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Azerbaijan: Cotton sector review












​Prikhodko, D., Sterk, B., Ishihara, Y., Mancini, F., Muminjanov, H. & Weissen, H. 2019. Azerbaijan: Cotton sector review. FAO Investment Centre Country Highlights, 37. Rome, FAO.




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    This study was produced under an FAO-EBRD Cooperation project on reviewing the development potential of the tea sectors of Azerbaijan and Georgia. As a result of the joint research in the two countries carried out as part of the project, a similar separate review of the Georgian tea sector was also published under the FAO Investment Centre's Knowledge for Investment (K4I) programme. Tea has a long tradition of cultivation in Azerbaijan and Georgia, dating back to the nineteenth century. The structural changes that followed the collapse of the Soviet Union in the early 1990s led to a dramatic decline of the two countries’ tea sectors. However, interest in tea production in Georgia and Azerbaijan has increased in recent years and, in an effort to revive their once thriving tea sectors, governments have adopted sector development programmes that provide for support to primary tea production. In spite of the long tradition and accumulated know-how of tea production and processing, there is little doubt that investments in both technology and knowledge will be required for the Azerbaijani and Georgian tea sectors to grow in a successful and sustainable way. Production focused on efficiency and quality and mindful of shifts in consumer preferences on global markets, but also of potential environmental risks, will be critical in achieving this goal. This publication is part of the Country Investment Highlights series under the FAO Investment Centre's Knowledge for Investment (K4I) programme.
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    Although the once booming tea industries in Azerbaijan and Georgia have long been in decline, interest in revitalizing the sector is gaining steam in both countries. Tea has a long tradition in Azerbaijan and Georgia, where tea has been produced since the 19th century. The two countries became the main tea producers in the former Soviet Union and reached a peak in production in the mid-1980s. With an expected stronger demand for green tea and health and wellness teas as well as for high-quality black tea in developed markets, this brief suggests that these product categories should be the areas of focus for the Azerbaijani and Georgian tea industries during the next decade. FAO and the European Bank for Reconstruction and Development (EBRD) look at the countries’ potential to produce high quality and specialty teas. The joint FAO-EBRD sector review examines how the two countries can advance their tea industries and improve tea quality and profitability.
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    Economic importance of cotton in Burkina Faso 2018
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    This report investigated the role that cotton production has played in the economic development and poverty reduction in Burkina Faso, with a principal focus on how cotton prices, as a proxy to agricultural income, affects economic growth. Findings suggest that while cotton contributes to modest rates of economic growth, the lack of profitable investment opportunities in the industrial and service sectors limit agriculture’s growth potential. The artificially low prices paid to Burkinabe cotton producers suppress farm income and constrain the long–term buildup of investment capital needed to adopt more modern and productive technology and management practices. Moreover, the low pricing has aggravated household’s ability to make any meaningful movement out of poverty. One of the major points drawn from this report is that Burkina Faso’s cotton sector has emerged as a model sector that other countries in the region should consider emulating. Burkina Faso has been forward looking and open to innovation as evidenced by its proactive stance in adopting Genetically Modified (GM) cotton and its inclusion of the smallholder farming community as an equal partner in the ginning industry. While cotton sectors in developing countries will continue to face challenges from declining world markets and sustaining productivity, Burkina Faso provides a viable path for cotton’s continued presence in West African agriculture.

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