Pomegranate market’s dire situation – War exports have halved |
Although the cultivated area has not increased, the production has increased
In recent years, there has been an increase in pomegranate production in Azerbaijan. Last year, a total of 185,000 tons of pomegranates were grown in the country. The indicator recorded just 5 years ago – in 2016 – was 40 thousand tons less – close to 145 thousand tons. Although productivity has increased by 30 percent in these 5 years, the volume of cultivated land has not changed. Both in 2016 and 2021, the area of pomegranate plantations was 2 thousand hectares. From this point of view, the increase in productivity is in sight: if in 2016 79 tons of pomegranates were grown per hectare, last year this indicator increased to 102 tons.
23 percent of the pomegranate grown in Azerbaijan falls on the share of only one region – Goychay. Of the 185,000 tons of pomegranates produced in the country last year, 43,000 tons were grown in Goychay. Kurdamir region takes the second place. Last year, 32 thousand tons of pomegranates were grown in Kurdamir. This means 17 percent of the total production in the country. Shamkir (7.5 percent), Sabirabad (7.3 percent), and Hajigabul (6 percent) regions are also in the top five in the country for pomegranate production. A little more than 50 percent of the total pomegranate production recorded in the country fell to the share of the Central Aran economic region.
There is a 45 percent decrease in exports to Russia
The war, which began with Russia’s attack on Ukraine and is still ongoing, has affected global markets as well as local producers. Azerbaijan Pomegranate producers are also among those affected by the war. After all, both countries Azerbaijan occupies an important place in exports. In particular village Both countries are of special importance for exporters of agricultural products. Azerbaijan A recent statement by the Pomegranate Producers and Exporters Association also supports this view. In his statement to the media, the official representative of the organization said that a serious decrease in pomegranate exports was recorded this year. Last year Azerbaijan He exported about 22 thousand tons of pomegranates. This means about 12 percent of the pomegranate grown in the country.
It is clear from the statement of the institution that Azerbaijan 15,000 tons, that is, 70 percent of the pomegranates he exported Russia sent to markets. Due to the war, Azerbaijan’s pomegranate export to Russia has decreased by exactly 45 percent this year. According to pomegranate exporters, Russia’s war and mobilization have reduced purchasing power. Since the country was subjected to sanctions, of course the economy was also affected. Moreover, pomegranate is a premium product.
Azerbaijan The Association of Pomegranate Producers and Exporters also attributes the decline in pomegranate exports to Russia to competitors. So that, Russia Turkey is one of the countries that produce the most pomegranates. In recent years in Turkey national the currency – the lira – is depreciating and its depreciation also makes the exported product cheaper. So, Turkey products gain competitive advantage. On the other hand, Turkey It grows 3 times more pomegranates than Azerbaijan (600 thousand tons). Russia’s annual pomegranate consumption varies between 140,000 and 150,000 tons.
Turkey as well as Uzbekistan Russia It is considered one of the main competitors of the Azerbaijani pomegranate in the market. In Uzbekistan, the area and production of pomegranate plantations is more than in Azerbaijan.
Pomegranate exports to Ukraine have almost stopped
In addition to Russia, the export of pomegranates to Ukraine, another participant in the war, has also decreased sharply. The volume of pomegranates exported to Ukraine is less than to Russia. About 5,000 tons of pomegranates were sent from Azerbaijan to Ukraine last year. This year, Azerbaijan’s pomegranate export to Ukraine decreased by 83 percent. Now of Ukraine Pomegranates are only exported to some western provinces.
Unlike these two countries, an increase in pomegranate exports to Georgia was recorded. In 2022, Azerbaijan’s pomegranate export to Georgia has increased almost 3 times.
A total of 3 million 727 thousand from pomegranate exports in the first 9 months dollars income has been taken. In the same period last year, this number exceeded 5 million dollars. In this regard, a 47 percent decrease in income from pomegranate exports was recorded within one year.
Azerbaijan’s pomegranate exports have decreased by 50 percent by weight. In the first 9 months of this year, Azerbaijan exported a total of 2,373 tons of pomegranates. 2 thousand 40 tons of those pomegranates – 86 percent – were sent to Russia. Georgia exported 152 tons, 145 tons of Ukraine fall. From this point of view, it is clear that in 2022, pomegranate exports to Georgia surpassed Ukraine.
The fate of pomegranates that are not sold abroad
Of course, pomegranate exporters are not happy with the situation, because there are difficulties in bringing the product that cannot be sold abroad to the domestic market. To the domestic market of products that are not sold abroad offer making it significantly reduces the income. This leads to wastage of pomegranates in gardens. Processing enterprises accept a kilogram of pomegranate for 5-7 kopecks. According to the institution, this does not make pomegranate cultivation cost-effective. For this reason, it causes the welfare of farmers to deteriorate. On the other hand, related to pomegranate production medicinethe increase in the price of fertilizers, etc. makes the situation of farmers even more difficult.
According to the Association of Pomegranate Producers and Exporters of Azerbaijan, the export geography should be increased to solve the current problems. In particular Europe market access is considered important. One of the necessary steps for this is the acquisition of the “Global Gap” certificate. Therefore, an environment that meets the standards for farmers should be established and all technical conditions Europe should be in line with their markets. Pomegranate producers also re-introduced the 3 percent export incentive that had been applied for some time offer they do.
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