About 70% of Azerbaijan's grain demand is met through domestic production," Ismat Abasov, Azerbaijani Agricultural Minister, said to journalists on 3 May. "Now we cannot completely meet country's grain demand," he said.
Today Azerbaijan's market is full of imported grain and meat products at averagely 40%, not speaking about other imported foodstuffs being sold in the local stores. What does it mean? According to the norms of the Russian Academy of Sciences, it is possible to speak about food independence if nearly 80-85% of the foodstuffs are ensured at the expense of internal production. 75% is already a critical level. Therefore, the current situation is dangerous. The expenses on purchase of foodstuffs still remain significant in the structure of the consumer expenses (70%).
Therefore, the term of 'food security' becomes an obligatory part of lexicon of the politicians. On 1 May, the President of Azerbaijan Ilham Aliyev, signed an order on preparation of a State Program on Reliable Food Supply to Population. Azerbaijani Cabinet of Ministers is in-charge of devising the project of the State Program within three months for submission to the President. The representatives of the relevant Governmental organizations as well as independent experts will be involved in devising the project of the State Program.
Today there are not real threats of food security in Azerbaijan, but the Republic should strengthen its food security, Ilham Aliyev said. "The price of the foodstuffs sharply increased in the world markets. It already takes serious character in several countries of Africa and Asia. Today I can not say that Azerbaijan fully ensures its food demand, and therefore, there are historical and objective reasons. However, we should try to maximally produce foodstuffs which assume strategic importance for us," Aliyev said. He stressed that practical measures are taken for this purpose, especially additional funds are being allocated for the farmers. "The grain production has been increased, but it does not fully satisfy us," the President said. He expressed belief that Azerbaijan will succeed in ensuring its food security in future. "Therefore, ensuring food security will be priority for us in the future," Ilham Aliyev said.
Within amendments to the 2008 Public budget, additionally AZN 156.6mln is projected to be allocated to ensure food security. These funds are planned to be directed towards increasing State support for the agriculture, accelerating melioration and irrigation works, constructing special storages to keen grain. The Government considers additional steps to increase grain crop and therefore, special attention will be paid to seed growing.
The problem of food security activated in Azerbaijan due to several reasons. Firstly it is linked with the 40-50% price increase for practically all kinds of the most urgent products. The international community is seriously concerned about this issue. The international organizations, including UNO, raise this question, warning of possible consequences of this tendency. According to the estimates of the World Bank, today additional 100mln people faced threat of poverty due to price increase. No country can avoid it, and Azerbaijan has already faced high level of imported inflation.
Structure of import in I quarter of 2008
| Names | Specific weight in import, % | In relevant to January-March 2007, % |
| Machines and equipment | 27,70 | 117,86 |
| Ferrous materials and products from it | 7,76 | 59,15 |
| Foodstuffs | 13,09 | 133,51 |
| Consumer products | 0,76 | 111,50 |
| Transport means and spares to them | 22,13 | 244,74 |
| Furniture | 0,57 | 83,25 |
| Pharmaceutical products | 1,55 | 142,93 |
| Other | 25,14 |
Source: State Customs Committee
Secondly, lack of grain reserves in the world and its impacts on the situation with bread in Azerbaijan. During the year, the bread prices increased twice.
The third reason impelling the Government of Azerbaijan to strengthen food security is the decision of the UN World Food Programme to stop aid to the refugees and internally displaced persons in Azerbaijan in June. The aid to the Azerbaijani refugees and internally displaced persons has been provided since 1994.
As seen, the reasons of the food security in Azerbaijan is linked both with the internal and foreign threats. The destructive impacts of the internal factors leading to breakdown of economy in general, especially agro-industrial complex. The current actions of the Government of Azerbaijan to subside agriculture are of compensation character.
Azerbaijan's Minister of Agriculture, Ismat Abbasov, said that the production of the agricultural products should be increased to ensure food security in Azerbaijan. "The processing facilities have to be expanded in the country," he said. Yet Azerbaijan fully ensures its demand for vegetables, melon and watermelon and fruits. Even the country exports them.
The foreign threats for the food security may include: openness of economy and national market, weakening in compositeness of the Azerbaijani food market. For Azerbaijan, liberalizing external-economic activities with regards to food market would lead to growth of food dependence, loss of internal market for host producers which may further strengthen if Azerbaijan does not protect its interests in joining the WTO.
As seen, the food security is the part of Azerbaijan's economic security. Their key criterion is the capacity of State to provide population with foodstuffs. The country who can not fulfill this task may not be considered as independent. This is a matter of life and death for Azerbaijan.