Azerbaijan Looks to Cattle to Drive Economic Growth

Azerbaijan Looks to Cattle to Drive Economic Growth

Azerbaijan is looking toward agriculture, and particularly cattle to drive growth in a post-oil economy. As the energy sector continues to be volatile, Azerbaijan has seen growth of 9.2% in its non-oil-driven sectors, and 7.3% growth in agriculture in the first half of 2015.

 

The country’s efforts to focus on agriculture, livestock and cattle breeding as a way to grow the economy and increase food security has begun to show positive results. Azerbaijan now ranks 58th out of 109 countries, according to the Global Food Security Index 2015 – improving by 7 points year on year, and ranks 10th among all Asian and Pacific countries.

 

The government’s President’s Reserve Fund has allocated more than US$14.3 million for the development of cattle breeding, cattle imports, and the support of cattle sales by agricultural producers. Three key areas have been identified on which to focus to ensure demand and possibly export potential in the sector – high genetic productivity, adequate fodder, and biosecurity. In conjunction with the funding, is a presidential order issued by President Aliyev to increase state support for the improvement of the country’s cattle pedigrees and genetic potential, to increase the domestic demand for livestock products, and for the subsidy of US$95 to livestock owners for each bull produced through artificial insemination.

 

Following the adoption of policy reforms that resulted in increased privatization and a shift toward a market economy, Azerbaijan’s livestock sector grew by 2.4% in the first seven months of 2015, while meat production in the country grew by 1.8%, milk production by 3.7%, egg production by 1%, and wool production by 1.8% over the same time period.