The number of cattle and small-horned animals in Azerbaijan has decreased sharply. As of October 1, 2023, the number of cattle was two million 533.1 thousand, and the number of small cattle was seven million 223.2 thousand.
According to the calculations of the State Statistics Committee, compared to the corresponding period of last year, the number of cattle decreased by 4.3 percent or 113.4 thousand heads, and the number of small-horned animals decreased by 8.9 percent or 705.1 thousand heads. This year, the number of cattle and small-horned animals decreased and reached the lowest level in the last 10 years. Against the background of the decrease, the price of meat also increases. What should be done to prevent the process?
If demand exceeds supply…
Azer Badamov, a member of the Agrarian Policy Committee of the Milli Majlis, said in his statement to the “Kaspi” newspaper that the increase in prices is related to the number of animals: “The state does not interfere in the regulation of meat prices. Because the prices in the market are controlled according to the market economy. It is formed depending on supply and demand. If demand exceeds supply, prices rise. Meat is among the most expensive goods in the last two years. One of the main factors affecting the price of meat is the sharp decrease in the number of large and small animals in the country. A decrease in number leads to a decrease in supply. This leads to an increase in prices. “I think that the decrease in the number of cattle is related to the decrease in grazing areas.”
All areas are involved in farming and horticulture
A. Badamov said about the decrease in the number of animals that this process occurs because the peasants do not have pasture land: “Meat animals fed in intensive farms are grown in closed conditions. The components included in the feed used for gaining weight of cattle are mainly imported from abroad. The increase in the prices of feed components imported from abroad also affects the cost of meat. The reduction of grazing areas makes it difficult for the peasants to keep livestock and reduces their number. This also affects the number of meat products and animals released to the general market. The reduction of grazing and grazing areas is related to the expansion of cultivated areas. In recent years, regardless of their purpose, all areas suitable for cultivation are involved in agriculture and horticulture. This leads to a decrease in the feed base of animals and an increase in price.
The development of animal husbandry should be accelerated
According to the deputy, certain measures should be taken to stop the increase in price: “The increase in the price of meat limits the access to this product for every citizen. Therefore, measures should be taken to regulate the price of meat and create abundance in the market. As part of these measures, first of all, the development of animal husbandry in the territories freed from occupation should be accelerated. These areas have previously played an important role in meeting the meat demand of our country. Now entrepreneurs should be given the conditions to build livestock complexes in those areas again. But this is a long-term process.”
Import of meat should be facilitated
According to the deputy, if measures are not taken, the price of meat will increase in the near future: “For short-term measures, the meat import process should be simplified. So, for the import of meat, customs duties should be reduced for a certain period of time, or should be canceled altogether. If cheap meat is imported to the market from abroad, the prices will be adjusted by themselves.
The increase in the price of meat products is already a reality
Agrarian expert Rajab Orujov said that the increase in the price of meat products in the consumer market is already a reality: “It is necessary to admit that today some of the large intensive livestock farms have already stopped their activities. The reason is the increase in the cost of the feed they buy. In business, the conjuncture formed between supply and demand determines the requirements of the market. They always associate the reasons with the fodder, and there are objective and subjective reasons for the increase in the price of the fodder. This affects livestock products, especially meat.”
According to the expert, if it is possible to get a normal income from animal husbandry, in this case, everything will be fine: “If certain incentives are created for the development of animal husbandry in individual family farms in the region, this issue will not show itself very prominently.”
The long-term continuation of today’s conditions…
R. Orujov does not think that there will be a shortage of meat: “However, the decrease in the number of animals and the dynamic growth of the population will also increase the demand for livestock products in the consumer market in the future. The long-term continuation of today’s conditions will be reflected in the increase in the prices of livestock products in the coming years. No shortage of meat is expected. But it’s time to sound the alarm. Because the development of animal husbandry is a step taken in the direction of both providing employment to the population in our rural areas and improving the social situation.”
How to compensate for the difference?
Our interviewee stated that it is necessary to facilitate the access of producers to the market in all areas: “We operate in the conditions of a market economy. Under these conditions, saying “stop” to the price increase does not meet the requirements of the current market economy. The main issue here is that producers take their place in the direct sales market, in the value chain. Meat products produced in the regions are directly reflected in the markets united in the economic regions. The main issue here is the very serious price differences between the people who put the product on the consumer market and the sales market. The difference can be compensated by making the access of producers to the consumer market a little easier.” (“Kaspi” newspaper)
