This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/2/2019

Overview

Azerbaijan has designated agriculture as one of the four priority sectors for diversifying its economy. 

Agriculture is Azerbaijan’s largest employer, employing 37% of the population, but accounting for only
5% of GDP.  Azerbaijani produce has strong brand recognition in post-Soviet markets and often sells at a premium.  The government supports the agricultural sector through various measures, including: grants, tax exemptions; and subsidies for machinery, pesticides, and fertilizers.  The machinery subsidies, in particular, have supported sales of U.S. combines, tractors, harvesters, and irrigation equipment.

Azerbaijan food processing equipment and packaging facilities are outdated and hinder development. 

U.S. equipment producers may find opportunities to support the modernization of food processing.  We recommend U.S. companies and investors work with established firms with a proven market track record.

Post-Soviet land reforms parceled small land plots of roughly two to five acres out to individual farmers, creating a structural impediment to larger-scale agriculture, mechanization, and consolidation. 

Furthermore, inadequate record keeping and titling of land have complicated lending to farmers unable to prove a legal right to the land they cultivate.  The degradation of Soviet-era irrigation systems has caused the salinization of large areas of farmland, which will require significant investments to repair and may provide a niche market for partnering with the government on restoring arable land.  A lack of agricultural experts and specialists also poses significant challenges to agricultural development.  The Azerbaijan State Agricultural University, located in Ganja, is the only university that specializes in agriculture.  Like other sectors in the Azerbaijani economy, a handful of large enterprises with connections to the central government distort the market.

Azerbaijan requires import licenses for food products of animal origin.  The Food Safety Agency issues licenses for these products.  To protect and spur domestic production, beginning on November 1, 2016, the government increased import fees for certain agricultural and construction products (See the Customs Regulations and Standards section for additional details.)
 

Leading Sub-Sectors

There is demand for food processing and packaging equipment, especially for mid-size meat, dairy, and fruit and vegetable processing production.  There is also a need for production of packaging materials for different market segments.  
 

Opportunities

U.S. agricultural equipment and used equipment dealers should consider personally traveling to the rural markets to meet with target audiences such as farmers and large private holding companies active in agricultural processing.  The Azerbaijani government is also interested in promoting small-scale dairy processing in rural areas.  There is demand for agricultural consulting in international certification and distribution.
 

Web Resources

Ministry of Agriculture: www.agro.gov.az/ 
Food Safety Agency: http://afsa.gov.az/en/home

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.