FAO, EU support digital reform in Azerbaijan's agricultural sector
Analysis by Caliber.Az

ANALYTICS  01 February 2023 - 16:53

The key vector of agrarian reforms implemented in Azerbaijan in recent years is aimed at the digital transformation of agriculture, the introduction of advanced technologies that make it possible to multiply the return on each hectare of cultivated land. All this is planned to be actively applied in the process of forming the agro-industrial complex in the Karabakh and East Zangazur economic regions. The prospects for further transformation of the country's agricultural sector and the support provided by global donor structures were discussed during the National Forum on Agrarian Consultations held in Baku the day before, which was attended by experts from the United Nations, the European Union, etc.

According to experts of the UN structural unit - the Food and Agriculture Organisation (FAO), the global food crisis, which has intensified over the past two years, makes it urgent to transform the agricultural sector as soon as possible, primarily in developing countries where the level of food import substitution is still insufficient. First, we are talking about the use of modern know-how in agricultural production and processing, the introduction of economical irrigation systems, and the expansion of the use of mineral and organic fertilizers to reduce crop losses and increase the return of arable land. It is obvious that these measures are the main condition for ensuring sustainable food security in the world since reducing external dependence on food supplies helps to reduce the level of imported inflation.

The most important task in this regard, FAO experts see the acceleration of the process of digitalisation of agricultural production, processing processes, and logistics, as well as the introduction of IT technologies in the process of farm management, crop control, access of rural producers to electronic training and consultations, etc. Experts of the UN profile structure believe that such transformations will multiply the productivity of the agricultural sector, help information and organisational support of small and medium-sized farms, and improve their access to sales markets. In turn, mass access to digital resources will accelerate the formation of "smart" villages and automated agricultural complexes, thereby contributing to the creation of sustainable rural communities and gradually reducing inequality between the city and the countryside.

Azerbaijan has also been solving all these tasks in recent years, implementing a program of digitalisation of agriculture, solving complex issues in the field of water use, as well as gradually mastering the agrarian potential of the territories of the Karabakh region liberated from occupation.

"Improving rural living conditions in Azerbaijan is a key priority for both the government of the republic and the UN. Over the past few years, despite the COVID-19 pandemic, Azerbaijan has demonstrated great success in the field of agricultural development," Vladanka Andreeva, the UN Resident Coordinator in Azerbaijan, said during the National Forum on Agrarian Consultations held on January 31. According to her, the UN and the government of Azerbaijan have reached an agreement on cooperation in the agricultural sector until 2025, and together with technical and grant assistance, extensive consulting support is provided to the republic: all this increases the willingness of local farmers to overcome external challenges and risks and contributes to improving the country's food security.

In particular, this year it is planned to sign an agreement on the second stage of cooperation between FAO and Azerbaijan, primarily expanding cooperation in nine priority areas. "During the cooperation, the parties have jointly implemented more than 60 projects in the field of agriculture, thanks to which the agricultural environment has been improved, as well as the level of food security in the regions of the country has been increased. In turn, today the FAO aims to support the republic on projects in the field of food and waste management," said another participant of the forum - deputy head of the FAO representative office in Azerbaijan Bariz Mehdiyev.

An equally important area of cooperation with international organizations and donor structures is the implementation of advanced world agricultural experience to increase competitiveness in the production of agricultural products. So, together with the FAO, the EU and the World Bank (WB), other international organizations participate in the implementation of projects of the agrarian department.

The relevant EU structures together with the FAO are currently working on an investment program in the agricultural sector of the country. "Azerbaijan has impressive potential in the field of agriculture, and we are ready to share our experience in order to accelerate the development of agriculture, processing and production sectors. This sector requires investments, so the EU is working on an investment program that can be implemented both in the form of grants and loans," said Viktor Bozhkov, head of the cooperation department of the EU Delegation to Azerbaijan.

In particular, not so long ago, with EU support, a project was implemented to create a business information system in the agricultural sector of the country (KYBIS), aimed at developing agricultural activities in the regions by forming electronic systems and databases on the market of agricultural products, including allowing investors to obtain the necessary industry information. The KYBIS system will help farmers connect to an electronic database and other digital services, as well as improve transparency in business-state relations, which is also part of the objectives of Azerbaijan's e-government policy. Within the framework of the project, an information portal has been created in Azerbaijani and English - rbis.az, and in the future, it is planned to expand the electronic capabilities of KYBIS, as well as integrate it into other specialized information systems of the country.

First of all, such convergence is expected within the framework of the Agriculture Ministry project implemented for several years - the automated information system "Electronic Agriculture" (EKTIS). The electronic database of the system (BigData) provides a clear picture of the volume and structure of crops grown, and crop forecasts, allowing farmers to be informed about the current supply and demand, helping to choose the most promising and profitable crops in a given season. Also, farmers can get a yield forecast on their site, and large agricultural complexes, with the support of an electronic mechanism, can involve unused lands in agricultural turnover, optimizing the process of improving their fertility. EKTIS has also played an unprecedented role in restoring order in the sphere of subsidizing about 600,000 Azerbaijani farmers, strengthening control and ensuring transparency in this process, including in the purchase of fertilizers and fuel. The EKTIS database also supports the mechanism of preferential lending to farmers, as well as the agricultural insurance system, which helps to mitigate the problem of bank collateral for small farms.

"The introduction of innovations in the agricultural sector plays an important role, as it contributes to the development of new knowledge and experience among farmers. To this end, the state pays special attention to the digitalisation of public services for farmers, who already widely use a number of our electronic services, in particular insurance services. Also, with the support of the FAO, we are implementing a project to strengthen consultations of the agricultural services," Azerbaijan's Deputy Agriculture Minister Sarvan Jafarov said at the Forum on Agricultural Consultations. According to him, the most important area of reform in the agricultural sector is expected to expand the introduction of modern irrigation systems, which will further improve irrigation on 200,000 hectares of land.

Advanced methods of digitalisation of agriculture with the use of "green" technologies and computer control and management systems over agrotechnical processes, as well as economical irrigation systems will be actively used in the development of the agricultural potential of the Karabakh region. "In Karabakh, where most of the land has not been used for agricultural purposes for 30 years, it is possible to produce environmentally friendly products without significant investments in agroecological processes, without the use of pesticides and chemicals," FAO specialist Fazil Dushunjali said during the forum.

The successes in mine clearance over the last two years have accelerated the process of recultivation and circulation of fertile lands in Karabakh: in particular, grain crops are already being grown here on several tens of thousands of hectares. In the Zangilan and Fizuli districts, pilot projects of Aghali and Dovlatyarli "smart" villages are being implemented, with the creation of DATA and analytical centres, as well as a "smart" management system for irrigation systems and acreage, and the introduction of "green" energy sources. Similarly, the Azerbaijani-Turkish agro park Dost in the Zangilan district has already built farms for the maintenance of 3,500 cattle and established a feed base as part of the first stage.

Caliber.Az