IKRAM KARIML General Director of MKT Istehsalat-Kommersiya

zerbaijan is a cradle of agriculture. The land’s fertile soils yield fresh and succulent melons, pomegranates, persimmons and other exotic fruits. Cash crops such as cotton, tobacco and tea are cultivated along with grain – the staff of life for millions. Black caviar, a luxurious delicacy synonymous with haute cuisine around the world, is produced from sturgeon stocks that thrive in the deep waters of the Caspian Sea.

During the Soviet era, Azerbaijan was indeed famous for this rich and abundant bounty of agricultural goods. Under Communist rule, however, the kolkhoz (collective farm) system only allowed farmers to sow crops approved by the authorities. In return, soil tillers received a fixed monthly income that bore no relation to how much they produced. Decades of ecological mismanagement endangered the species of sturgeon and other fish.

In its 15 years of independence, Azerbaijan has overhauled this outdated system. Since reforms were launched in 1995, over three million people have received 1.4 million hectares of land as private property. Today, over 90 percent of land is privately owned and the state monopoly on agriculture has been dismantled. Agricultural production has increased steadily, and in 2005, close to $284 million worth of agricultural goods was exported.

After the energy sector, agriculture is transforming into the most dynamic, market-oriented sector of the economy. “Our ministry and the government are mobilizing all resources to bring national standards, certificates and technical terms of agricultural goods in line with European and international standards,” says Minister of Agriculture Ismet Abbasov.

Aside from Azerbaijan’s “black gold,” cotton is proving to be “white gold” for the economy. Cotton production, a tradition in the region for 16 centuries, is a resurgent industry thanks to technological investments. With cotton production steadily on the rise, farmers harvested over 196,000 tons of cotton in 2005.

Formed in 1997, MKT Istehsalat-Kommersiya is the largest producer of raw cotton products in Azerbaijan. As one of the first agricultural enterprises to welcome the privatization process, the company remains at the forefront of the cotton industry, exporting 90 percent of its production to Russia, Switzerland and the U.S. MKT is firmly focused on raising Azerbaijan’s international agricultural profile on the domestic and global marketplace.

However, insufficient rainfall makes it a challenge to grow water-intensive crops such as cotton. Technological investments and upgrades from western investors have greatly restructured the supply chain of MKT Istehsalat-Kommersiya. Since 2005, the U.S. company Valmont Industries has been involved in the company’s progression. With its American partner, MKT introduced center pivot mechanized irrigation that is not only economical but more ecologically friendly.

General Director Ikram Karimli understands the vitality of his company’s cooperation with foreign partners, noting the impact of U.S. investment for his enterprise. “America is a strong cotton producer mainly of its technology, so we need to apply modern equipment, and predominantly from America.” Since its establishment, MKT Istehsalat-Kommersiya has attracted over $4.6 million in investment.

As the Azerbaijani economy grows and the banking industry strengthens, financial institutions are playing a key role in developing rural infrastructure and extending loans to agrarian entrepreneurs. The International Fund for Agriculture Development and the Ministry of Agriculture of Azerbaijan recently inaugurated projects worth $25 million to improve irrigation and increase lending to farmers. According to Minister Abbasov, “These projects play a positive role in the integration of our agriculture into the world economy, introducing advanced technologies and expertise to Azerbaijani villages and mountainous regions. These projects gave an impetus to agrarian policy carried out in republic, the formation of agrarian market and capacity building.”