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Why Agriculture matters?

Why Agriculture matters?. Major driver of diversification away from oil and gas resources Largest employer in the country, providing ca. 40% of employment 47% of the population lives in rural areas 9 out of 11 climatic zones existing worldwide. Agro-Economic Indicators.

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Why Agriculture matters?

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  1. Why Agriculture matters? Major driver of diversification away from oil and gas resources Largest employer in the country, providing ca. 40% of employment 47% of the population lives in rural areas 9 out of 11 climatic zones existing worldwide

  2. Agro-Economic Indicators Share of agriculture in national GDP – 5,1% (downward trend over last decades) Share of non-state agricultural sector in agricultural GDP - 99,4 (second largest after trade and services sector) On average 5% growth over the last decade

  3. Land and crop indicators Arable land is 22% of the total territory Cultivated crop areas: cereals and leguminous – 63,8%, potato and vegetable – 10,2%, fodder crops – 23,5%, industrial crops – 2,5% In 2014 Crop production – 51%, Livestock production – 49% (shift towards livestock, 56 and 44% respectively in 2013 )

  4. Export Performance Second largest exporter after oil and gas Major agro-food export products: fresh and canned fruit and vegetables, nuts, caviar, wines, etc. Main agro-food export destinations: CIS countries mainly (Russia, Ukraine, Belarus), EU states, Turkey, etc.

  5. Main national strategies on agricultural development State Program on reliable provision of food (2008-15): self-sufficiency objective Vision into Future: Azerbaijan 2020: agriculture could be a major contributor to doubling of GDP in 2020

  6. State support to agriculture Tax exemptions (profit tax, VAT, simplified tax, property and income tax) for agricultural producers, except land tax Input subsidies(farm machines, seeds, pedigree animals, fertilizers, lubricants, irrigation water) Acreage based subsidies Soft loansfor producers and processors (for construction of cold storage facilities, greenhouses, broilers, cattle rearing complexes, etc.)

  7. Agro-food trade turnover between Azerbaijan and Belgium Major agro-food imports from Belgium: for almost 40 tariff lines (pastries, confectionaries, chocolates, pears, live animals, products made from potato, etc) Major agro-food exports to Belgium: nuts (in a very limited amount)

  8. Platforms for Cooperation Food and Agriculture Exhibition held annually in May, in Baku, Azerbaijan Intergovernmental Agreements on Agricultural Cooperation (in veterinary and phytosanitary fields)

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