EU remains one of largest creditors for Azerbaijan’s agro sector

The third Donor Coordination Meeting was held in Baku on June 6 to consider the ongoing agricultural projects in Azerbaijan, discuss the current trends in the industry and define future cooperation priorities.

The third Donor Coordination Meeting was held in Baku on June 6 to consider the ongoing agricultural projects in Azerbaijan, discuss the current trends in the industry and define future cooperation priorities.

Agriculture Ministry Heydar Asadov, addressing the event, stated that the government will allocate significant funds for irrigation this year, mentioning that drastic measures would be taken in this field.

The minister further stated that agricultural producers in Azerbaijan saved more than 60 million manats (roughly $40 million) due to a 40 percent discount on the purchase of equipment.

In recent years the country purchased more than 7,400 kinds of agricultural machinery, the minister said.

Asadov noted that during the oil boom benefits provided in the agricultural sector were not used sufficiently, and agriculture was not a priority sphere. “Recently, however, significant steps have been taken for the development of agriculture,” he said.

The minister also touched upon the issue of artificial insemination, saying that starting this autumn the government will pay 100 manats ($66) for every calf, born through artificial insemination.

“Last year, more than 5,000 calves were born by means of artificial insemination. I believe that this year's figures will be even more,” the minister emphasized.

A center for artificial insemination will soon operate in the country to ensure the development of the agricultural sector. Some 12 branches of the center are expected to be operating in the regions.

Asadov further added that the Agriculture Ministry proposes to introduce subsidies in sericulture. “An appropriate proposal for developing the silk production has already been submitted to the Cabinet, while proposals for seed sphere will be presented in the near future.”

The Ministry proposes to provide a subsidy of 2 manats ($1.3) per kilogram of cocoons.

The government repeatedly applied various benefits and subsidies for the development of the agricultural sector. So, since 2002 farmers in Azerbaijan have been exempted from payment of all taxes (except land), and since 2007 farmers have received subsidies for preferential purchase of fertilizer and fuel.

In her speech to the event that brought together representatives of over 20 international organizations, French Ambassador to Azerbaijan Aurelia Boucher said that the French Development Agency (AFD) has already affected 112.5 million euros for transport.

She added that the agency could spend the same amount and even more for agriculture support in the framework of the program "Rural Development and Agro Industry Support" if projects in this field justify it.

This is the largest amount of funding allocated by the AFD in the South Caucasus, according to the French envoy.

The ambassador further added that the mission of the agency will visit Baku this autumn to discuss areas of cooperation in the agricultural sector.

Boucher emphasized that currently Azerbaijan and France are cooperating in animal husbandry, artificial insemination, wine-growing and others. France shares its experience with Azerbaijan in agricultural sector, in particular for the modernization of animal health and epidemiological service.

“We continue to cooperate in this area and strengthen it thanks to the attention that the government gives to agriculture,” she said.

The diplomat also noted the possibility of student exchange between the two countries.

Head of the EU delegation to Azerbaijan Malena Mard, talking to reporters on the sideline of the event, said that the EU is one of the largest creditors of Azerbaijan's agriculture sector.

She said the EU is implementing a number of projects in this sphere, in particular, a joint project worth 40 million euros with the European Bank for Reconstruction and Development (EBRD).

Moreover, she noted, the EU works with Azerbaijan's Agriculture Ministry for the development of an electronic agriculture system and a land information system.

Calling education as one of the important issue, Mard noted that the EU works jointly with the Ministry and the ADA University to improve the training level of the agriculture specialists.

She went on to add that the EU is also implementing a twinning project aimed at developing the veterinary service in Azerbaijan.

Azerbaijan seeks to achieve an economy driven by the non-oil sector, but not petrodollars. That means putting more effort to develop local production and more support to agriculture, one of Azerbaijan’s best non-oil sector development options.

The country achieved 6.6-percent growth in the volume of agricultural production in 2015. The agricultural sector is important in Azerbaijan not only to increase export potential, but also to restore and protect the country’s food security.

Enjoying advantageous geographic location Azerbaijan has all possibilities to increase food security and production in the country.