Azerbaijan’s agro-industrial sector on the path of reform Green tech, AI, and export growth take center stage

In recent years, the global agricultural market has faced a number of crises due to adverse climate changes, inflationary pressures, and disruptions in supply chains. Aiming to strengthen food security and boost domestic production, Azerbaijan continues to reform its agricultural sector by enhancing mechanisms of state support and subsidies, while also facilitating farmers’ access to new digital and “green” technologies.

The achievements of Azerbaijan’s agro-industrial sector and its prospects for alignment with global trends are most clearly showcased at the 30th InterFood Azerbaijan 2025 food industry exhibition and the 18th Caspian Agro agricultural exhibition, which opened recently at the Baku Expo Centre and were visited by President of Azerbaijan Ilham Aliyev.

According to the “National Priorities for Socio-Economic Development – Azerbaijan 2030”, the transformation of the agricultural sector is aimed at increasing productivity through the application of advanced agro-technologies, the introduction of efficient irrigation systems, the digitalisation of sector management, and the development of new agricultural lands in the Karabakh region.

Plans also include reducing costs in the processing and food industries by expanding local production—particularly in agro-parks and consolidated farming enterprises—thereby increasing the share of export-oriented products.

The agricultural reforms carried out in recent years have also focused on strengthening mechanisms of state support and improving farmers' access to technological and financial resources.

The annual Caspian Agro and InterFood Azerbaijan exhibitions, both marking milestone anniversaries this year, play a key role in promoting agricultural innovation. Over the years, more than 3,000 companies and over 150,000 visitors from around 50 countries have taken part in these forums. These agricultural events have become important platforms where local and international companies showcase innovative solutions and new technologies in agriculture and the food industry.

This process traditionally enjoys high-level state support. On May 13, President of Azerbaijan Ilham Aliyev visited the Baku Expo Centre, where he viewed the stands of the Ministry of Agriculture and Azerbaijani companies, as well as the national pavilions of Italy, Germany, the Republic of Korea, Georgia, Belarus, and several other countries.

“Exhibition platforms provide farmers, entrepreneurs, and investors with an opportunity to exchange views on current issues in agriculture and the food industry, establish business contacts, and explore modern innovations—agricultural machinery, precision farming systems, digital management tools, and environmentally friendly production technologies,” said Azerbaijan’s Deputy Minister of Agriculture, Elchin Zeynalov, speaking at the exhibition.

In this regard, the 2025 exhibition season once again highlights the sustained international interest in Azerbaijan’s agricultural sector: 450 companies from 31 countries have arrived in Baku to take part in the agricultural exhibitions organised by Caspian Event Organisers.

As Deputy Minister Elchin Zeynalov noted, this year’s exhibition places particular emphasis on new solutions based on the use of artificial intelligence (AI) and automated technologies powered by intelligent management systems.

These trends are especially important for Azerbaijan, which has been listed by experts from the UN Food and Agriculture Organisation (FAO) among the 20 countries whose agricultural sectors are most affected by water scarcity.

Currently, around 70% of the country’s limited supply of freshwater is used in agriculture. As a result, one of the key objectives set by the Ministry of Agriculture and the State Water Resources Agency is to reduce water loss in irrigation channels through concrete lining and the introduction of modern sealing technologies. Efforts also focus on promoting the use of pilot, fine-spray, drip, and other water-efficient irrigation systems on farmland.

“To mitigate the effects of climate change, enhance the efficient use of land and water resources, and make agriculture more environmentally friendly and productive, we are promoting the adoption of innovative approaches—including the expansion of digital solutions, the development of specialised electronic platforms, and the automation of production processes,” said Deputy Minister Elchin Zeynalov.

He also emphasised the importance of introducing new crop varieties and high-yield livestock breeds, as well as improving farmers’ access to financial and insurance tools.

One of the key priorities of the Ministry of Agriculture this year is the integration of artificial intelligence into Azerbaijan’s agricultural sector. During the exhibition, the ministry is presenting several initiatives in this area, including projects aimed at fostering synergy between AI students from local universities and large agro-parks operating in the market.

Among the key events enhancing the significance of this year’s exhibition are the 2nd International Agricultural Innovation Forum and a large-scale Caspian Agro showcase dedicated to fisheries and aquaculture, where innovative solutions and cutting-edge technologies in this field are being demonstrated.

As recently noted by Nabil Gangi, Deputy Regional Representative of the FAO for Europe and Central Asia, Azerbaijan clearly demonstrates how agricultural innovation can successfully develop and deliver tangible results. Advanced technologies—from precision tools to intelligent systems for managing agricultural processes—are being actively applied to boost productivity and efficiency.

“We acknowledge that major challenges lie ahead, such as climate change, soil degradation, and rural migration. However, innovation is the bridge to resilience, and through resilience we can build stable, equitable, and strong food systems,” said Muhammad Nasar, the newly appointed FAO Representative in Azerbaijan, during the exhibition’s opening ceremony.

“The FAO’s partnership with the Government of Azerbaijan continues to expand—from efficient irrigation to farmer training and cooperative development, our joint efforts are yielding real results. These are not just projects, but investments in future generations.”

It is also worth recalling that recent agricultural reforms, along with the adoption of the Law “On Food Safety,” which aims to align Azerbaijan’s legal framework with international standards, are already creating favourable conditions for expanding the country’s agricultural exports.

According to Goshgar Tahmazli, Chairman of Azerbaijan’s Food Safety Agency, who spoke at the opening ceremony of the agricultural exhibition, over the past couple of years Azerbaijan has obtained permits to export sturgeon aquaculture caviar, various seafood products, wool, and hides to the European Union, as well as secured simplified export procedures for hazelnuts. Additionally, the export of local horses to Kazakhstan has resumed, and permits have been obtained for the export of food-grade eggs to Russia and the United States, as well as poultry meat and related products to China.

Notably, in 2024, Azerbaijan’s agriculture and food sectors recorded an 11.3% increase in exports, reaching a total value of $1.03 billion ($605 million). “In just January–March 2025, Azerbaijani entrepreneurs exported fruit and vegetables worth $153.3 million [$90.1 million],” emphasised Mammad Musayev, President of the National Confederation of Entrepreneurs (Employers) Organisations, speaking at the agri-forum.

In addition to increasing agricultural exports, extensive efforts are being made to provide technical support to agricultural suppliers, study foreign markets, and promote Azerbaijani agricultural products abroad under the unified national brand "Made in Azerbaijan", including through the use of resources from international agricultural and food exhibitions.

"As such, the Azerbaijan Export and Investment Promotion Agency (AZPROMO) plans to facilitate the participation of entrepreneurs with a unified country stand at the WorldFood Moscow 2025, Anuga in Cologne, and the 8th China International Import Expo in Shanghai," said Yusif Abdullayev, Executive Director of AZPROMO, who participated in the exhibition's opening ceremony.

"Currently, with the support of the Agency, our companies are participating in the Saudi Food Expo 2025 in Riyadh with a unified country stand, and starting tomorrow, our exporters will participate in the Russia – Halal Expo 2025, which will take place in Kazan."