On 9 April, the Azerbaijani Ministry of Justice registered four grants of the EU office in Azerbaijan worth €2 million in the agrarian sector, reported Report.az.   

“EU’s support for regional and rural development is one of the key priorities of our cooperation with Azerbaijan. Therefore, we are pleased with the registration of new grant projects. These projects will provide practical support to small and medium agribusiness owners, help them [grow their businesses], create jobs, and earn income. I am particularly pleased with seeing support for the sensitive groups and women in the center of this grant,” said the Head of the EU delegation in Azerbaijan Kestutis Jankauskas.

The grants are aimed at increasing and diversifying the incomes of the rural population by promoting the local food concepts, as well as creating local consulting services on agriculture. 

The new grant projects include: 1) Food production via consulting services, as well as the promotion of small and medium farms, creation of new value chain models and development of agro-tourism in Shaki-Zagatala and Mountainous Shirvan regions; 2) Creation of a group of farmers engaging in pomegranate production, support to their transformation and achievement of experience in the pomegranate value chain, as well as the organization of training for them to use pesticides and fertilizer to provide food safety in Aran Economic Region; 3) Creation of mechanism on the development of sustainable agro-tourism and ecotourism, which will help village households increase their incomes in the southern regions of Azerbaijan; 4) Development of new market opportunities, creative branding, and marketing, as well as the strengthening of agro-entrepreneurship among… women via innovative agricultural resources, promotion of local food heritage through the increase of the incomes. The project also includes the creation of a hereditary food café to be managed by women in Baku.

The abovementioned 6 contracts cost €3.5 million in total. 

The agricultural sector of Azerbaijan is the second most important natural resource after oil and is highly diversified due to varying topography. Major food crops include wheat, barley, vegetables, grapes and other fruits, while the main cash crops are cotton and tobacco. Livestock constitute an important economic sub-sector. Agricultural land is comprised of cropland, pastures, and rangeland. Rainfall is low and most of the cultivated land is irrigated. Average size of individual land holdings is 3 to 5 hectares. The agricultural sector accounted for about 20% of the national GDP between 1997 and 2001, but then started declining and currently contributes only 6% to the country’s GDP. The deteriorating irrigation infrastructure, soil fertility depletion, erosion, salinity and pollution were the major factors in the sectors reduced contribution to the GDP. While the government continues to own most of the pasture-land, small-scale farmers now produce more than 90% of the agricultural output.