Yusif Abdullayev: Azerbaijan reviving geographical and trademark “Aghdam”

In 2018-2022, the value of Azerbaijan’s non-oil and gas exports increased both in actual prices and in real terms by 77.3%, from $1.72 billion to $3.05 billion. The figure is expected to reach $3.4-3.5 billion by the end of 2023, and $5 billion by 2025.

At the same time, Azerbaijan currently has 15 target markets for non-oil exports, and the main task is to promote exports to new markets. Yusif Abdullayev, head Export and Investment Promotion Agency of the Republic of Azerbaijan (AZPROMO) under the Economy Ministry, spoke in an interview with Report about the measures taken in this direction, as well as the revival of Azerbaijani brands.

Report presents the interview.

- What is being done to expand the geography of exports of domestic products abroad?

- Presently, a program is being worked out to develop new directions for the export of non-oil products. In this regard, various markets are being studied, and these will be not only the CIS countries, but also Europe and Asia.

- Is there a demand for our products in these markets?

- We are talking about all products manufactured in Azerbaijan, the main thing is to meet the requirements of these markets, look for partners, sell and increase production, and there is demand.

In this direction, we think that it is necessary to sell better, and this requires quality, while quality means conformity to the market.

There is a strategy in this regard, and I think that it will be approved this year. It covers 2023-2026.

- The plans to introduce a logistics subsidy was mentioned in terms of supporting exportters. At what stage is the development of this innovation, and to whom will it be distributed?

- Made in Azerbaijan support mechanisms have been in place for 7 years and they are very effective. This year we plan to change some of them and add new ones, including the issue of introducing a logistics subsidy is being discussed with the government.

Its application is envisaged with the coverage of the whole of Azerbaijan within a time frame of 5-7 years, and 10 years in the liberated territories. This is very important and necessary.

This subsidy will be paid to exporting companies. We are discussing the possibility of paying a logistics subsidy in the amount of up to 70% of the cost of transportation; in the liberated territories, full coverage of logistics costs at the expense of the state is envisaged.

We plan to submit this document to the government in the next two months, and discussions will be held before the end of the year.

- It's common knowledge that Azerbaijan was the biggest wine-producing region in the Soviet Union. Until 1985, state grape plantations amounted to 276,000 hectares, and the harvest in the whole republic was at the level of 2.6 million tons. And at that time, it was not only more than in Moldova, Georgia, Russia, but also in Spain. The volumes show that Azerbaijan has lost its traditions. What work is being carried out by AZPROMO to revive viticulture and winemaking in the country, to restore its former glory, for example, to such national brands as Aghdam?

- In general, we are thinking in the near future to further expand the state program for the development of winemaking and wine production in terms of the development of autochthonous local grape varieties, the promotion of wine culture, since 35-40 years ago Azerbaijan produced several million tons of grapes, while today the volumes are not the same. The “dry” law of the 80s led to the destruction of vineyards.

Today, grapes are grown in the country on an area of ​​only 17,000 hectares (table and technical varieties). Industrial grapes are planted on an area of more than 5,000 hectares, which gives an average of 50 million bottles of wine (70-75% of the grown grapes). However, not the entire volume is bottled, some is sold as raw materials abroad. Including as cognac spirit for winemakers. In this matter, it is very important to develop viticulture, to increase the area of autochthonous grape varieties.

As for Aghdam, the country’s leadership ordered AZPROMO to revive this brand and make it popular.

For this, the Ministry of Economy and AZPROMO were instructed to register “Aghdam” as a geographical and trademark. When registering a brand as a geographical mark, it must be linked to the location. Therefore, AZPROMO prescribed rules, according to which one of the mandatory conditions for those who will apply for this brand is that the vineyards must be located in the Karabakh economic region.

It is not necessary that there be the city of Aghdam, there may be other locations of vineyards in the Karabakh economic region. Few such companies have their own vineyards. To date, several companies have already applied for the geographical name “Aghdam.” Of these, the Russian group of companies “Abrau-Durso” has already acquired 400 hectares of land in the Karabakh economic region in Fuzuli.

These applications are under consideration for now.

- Can the permission to release the 'Aghdam' brand be granted to several manufacturers provided that they comply with requirements?

- That's possible. “Aghdam” will be produced under strict quality control: the wine must be from local autochthonous grape varieties.

Today we pay great attention to the cultivation of local varieties, and we have very famous grape varieties - Bayan Shira, Madrasa, Khindogny. These autochthonous varieties are used for the production of white and red wines. It is the revival of the Aghdam brand that will be a good platform for the development of the autochthonous variety Bayan Shira. And, of course, the autochthonous variety “Rkatsiteli” is grown in Azerbaijan.