The myth about agricultural parks dispelled

As it was already reported, a few days ago an event on the theme "The role of agricultural parks in the development of agriculture", organized by the ministries of economy and agriculture, took place. Speaking at the event, Minister of Economy Mikail Jabbarov noted the role of agricultural parks in agriculture and in the country's economy as a whole, spoke about the measures taken to improve the efficiency of their activities - the provision of tax incentives, subsidies and preferential loans to the agricultural sector, incentives for leased equipment and equipment. It was noted that at present in 32 regions of the country on 240 thousand hectares, work is underway to create 51 agricultural parks with a total cost of 2.1 billion manats. 43 agricultural parks have already started their activities, and the rest are undergoing design work.

I would like to note that the first agricultural park in Azerbaijan was commissioned in the Yalama village of the Khachmaz region in September 2016. At the first stage, 20 million manats were invested in the creation of this agricultural park from the public and private sectors. Taking part in the opening of the Yalama agricultural park, the head of state Ilham Aliyev noted that the agricultural park put into operation in the Khachmaz region will contribute to the development of the region and our country as a whole. “Today I instructed our respective structures - the presidential administration, the ministries of economy and agriculture to work together.

Because there should be at least 10 such agricultural parks. And then we will completely solve all the problems associated with animal husbandry and dairy farming."

I would also like to note that in October 2018, at the opening of the Ulu Agro agricultural park in Gakh, the head of state announced plans to create 45 agricultural parks in the country. “In general, it is planned to create 45 agricultural parks. The total area of ​​45 agricultural parks is 192 thousand hectares. 28 of them are plant growing, and 17 are livestock raising.

The message posted on the website of the Ministry of Economy says that “at present, 51 agricultural parks and large farms are being created in 32 districts on the territory of 240 thousand hectares. Of these, 35 specialize in crop production, 14 in crop and livestock production, 1 in livestock, and others in sorting and packaging, processing and logistics.

43 agricultural parks have already started their activities, and the rest are undergoing design work”.

The discrepancy between the figures announced by the head of state and the minister of economy (the creation of 45 or 51 agricultural parks is envisaged) is not so significant. Another thing is important - if, as state officials assure, 43 agricultural parks have already started their activities, then at least 13 of them should have livestock complexes. In this case, a very serious jump or a noticeable increase in the production of livestock products would have to take place. The head of state believes that "there should be at least 10 agricultural parks, and then we will completely solve all the problems associated with animal husbandry and dairy farming."

It should be noted that in 2020, 11.7% of the cultivated area (1630.9 thousand hectares) in the country as a whole (192 thousand hectares) were in the use of agricultural parks. This means that in 2020 agricultural parks were supposed to produce at least 11.7% of all agricultural products produced in the country.

According to information posted on the website of the Ministry of Economy, in 2020, agricultural parks produced 27.4 thousand tons of milk and 3.3 thousand tons of meat (1). This means that out of 2,192.5 thousand tons of milk produced in 2020 across the country, agricultural parks produced 27.4 thousand tons, that is, 1.2 percent, and out of 346 thousand tons of meat - 3.3 thousand tons, that is, 0.9 percent. In 2020, agricultural parks produced 0.9% of meat and 1.2% of milk of the total production in the country. As you can see, the number of livestock agricultural parks in the country has exceeded the figure announced by the President of the country - 10. That is, more livestock agricultural parks have been created than previously assumed. The volume of livestock products produced by these agricultural parks during the year is only 0.9-1.2% of the total volume of production in the country. With such low indicators, how can one say - “we will completely solve all the problems associated with animal husbandry, dairy farming” ?!

Unfortunately, the indicators of agricultural parks in crop production are not encouraging either. At a conference dedicated to the results of the first year of implementation of the "state program of socio-economic development of regions for 2019-2023", Ilham Aliyev stressed that the creation of agricultural parks is associated with ensuring food security. He said: “Now we see with the example of agricultural parks that the yield is higher here. Because new technologies are being introduced, equipment is being brought in, and support is provided from the state. For example, last year our average grain yield was quite high - 32 centners per hectare, which is great progress. But in large farms it is 50 centners, and in some places even 60 centners. This suggests that the creation of agricultural parks was the right decision." The facts show that the situation is somewhat different. In 2020, agricultural parks produced 124.3 thousand tons of wheat, 64.6 thousand tons of barley, 121.6 thousand tons of corn. In the same year, agricultural parks produced only 310.5 thousand tons of grain, which is 9.7% of the total amount of grain produced in the country - 3172.3 thousand tons. In fact, agricultural parks, in whose hands 11 are concentrated, 7% of the country's arable land was supposed to produce more than 11.7% of all agricultural products grown in the country.

I would also like to note that since 2013, large grain farms have been created in Salyan, Barda, Shamkir, Agjabedi, Sheki, Gakh and other regions, and in recent months the number of agrarian parks engaged in crop production has reached 30. However, despite this, grain production in the country not only did not increase, but on the contrary decreased. So, in 2020, grain production, compared to 2018, decreased by 58.1 thousand tons, and compared to 2019 - by 279 , 3 thousand tons. In 2019, a record amount of milling wheat was imported into the country, up to 75% of the need. As for the episodic production of 50-60 centners of grain in some farms, this is not new. At all times, individual farms have sought to obtain a higher yield.

The message posted on the website of the Ministry of Economy says that “in 2017-2020, intensive gardens were laid out in agricultural parks with a total area of ​​over 7,500 hectares, from which they were harvested in 2020

12,000 tons of apples, 393.5 tons of olives, 183 tons of almonds, 200.7 tons of pomegranates, 165, 7 tons of grapes, etc. " (1)

Our calculations showed that in 2020, agricultural parks in the country accounted for 3.5% (7.5 thousand hectares) of the total area of ​​fruit and berry plantations, equal to 213.8 thousand hectares. Of the 1,133.1 thousand tons of fruits and berries grown in the country, only 1.1% was produced in agricultural parks. Of the 336.8 thousand tons of cotton grown in the country, 5.5% were produced in agricultural parks, and only 0.07% of 208 thousand tons of grapes. Despite the fact that the authorities show great interest in the creation of agricultural parks and spend large public funds, the results obtained give reason to assert that the situation in this area leaves much to be desired.

At the event, Mikail Jabbarov noted that state support was provided to the organization of agricultural parks, infrastructure was created, and soft loans were provided. He said: “Until now, the Entrepreneurship Development Fund of the Ministry of Economy allocated a concessional loan in the amount of AZN 173 million for the creation of 23 agricultural parks, and the Ministry issued an investment incentive document for AZN 1 billion to 27 agricultural parks. The 25 agricultural parks that received the investment promotion certificate were issued a lot of supporting documents for the import of machinery, technological equipment and installations, and according to these supporting documents, these agricultural parks received benefits for 32.8 million manats." In addition, 1.1 billion manat was allocated from the state budget for the creation of agricultural parks.

During the event, the Minister of Economy also noted that agricultural parks play an important role in increasing the level of employment: “Until now, agricultural parks have provided permanent work for a total of up to 5,000 people and more than 4,500 people - seasonal. It is planned to create more than 4300 additional jobs in the existing and organized agricultural parks. " As you can see, providing up to 5,000 people with permanent jobs and more than 4,500 people with seasonal jobs on 192,000 hectares of arable land is presented as "an important role of agricultural parks in increasing employment." According to the State Statistics Committee, in 2020 the number of people employed in agriculture, forestry and fisheries amounted to 1,771.9 thousand people. It can be assumed that 1.7 million of them are also registered as persons working in the agricultural sector.

According to the statements of officials, 51 agricultural parks, which will be created on an area of ​​240 thousand hectares, are still provided with permanent jobs for up to 5,000 people and 4,500 seasonal jobs. In agricultural parks, which will be organized later, it is planned to create an additional 4300 jobs. It turns out that only 13800 people will work on 240 thousand hectares of arable land, i.e. on average 1 person per 17.4 hectares. Whereas in the country there are 21 workers per 17.4 hectares of arable land. The number of workers in agricultural parks per thousand hectares is 21 times less than the average number of working peasants in the country. This is undesirable for Azerbaijan, where unemployment and poverty are high.

A recent FAO (Food and Agriculture Organization) UN report noted that small-scale farming, peasant farms not only provide food for 70% of the world's population, but are also the main source of livelihood for 60-80% of the population in a low-income country. ... There is sufficient international experience regarding the significant role of small farms in the development of agriculture, rural areas, in ensuring food security, and eliminating unemployment.

A UN FAO report, Land Ownership and International Investment in Agriculture, highlights the importance of small-scale farming in Brazil, one of the world's leading exporters of agricultural products. According to the report, according to the agricultural census, “there were 4.4 million small-scale households in Brazil (84% of the total registered). And this number of farmers owned only 24% of the land. At the same time, 74% of those employed in agriculture worked in these farms. They provide the country with 87% cassava, 70% beans, 46% corn, 34% rice, 58% dairy products, 59% pork and 50% poultry. Also, family farms raise 30% of cattle and produce 21% of wheat. "

Thus, in 2020, agricultural parks produced only 9.7% of grain, 1.1% of fruits and berries, 0.07% of grapes, 5.5% of cotton, 1.2% of milk, 0.9% of meat. In fact, the share of agricultural parks, in whose hands 11.7% of the country's arable land was concentrated, in the total production volume should have amounted to more than 11.7%. That is, agricultural parks should produce more than 11.7% of grain, fruits, vegetables, potatoes, milk, meat and other products produced in the country.

It should also be noted that at the event, in contrast to the Minister of Agriculture, Chairman of the Melioration and Water Management OJSC and other officials, entrepreneurs talked about specific problems. Thus, they reported on serious problems related to the lack of water, agricultural insurance, changes in land use, lack of road infrastructure, lack of specialists, salinization of lands as a result of illegal activities in the field of fish pond farming, renovation of water pumps, construction of new substations and other problems.

Vahid Məhərrəmov