Azerbaijan food export set to benefit from EU-Russia spat
By Nigar Orujova
Azerbaijan is able to master a significant part of the food-shortfall in Russia resulted from the embargo on food import from Europe, said Dmitry Savelyev, Deputy Chairman of the State Duma Committee on Financial Markets, Rosbalt reported.
Experts believe, agricultural products from Azerbaijan have always been in demand in the markets of neighboring countries, but today the issue of fruit and vegetable exports is on the agenda among the first in the country.
"Today, Europe’s losses from the ban on agriculture export to Russia are estimated at 5-6 billion euros,” Savelyev said. “Azerbaijan may master the essential part of this volume of product exports - to the mutual benefit of both our countries.”
Azerbaijani fruits and vegetables by the ratio of "price-quality" are second to none for the Russian consumer. “There is no doubt that they are attractive to its taste and environmental quality than similar products from Asia, often stuffed with chemicals, or even the European fruit and vegetable products, cultivated in the unnatural human conditions – in greenhouses or on hydroponics," he stressed.
The growth rate of agriculture in Azerbaijan has reached 48.9 percent. That is significantly higher than the world's average over the last decade.
Officials declared 2015 to be Azerbaijan's year of agriculture, a clear sign that the state will put a strong emphasis on the development of the country's agricultural capacity and ability.
Today, this sector employs 37 percent of the working population in the country. Farmers are exempt from all taxes, except land tax. Over the past years farms have greatly modernized their equipment, cattle pedigree and developed formerly barren lands.
According to 2014 state data, over 60 percent of concessional loans issued by the National Fund for Entrepreneurship Support, focused on the production and processing of agricultural products.
Today, the degree of self-sufficiency in most food items nomenclature varies between 76-98 percent. Moreover, vegetables and fruits are produced in excess.
Last year, Azerbaijan exported fruit and vegetables in the volume of $291 million, which is 16.1 percent higher than in 2013.
This year, the country is ready to at least double its exports to Russia, and expand its product range by one and a half.
In the light on depreciating oil prices, Azerbaijan has pushed for the diversification of its economy to minimize its dependence on oil revenues.
Such strategy has been beneficial as Azerbaijan has been able to increase non-oil revenues, thus reducing its economic dependence and vulnerability.
As it currently stands Azerbaijan has greatly improved its food export potential.
Russia, which announced a ban on EU products, has said to be interested in developing stronger trading relations with Azerbaijan, especially in regards to fruits and vegetables.
Azerbaijan's geographic position makes a strong competitor as transportation cost can be kept low in comparison to Africa, Asia and South America.
The Russian government has already offered Azerbaijani investors to participate in the construction of logistics centers for agricultural products in the south and the central region of Russia.
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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar
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