Digitalisation, innovation, economical irrigation - 3 pillars of Azerbaijan's agro-industrial complex Review by Caliber.Az

The agrarian reforms implemented in Azerbaijan in recent years are aimed at the digital transformation of agriculture, the introduction of advanced agricultural technologies, including "green" methods and economical irrigation systems, which allow multiplying the return from each hectare of cultivated land.

The key goals of transformations in the domestic agricultural sector were discussed at a specialised forum held recently in Baku, organised by the Food Safety Agency of Azerbaijan, the Food and Agriculture Organization of the United Nations (FAO), the World Organization for Animal Health (WOAH) and the Economic Cooperation Organization (ECO).

“Our main goal is to diversify the economy through the use of natural resources, including great efforts to achieve a sustainable transformation of agri-food systems. Green recovery, digitalisation and innovative solutions are key principles for building a sustainable national agriculture and food sector,” said Azerbaijani Minister of Agriculture Majnun Mammadov, who participated in the forum.

According to the minister, today the main task of the government of the republic is to diversify the economy through the use of the country's natural resources, with the greatest attention being paid to the development of agriculture, its sustainable transformation into high-tech production by reducing losses and increasing productivity.

Here it should be noted that as a result of previous reforms and modernisation of the agricultural sector, Azerbaijan has generally achieved 80 per cent food import substitution (except for cereals) and according to this indicator FAO classifies Azerbaijan among the prosperous countries.

Thus, by the end of 2022 the volume of agricultural production in Azerbaijan exceeded AZN 10.984 billion ($5.9 billion) that is by 3.4 per cent more than in 2021 and in the first quarter of 2023 comparable growth dynamics was reached as well.

However, the need for further reforms and increasing the productivity of the domestic agricultural sector is still important, given the still-present global risks to food security. In the past two years, as a result of high imported inflation, as well as due to the Russian-Ukrainian war and the intensification of the sanctions confrontation, Azerbaijan, like all countries in the region, has faced rising prices for grains, oilseeds, livestock products and other basic food products.

In order to optimize efforts to combat the global food crisis and, more importantly, to reduce the impact of such a negative in the future, FAO experts recommend reducing external dependence on food supplies by increasing domestic production, which is recognized as the most effective and sustainable way to reduce inflation and ensure sustainable food security throughout the world.

In this regard, FAO proposes the implementation of a set of measures to quickly transform the sphere of agriculture, especially in developing countries, where the level of food import substitution is still not high enough. First of all, it is the use of modern know-how in agricultural production and processing, the introduction of economical irrigation systems, increased use of mineral and organic fertilizers to reduce crop losses and increase the yield of arable land.

No less important is seen the acceleration of the process of digitalisation of agricultural production, processing, logistics, as well as the introduction of IT technologies in the management of farms, crop control, the use of "green" technologies to reduce energy costs in agriculture, reducing losses in processing, strengthening veterinary protection in the livestock sector, etc.

Almost all of the above are designated as important guidelines for the recent large-scale reform of the agricultural industry in Azerbaijan, where the program of digitalisation of agriculture is being implemented, complex issues in the field of water use are being resolved, and the agrarian potential of the territories of the Karabakh region liberated from occupation is being gradually mastered.

In particular, within the framework of the project of the Ministry of Agriculture, which has been implemented for several years, the creation of an automated information system "Electronic Agriculture" (EKTIS) provides farmers with detailed information on the volume and structure of crops grown, crop forecasts, information on current supply and demand, helping them choose the most promising and profitable crops in a given season.

Farmers can also receive yield forecasts for their land, and large agricultural complexes with the support of the electronic mechanism can involve unused land into agricultural turnover, optimising the process of improving their fertility. EKTIS played an unprecedented role in bringing order in the sphere of subsidizing of around 600,000 Azerbaijani farmers, strengthening control and ensuring transparency in this process, including the purchase of fertilizers and fuel.

Not so long ago a project on creation of a business information system in the agricultural sector of the country (KYBIS) was implemented with EU support, aimed at development of agricultural activity in regions by forming electronic systems and a database on the market of agricultural products, including the possibility for investors to get necessary sectoral information. KYBIS works closely with EKTIS resources and helps farmers connect to the electronic database and other relevant digital services in the country.

Here it is appropriate to recall that mass access to digital resources and the introduction of green technologies accelerates the formation of "smart" villages and automated agricultural complexes, particularly in the projects currently underway in Zangilan and Fuzuli districts, contributing to the development of agro-parks and other agricultural and processing clusters.

In recent years, Azerbaijan has implemented large-scale transformations in the livestock sector: due to the expansion of stall maintenance and an increase in the share of highly productive breeds, milk yields and meat production have increased, while the state subsidizes 60 per cent of the total import of pedigree livestock.

"No less important task is seen the development of livestock, including the protection of animal health: in accordance with an annual action plan vaccination of animals is carried out to prevent zoonotic diseases, as part of a recent reform the process of veterinary services is organised on the basis of private contracts," said head of agriculture Mammadov, who recalled the importance of implementing the initiative "One Health", which combines measures to protect human health, farm animals and the environment in the country.

“Within the framework of the First State Program of the Great Return to the liberated territories of Azerbaijan, a plan of special measures is envisaged to create zones free from infectious animal diseases,” said Goshgar Tahmazli, chairman of the Food Safety Agency of Azerbaijan, participating in the forum.

According to him, not so long ago, together with the chief veterinary inspector of the republic, WOAH and FAO experts, an inspection of the territories liberated from occupation was carried out, and priorities were identified regarding the selection of places where it is planned to create zones free from zoonotic diseases.

According to experts, the Karabakh region, full of water and abundant in mountain pastures, has great potential for the development of animal husbandry, and in the course of the mine clearance process, Kalbajar, Lachin, Zangilan, Gubadli and other regions can become a key industry base.

The Azerbaijani Minister of Agriculture outlined the efforts to support farmers, encourage producers to use innovative technologies in agriculture, including in the field of irrigation, as a top priority.

“Together with the State Water Resources Agency of Azerbaijan, a commission has been established for the rational use of water resources. Appropriate measures will be taken in this direction: in particular, the profile research institutes of the republic were instructed to expand research in the field of growing plants that are resistant to water shortage,” Mammadov said.

A number of large farms and most agricultural parks in the country have long and actively used drip, aerosol, fine sprinkling, as well as pivot systems for irrigating grain fields and cotton plantations. Modern economical irrigation systems provide water savings of almost two times, and help increase yields by more than 50 per cent.