Agriculture is an important sector for Azerbaijan, accounting for 35.6% of employment and 5.5% of the country's GDP. The country's agriculture receives significant support from the state, as it is considered one of the most promising areas of economic diversification. The country has favorable natural conditions for growing a wide range of agricultural products, but the lack of technical equipment of farms, obsolescence of irrigation infrastructure and poor soil quality remain serious problems.
The largest volumes of crop production in Azerbaijan are accounted for by cereals. The total gross harvest of these crops in the country in 2023 amounted to about 3.2 million tons in weight, of which 1.8 million tons were for wheat, 1.0 million tons for barley and 287.0 thousand tons for corn. Against the background of a reduction in production to a record low in 2022, the Government of the republic took a number of measures to support wheat farms (including in terms of purchase prices and subsidies to farmers), which had a positive impact on its gross harvest in 2023. Nevertheless, Azerbaijan's own grain production is traditionally insufficient to meet the existing domestic demand, and the country depends on imports.
In the category of vegetables, root crops and tubers, the largest gross harvest in Azerbaijan falls on potatoes, whose production in 2023 amounted to 1.0 million tons. The country also grows significant volumes of tomatoes (845.5 thousand tons in 2023), onions (310.3 thousand tons) and cucumbers (219.8 thousand tons).
Fruits and berries consistently form the basis of Azerbaijan's agricultural exports. In 2023, 351.0 thousand tons of watermelons, 301.8 thousand tons of apples and 224.5 thousand tons of grapes were grown in the republic. Also, in recent decades, the country has been actively developing the production of nuts, primarily hazelnuts and almonds. Cotton and sugar beet occupy a significant share in Azerbaijani crop production, the production of which in 2023 amounted to 276.3 thousand tons and 206.1 thousand tons, respectively.
The key sector of animal husbandry in Azerbaijan is cattle breeding. In 2023, the country produced 2.2 million tons of cow's milk (6.4% higher than in 2019), which accounted for about 98.5% of all raw milk received by local farmers, as well as 152.8 thousand tons of beef, which is 2.8% more than in 2022 and 10.8% higher than in 2019.
The poultry sector is also actively developing in Azerbaijan: in 2023, poultry meat production increased by 5.7% and reached a record 137.5 thousand tons. The production of chicken eggs in the country increased by 8.4% over the same period, amounting to 2.19 billion units. In addition, in 2023, Azerbaijani farmers produced 88.9 thousand tons of small cattle meat. The share of sheep's and goat's milk in the total structure of dairy production is insignificant: in 2023, the production of these products amounted to 34.3 thousand tons, which is 3.7% less than the level of 2022.
The production of fish and seafood in Azerbaijan in 2023 amounted to 66.5 thousand tons (the bulk of this volume is accounted for by fishing in the Caspian Sea).
In 2023, imports of agricultural products in Azerbaijan amounted to 2.6 billion US dollars, which is 4.1% or 110.4 million US dollars below the record level of 2022 and at the same time 34.0% more than in 2019. The volume of imports of agricultural products in 2019-2023 increased by an average of 7.6% annually against the background of growing domestic demand, outstripping the possibilities of local production.
Wheat is the most demanded imported product on the Azerbaijani market — in 2023, the volume of its purchases amounted to 304.0 million US dollars, or 11.8% of all imports of agricultural products. The top 5 agricultural products imported by the country at the end of the year also included beet and cane sugar (7.2% or 184.9 million US dollars), confectionery flour and bakery products (4.4% or 112.6 million US dollars), chocolate confectionery (4.2% or 108.2 million US dollars) and butter (3.4% or 88.9 million US dollars). In total, the ten main commodity items in 2023 accounted for 45.0% of imports of agricultural products of Azerbaijan in value terms.
Compared to the previous year, the largest increase in 2023 was observed in the republic's imports of live cattle (+58.6% or +28.3 million US dollars) and smoking tobacco (+21.7% or +15.7 million US dollars). At the same time, there was a significant reduction in wheat purchases (-30.4% or -132.6 million US dollars).
The largest exporters of agricultural products to Azerbaijan in 2023 were Russia (32.5% of the country's agricultural imports in value terms), Turkey (13.2%) and Brazil (7.3%). Collectively, the top 10 countries accounted for 74.9% of the republic's agricultural imports in value terms. In 2019-2023, Azerbaijan most noticeably increased purchases of agricultural goods from Turkey (2.1 times or +178.8 million US dollars), Russia (+22.5% or +153.9 million US dollars), Brazil (2.5 times or +113.7 million US dollars) and Iran (2.8 times or +82.6 million US dollars USA).
Domestic grain production in Azerbaijan is currently insufficient to meet the existing demand, despite significant gross harvests of these crops. The country has achieved a high level of self-sufficiency in barley, however, a significant part of the needs of the Azerbaijani market in wheat and corn is provided by imports.
In 2023, Azerbaijan imported 1.37 million tons of grain worth 390.2 million US dollars. The volume of imports of this product category decreased by 4.8% (69.3 thousand tons) and by 24.4% (-126.1 million US dollars) in value in compare to 2022. The volume of imports of grain products of Azerbaijan decreased annually by 5.6% in volume terms and by 0.7% in value.
In the structure of grain imports of Azerbaijan in 2023, wheat accounted for the largest share — 77.9% of imports in value terms or 304.0 million US dollars by the end of 2023. The main imported products also included rice (12.8% or 50.1 million US dollars), corn (5.3% or 20.8 million US dollars), barley (2.0% or 7.7 million US dollars) and buckwheat (1.8% or 7.1 million US dollars). In total, these products accounted for 99.9% of the value of grain imports. In 2023, a significant increase was observed in Azerbaijan's purchases of rice and barley. In comparison with 2022, the volume of rice imports increased by 8.7% (+4.4 thousand tons) in volume terms and by 17.7% (+7.5 million US dollars) in value, barley supplies increased by 10.8 times (+43.3 thousand tons) and 4.7 times (+6.1 million US dollars), respectively. At the same time, wheat imports decreased significantly — by 9.1% (-117.7 thousand tons) in volume terms and by 30.4% (-132.6 million US dollars) in value.
Among the largest grain exporting countries to Azerbaijan in 2023, Russia took the first place, accounting for 72.3% of imports in value terms (281.9 million US dollars) - wheat was the basis of supplies. The second largest grain supplier to Azerbaijan is Kazakhstan, which in 2023 supplied 153.0 thousand tons of products (mainly wheat) to the country in the amount of US$ 51.1 million (13.2% of imports in value terms). India also exported significant amounts of grain to Azerbaijan — 45.1 thousand tons worth 42.3 million US dollars (10.8% of imports in value terms), the basis of the country's exports was rice.
India and China increased grain supplies to Azerbaijan most noticeably in 2023. India's exports of these products increased by 19.8% (+7.4 thousand tons) in volume terms and by 23.0% (+7.9 million US dollars) in value. China has increased grain exports to Azerbaijan by 16.1 times (+3.5 thousand tons) and 18.4 times (+2.9 million US dollars), respectively. At the same time, there was a significant reduction in supplies from Kazakhstan — by 46.6% (-133.6 thousand tons) in volume terms and by 48.4% (-48.4 million US dollars) in value.
A significant number of confectionery companies operate in Azerbaijan, including under local brands, but domestic demand significantly exceeds the existing production capacity of these products, which causes a high need for imports. In 2023, Azerbaijan imported 100.4 thousand tons of confectionery products worth 272.9 million US dollars, which is 7.2% (or 6.8 thousand tons) higher than in 2022 in volume terms and 11.5% (or 28.1 million US dollars) in value. Azerbaijan's confectionery imports have increased annually by an average of 6.5% in volume terms and by 12.3% in value over the past five years.
In 2023, flour and bakery confectionery products occupied the largest share in the structure of imports of confectionery products of Azerbaijan, which accounted for 41.3% of the volume of supplies in value terms (112.6 million US dollars). Chocolate and sugary confectionery products accounted for 39.7% and 19.1% of imports, respectively. The largest increase in 2023 was observed in Azerbaijan's imports of flour and chocolate confectionery products. Purchases of confectionery, flour and bakery products increased by 9.4% in volume terms (+3.9 thousand tons) and by 12.6% in value (+12.6 million US dollars) relative to 2022, imports of chocolate confectionery — by 11.8% (+3.2 thousand tons) and by 13.6% (+13.0 million US dollars USA), respectively.
Among the largest confectionery exporting countries to Azerbaijan in 2023, Russia took the leading position, accounting for 36.7% (100.1 million US dollars) of imports in value terms. Chocolate confectionery products formed the basis of Russian exports of these products. Turkey is the second largest supplier — in 2023, the country supplied 18.8 thousand tons of confectionery products worth 71.4 million US dollars (26.2%) to Azerbaijan. Turkish confectionery flour and bakery products are in demand in the local market. Ukraine also exported significant volumes of confectionery products to Azerbaijan - 10.9 thousand tons worth USD 28.7 million (10.5% of imports in value terms) by the end of 2023, mainly chocolate and sugar confectionery products. In total, the top 10 countries accounted for 92.1% of Azerbaijan's imports of confectionery products in value terms.
In 2023, the supply of confectionery products to Azerbaijan was most noticeably increased by Ukraine, Poland and the Netherlands: Ukraine – by 29.8% in volume terms (+2.5 thousand tons) and by 43.9% in value (+8.7 million US dollars), Poland — by 47.0% (+572.0 tons) and by 76.7% (+4.6 million US dollars), respectively. Confectionery supplies from the Netherlands increased by 70.7% in volume terms (+441.0 tons) and by 90.5% in value (+2.7 million US dollars). At the same time, in 2023, there was also a significant decrease in imports of confectionery products from Azerbaijan from Kazakhstan — by 39.9% in volume terms (-810.0 tons) and by 15.2% in value terms (-834.0 thousand US dollars).
Azerbaijan produces a wide range of vegetable oils, including sunflower, corn and olive, but currently almost half of the products sold on the domestic market are supplied from abroad.
In 2023, Azerbaijan imported 146.4 thousand tons of fat and oil products worth 181.8 million US dollars. The volume of imports of this product category decreased relative to 2022 by 14.9% (-25.6 thousand tons) and by 38.6% in value (-114.5 million US dollars). In 2019-2023, the volume of imports of fat and oil products of Azerbaijan decreased annually by 3.3% on average in volume terms and grew by 6.6% in value.
In the structure of imports of fat and oil products of Azerbaijan in 2023, sunflower oil (29.1% of value imports or 52.9 million US dollars) and palm oil (29.0% or 52.7 million US dollars) occupied almost equal shares. Margarine (20.2% or 36.8 million US dollars) and corn oil (13.8% or 25.1 million US dollars) also accounted for a significant part of purchases. In total, these product categories provided 92.1% of the value imports of the category.
In volume terms, the largest increase in 2023 compared to 2022 was noted in Azerbaijan's imports of sunflower oil (+18.2% or +8.4 thousand tons), while in value terms the country's purchases of this type of product decreased by 27.0% (-19.6 million US dollars). In value terms, the import of oils from olives increased most noticeably — by 2.9% or 150.0 thousand US dollars, however, in volume terms, its purchases decreased by 17.0% (-311.0 tons).
In general, in 2023, the volume of imports of most categories of fat and oil products in Azerbaijan decreased compared to the level of 2022. Most significantly in 2023, imports of palm oil decreased by 37.0% (-26.8 thousand tons) in volume terms and by 54.6% (63.2 million US dollars) in value.
Among the largest exporting countries of fat and oil products to Azerbaijan in 2023, Russia took the leading position, accounting for 53.1% of imports in value terms of these products (96.6 million US dollars). The basis of exports was sunflower oil. The second largest supplier to Azerbaijan is Indonesia, which in 2023 supplied 36.4 thousand tons of products worth 41.9 million US dollars (23.1% of the value of imports), mainly palm oil.
The largest increase in 2023 was observed in the supply of fat and oil products to Azerbaijan from Spain and the USA. Spain's exports increased by 14.6% in volume terms (+190.0 tons) and by 34.5% in value (+1.4 million US dollars), the United States resumed exporting corn oil to Azerbaijan in 2023. At the same time, there was a significant reduction in the supply of these products to Azerbaijan from Indonesia — by 35.2% in volume terms (-19.8 thousand tons) and by 51.8% in value (-45.1 million US dollars), Turkey — by 35.4% (-5.0 thousand tons) and 46.5% (-13.0 million US dollars), respectively, as well as Malaysia — by 24.2% (-3.5 thousand tons) and by 47.5% (-12.1 million US dollars), respectively.
Azerbaijan annually increases the production of raw milk and other dairy products, while the demand for these products in the country is also increasing. According to forecasts, this trend will continue in the coming years, which is primarily due to an increase in the competitiveness of local producers, as well as an increase in their production capacities. Nevertheless, Azerbaijan is one of the largest importers of dairy products among post-Soviet countries and one of the most attractive markets for large dairy producers in the region, which significantly increases competition in all categories of this product group.
In 2023, Azerbaijan imported 50.8 thousand tons of milk and dairy products worth 181.1 million US dollars. The volume of imports of these products relative to 2022 increased by 0.7% in volume terms (+343.0 tons) and decreased by 4.7% in value (-9.0 million US dollars). At the same time, in 2019-2023, imports of milk and dairy products from Azerbaijan grew annually by an average of 4.5% in volume terms and 7.5% in value.
Butter occupies the largest share in the structure of imports of dairy products of Azerbaijan in 2023 (49.1% of imports in value terms or 88.9 million US dollars). Among the main imported products - cheeses and cottage cheese (19.8% or 35.9 million US dollars), fermented dairy products (10.4% or 18.9 million US dollars) also accounted for a significant share. In total, the three listed categories provided 79.3% of dairy imports in value terms.
The largest increase in 2023 was observed in Azerbaijani imports of powdered milk, as well as milk and cream without condensed milk. Compared to 2022, purchases of milk powder increased 2.2 times in volume terms (+2.2 thousand tons) and by 76.3% in value (+4.2 million US dollars). The supply of milk and cream without condensed milk increased by 30.1% (+1.7 thousand tons) and by 39.3% (+3.2 million US dollars), respectively.
At the same time, Azerbaijan's purchases of fats from milk, except butter, decreased significantly — by 50.0% in volume terms (-633.0 tons) and by 58.7% in value (-5.0 million US dollars), as well as condensed milk — by 50.2% (-1.3 thousand tons) and 48.8% (-2.5 thousand tons), respectively.
Among the largest exporting countries of milk and dairy products to Azerbaijan in 2023, New Zealand took the leading position, accounting for 24.4% of imports in value terms of these products to the country (44.3 million US dollars). Iran is the second largest supplier of milk to Azerbaijan, which in 2023 supplied 12.3 thousand tons of products worth 36.5 million US dollars (20.2% of imports in value terms). Belarus also exported significant volumes of milk and dairy products — 9.4 thousand tons worth 22.4 million US dollars (12.3%).
In total, the top 10 countries accounted for 93.7% of imports of milk and dairy products in value terms. In 2023, the supply of dairy products to Azerbaijan increased most noticeably from Belarus, Germany and Lithuania. Exports of this commodity group from Belarus to Azerbaijan increased by 37.2% in volume terms (+2.5 thousand tons) and by 20.7% in value (+3.8 million US dollars). Germany increased exports of dairy products by 20.4% in volume terms (+210.0 tons) and by 28.6% in value (+1.8 million dollars, Lithuania — by 22.6% (+258.0 tons) and by 16.5% (1.0 million US dollars), respectively. At the same time, there was a significant reduction in the supply of milk and dairy products from Turkey to Azerbaijan — by 43.5% in volume terms (-2.0 thousand tons) and by 27.4% in value (-4.4 million US dollars).
Meat cattle breeding is one of the main branches of agriculture in Azerbaijan. The country is actively increasing production, almost completely providing the local market with small cattle meat and importing only small amounts of it. At the same time, domestic capacities are insufficient to meet the existing demand for poultry and beef, which causes a high demand for the supply of these products from abroad.
In 2023, Azerbaijan purchased 53.1 thousand tons of meat and meat products worth 118.6 million US dollars on foreign markets, which is 2.9% lower than in 2022 in volume terms (-1.6 thousand tons) and 0.8% higher in value (+897.0 thousand US dollars). The volume of imports of meat and meat products in 2019-2023 decreased annually by 2.1% in volume terms and grew by 4.6% in value.
In the structure of imports of meat and meat products of Azerbaijan in 2023, the largest share was occupied by meat and edible offal of poultry (38.9% of imports in value terms or 46.2 million US dollars). Also, the main imported products were beef and edible offal of cattle (27.3% or 32.3 million US dollars), as well as sausages (13.8% or 16.4 million US dollars). In total, these types of meat products accounted for 80.0% of imports in value terms.
In 2023, a significant increase was observed in the supply of beef and by-products of cattle. Compared to 2022, the volume of purchases increased by 72.4% in volume terms (+3.5 thousand tons) and by 48.8% in value (+10.6 million US dollars). At the same time, imports of meat and poultry by—products decreased significantly - by 16.0% in volumes terms (-5.6 thousand tons) and by 15.5% in value (-8.5 million US dollars).
Among the largest exporting countries of meat and meat products to Azerbaijan in 2023, Ukraine occupied the leading position, accounting for 31.7% (37.6 million US dollars) of imports in value terms. Beef and poultry accounted for most of the country's supplies. The second largest supplier of meat to Azerbaijan is Russia (27.0% of imports in value terms), which in 2023 supplied 16.6 thousand tons of products (mainly sausages and poultry meat) worth 32.0 million US dollars. Belarus exported significant volumes (8.9%) — 3.9 thousand tons worth 10.6 million US dollars. The basis of the country's exports was beef. In total, the top 10 countries accounted for 94.2% of imports of meat and meat products in value terms.
The largest increase in 2023 was observed in shipments from Brazil and India. Brazil's exports increased by 98.6% (+2.0 thousand tons) in volume terms and by 56.2% (+2.8 million US dollars) in value. India increased the supply of meat and meat products by 2 times (973.0 tons) in volume terms and by 70.8% (+2.1 million US dollars) in value. At the same time, there was a significant reduction in supplies from Ukraine and Belarus. Ukraine reduced exports by 25.6% (-5.4 thousand tons) in volume terms and by 3.4% (-1.3 million US dollars) in value. Supplies from Belarus decreased by 35.6% (-2.1 thousand tons) in volume terms and by 23.3% (-3.2 million US dollars) in value.
Azerbaijan is a major producer of fruits, due to which it also has significant opportunities for the production of juices and other soft drinks. The country exports large volumes of its own products (this category is among the TOP 10 main agricultural exports), while there is also a high demand for imported products among consumers.
In 2023, Azerbaijan imported more than 76.4 thousand tons of soft drinks and juices worth 59.4 million US dollars. In comparison with 2022, the volume of imports of these products increased by 0.1% (+75.0 tons) in volume terms and by 5.4% (+3.1 million US dollars) in value. Imports of soft drinks and juices from Azerbaijan in 2019-2023 increased annually by an average of 6.2% in volume terms and by 7.9% in value.
Among the largest exporting countries of soft drinks and juices to Azerbaijan, Russia occupies the first place in 2023, which accounted for 26.4% of imports of these products in value terms (15.7 million US dollars). The second largest supplier is Georgia (26.1% of imports in value terms), which supplied 27.7 thousand tons of products worth 15.5 million US dollars in 2023. Austria also supplied a significant amount — 4.0 thousand tons worth 10.5 million US dollars (17.6% of imports in value terms). In total, the top 10 countries accounted for 94.3% of Azerbaijan's imports of soft drinks and juices in value terms. Deliveries from Austria, Turkey and Georgia increased most noticeably in 2023. Austrian exports of soft drinks to Azerbaijan increased by 44.9% (+1.3 thousand tons) in volume terms and by 54.8% (+3.7 million US dollars) in value.
Turkey increased exports of soft drinks to Azerbaijan by 48.0% (+4.3 thousand tons) and 57.4% (+3.5 million US dollars), respectively, Georgia — by 9.1% (+2.3 thousand tons) and 24.5% (+3.0 million US dollars), respectively. At the same time, Hungary's supplies decreased significantly — by 82.2% (-4.0 thousand tons) in volume terms and by 78.9% (-4.1 million US dollars) in value.
Azerbaijan's agricultural exports in 2023 amounted to 969.2 million US dollars, which is 6.2% (+56.9 million US dollars) higher than the level of 2022. In 2019-2023, Azerbaijani exports of agricultural products in value terms increased by an average of 5.8% per year.
The main export products of Azerbaijan's agriculture in 2023 were fresh tomatoes (16.7% or 162.0 million US dollars), fresh persimmons (13.1% or 127.2 million US dollars) and hazelnuts (12.7% or 123.1 million US dollars). In total, the top 10 exported products accounted for 71.8% of exports in value terms.
The export of Azerbaijani soft drinks, increased most noticeably in value terms in 2023 (2.5 times or +21.1 million US dollars), fresh peaches (+56.6% or +18.6 million US dollars), as well as strawberries (+42.7% or +7.7 million US dollars). At the same time, there was a significant decrease in potato exports (-11.9% or -4.2 million US dollars).
The largest importing countries of agricultural products from Azerbaijan in 2023 was Russia - it accounted for 72.9% of exports in value terms. Georgia (4.7%) and Germany (2.4%) also entered the top 3 importing countries of Azerbaijani agricultural products. In total, the top 10 importing countries provided 92.7% of Azerbaijan's agricultural exports in 2023.
The largest increase in the volume of purchases of Azerbaijani agricultural products for the period 2019-2023 was observed in Russia (+23.5% or +134.3 million US dollars), Kazakhstan (5 times or +14.6 million US dollars) and Turkey (2.4 times or +11.3 million US dollars). At the same time, Italian purchases decreased significantly (-51.2% or -17.0 million US dollars).
