PremiumAgriculture ( january - july 2009 )

In July, phenomenal growth was recorded in production of agricultural, fishery and forestry sectors compared with June 2009, as well as the same period of the last year. Unstable weather conditions in Azerbaijan did not affect the productivity in agriculture, and in July, the record agricultural production for the month was re-established.

According to official statistics, as of August 1, 2009, the total amount of the agricultural production made up AZN 2105.3mln, an increase of 8.67% compared to the same period of 2008. In July 2009, production amounted to AZN 804.2 million compared to AZN 653.3 million in June 2009 and AZN 703.5 million in July 2008.

High rates of production in agricultural sector of the country were achieved thanks to state care. In particular, in July, the President signed a decree on the transfer of JSC "Agroleasing" to the ownership of the Ministry of Agriculture. In order to continue construction of branches of JSC and increase its authorized capital, the Presidential Reserve Fund allocated five million manat.

This year the State also began the practice of purchasing grain from farmers. Upon the order, which came into force on July 7, the volumes of grain reserves in cereal banks will be determined by the Cabinet of Ministers of the country.

Taking into account the collection of corn, this year harvesting is expected to total 3 million tons, including wheat at about 2.2 million tons. This is the highest figure in the history of grain growing in Azerbaijan. This means that the cereal production will increase by about 500,000 tons compared to 2008, which completely meets the needs of the population for the grocery grain. The Government of Azerbaijan intends to completely provide grain demand by 2010. Azerbaijan imported grain from Russia, Turkey and Kazakhstan. Azerbaijan's annual demand for grain is three million tons, one million of which is imported.

Sowing of spring plantings in 2009, ha 

Source: State Statistics Committee

The largest decline occurred in the sown area under cotton. The point is that currently it is economically unprofitable to produce cotton because of low prices for the product on world markets, which also led to reduction in cotton production in Azerbaijan. Farmers voluntarily choose what agricultural product to grow. Thus, instead of cotton, it is feasible to grow vegetables for export to neighboring countries (Russia, Ukraine), which have repeatedly expressed interest in importing these products, as well as to grow fodder plants, which are necessary for the development of livestock in the country.

Currently there are 119,900 hectares of orchards in the country. All these activities are implemented within the State programme on Reliable Food Supply in Azerbaijan in 2008-2015. Last year, the country planted orchards in the territory of 5227 hectares. Over the past five years, in Azerbaijan were planted orchards in the territory of 19.285 hectares.

Harvesting crops in agriculture of Azerbaijan continues. As of August 1, cereal production in Azerbaijan amounted to 2.7965 million tons from cultivated area of 1.0777 million hectares compared to 2.2957 million tons from cultivated area of 845,600 hectares for the same period of last year. The yield was 25.9 metric centners per hectare or less by 4.4 metric centners as compared with the previous year.

In addition, were harvested 551,200 tons of potatoes (-6.9%), 660,400 tons of vegetables (-0.9%), 162,000 tons of fruits and berries (3.6%), 288.3 tons of green tea leaves (18.4%). In July 2009, meat production in Azerbaijan fell by 11 percent as compared to June, 1.4 percent to January this year and 4.4 percent as of July 2008.

Production of cattle-breeding (in ths tons)

Source: State Statistics Committee

During January-July 2009, meat production was 171,600 tons compared to 171,200 tons in January-July 2008 (an increase of 0.2 percent) and 302,800 tons for the whole last year. Milk in January-July 2009 was produced at 827,700 tons compared to 810,900 tons (+2.1%) in January-July 2008, and 1.3816 million tons for whole 2008, eggs - 716,000compared to 641,600 (+11.6 percent), and 1.0087 million respectively. Wool production totaled 13,200 tons compared to 12,800 tons per year earlier (2.7 percent).

According to official statistics, during January-July 2009 the actual value of forest products amounted to 784,000 manat compared to 549,500 manat in January-July last year (+42.7 percent), fishing industry 87,400 manat compared to 75,200 manat in January-July 2008 (+16.2 percent).

Factual prices of the products of the agricultural, forestry, fishery and hunting economies in Azerbaijan in, thous manats

In Azerbaijan, the July index for consumer prices for agricultural commodities was 99.3 percent compared to the previous month, and 1.9 percent to the same period of last year.