Azerbaijan's agro industry seeks Qatari partners

The Republic of Azerbaijan, which has embarked on a mission to expand its foreign trade fast, is eyeing Qatar to reinforce its presence in the local market and attract potential investors to its emerging agro-industry sector.

Report informs referring to The Peninsula that a trade delegation headed by Azerbaijan's Agro Procurement and Supply Chairperson, Leyla Mammadova, held fruitful meetings with several Qatari entities including Hassad Food, Al Meera, private sector body Qatar Chamber and other leading market players in Qatar, during its just-concluded visit.

"The Agro Procurement and Supply, under the Ministry of Agriculture of Azerbaijan, is looking to expand its businesses with Qatar, especially in agro trading. We are currently working on a large number of projects to stimulate agro entrepreneurship. It offers excellent opportunities for Qatari investors", Leyla told The Peninsula in an interview.

Agro Procurement and Supply are in the process of supporting SMEs in the agro sector. It is working with entrepreneurs to increase production and to find new markets. The government-supported body is also working with large producers to promote agriculture and food products outside Azerbaijan. "We are here to encourage Qatari investors to help tap the enormous opportunities available in Azerbaijan's agro sector," she said.

Looking to expand its agro and food business with its 12 traditional CIS (Commonwealth of Independents States) countries, Azerbaijan wanted to deepen its market in the GCC. Qatar is one of the essential markets in the region. "We can also support Qatar's ambitious food security program in a big way," she said.

The Agro Procurement and Supply has been working with Azerbaijan's embassy in Doha to showcase the opportunities available for potential Qatari investors in Azerbaijan since last year. "We held several rounds of discussions with different government entities and individuals. Hopefully, we will see some fruitful results this year," she added.

"Azerbaijan agricultural products are high-quality products. We see that niche market demand in Qatar." Ranked 23th country by oil production in the world, Azerbaijan has a long history of agricultural traditions. Livestock farming, growing crops, and horticulture in the farming area of nearly 5 million hectares developed.

Agriculture is one of the most critical sectors of the economy in Azerbaijan- a country that is considered to be one of the earliest sites of human agricultural activity. Currently, the farm sector employs over 36.3 percent of the active labor force of the country.

As one of the leading agro-food producers in the CIS, Azerbaijan seeks to further develop its agriculture and food industry for import substitution purposes in parallel with the enhancement of export capabilities.

The country has 4.8m hectares of agricultural land, which comprises over 50 percent of its total territory, of which 39 percent is arable. Crop production accounts for around 49 percent of agricultural output, with livestock farming making up the remaining 51 percent. The country has a range of long-term plans to boost the agriculture sector's contribution to its national GDP with the support of foreign investors, she said.

Azerbaijan trades intensively with the CIS, which is traditionally the leading destination and the largest consumer of agriculture and food exports from Azerbaijan. However, in recent years foreign market scale has expanded to include many other countries in the GCC, Europe, Asia, and the US. The country's main export products are fresh vegetables and fruits, vegetable and animal oils, sugar products, tea, processed vegetables and fruits, beverages, cotton, and others.

To generate reliable food reserves, the government has taken several measures to improve the business and investment climate by stimulating producers, providing subsidies, and offering a tax-free investment environment for foreign investors.