Will Azerbaijan increase products supply to Russia?
By Nigar Orujova
Russia expects agricultural products from Azerbaijan, Iran, and other countries to replace Turkish goods delivered to the Krasnodar region of the country.
This was stated by the representative of department of consumer sphere of the Russian Krasnodar region, RIA Novosti reported.
Russia showed a special interest for the Azerbaijani agricultural products after introduction of western sanction over Ukraine crisis in late 2014.
After banning the Ukrainian food products, Russia planned to diversify its market with more products from Turkey, Iran, and Azerbaijan. However, Russia has also enhanced control for food supplies from Turkey following a conflict between the two countries escalated after Ankara downed a Russian fighter jet.
Normally, Russia only checked some food deliveries from Turkey, while introduction of checking for all supplies would mean significant delays in import.
Earlier, Russian Minister of Agriculture Alexander Tkachev said that if necessary, Russia could replace imports of Turkish fruits and vegetables, including at the expense of Azerbaijan.
On average in six months Turkey has delivered in the Krasnodar region about 90,000 tons of citrus fruit, 150,000 tons of tomatoes, 30,000 tons of onions and garlic, and 10,000 tons of cucumbers, according to the consumer department of the Krasnodar region.
“We cannot say that the refusal of the Turkish supply will negatively impact on the economic situation in the region,” the department representative believes. “At the very least, entrepreneurs that are engaged in the supply of fruits and vegetables from abroad, have already begun to shift to other supplier countries.”
He noted that, in the short-term products from Azerbaijan, Iran, Uzbekistan, Morocco, Israel, South Africa, Argentina, Abkhazia, Egypt and China will meet the consumer demand.
The Krasnodar region has already established trade and economic relations with these countries, and will need to increase existing supply, he said.
In the long term, he expects the local farmers to be able to cover the market demand.
“Of course, we are talking about the cultivation of the so-called agricultural crop of protected ground. We will continue to bring in citrus fruits. For example, Egypt will cope with their supply, which previously delivered nearly the same amount as that of Turkey – about 80,000 tons of oranges, grapefruit in half a year, as well as Abkhazia, Morocco, China, and Iran,” he added.
Azerbaijan and the Krasnodar region are actively cooperating in the agricultural sector, and signed several contracts over the past five years.
There are canning and tea factory as well as a logistics center in the region created with the investments made by Azerbaijani company Azersun Holding.
Moreover, Azersun Holding plans to invest more than 1.6 billion rubles in the construction of the greenhouse complex and expansion of the tea factory in the Krasnodar region.
Despite the expectations, the trade turnover between Azerbaijan and Russia amounted to $1.53 billion n January-October 2015, of which 1.21 billion fell to imports from Russia, the Azerbaijan State Customs Committee reports.
Meanwhile, the trade turnover between the strategic partners for the first time exceeded $4 billion in 2014.
Agriculture is one of the largest sectors of the country’s economy. It has great potential and attracts both local and foreign entrepreneurs.
Though high quality Azerbaijani products have been in demand in neighboring countries, the country did not previously have the capacity to export these products in large quantities.
Huge changes have taken place in this sphere in Azerbaijan; large investments were made in the development of agriculture and the agro-industrial complex using modern technologies for growing different crops.
Azerbaijan has sufficient infrastructure to develop the import of agricultural products.
Earlier, the country also expressed plans to create national agricultural centers in Moscow, St. Petersburg, and other regions of Russia.
The agricultural production in Azerbaijan at effective prices amounted to 5.12 billion manat in January-October 2015, increasing to 6.7 percent compared to the same period last year, according to the State Statistic Committee.
During this period, livestock production increased by 2.4 percent, crops by 10.7 percent. In this period the country produced 385,100 tons of meat in live weight, 1.63 million tons of milk, 1.29 billion eggs and 16,800 tons of wool.
With the further developing of the production of the high quality agricultural goods in Azerbaijan, the country will be able not only increase the supply to Russia, but also enter markets in Eastern Europe.