Significant Growth in Export Volumes and Values Amid Rising Domestic Prices
Azerbaijan’s tomato sector has shown remarkable growth in the first five months of 2024, with exports reaching 86,067 tons and generating 108.587 million USD. This marks a significant increase in both volume and value compared to the previous year. However, this growth occurs amid rising domestic prices and evolving market dynamics.
In parallel, Azerbaijan’s tomato imports from Turkmenistan soared to 548 tons, valued at 304.9 thousand USD, a fivefold increase over the previous year. The customs value remained steady at 56 cents per kilogram. Additionally, tomato imports from Turkey saw a dramatic upturn, increasing by 419 times from January to October 2023.
Domestically, tomato prices have risen considerably, with May and June figures ranging from 3 to 5 manats per kilogram, surpassing last year’s prices. In contrast, the export price per kilogram was reported at 2.38 manats in the first quarter of 2024, lower than domestic market prices. This discrepancy highlights the challenges and opportunities within the domestic and export markets.
The Ministry of Agriculture has noted that tomato cultivation in Azerbaijan spans 18 thousand hectares, yielding over 800 thousand tons annually. Recent years have seen substantial growth in production, supported by subsidies for greenhouse cultivation. Market forces are cited as the primary regulators of prices, indicating a complex interplay of supply and demand factors.
Agricultural expert Vahid Maharramov provided further insights, stating that Azerbaijan produces an annual yield of 860 thousand tons, equivalent to 86 kilograms per capita, with 200 thousand tons designated for export. He suggested that the remaining produce should suffice for domestic consumption. However, high domestic prices are attributed to market monopolies and inefficiencies in the distribution of greenhouse produce.
The impressive export figures underscore Azerbaijan’s growing prominence in the global tomato market, while domestic price increases reflect underlying structural issues. As the sector continues to expand, addressing these inefficiencies will be crucial for maintaining a balance between export growth and affordable domestic supply.
