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Country Briefs

  Azerbaijan

Reference Date: 20-December-2016

FOOD SECURITY SNAPSHOT

  1. Favourable weather conditions contributed to bumper cereal crop in 2016

  2. Cereal imports to increase slightly from 2015/16 marketing year

  3. Prices of wheat flour increased in October

Favourable weather conditions contributed to bumper cereal crop in 2016

According to latest estimates, the aggregate cereal harvest in 2016 stands at around 3 million tonnes, slightly below the record of last year and well above the average. Wheat production is estimated at 1.9 million tonnes, marginally below the 2015 level. Barley and maize are estimated to account for 1 million tonnes and 200 000 tonnes, respectively.

Planting of winter cereal crops for harvest by mid-2017 is underway. Around 800 000 hectares have been planted by the beginning of December, with a target for planted area set at 965 000 hectares. The abundant rainfall during the autumn delayed plantings, but was beneficial for soil moisture and future crop development.

Cereal imports to increase in 2016/17 marketing year (July/June)

Following the small reduction in the 2016 cereal harvest, the 2016/17 (July/June) cereal imports are estimated slightly above the previous year’s level, at 1.7 million tonnes. Imports account for about 50 percent of the country’s total domestic consumption. The Russian Federation is expected to remain the country’s main supplier of wheat and wheat flour in 2016/17, a position it took over from Kazakhstan since 2012/13, largely as it has been able to offer more competitive prices.

Prices of local wheat flour almost 50 percent higher in October than year earlier

Prices of wheat flour continued to rise in October although the pace of the increase slowed down. Prices of imported wheat flour were slightly above their level of the previous month and were more than 20 percent higher than in October 2015. Prices of locally‑produced wheat flour increased by 2 percent up from the previous month and 50 percent higher than a year earlier. Increased electricity tariffs, together with continuing weakening of the national currency, are the main drivers of the price increases.