At a Glance...
Land Area:
86,600 sq. km.
Lowest Point:
-28 meters (Caspian Sea)
Area (comp.):
Slightly smaller than Maine
Highest Point:
4,485 meters (Bazarduzu Dagi Mountain)
Border Countries:
Russia, Georgia, Armenia, Iran
Climate:
9 of 11 climatic zones, mostly semi-arid steppe
Population:
7,771,092 (July 2001 est.)
Life Expectancy:
63 years
Ethnic Groups:
Azeri (90%), Dagestani (3.2%), Russian (2.5%), Armenian (2.0%), other (2.3%)
Religions:
Muslim (93.4%),
Russian Orthodox (2.5%), Armenian Orthodox (2.3%), other (1.8%)
Languages:
Azeri (89%), Russian (3%), Armenian (2%), other 6%)
Currency:
Manat (4670 = $1 U.S.)
Literacy:
97%
GDP; growth rate:
$23.5 billion (2000 est.); 11.4 %
GDP per capita:
$3,000 (2000 est.)
International Special Reports<CIS/Central Asia <Azerbaijan

Agriculture investment priorities
U.S. investors will find fertile opportunities

The Ministry of Agriculture has set out the following investment priorities by agricultural sector or product:

* Grain: In the year 2000, 1.5 million tons of grains were produced. The production rate of about 2400 kg/hc. can be increased perhaps to 5-6000 kg/hc. Domestic shortfall is still about 700,000 tons per year.

* Fruits and Vegetables: Azerbaijan produces superb quality vegetables and fruits. Processing facilities are lacking, however. Forty-seven canning factories operate, but only 20 percent of fruits and vegetables were processed in canning plants in 2000. For development of this sector, Azerbaijan needs the establishment of service structures and processing plants for packaging, preservation and transportation of fruits and vegetables. Largest potential now: tomato paste, apple juice and other natural fruit juices. Azerbaijan seeks about $20 million in investment in this sector.

* Tobacco: Azerbaijan currently grows about 15,000 tons of tobacco per year. The potential is twice that. There are seven tobacco fermentation factories and one tobacco plant.

* Tea: Tea fields total about 7000 hectares; there are 16 tea processing and packing factories. Export possibilities to the Middle East and Turkey are good.

* Viticulture and winemaking: There are 117 primary processing factories for grapes in the republic, and one very modern bottling plant for wine and vodka in Baku. Good soils, specialists and labor exist in every region. Total production potential of the factories is 1.25 million tons. Investment is sought in grape and grain cultivation for wine and vodka, processing and consumption matters. There is a large and urgent need for a glass tare factory; at present, the country imports all its bottles. Azerbaijan has the raw material for production of green glass tare. The ministry estimates about $85 million in investment is needed here.

* Cotton and silk: If world prices can rebound from historic lows, the potential for cotton as a foreign exchange earner in Azerbaijan is enormous. Today, however, 70 percent of cotton is sold as raw cotton. Azerbaijan is interested in the construction of several cotton spinning factories of different capacities, and plants for the production of textiles. The ministry estimates about $165 million in investments is needed in this sector.

* Meat, poultry and animal husbandry: Since privatization, Azerbaijan is approaching self-sufficiency in some meat production. However, 24 percent of meat products and 35 percent of eggs are imported. There are 97 large poultry factories in the republic processing 60,000 tons of poultry. The country imports about 40,000 tons of poultry annually. The ministry seeks to diminish importation of foodstuffs in this sector by:
     a. Intensively developing livestock husbandry and poultry, improving cattle breeding, and increasing forage production.
     b. Implement changes in meat and poultry processing. Milk processing and meat plants need to be re-established and brought up to modern standards and requirements.
The ministry estimates that $120 million in investments are needed in the animal husbandry and poultry sector.

* Sugar: Sugar beets are grown in 20 regions of the republic, but there is no processing plant. It is expected that domestic demand for sugar will reach 360,000 tons annually by 2005. The ministry is looking for investment to build three sugar beet processing plants.

·Material resources and service: Tractors, combines and other agricultural machinery have reached the end of their useful lives. There is a great demand for a technical service enterprise for agriculture. The ministry believes some 3,200 service centers need to be established at a cost of $200,000 each. There are also old agricultural machine factories that the ministry believes can be upgraded through joint ventures to produce farm machinery.

* Fertilizers: A large super-phosphate factory has been cut off from traditional sources of the raw material, and so does not operate. Moreover, increased natural gas will provide a ready source of raw material for petroleum-based fertilizers.

* Wholesale markets (trading houses): Creation of large wholesale trading houses and improved transportation will ensure greater quality control in agriculture.