Agriculture

The steps taken by the Azerbaijan Government for stimulating the development of agriculture in 2006 did not yield the expected results. According to the State Statistics Committee, as of 1 January 2007, collection of spring and winter harvest including, corns, made up 5963.6mln tons, or 0.9% more than 2005. Special weight of agriculture in production of the GDP dropped % as compared to previous year and made u 7.1%. Despite increase of GDP by 35%, special weight of agriculture products fell considerably, which signal alarm.

Unfavorable weather conditions resulted in drop in prices of agriculture products in 2006 by 0.8%. At the same time rise in prices of cattle breeding by 2.9% enabled the agrarian sector to end the year with a balance in black.

In 2006 a total of 2,078,3 tons of grains and leguminous plants (with consideration of corns) from 783,600h of sown area in the country amid productivity ratio of 26.5 metric tons from each hectare. Some 1504,100 tons of the total, or 72.4% fell on grains, while 145,900 tons (7%) вЂ" on grain corn. It is 2.3% and 3.9% less than 2005 respectively. Drops is explained with cut in sown area by 2.3%.

Production of rice, cotton, potato, melon and water melons, tobacco and tea fell. In 2006 some 5,100 tons rice was harvested from 1,200h, or 38.8% less than 2005. The area sown under these products deceased 50%.

Production of potato dropped approximately 7.7% and comprised 999,300 tons. Production of melon and water melons fell 0.6% and made up 361,500 tons. Tobacco harvesting over the year made up 4,845 tons and tea - 655 tons, or 32.1 and 11.2% down respectively as compared to 2005. Cotton production dropped in connection with unfavorable weather conditions and comprised 130,100 tons.

In 2006 sugar bean was sown in the area of 7,800h (+37.8%), while harvesting made up 169,300 tons. The production of this agriculture product was stimulated by the commissioning of a sugar plant in Imishli.

As a result of agro-technical measures, particularly, the application of fertilizers in the sphere of planting had a positive impact on productivity ration. Thus, in 2006 average productivity ratio rose 3.1 in tobacco production a compared to 2005, vegetables 2.9%, melon and water melons 4.1%, fruits 3.4%, grapes 24.1%, tea 44% and sugar bean 63.6%.

Harvest of several agriculture products

Source: State Statistics Committee

Stability was maintained in the sphere cattle-breeding, excluding the poultry. In 2006, live stock made up 273,600 tons, or 4.1% more than the same period of last year, diary вЂ" 1299,500 tons (+3.8%), wool вЂ" 13,600 tons (+3.4%). This period the agriculture sector produced 760.9mln eggs, which is 13% less than 2005.

Production of cattle-breeding (in ths tons)

Source: State Statistics Committee

In 2006 the forest and fishing enterprises of the country produced goods worth 828,000 manats and 128,000 manats respectively.

Cut in production of eggs and planting (excluding grapes and vegetables) had a negative impact on the volume of gross product in agriculture. In December 2006 the cost of agriculture output increased 1.4% as compared to previous month and 8.4% as compared to 8.4% as compared to 2005.

The price index for the greens and melon families equaled 102.3% in comparison with September, Trend reports quoting the State Statistics Committee of Azerbaijan. For the reported period, the production prices for vegetables have increased by 8.9%, grains вЂ" 1.1% and fruits and nuts вЂ" 0.6%.

In December price index of cattle breeding made up 100.6% as compared to previous month. Price of big-horn cattle and products of it increased 0.8%, small-horn cattle вЂ" 0.6%, birds and eggs 0.3%. Prices of fishing economies remained stable and forest products dropped 0.2%.