FAO presents roadmap for reforming agricultural cooperatives in Azerbaijan

During the International Year of Cooperatives, Azerbaijan has reached an important milestone in its efforts to transform agricultural cooperatives into engines of inclusive growth and agrifood system resilience, reads a technical note from the Food and Agriculture Organization of the United Nations (FAO) titled "From Vision to Action: Strategic Dialogue on Cooperatives for Agrifood Transformation in Azerbaijan," Report informs.

"It is time to accelerate cooperative development to build a resilient cooperative ecosystem – one that aligns governance, finance, and market competitiveness within a coherent long-term strategy. By adopting a forward-looking approach and investing in learning from international experience, knowledge exchange, and peer-to-peer support, Azerbaijan can position its cooperatives as drivers of sustainable development," reads the update.

Supported by a solid legal framework – the Law on Agricultural Cooperation (2016) and complementary national strategies – Azerbaijan has established the foundations for cooperative development. To build on these assets and international momentum, the Food and Agriculture Organization of the United Nations (FAO) and the Ministry of Agriculture convened a Strategic Dialogue on Cooperative Development (October 2025), engaging over 60 stakeholders to co-create a shared vision and roadmap for the sector. The result, "Vision 2030", is shared in this document.

Background analysis indicates that, despite notable progress, cooperatives continue to face a range of structural and operational challenges that require attention. Trust among farmers remains limited, influenced by negative historical perceptions and poor transparency and communication. Although many cooperatives were initially promoted through top-down initiatives, their formation is ultimately voluntary, ensuring that membership was based on choice rather than obligation. Governance and management practices still need strengthening, as irregular meetings and weak accountability mechanisms affect member engagement.

"The Vision 2030 agreed by stakeholders is clear: cooperatives should evolve into trusted, performance-driven enterprises that contribute measurably to agricultural GDP, rural employment, and food security. Achieving this vision requires a coordinated roadmap built on three pillars:

1. Institutionalized dialogue and partnerships. Establishing representative structures and a national council to unify cooperatives, foster trust, and ensure policy coherence.

2. Financial support and market access – Reorienting subsidies and credit toward investment-driven growth, upgrading infrastructure, and leveraging digital tools for competitiveness.

3. Capacity development and awareness – Creating training and incubation centers, embedding cooperative education in curricula, and running campaigns to promote a culture of cooperation," reads the update.

Azerbaijan can draw on global best practices to accelerate progress. Malaysia's cooperative training institute, Belgium's accreditation system, Italy's mutualistic fund, and Türkiye's gender-responsive models offer proven strategies for governance, finance, and inclusivity.

These international examples are further explored below. Adapting these approaches to local realities will strengthen organizational performance and build trust across the ecosystem.

The outlook is promising: with disciplined implementation and stakeholder commitment, Azerbaijan can transform its cooperative sector into a cornerstone of sustainable development – enhancing competitiveness, fostering social inclusion, and ensuring safe, nutritious, and affordable food for all.