Azerbaijan's Agricultural Sector Shows Mixed Results in Early 2024

Azerbaijan's agricultural sector has reported mixed results for the first five months of 2024, according to data from the State Statistics Committee (SSC). The total value of agricultural products reached 3 billion 352 million manats, a 3.1% increase compared to the same period last year.

Crop production rose by 7.4% to 783 million manats, while livestock products saw a modest increase of 1.7% to 2 billion 569 million manats. Despite these gains, certain sectors experienced declines, raising concerns about the stability of agricultural output.

Grain production was notably higher, with 89,000 tons harvested by June 1, an 8.5% increase from the previous year. However, this figure is 42.5% lower than the 155,000 tons harvested during the same period in 2019. The SSC reported that grain harvesting has been completed on 403.5 thousand hectares, yielding 878.1 thousand tons of barley and 366.7 thousand tons of wheat. Despite this, wheat yields have decreased by 30% compared to last year, and barley yields are down by 0.7 centners per hectare.

Potato production declined by 6.9% to 160.2 thousand tons, the lowest in the past four years. Export volumes also fell, with physical exports down 35% and value down 38% compared to the same period last year.

Conversely, vegetable and fruit production increased, with vegetables up 11.5% to 429.4 thousand tons and fruits and berries up 14.2% to 33.6 thousand tons. However, imports of these products also rose significantly, creating a paradoxical situation where increased domestic production did not reduce the reliance on imports. Vegetable and fruit imports rose by 17.7% in physical weight and 27.2% in value, while exports decreased by 3.3%.

Livestock production showed modest gains. Meat production increased by 1.7% to 230.8 thousand tons, while milk production rose by 0.6% to 915.1 thousand tons. Egg production reached 983.5 million, a 7.1% increase from last year. Despite these increases, meat imports surged by 23.2%, and milk imports rose by 11.9% in physical weight.

Tea leaf production saw an 8.6% decline, with only 453.5 tons produced in the first five months of the year. Additionally, cocoon production dropped by 29.8% compared to last year.

Consumer prices have also been affected. The SSC reported a consumer price index of 100.3% in May 2024 compared to May 2023. Food, beverages, and tobacco products saw a decrease in prices, while non-food products and paid services increased. Bread, bakery products, cereals, meat, milk, dairy products, fruits, and other basic food items experienced slight price increases.

Vahid Maharramov, head of the Public Association for the Support of Agrarian Reforms, called for urgent measures to address the issues plaguing Azerbaijan's agricultural sector. He emphasized the need for the government to analyze the situation and implement reforms, including restoring land fertility, reconstructing the irrigation system, and improving farmer education and training.

"There is still a way out of the deplorable situation," Maharramov stated, urging swift action to stabilize and develop the agricultural industry.