Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Agriculture
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Azerbaijan has designated agriculture as one of four priority sectors for economic diversification. Agriculture remains the largest employer, engaging about 34 percent of the workforce and contributing roughly 7.5 percent of GDP. 
Government support covers over 75 distinct subsidy lines, including grants per hectare, 50 percent machinery procurement subsidies, tax exemptions, and subsidized loans via the Agrocredit Foundation, fueling sales of U.S. combines, tractors, harvesters, and advanced irrigation equipment.

Food processing and packaging infrastructure remains outdated, creating openings for U.S. equipment suppliers. In 2024, Azerbaijan launched a $100 million EBRD-backed upgrade program to modernize facilities, introduce Hazard Analysis and Critical Control Point (HACCP) standards, and boost export-quality output.

Post-Soviet land reforms left farms fragmented into two-to-five-acre plots, but recent pilot consolidation schemes covering 10,000 hectares across 12 districts and the digitalization of 85 percent of rural land registries are easing mechanization and credit access. An irrigation rehabilitation project funded by the World Bank through 2026 aims to restore Soviet-era canals, prevent salinization, and open a niche market in land restoration.

A shortage of trained agronomy specialists persists, but the Azerbaijan State Agricultural University in Ganja has opened two EU-partnered research centers and now graduates 200 agronomists annually. Private vocational training centers have also begun offering certified farm-management programs.

Import licenses for foods of animal origin remain mandatory and are issued electronically by the Food Safety Agency. To shield domestic producers, the government maintained higher tariffs on selected grains and dairy products in 2023, while extending tariff exemptions on machinery imports from the EU and Türkiye under GSP agreements.

Leading Sub-Sectors. In the current market, there is high demand for food processing and packaging equipment, specifically for mid-size meat, dairy, and fruit and vegetable processing equipment. There is also a need for production of packaging materials for different market segments. Consulting services to ensure export diversification (destination and product) is another important area of cooperation. The government is paying particular attention to automation and nanotechnologies in the agricultural sector.

Opportunities

U.S. agricultural equipment and used equipment dealers should consider personally traveling to rural markets to meet with target audiences such as farmers and large private holding companies active in agricultural processing. The Azerbaijani government is also interested in promoting small-scale dairy processing in rural areas. Currently, there is high demand for agricultural consulting in international certification and distribution.

Azerbaijan’s returned territories have created new opportunities in agriculture for both local and international companies. In the returned territories feasibility studies are needed to identify agricultural potential. The Azerbaijani government is paying increasing attention to the country’s diminishing water resources. In 2020, Azerbaijan announced a new commission on water resource preservation that is primarily tasked with improving water use in the country’s growing agriculture sector. In 2023, the State Water Reserves Agency was established to improve irrigation and water resources management. The Agency also now holds the former assets of Azersu and the Azerbaijan Melioration and Water Management companies. As the government considers ways to improve Azerbaijan’s irrigation systems and processes, there may be new export opportunities for companies specializing in water-efficient irrigation systems or water management solutions. A key initiative supporting government water management efforts is the annual Baku Water Week event, a major international exhibition and conference focused on water management that brings together producers, government agencies, foreign investors, and technology providers to explore cooperation and long-term partnerships.
 

Resources

    Ministry of Agriculture https://agro.gov.az/az
    Food Safety Agency: https://afsa.gov.az/
    Agency for Agro Credit and Development (AKIA) http://akia.gov.az/en/
    Agro Procurement and Supply: http://att.gov.az/en/about/mission
 

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