Azerbaijan

GIEWS Country Brief: Azerbaijan 12-October-2018

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FOOD SECURITY SNAPSHOT

  • Cereal production in 2018 estimated above average due to favourable weather conditions

  • Cereal imports in 2018/19 marketing year forecast slightly below average

  • Prices of potatoes in July reached in July lowest levels since 2012

Cereal production in 2018 estimated above average due to favourable weather conditions

Harvesting of cereal crops finalized at the end of August. Total cereal production for 2018 is estimated at about 3.2 million tonnes, 8 percent above last year’s level and higher than the five-year average. The increase in production is mainly due to favourable weather conditions during the growing season, which had a positive impact especially on the wheat output, estimated at a well above-average level of 2 million tonnes.

Planting of winter cereals for harvest in 2019 is about to start in November under favourable weather conditions.

Cereal imports in 2018/19 forecast slightly below average

Cereal import requirements for the 2018/19 marketing year (July/June) are forecast at 1.4 million tonnes, close to last year’s level and slightly below the average. Wheat and wheat flour account for 90 percent of the import requirements and are mainly sourced from the Russian Federation and Kazakhstan.

In July, prices of potatoes reached lowest levels since 2012

Wheat flour prices have been virtually unchanged since May and, in August, they were slightly below the previous year’s levels, mainly reflecting adequate domestic supplies and stable export prices from Kazakhstan.

Prices of potatoes, another important staple in the country, reached their six-year low in July. In August, despite a slight increase, prices of potatoes were still 18 percent below their year-earlier levels, reflecting the bumper production obtained in the country as well as in other countries of the subregion.

In order to prevent further price declines and protect local producers from profit losses, on 5 September 2018, the Government raised the import duties on imported potatoes from 15 to 30 percent of the custom value. This measure is expected to stay in place until 31 October 2018 ( see FPMA policy ).

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