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Azerbaijan Agriculture: The World Bank program to enhance the sector competitiveness

Azerbaijan Agriculture: The World Bank program to enhance the sector competitiveness. Rufiz Chiragzade Agriculture and Rural Development, World Bank. London, November 5, 2013. Agricultural Sector Performance.

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Azerbaijan Agriculture: The World Bank program to enhance the sector competitiveness

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  1. Azerbaijan Agriculture: The World Bank program to enhance the sector competitiveness RufizChiragzade Agriculture and Rural Development, World Bank London, November 5, 2013

  2. Agricultural Sector Performance Agriculture moderate contributor to GDP (5.8 % in 2012) but important contributor to employment, 38% of population is employed in agriculture

  3. Agricultural Sector Performance Growth in Agriculture (2006-2012) has been lower compare to other sector Agricultural export remains low but its share is increasing in non-oil export

  4. Opportunities for growth Significant untapped potential of agricultural sector is coming from: • Comparative advantage in a wide range of products • Rapidly rising domestic demand for quality products • Potential for growth in export and import substitution Analysis of three illustrative value chains shows the ability to generate millions in incomes and thousands of new jobs: • Replacing high gluten corn import - $ 6 million/year • Replacing imports for catering industry - $80-100 million/year

  5. Challenges to Improving Agricultural Productivity and Competitiveness • Farmers unable to access markets, undeveloped value chains, weak linkages between producers and processors (No contracting arrangements between producers and processors) • Poorly functioning irrigation and drainage systems (Deteriorated infrastructure, high water losses, inefficient water distribution, 930,000 ha is effected by salinization; 85 percent of the agricultural output depends on irrigation) • Limited access to finance (Lending to agriculture represents only 4.7% of the total loan portfolio of commercial banks and 18% of the agricultural GDP. 87% of the loan portfolio is concentrated in Baku) • Low level of agricultural services (extension, veterinary) • Weak agricultural research • Food safety, SPS and quality issues (food safety system fragmented, 6 agencies have overlapping and redundant control functions)

  6. Agricultural Competitiveness Improvement Project (ACIP) • Overall Project Development Objective is to facilitate the access of agricultural producers to markets through: • Promoting the development of the selected value chains through a series of activities targeted at key constraints in functioning of marketing chains of agricultural commodities • Improving access of agribusiness/food processing to finance (line of credit) • Upgrading and modernizing the veterinary and phytosanitary services and implementing food safety capacity building program • Promoting seed sector growth • Three main components: • Component A:Support for Sanitary and Phytosanitary Services • Component B: Agribusiness Value Chain Development • Component C: Access to Finance

  7. Component A: Support for Sanitary and Phytosanitary Services

  8. Component B: Agribusiness Value Chain Development

  9. Component 3: Access to Finance

  10. Value added from continued Bank engagement(innovations, capacity building and institutional development under ACIP)

  11. Please visit www.worldbank.org.azfor detail information on WB activities in Azerbaijan

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