Reference Date: 13-January-2013
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FOOD SECURITY SNAPSHOT
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The planting area for winter crops has been expanded
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Bumper harvest of cereal crops in 2012
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Cereal import requirements to decline in 2012/13 marketing year (July/June)
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Food prices on a few items increased on a year-on-year basis
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The planting area for winter crops has been expanded
In Azerbaijan, the planting of winter crops continued up until mid December due to the lack of rainfall in October-November. According to official information the area planted with winter grains expanded by 6.8 percent in 2012 and was estimated at around 900 000 hectares as of 1 December 2012. Winter wheat and barley account for about 95 percent of total cereal production in the country. Two thirds of the planted area is made up of wheat fields and the remainder is mainly barley. The area under these two crops has increased by 3.4 percent and 16.5 percent respectively compared to last year’s level.
Bumper harvest of cereal crops in 2012
Favourable weather conditions and state support contributed to a bumper cereal harvest in 2012, estimated at over 2.75 million tonnes, of which 71 percent was wheat. A slight increase in the planted area under cereals combined with favourable weather also contributed to a better harvest, which is around 13 percent higher than last year’s. Wheat production increased by 20 percent in 2012. The country expects to increase further cereal output in 2013 by expanding the planting area. However, there are some concerns about the degradation of the land, which may not allow a significant increase in yields.
Cereal import requirements to decline in 2012/13 marketing year (July/June)
The 2012/13 (July/June) cereal import requirements are expected to fall by 13 percent compared with the previous year following good cereal yields in 2012 and adequate carryover stocks as a result of large volumes of imports in 2011/12. The bulk of cereal imports, mainly wheat and wheat flour, come from Kazakhstan and the remaining 20 percent (approximately) comes from the Russian Federation. In accordance with the Government’s special programme, it is predicted that import dependency will decrease significantly by the end of 2015. In order to stimulate wheat production, the Government has also recently adopted a decree which exempts wheat and wheat flour from VAT.
Food prices on some food products increased on a yearly basis
In Azerbaijan, a decline in wheat flour and bread prices was observed in August, which reflects the good 2012 harvest. However, wheat flour prices strengthened in October, although they remained at about the same level till the end of 2012 due to improved domestic supplies from the bumper harvest. However, mutton and beef prices increased by 12 and 6 percent respectively compared to the same period of last year. Since the share of household expenditure on food is significant, any increase in food prices puts vulnerable population groups at risk of food insecurity.