  he President of the Republic of Azerbaijan signed a decree on amending the Decree of the President of the Republic of Azerbaijan dated December 19, 2018 No. 413 "On improving state support for agriculture and leasing activities in the agricultural sector."

II.17.03.2022 - The Cabinet of Ministers approved the "Rules for the paid use of water in the Republic of Azerbaijan" ([1].

III.18.03 2022 - The Cabinet of Ministers adopted a resolution “On measures to regulate the export from the country of a number of basic food products that are part of the minimum consumer basket, and goods used in their production” ([2].

IV. 19. 07. 2022 - The President of the Republic of Azerbaijan signed a decree “On a number of measures to increase the level of self-sufficiency in food wheat” ([3])..

V.   22. 07. 2022 -  "Strategy of socio-economic development of the Republic of Azerbaijan for 2022─2026" was adopted ([4]).

VI. 28. 07. 2022 - By the Decree of the Cabinet of Ministers of the Republic of Azerbaijan, the state procurement price of food wheat ([5]) has been determined.

VII. 29. 08. 2022 - According to the agreement reached between the companies, the existing purchase prices for cotton in accordance with the varieties increased by 50 manats per tu for the 2022 harvest: for the first grade - from 750 to 800 manats, the second - from 730 to 780 manats , the third - from 690 to 740 manats, the fourth - from 650 to 700 manats ([6]).

VIII. 19. 09. 2022 - Approved criteria and rules for determining agricultural land used for its intended purpose or not to be used for its intended purpose ([7]).

IX. 29. 09. 2022 - The President of the Republic of Azerbaijan signed a decree on amending the “Regulations on the information system “Electronic Agriculture”, approved by Decree of the President of the Republic of Azerbaijan dated December 23, 2019 No. 897 ([8]).

X. 14. 10. 2022. The Cabinet of Ministers approved the Rules for Monitoring the Activities of Manufacturers and Sellers, information about which is posted on the electronic portal "Procurement of food products by state order" ([9]).

2022: As in previous years, the problem of lack of water for irrigation in agriculture has not been resolved.

The outgoing 2022 was marked by a number of problems in the agriculture of Azerbaijan. So, in 2022, as in previous years, farmers and peasants faced the problem of lack of water for irrigation, water shortages in the spring and summer. The peasants, who suffered from a lack of water for irrigation in the lowlands, were forced to spend additional funds to use the water accumulated in the collectors as irrigation water. To do this, they went to additional expense, used a water pump, the engine of which runs on diesel fuel.

Since prices for mineral fertilizers have doubled in 2022, peasants and farmers have reduced their use. For 8 months of 2022, the volume of mineral fertilizers imported into the country decreased by more than half compared to the same period of the previous year. So, for 8 months of 2021, 80,087.8 tons of nitrogen fertilizers were imported into the country, and for the same period in 2022, only 11,741.6 tons, that is, 6.8 times less than a year earlier.

Agricultural production in 2022

A report published by the State Statistics Committee (SSC) states that from January to November 2022, agricultural production worth 10 billion 383.8 million manats was produced in Azerbaijan. This is by 3.4% more than in the same period of last year. The source reports that over the past year, the value of crop production produced in the country increased by 3.4% to 5 billion 431.3 million manats, and the cost of livestock products increased by 3.3% to 4 billion 952.5 million manats. The report also notes that as of December 1 this year, 2,884.1 thousand tons were harvested from the sown areas of grain and leguminous crops (excluding corn), or 6.2% less than in the same period last year. On average, the yield per hectare was 30.4 centners.

In addition, 248.7 thousand tons of corn were harvested from an area of 30.5 thousand hectares. Since the beginning of the harvest, 1,052.3 thousand tons of potatoes have been harvested from the fields, which is either 1.3% more than in the same period last year, 1,810.2 thousand tons (+ 1.2%) of vegetables, 468, 7 thousand tons (+ 1.9%) of melons, 1,248.4 thousand tons (+ 4.6% more) of fruits and berries, 211.7 thousand tons (+ 3.3%) of grapes, 1,000.9 thousand tons (- 14.8% less) of green tea leaves, 203.7 thousand tons (+ 8.7%) of sugar beet, 299.1 thousand tons (+ 10.1%) of cotton, 28.9 thousand tons (+ 12 .2%) of sunflower and 4.3 thousand tons (- 32.3%) of tobacco.

According to the SSC, meat production in live weight, including poultry, in January-November of this year increased by 2.9% compared to the corresponding period in 2021 to 522 thousand tons, milk production - by 1.9% to 2,036, 3 thousand tons, egg production - by 8% to 1,821.5 million pieces, wool production decreased by 2.3% to 15.6 thousand tons, cocoon production, having decreased by 31.4%, amounted to 341.4 tons.

The Committee reports that 1,083 thousand hectares have been plowed on farms for the 2023 harvest and 871.1 hectares have been sown with winter crops. Including 540.2 thousand hectares of wheat, 330.8 thousand hectares of barley and 0.1 thousand hectares of rye ([10]).

According to the SSC, in 2022, 1 million 731 thousand tons of wheat were produced in raw weight. In net weight, this is 195 thousand tons less than last year.

According to the SSC, in the current year, an area of 100,000 hectares was sown with cotton in the country. And although in 2022 cotton was produced by 10.1% more than in the previous year, this is by 10% less than in 2020.

Let me remind you that the government has adopted the State Program for the Development of Cotton Growing in the Republic of Azerbaijan for 2017-2022. As a result of the implementation of the adopted program, in 2022 it was planned to increase the production of raw cotton to 500 thousand tons.

According to the State Statistics Service, as of December 1, 299.1 thousand tons of cotton were produced in the country, which is 40% less than expected.

Over 11 months of this year, there was a significant reduction in cotton exports compared to the same period last year. Thus, in January-November of the current year, compared to the same period of the previous year, the export of cotton fiber decreased by 39.6% in physical weight and by 14.3% in value terms, and the export of cotton yarn - by 52.6% in physical weight, and by 39.0% in value terms.

Record amount of food imported to Azerbaijan

2022: Imports of agricultural products are growing, exports are declining

In January-November of this year, food imports increased by $386.5 million, that is, by 22.7%, compared to the same period of the previous year in value terms. So, if in January-November 2021, food products worth $1.70 billion were imported into the country, then over the same period of this year, food imports amounted to $2.08 billion. Until now, in the entire history of Azerbaijan, food products in such quantities have not been imported into the country in a year.

Compared to the previous year, by $110.4 million more was spent on wheat imports.

In January-November of this year, compared with the same period last year, imports of fats and oils of vegetable and animal origin increased in value terms by 28.1%, tea imports increased in physical weight by 3.8%, and in value terms by 23. 8%, imports of wheat in physical weight - by 14.7%, and in value terms - by 38.4%, rice in physical weight - by 9.9% and by 28.1% in value terms.

Over 11 months of 2022, meat imports increased compared to the same period of the previous year in value terms by 15.9% and by 5.6% in physical weight, imports of live cattle, intended mainly for slaughter, in value terms - by 22.8%, imports of milk and cream in value terms - by 30.5%, butter and other oils from milk in physical weight - by 24.3% and 38.0% in value terms.

Our calculations, based on information provided by the State Customs Committee, showed that in January-November 2022, compared to the same period of the previous year, the export of fruits and vegetables increased, while the export of potatoes, tomatoes, persimmons, and pomegranates decreased. On the other hand, over the 11 months of this year, the income of tomato exporters decreased by $39.5 million compared to the same period in 2020, and the income of hazelnut exporters decreased by $13.7 million compared to January-November 2019.

2022: Agricultural consumer prices rise significantly

The information of the SSC on price changes in the consumer market states that the consumer price index in January-November 2022 amounted to 113.8% compared to January-November 2021, including for food products, drinks and tobacco products - 119.5%, for non-food products - 108.3%, for paid services rendered to the population - 110.4%.

It is also noted that the consumer price index in November of this year amounted to 101.0% compared to the previous month and 115.1% compared to November of the previous year.

According to the committee, the consumer price index for food, beverages and tobacco products in November 2022 was 101.2% compared to the previous month and 120.1% compared to November of the previous year.

Also, in the information distributed by the SSC, it is noted that the increase in prices for certain food products observed compared to the previous month in November of this year most of all affected flour, semolina, pasta, biscuits, beef and chicken, canned fish, condensed milk, cheeses, eggs, corn oil, bananas, cucumbers, tomatoes, potatoes, onions, as well as prices for granulated sugar, sweets, tea, fruit juices.

Our study, based on the monthly data published by the GCS, also shows that during the 11 months of 2022, the prices of basic foodstuffs continued to increase steadily (Table 1).

Supplement

Table 1. Consumer price index for food products in Azerbaijan for January-November 2022 by commodity groups compared to previous months, in %. GKS source.

[1] https://nk.gov.az/az/document/6003/

[2] https://nk.gov.az/az/document/6009/

[3] https://president.az/az/articles/view/56697

[4] https://president.az/az/articles/view/56725

[5] https://nk.gov.az/az/article/2293/

[6] https://iqtisadiyyat.az/az/post/pambigin-alis-qiymeti-novbeti-defe-artirildi-45393

[7] https://nk.gov.az/az/article/2399/

[8] https://president.az/az/articles/view/57411

[9] https://e-qanun.az/framework/52577

[10] https://yenicag.az/azerbaycanda-aqrar-sektor-3-faizden-cox-boyudu/