In Azerbaijan, meat market prices are expected to stabilize through increased production and reduced costs.
According to Deputy Minister of Agriculture Zaur Aliyev, the main goal is to increase meat production, boost productivity, and lower production costs. He noted that stability in the market can be achieved by keeping meat production costs at an appropriate level. Currently, 83.7% of the demand for beef, 94.2% for mutton, and 82% for poultry are met by local production. The new State Program adopted by the government aims to further increase the country's self-sufficiency in meat products. After all this, will it be possible to regulate meat prices, and how realistic is it?
Oxu.Az presents an article from the newspaper "Kaspi" on the subject:
"Domestic demand will be fully met by local production"
MP Azer Badamov believes that the State Program will effectively influence price stabilization: "A new State Program covering 2026-2030 has been adopted to develop the livestock sector, one of the strategic directions of agriculture in Azerbaijan, and to ensure food security. The document envisages increasing the country's self-sufficiency in meat and poultry products by the end of 2030, with domestic demand mainly met by local production. If the measures outlined in the State Program are fully implemented, the self-sufficiency level will significantly increase in the coming years, and domestic demand will almost completely be met by local production. To stabilize meat market prices, dependence on imports must first be reduced and domestic production expanded. Since prices are formed based on supply and demand, increased supply in the market can lead to stabilization and even lower prices in some cases. To achieve this, increasing productivity, creating modern livestock farms, strengthening the feed base, and optimizing production are essential."
State investment of 2.2 billion manat
A.Badamov stated that the program envisages directing 2.2 billion manat in state investment for the development of agriculture. These funds will allow for the creation of modern livestock complexes, the introduction of new technologies, the strengthening of breeding work, and increased productivity: "As in world practice, the establishment of intensive and closed farms in Azerbaijan can lead to a significant increase in meat and milk production."
"Production costs will be reduced"
According to the MP, the main problems in the sector currently include insufficient development of the feed base, limited pasture and grazing areas, and weak application of innovative technologies: "The main factor affecting the cost of meat is feed costs. Especially in poultry farming, a significant portion of feed components are imported, so global price hikes directly impact domestic prices. Therefore, increasing local feed production is of strategic importance. Expanding feed production can significantly reduce the cost of meat, milk, poultry, and eggs. Long-term price stability is precisely linked to lowering production costs. Although the results of the State Program will be felt gradually, the main economic effects are expected to become clearer closer to 2030."
"Risk remains for price stability"
Economist Akif Nasirli believes that it is difficult to keep meat market prices stable administratively. However, by increasing production and reducing costs, it is possible to weaken the pace of price increases and create a more stable market:
"This approach seems realistic, but the results will show themselves not in the short term, but in the medium and long term. The main way to regulate prices is not direct market intervention, but strengthening the production chain. This includes expanding the feed base, modernizing livestock farms, improving breeding work, increasing productivity, and reducing logistics costs. At the same time, strengthening the competitive environment and supporting small farmers can also help balance the market."
According to A.Nasirli, the fact that most of the domestic demand is currently met by local production is a positive indicator: "However, feed dependence, rising costs, and structural problems remain a risk for price stability. One of the main problems is the dependence of the feed market on foreign or expensive local components. In addition, low productivity of breeding animals, the abundance of small farms, and limited water and pasture resources also increase costs. Feed costs account for 60-70% of the cost of meat. Therefore, increasing local and cheaper feed production is one of the most effective tools that can affect prices. If the productivity of corn, barley, alfalfa, and other feed crops is increased, dependence on imports will decrease and production costs will fall. However, the results of these measures will be felt over several seasons or years."
