Azerbaijan is investing $3 billion in the modernization of its agricultural sector

Azerbaijan has launched a comprehensive program to modernize its agricultural sector. A total of 5 billion manat (approximately $2.94 billion) is to be invested between 2026 and 2030. The program will be funded through a combination of public and private resources. The program’s goal is to increase value added in agriculture, expand irrigation infrastructure, make land use more efficient, and significantly boost exports. According to Bagish Ahmadov, an advisor at the Center for Economic Reform Analysis and Communication, value added in agriculture, fisheries, aquaculture, and food processing is expected to rise by 10% by 2030 compared to 2025 levels. At the same time, exports of agricultural, fishery, and processed products are expected to rise by 33.8%. Of the planned investments, 2 billion manat are to come from state funds, while an additional 3 billion manat are to be mobilized through private investment. The government is increasingly relying on public-private partnerships for this purpose. Agriculture Minister Majnun Mammadov pointed to structural problems in current agricultural production. Although grain and forage crops account for about 74% of agricultural land, they generate only about 11% of the production value. In the future, agriculture is to be geared more toward higher-yielding and higher-value crops. At the same time, Mammadov emphasized the importance of grain production for the country’s food security. The goal is not to expand cultivated areas, but to achieve higher yields per hectare. A key focus of the program is the expansion of irrigation infrastructure. According to the state water authority, more than 1.5 million hectares of agricultural land are to be irrigated this year, with approximately 6.8 billion cubic meters of water to be provided. Among the most important infrastructure projects is the new Shirvan irrigation canal. The 204-kilometer-long project is intended to improve the water supply for approximately 112,000 hectares of existing farmland and additionally develop more than 100,000 hectares of new agricultural land. In addition, the government is working on a comprehensive digitalization of water management. Geodata on land parcels, irrigation facilities, and drainage systems are to be consolidated into a unified digital platform. Real-time monitoring and electronic management systems are intended to improve the efficiency of water distribution. Another goal of the program is to expand irrigated areas to a total of 300,000 hectares. At the same time, international experience from countries such as Israel, Turkey, Norway, and Vietnam will be leveraged to increase productivity in agriculture, fisheries, and aquaculture. Livestock farming is also set to be strengthened. Plans include the restoration of 480,000 hectares of pastureland. New support programs are intended to assist, among other things, slaughterhouses, industrial milk processing, and—for the first time—the production of wool and animal hides. Experts also see great potential in the processing of agricultural products. Pomegranate production was cited as an example. Although Azerbaijan is one of the world’s leading producers, the fruits have so far been exported primarily unprocessed. Processed products could generate significantly higher revenues and increase value added. In addition to investments, the government is planning several legislative reforms. These include a new agriculture law, modernization of fisheries legislation, a revised seed law, and the introduction of a warehouse receipt system. The latter is intended to enable farmers to use stored agricultural products as collateral for loans, thereby improving access to financing. The article “Azerbaijan Invests $3 Billion in Modernizing Agriculture” first appeared on ostwirtschaft.de.