How Azerbaijan adapts to new technologies in agriculture?

Agriculture is one of the key sectors of Azerbaijan's economy, playing a vital role in ensuring the country's food security and promoting economic development. In recent years, Azerbaijan has been actively adopting new technologies in agriculture, aiming to increase production efficiency, reduce losses, and improve product quality. Let's explore the innovations being used in this sector and their impact on the development of agriculture in Azerbaijan.

Application of Information Technology

One of the main directions in the adoption of new technologies in Azerbaijani agriculture is the use of information technology. Farm management systems and digital platforms enable farmers to efficiently manage all aspects of production, from crop planning to monitoring and managing resources such as water and fertilizers. This helps optimize production processes, reduce costs, and increase yields.

Use of Drones and Satellite Technologies

Drones and satellite technologies are also actively used in Azerbaijani agriculture. They are used for monitoring the condition of crops, detecting plant diseases, determining soil moisture levels, and even predicting yields. This allows farmers to quickly identify problems and take corrective actions, thereby improving yield and product quality.

Precision Agriculture

Precision agriculture is becoming increasingly popular in Azerbaijan. It is based on an individual approach to field management, which allows optimizing resource use and minimizing negative environmental impacts. Automated systems for precise distribution of fertilizers and pesticides, irrigation management, and plant health monitoring help farmers achieve optimal results with minimal costs.

Innovations in Supply Chains and Logistics

An important aspect of adopting new technologies in agriculture is improving supply chains and logistics. The use of supply chain management systems (SCM) and Internet of Things (IoT) technologies allows optimizing the processes of storing, transporting, and distributing agricultural products, reducing losses, and increasing their competitiveness.

One of the main directions of agricultural development has been the creation of agro-parks. Currently, 17 agro-parks with a total area of 104 thousand hectares are successfully operating in the country. In the future, this number is planned to increase to 51, and the total land area to 200 thousand hectares. The production capacity of agro-parks is expected to reach 1 billion manats per year. By combining land plots with processing industries, agro-parks are turning into centers of innovation and efficient production.

An interesting example of innovation in Azerbaijani agriculture is the use of modern machines from Korea for rice sowing and harvesting. This allowed increasing the planting area and the yield of this crop. Specialists from the Genetic Resources Institute of the Azerbaijan National Academy of Sciences are also actively exploring the use of ozone in agriculture, which could be the next breakthrough in increasing productivity and protecting plants from pests.

Innovations in agriculture are not limited to technical aspects alone. Azerbaijan is making efforts to bring local agricultural products to global markets. The "Made in Azerbaijan" program, supported by a special presidential decree, stimulates the export and promotion of agricultural products under a single brand. The state allocates funds for marketing and promotion abroad, contributing to export growth and attracting foreign currency to the country.

In today's world, where innovations are becoming the main driver of economic development, Azerbaijan is actively investing in agriculture, recognizing its potential as a key player in ensuring food security, sustainable development, and increasing export opportunities. One of the main advantages of innovation is its ability to enhance productivity, resource efficiency, and product quality.

One of the key innovations actively being implemented in agriculture is the use of modern technologies. In recent years, Azerbaijan has acquired and implemented tens of thousands of modern combines, tractors, and other agricultural machinery, significantly improving the productivity and quality of agricultural processes. This has increased yields, reduced production costs, and made Azerbaijani goods more competitive in the global market.

Another important innovation is the use of modern irrigation methods such as pivot, drip, rain, and drum systems, which contribute to more efficient use of water resources and increased yields. The state actively supports the construction of modern irrigation systems, recognizing the importance of water resources for agricultural development.

The creation of agro-parks has become one of the main directions of innovative agricultural development. Agro-parks are complex agro-industrial complexes that combine land plots and processing industries. This new phenomenon in Azerbaijani agriculture is actively supported by the state and has already shown a positive impact on the industry's development.

One of the key directions of development is also the modernization of agro-park equipment and the renewal of their infrastructure. For nearly twenty years, Agroleasing JSC has been actively importing modern combines, tractors, and other machinery, providing farmers with advanced tools to increase productivity and production efficiency. This has helped solve problems related to outdated equipment and crop losses, significantly boosting production and economic development in rural areas.

Innovations in various agricultural sectors, such as cotton or grain production, are becoming key factors in increasing yields and product quality. The use of high technologies from Turkey, China, and Greece, as well as drip irrigation systems and electronic management systems, demonstrates the desire to optimize processes and increase productivity. GPS systems in combine harvesters significantly reduce grain harvesting time and increase yields, contributing to the development of the grain sector.

Firdovsi Fikratzada, Director of the Center for Agricultural Research, gave a detailed interview to News.Az on the topic.

- What specific innovations have been implemented in Azerbaijani agriculture in recent years, and what benefits have they brought to the country's agriculture?

- To ensure the transition to innovative management systems in agriculture, the Electronic Agriculture Information System (EKTIS) was created. EKTIS is a unified system that provides the creation of a comprehensive database on agriculture. Since 2020, all subsidies in the livestock and crop sectors are provided exclusively through EKTIS, ensuring transparency, accountability, direct access, and resource savings.

Currently, more than 600 thousand entities have direct electronic access to relevant state services through EKTIS. Electronic information and advisory services are also provided to farmers through this system.

One of the significant measures in recent years to support agricultural producers has been the establishment of an agricultural insurance system. The agricultural insurance system, successfully operating for the fourth year, is based on a public-private partnership mechanism. In this system, all insurance work is carried out by private legal entities and individuals, but 50% of the calculated insurance premium is paid by the state. The agricultural insurance mechanism, supported by the state, insures crop areas against various risks, including natural phenomena such as hail, frost, heavy rains, floods, hurricanes, storms, etc.

Currently, the number of insurable crops has reached 41 types. Agricultural insurance covers both dairy and beef cattle, as well as small ruminants. This includes infectious diseases, snake and insect bites, poisoning from poisonous plants and feeds, attacks by wild animals, natural disasters and fires, forced slaughter, etc.

In recent years, the system of state support for farmers has been significantly improved and expanded. Since 2020, a new subsidy mechanism has been introduced. This mechanism provides large one-time payments for the creation of intensive fruit and berry orchards, including on unused or less suitable lands. That is, subsidies are provided for investments in intensive horticulture.
Subsidies are also provided for the creation of intensive farms. The sale of all pedigree animals is subsidized by 60%, and the sale of farm equipment by 40%. Small farms receive a subsidy of 100 manats for each calf obtained through artificial insemination.

All agricultural machinery sales are subsidized by 40%. In addition to subsidizing the sale of machinery and technological equipment, their sale is also carried out through leasing, and imports into the country are exempt from customs duties and VAT.

There are tax and customs benefits for the production, import, and sale of agricultural machinery and spare parts, mineral fertilizers, pesticides, feed and feed additives, seeds and seedlings, etc. The provision of agrotechnical services is exempt from VAT. The state budget provides a 40% discount on the purchase of innovative technologies, refrigerated warehouses, and equipment. The application of modern irrigation systems in agriculture is encouraged, and the sale of this equipment is subsidized by 40%. Farmers pay only 20% of the total cost of modern irrigation systems as an advance, 40% is covered by the state, and the remaining amount can be paid off with an interest-free loan over 5 years.

One of the significant changes in the agricultural sector has been the liberalization of the agricultural machinery market. As a result of reforms, the agricultural machinery market is now fully liberalized, with the private sector predominating.

As a result of all these efforts, interest in the agricultural sector is growing year by year. This is also reflected in increasing investment in the sector. From 2003 to 2022, the volume of investments in fixed assets in agriculture, forestry, and fisheries increased more than tenfold. A particularly positive point is that since 2018, the share of non-state sources of investment in the agricultural sector has exceeded the share of the state sector.

- What technologies and irrigation methods are used in Azerbaijani agriculture to efficiently use water resources?

- Recently, in the context of global climate changes and increasing water demand in the country, sustainable measures are being taken to efficiently use water resources and transition to water-saving irrigation technologies. Currently, modern irrigation systems, such as pivot and drip, are applied on approximately 100 thousand hectares in the country. In the near future, it is planned to expand the area of modern irrigation systems to 150 thousand hectares.

Previously, water delivery from the source to the fields was carried out openly; today, the process is carried out in a closed format. To improve irrigation water supply, reclamation and irrigation systems are being reconstructed. Examples include recent presidential decrees on the reconstruction of the Shirvan and Karabakh irrigation canals.

The main goals are to create small, medium, and large reservoirs wherever possible, ensure the transition to the most economically efficient closed system for water delivery from the source to the fields, provide farmers with pressurized water on their fields, accurately measure the amount of water they receive for more efficient use, and regularly organize educational activities in this direction.

- What role do agro-parks play in modern agriculture in Azerbaijan, and what are their development prospects?

- The creation of agro-parks on large production areas using modern technologies is gaining momentum. The activity of agro-parks is based on public-private partnership mechanisms. Agro-parks successfully operate in the sectors of production, primary processing, and marketing of agricultural products. In total, 51 agro-parks and large farming enterprises are planned to be established in 32 regions on an area of 240 thousand hectares with a total project cost of 2.3 billion manats. Currently, 44 agro-parks are operating in the country.