MATURITY TEST

The unprecedented heat wave and floods affected the harvest badly this year. However, the stability which our agriculture has acquired over the years of independence and emergency government support for the agro-industrial sector prevented the food products market from collapsing.  Despite natural disasters, the republic's farmers harvested crops which in many sectors exceeded last year's (with the exception of grains and potatoes - these harvests were noticeably lower).

So, briefly about the agrarian year in Azerbaijan:  Figures, facts, forecasts.

Grain crop production fell by 33%

There are many reasons why production was reduced. Objective factors, such as the deterioration in natural and weather conditions, played their role here. The spring floods and freshets on the Kura and Araz rivers left 67,731 hectares of crops under water; 26,255 hectares were winter wheat and barley. As a result, the country's grains farmers harvested only 1,983,811 tons of crops from an area of 968,080 hectares, which is 981,621 tons fewer than the record-high grain harvest in 2009. Reduced production and rising prices on world grain markets resulted in higher prices for bread and bakery products. The government took effective steps to stop this process:  importers of wheat and flour were exempted from the VAT tax until 1 August 2011. According to the Agriculture Ministry, Azerbaijan has wheat reserves of more than 2 million tons, while monthly demand amounts to 135,000 tons. So we have enough wheat to last until the next harvest.

In view of the rise in prices farmers showed greater economic interest in farming food wheat and increased the area under wheat to 654,000 hectares, while the area under all winter crops is more than 900,000 hectares of arable land. The Agriculture Ministry predicts that in 2011, Azerbaijan will harvest more than 2.5 million tons of grains.

Vegetable farming is a profitable sector

In contrast to other crops, vegetable farming in Azerbaijan is a round-the-year business. Fresh tomatoes, cucumbers, onions and greens are available on the country's consumer market in all seasons. The State Statistical Committee reports that vegetable farmers harvested 1,178,900 tons of produce from 80,862 hectares, which is 190 tons more than last year. About 43,000 tons of melons and gourds were harvested from 31,876 hectares, which is 22,000 tons more than last year. Plantations with a total area of 8,500 hectares produced 57,687 tons of sugar beet, which is much more than last year.

There are plenty of vegetables on the shelves of the capital's markets, grocery stores and supermarkets.  The produce is mainly supplied from hothouses in the provinces. According to the Agriculture Ministry's crop farming department, more than 4,500 hothouse farms work in the Abseron District alone, and they supply the capital with vegetables in the autumn and winter.

Potato farming is yet another rapidly developing area. Over the years of independence, production has increased dozens of times. This was made possible by a joint Azerbaijan-Netherlands project, under which dozens of varieties of potatoes were imported during the first years of agrarian reform. As a result, Azerbaijani plant breeders selected the seven varieties of Dutch potatoes which adapted best to the local climate. These varieties are now grown in all districts of the republic. Annual potato production exceeds 1 million tons and the average yield is 30-40 tons per hectare. Azerbaijan transformed itself within a short period from an importer of potatoes into an exporter:  most of the farms use modern technology.  However, this year private farms harvested only 953,700 tons of potatoes from their vegetable fields, many fewer than last year's yield:  the crops were adversely affected by the drought.

At the same time, the industrial processing of vegetables has increased. In addition to major canning plants, which were put into operation in 2003, small local companies operate in this field too.

Vineyards and orchards

The rehabilitation of vineyards continued in the provinces. This year, farmers had harvested more than 140,000 tons of table and juice grapes by 1 December 2010. The grape harvest is still under way. In accordance with the State Programme for the Social and Economic Development of the Regions, farmers started in the several thousand hectares of new vineyards, where French, Italian, Moldovan and Georgian varieties are grown. Vineyards have been started in Saatli District for the first time in history. The first crops showed that the Bayan-Shirey variety has adapted successfully to conditions in this traditionally cotton growing district. The area under new vineyards has increased by 1,000-1,500 hectares.

Alongside grape farming, wine making is also making progress as modern, highly productive equipment is used to make wines to the best international standards. Azerbaijani wines received medals and certificates at traditional exhibitions in Berlin and Moscow.

Great crops of fruits and berries were harvested in the Quba-Xacmaz, Ganca-Qazax, Saki-Zaqatala and other regions of the republic. 711,000 tons of fruits and berries were harvested in the reporting period. Canned food facilities continue to produce a broad range of jams, preserves and natural juices. All this produce was exhibited at the Caspianagro 2010 exhibition, in which foreign specialists and producers also took part.

Cotton growing on the rise

Cotton farming has suffered in recent years. Areas under cotton were shrinking every year, having a negative effect on harvests and production. For example, in 2008, some 52,700 tons of raw cotton were harvested from 48,000 hectares, which was much less than in 2007. Cotton production declined noticeably in traditional cotton growing areas. In Barda and Sabirabad districts, production plummeted dramatically.

At present, cotton production is greater than last year; the raw cotton harvest was 34,000 tons. The growing interest in this valuable industrial crop helped to increase production. In addition, cotton wool prices have almost doubled on international markets. Thus the area of cotton plantations increased, reaching 30,000 hectares this year. However, bad weather and rains extended the spring sowing period. In addition, freshets destroyed 4,000 hectares of plantations.

Today, the largest cotton producing district is Saatli. It produces one third of the country's total raw cotton crop. This year, a little over 7,000 tons were produced, which is much less than last year. The average yield was only 1-1.1 tons per hectare. The spring freshets destroyed about 2,000 hectares of plantations and this, together with drought and plant disease, affected the crop. The situation was similar in the Salyan, Neftcala, Sabirabad, Beylaqan and Agcabadi districts.

Tea and tobacco:  Crisis is over

The tobacco and tea sectors have emerged from a profound crisis. As of 1 December 2010, 530 tons of green tea leaves had been produced, and 3,247 tons of tobacco leaves, much more than in 2009. Thus exports of tea and tobacco exports have increased. The traditional green tea and tobacco farming areas are taking effective measures to increase allocated areas and produce more raw materials. These are then sold to private companies which process the green tea and tobacco leaves. Higher prices for these products encouraged farmers to increase the area under these crops.

Growth in animal farming

Animal farming is a dynamically developing sector of agriculture and it worked without glitches throughout the year. In 2010, all 10 economic regions of the republic reported growth in their populations of both bovine and small cattle and also in meat, milk and egg production. The Agriculture Ministry reports that in 9 months, the bovine cattle population increased by 1.4% compared to last year, meat production increased by 6.4%, milk production by 7.6%, and wool production by 2.5%. The supply of animal farming products is improving every year. As a result, imports of animal farming products are falling.

To improve the stock, AZN 3 million was allocated to purchase pedigree animals from abroad this year. The country has already received 1,487 head of pedigree animals, and 187 animals are due to arrive by the end of this year. Favourable conditions were created in the Beylaqan, Quba, Samux, Samaxi, and Lankaran districts for the stable housing of cattle. The calf crop has increased the number of pedigree animals to more than 2,100 head.

In general, according to most experts, the republic's agriculture worked well in 2010, and despite the unfavourable weather conditions, agriculture industry workers managed to increase output.  This means that Azerbaijan will have no problems with food supplies.