Azerbaijan Improves Agricultural Competitiveness

Nariman is only one of about 150 farmers benefiting from the value chain component of the Agricultural Competitiveness Improvement Project (ACIP) in Azerbaijan. The capacity of the drying facility inaugurated as part of the project in his village, allows serving the needs of all the local producers, and many neighboring settlements, likewise.  

The reforms implemented in the country's agricultural sector at large, are actively supported by the World Bank, aiming the increase of productivity and competitiveness in this sector.

The development of competitive value chains, one of the key components of the project, requires good rationalization between the supply, on the one hand, and the demand, on the other. With the adequate processing capacity, a smooth process flow and ready market access is ensured more easily. 

In addition to the agribusiness value chain development component, this project supports activities aimed at improving the variety and quality of the seeds entering the market.

The fall of the Soviet Union did not hamper the tradition of producing seeds in Olga's village. It continued to be equally nourished by all settlers (about 450 in total for 2019). But times were tough. Farmers had to be the marketers themselves. It took lots of efforts and resources, and sacrificed price. Until the moment, when ACIP was introduced to provide immediate assistance. 

Owing to the project's positive efforts, the farmers are now enabled to do their initial and the most important job – produce good quality products, and deliver. The rest is done by intermediary bodies offering a competitive price, thus allowing the locals to extend their businesses, boost the production and the income, respectively. 

The Agricultural Competitiveness Improvement Project envisages faster development by supporting three more components:

• Strengthening the efficiency and effectiveness of the sanitary and phytosanitary services in order to reduce existing obstacles to agricultural and food trade. 
• Providing financial services to agribusiness. It promotes the growth of agribusiness or agro-food processing enterprises through a line of credit to enhance their competitiveness, increase production and improve technologies, building on the sizeable results in lending to agribusinesses and improved skills of participating banks in appraising agriculture-related investment loans, achieved under the Bank's previous intervention.
• And project management. The management responsibility for the project is taken by the Agency for Agri-Credits and Development (AKIA) within the ministry of agriculture.