Azerbaijan Agriculture Profile 2012

Reference Date: 23-May-2011

Good prospects for 2011 cereal crops

Favourable precipitation in March, following dry weather conditions during the previous months, improved soil moisture for the development of cereal crops, mainly wheat. According to preliminary official estimates, the area planted to cereals has increased by some 14 percent from last year’s level. Cereal crops are generally reported in good condition; and providing good weather in the remaining of the growing season, the 2011 production is anticipated to recovery from last year’s reduced crop. It is expected that total cereal production may increase by about 11 percent and reach around 2 million tonnes including 1.45 million tonnes of wheat.

Cereal import requirements significantly increased in 2010/11

The country continues to depend on cereal imports to meet its consumption needs; and in marketing year 2010/11 (July/June) it is expected to import about 1.4 million tonnes, mostly wheat. This represents 37 percent of domestic cereals consumption requirements, compared to 29 percent in 2009/10 marketing year, when a bumper wheat crop was gathered. By the end of March, imports of wheat reached around 1 million tonnes. The bulk of cereal imports are from Kazakhstan.

Food prices on the increase since August 2010

The prices of bread and wheat flour have increased markedly since mid-2010. Prices of wheat flour strengthened further in April 2011and were 30 percent higher than a year earlier. Prices of bread have remained relatively more stable in recent months, following government market interventions since December 2010. However, bread prices in April 2011 were still quoted 18 percent above their levels at the same time in 2010. Prices of potatoes, another basic staple in the country, have reached record levels in April.

Food security situation of poor households affected by high food prices

Since the share of household expenditures on food is significant, the increase of food prices put vulnerable population groups at risk of food insecurity.

Reference Date: 18-April-2011

Good prospects for the 2011 cereal production

Favourable precipitation in March, following dry weather conditions in previous months, improved soil moisture for the development of winter crops, mainly wheat. According to preliminary official estimates, the area planted to cereals has increased by some 12 percent from last year’s level. Cereal winter crop are generally reported in good conditions and providing good weather in the remaining of the growing season, the 2011 production is anticipated to recovery from last year’s reduced crop.

Cereal import requirements significantly increased in 2010/11

The country continues to depend on cereal imports to meet the consumption needs, estimated at about 1.3 million tonnes in marketing year 2010/11 (July/June). This represents 42 percent of the domestic wheat consumption requirements, comparing with 32 percent in 2009/10 marketing year, when a bumper wheat crop was gathered. The bulk of cereal imports is from Kazakhstan.

Food prices on the increase since August 2010

The prices of bread and wheat flour, which decreased in 2009 from their peaks of 2008, have increased markedly since mid-2010. Prices of wheat flour strengthened further in February 2011 and were 30 percent higher than a year earlier. Prices of bread have remained relatively more stable in recent months, following government market interventions in December 2010. However, bread prices in February 2011 were quoted 17 percent above their levels at the same time in 2010 Prices of potatoes, another basic staple in the country, have reached record levels.

Food security situation of poor households affected by high food prices

Since the share of household expenditures on food is significant in the total household budget, the increase of food prices put vulnerable population groups at risk. The President has proclaimed a statement of “Food for All”, ensuring that the Government will take all possible action to ensure sustainable food security based on improved food production.

03/12/2010  Agriculture crop output sharply down in 2010 after reaching record levels in 2009
Total cereal production in 2010 is estimated to be 20 percent below the 2009 record and 9 percent below the previous five-year average. The reduction is due to a combination of reduced plantings of wheat and barley by farmers due to marketing difficulties and reduction of subsidies provided by the Government, and to flooding of the Kura and Araks rivers which caused extensive damage to standing crops.

In contrast to cereals, some increase in production has been registered for other agriculture products such as fruits, vegetables, milk, eggs, meat and wool.

Harvesting of the 2010 cereals crops is now complete. Sowing of winter crops for harvest in 2011 started on time and it is still ongoing under mostly favourable conditions.

The country continues to depend on import of cereals to meet a portion of its needs
In the 2009/10 marketing year, cereal imports accounted for some 26 percent of the total domestic cereal requirement for all uses and in 2010/11 there will be a slightly increase. The bulk of cereal imports are in the form of wheat. Imports from Russia accounted for 15 percent of the total wheat imports in the 2009/10 marketing year.

Food prices have been reasonably stable over 2009 but started to rise in 2010
The price of bread and wheat flour which had decreased in 2009 from their peaks of 2008 have started to rise again since early 2010. This increase has accelerated since August reflecting the increase in the price of imported wheat and in line with overall price trends in the region.
 

Agriculture contributes a third of the value of industrial production. It is carried on largely by collectives and state-owned farms. About 70 per cent of the cultivated land is irrigated. Wheat, cotton, rice, fruits, vegetables, tea, and tobacco are grown. In addition, silkworms are also grown for the raw silk industry. Much land is used for raising livestock, chiefly sheep, cattle, and goats.. The Caspian Sea is a rich source of fish.