Figure 1. Percentage of GDP of agriculture in the economic regions of Azerbaijan
Territorial and branch structure of the country’s agrarian sector saw positive changes
due to the
efforts made by the government. The analysis of the dynamics of development of Azerbaijan’s
agriculture shows that considerable advancement in agrarian sector happened after the
implementation of the first State Program on socioeconomic regions.
Under the
first State Program on socioeconomic development of regions
(2004-2008), a plant of
sugar production has been commissioned in the Aran economic region which currently is the largest
one in the Caucasus region. The new milk- and butter mills in Salyan, pomegranate producing
enterprise in Goychay can be mentioned as well. A plant of tinned production and a plant of dairy
products were built in Lankaran-Astara region.
The technical and financial support toward farmers and agribusinesses as a part of the first State
Program found its reflection also in agricultural statistics. In 2003-2008, the production of agriculture
and food industry were considerably grown, including 21,4%
by wheat, 40,1% by potato, 17,4% by
vegetable, 78,1% by grape, 30,6% by meat of cattle, 18,3% by milk, 47,9% by egg and 22,3% by wool.
The works implemented in accordance with the first Program were continued under the
second State
Program (2009-2013). Factories of tea and
ice cream in Lankaran, a wine-mill and the Goytapa water
reservoir in Jalilabad district, a cannery in Bilasuvar, a refrigerating storehouse in Salyan, a
storehouse for fruits and vegetables, etc. have been established. In 2011, the commissioned facilities
included a juice- and wine-producing enterprise in Agshu, two large
factories of milk and dairy
products in Aghjabadi, a lemonade mill, a factory of mixed forage in Imishli.
Results
Currently, achieving of desirable results in agrarian sector of Azerbaijan, including its Caspian regions,
considerably depends on the motivation of activities of local businesses through subsidies, the
provision of favorable economic condition and security, the elimination of bureaucratic
impediments, and the expansion of foreign investment in agricultural regions.
Non-oil sector is
represented mainly by products of farms and agro-industrial facilities in the country. Growth in this
sector happens due to investments, change
of domestic demand, and also ongoing structural and
institutional changes. Meanwhile, the typical feature of regional development in Azerbaijan is that it
still considerably depends on governmental support and allocations.
One of the main factors negatively affecting the agriculture in the Caspian regions is availability of
poor and insufficient material resources and lack of access to necessary technical provision in rural
areas. Weakness of the material and technical bases of the agriculture is observed in most of
administrative districts, whereas subsidies allocated and provided through relevant entities are
limited.
31.5
15.23
10.86
10.82
8.95
7.13
4.6 4.01
2.03 0.9 0
Aran
Ganja-Gazakh
Guba-Khachmaz
Lankaran-Astara
Sheki-Zagatala
Nakhchivan
Mountainous Shirvan
Upland Karabagh
311
Moreover, as observations led by us in the Caspian regions (especially in Guba-Khachmaz and
Lankaran-Astara regions) show, in some cases delays in providing with agricultural machinery can be
faced during harvest season as well. On the other hand, the weak use of pesticides by farms should
be noted in particular. Farmers do not have sufficient means of protection to lead pest control. This
is related to relatively poor material and technical base of farming.
While most of arable lands in the
country require irrigation, proper land use and appropriate
irrigation are not conducted efficiently. Rules of sowing and cultivating typically are not followed by
the farmers who are not aware of the needed requirements. The shown factors do not allow reach
high productivity and harvesting larger amount of crop in sown areas.
Consequently, the volume of harvested crop does not change considerably through time, though
much higher production growth in farming must be targeted. Similar problem concerns the livestock
(cattle breeding) where breeding and keeping of animal species of high agricultural importance is
managed at less level. Volume of products per unit of area of farmlands continues to be at low level.
The above mentioned processes are observed in conditions of high influence made
on the lands as a
result of continuous farming activity and overgrazing. As observations show, sometimes the same
arable lands are used for different purposes in different years, since farmers may hesitate in making
choice in regard to the sort of crop to be cultivated. Such situation relates to lack of priorities in their
activities as well as the unstable income gained.
Apart from these, effects of climate change (seasonal variations in regime of temperature and
precipitation) are also responsible for the low efficiency seen in the agriculture. Degradation of lands,
erosion and land salinization are reducing the efficiency in farming. Beside with these, lack of
awareness of proper land use at whole, poor infrastructure as well as less environmental concern
performed by farmers lead to additional efforts to be made.
Discussions
The Caspian regions of Azerbaijan have a great potential for the development of agrarian sector
based on its natural resources. These regions are rich in natural potential, necessary for the
development of agriculture. As we think, the establishment of agrarian-industrial complexes should
be regarded as the main means for improving level of living of rural population.
Increasing cultivation
output of rural areas can be achieved in the condition of real high offers to be made by small and
medium agro-industrial businesses in sales market.
In the economic regions of Lankaran-Astara and also Guba-Khachmaz with relatively higher
population density, area of fertile lands per capita decreases year by year. Under this circumstance
land resources of the country should be used to develop much profitable branches of agriculture
only. Transition to intensive ways and methods in land use as well as the
application of advanced
technology in this area must mitigate the negative impact on the environment. Particularly, in regard
to Lankaran-Astara, the priority in the territorial organization of farming must include intensification
of agricultural production rather than extending the area of plantations. Much productive sorts must
be purchased and used in sowing.
The considerable growth in agrarian sector can be available in the future if financing of processing
industry will be efficiently managed. Agricultural businesses should be increased in the regions, and
supply of the local businesses with modern appliances and technology should be carried more
efficiently. Competitiveness of local businesses and producers in the market enterprises must be
promoted and strengthened. Import of GMO products is not welcomed.
The role of livestock products also must be increased in GDP of agriculture through the improvement
of situation with forage base as well as transition to breeding much productive species of cattle.
Since development of farming business in the regions significantly depends on state funding, the
creation of strong private sector in country’s economic regions must be promoted further.
Meantime, creating of strong regional budgets of local administrations and preventing of their
complete dependency on state funding must be regulated. Regulating, crediting and strong state
312