Azerbaijan sells caviar expensively, buys it cheap...

Azerbaijan, known for its long-standing tradition of producing coveted sturgeon caviar, is grappling with dwindling sturgeon populations and evolving market dynamics in the lucrative caviar industry. Official reports reveal that in the first nine months of 2023, the country's industrial production of sturgeon caviar amounted to a modest 414 kilograms.

According to data from the State Customs Committee (SCC), during the first eight months of the year, Azerbaijan managed to export approximately 400 kilograms of sturgeon caviar to international markets, reaping a revenue of $345,270, translating to an average selling price of $863 per kilogram. The primary destinations for Azerbaijani caviar were Russia (170 kilograms), the United States (120 kilograms), the United Arab Emirates (50 kilograms), and Singapore (20 kilograms). This trade underscores the global demand for this delicacy, with consumers across the world savoring its unique taste and luxury appeal.

In the preceding year, 2022, Azerbaijan achieved a total production of 915 kilograms of black caviar, of which 430 kilograms were exported to international markets. Notably, Azerbaijan also imported black caviar in 2022, with a significant influx of 5,740 kilograms, valued at $1,759,100, averaging approximately $306 per kilogram. Astonishingly, 99 percent of this imported black caviar came from China, while a mere 30 kilograms were sourced from the United States.

However, the global market for black caviar is far from homogeneous, with prices varying widely based on origin and quality. For instance, caviar produced on a farm in Mecklenburg, Germany, commands prices ranging from 800 to 1,300 euros per kilogram, depending on the type. Meanwhile, in France, the price soars to 1,300 to 1,600 euros per kilogram, reflecting the diversity of options available to connoisseurs.

A key concern overshadowing Azerbaijan's caviar industry is the alarming decline in sturgeon populations in the Caspian Sea over the past 15-20 years. The Ministry of Ecology and Natural Resources in an interview with Turan, points to a combination of factors, including rampant poaching in the 1990s, the construction of dams in spawning rivers, notably the Kura River, and environmental pollution in the Caspian Sea, all contributing to the reduction of sturgeon stocks. This trend is not exclusive to Azerbaijan but extends throughout the Caspian Sea, with Azerbaijani waters accounting for only 12-15 percent of the total sturgeon reserves in the sea.

The Azerbaijan Fish Farm, established in 1954 to cultivate sturgeon in the country, plays a pivotal role in caviar production. The farm breeds fish varieties such as pike, sturgeon, long-nosed, and regional (beluga) fish, with plans to produce approximately 200 tons of sturgeon meat and 10 tons of black caviar. The facility employs a closed water system and open ponds for fish cultivation, releasing thousands of baby fish into natural water bodies as part of their breeding process.

Agriculture expert Vahid Maharramli,  in an interview with Radio Azadlig, highlights that the decline in sturgeon populations is attributed to both human activity and global phenomena. He emphasizes that the majority of black caviar today comes from fish raised in controlled environments, but this source is gradually diminishing. To counter this decline, Maharramli suggests that increasing black caviar production is contingent on growing demand and competitive pricing. He asserts that if black caviar is made more accessible, it will find a broader market, incentivizing manufacturers to boost production.

Azerbaijan's consumption of fish remains notably low compared to the global average. While the country consumes approximately 7.5 kilograms of fish per person annually, the worldwide average exceeds 20 kilograms. Maharramli highlights the significant role of lake-farmed fish in global consumption, pointing to the opportunity for Azerbaijan to enhance its domestic fisheries and potentially bolster its position in the international caviar market.

As Azerbaijan grapples with the complex challenge of preserving sturgeon populations and maintaining its status as a renowned caviar producer, the industry's evolution will likely hinge on addressing ecological concerns, stimulating demand, and adapting to changing market dynamics in the pursuit of sustainability and profitability.