A Word From Executive Director of AmCham Dear AmCham members and friends, On 25th of April we are going to celebrate the 1st anniversary Issue 25 of “Entrepreneurs Day” in Azerbaijan, which was signed by HE Ilham Aliyev in 2016. Majority share of the economy is represented by the private Credits sector. The government is putting serious steps further towards further developing position of this sector and diversifying AmCham Executive Director: economy – improving business conditions, increasing export potential, attracting investment and many others. As a first rank Natavan Mammadova advocacy and business growth professional association in the country, we are honored to contribute to further improvement of business climate in Editor: Azerbaijan and strengthening the competitive economy to make Azerbaijan a better home Aykhan Nasibli for businesses. In our magazine, we do our best to highlight developments in various profit-gaining sectors of the economy aimed to ensure further sustainable economic growth. This time, within 25th edition of IMPACT, AmCham brings the position of diverse Articles contributed by: stakeholders on innovative approaches to the development of agriculture sector, which Mammad Musayev is one of the most promising sectors of the economy and is among 10 sectors described Elman Alaskarov in the Strategic Road Map approved by H.E. President Ilham Aliyev. Agriculture is the traditional, as well as a new business behavior for Azerbaijan. People Suleyman Kalashov living in this territory, have engaged in this sector for a long period of time. However, Ashraf Hajiyev thanks to innovations and existence of high technology, nowadays it requires a new Seymur Niftaliyev approach; which brings change in perception and behavior of people. This paradoxical Javid Mammadov, Borchali Araz outlook has been revealed from different angles by governmental higher level officials Nargiz Karimova, Orkhan Rajabov and experts. You will be able to read interesting contributions from the Deputy-Minister of Agriculture, leaders of business associations, Head of Food and Agriculture Organization & Gunel Farajova as well as member companies. They reveal different aspects and successful case studies Vugar Babayev towards agriculture development. Bahar Kavuzova Happy "Entrepreneurs Day" and best wishes in your business endeavor. Advertisers: Kind regards, Azerfon Natavan Mammadova Mosaik PASHA Insurance Turkish Airlines Editor’s Comment Azersun Holding Dear friend, PMD Hospitality Welcome to the 25th edition of “IMPACT Azerbaijan” magazine, ITECA devoted to achieving higher productivity with application of in- novative approaches in agriculture. Publisher: During the process of diversification of economy, agriculture is American Chamber of Commerce considered to be one of the promising sectors in Azerbaijan. in Azerbaijan Thanks to geographic location and climate condition, there is an existence of big room and opportunity for further development of agriculture. Recently, public discourse has been dominated Tel: (+994 12) 497 13 33 by legislative changes, new mechanisms and behaviors, as well Fax: (+994 12) 497 10 91 as focus of investors to the regional part of the country. In this regard, this edition carries www.amchamaz.org rich content with two major focus. First of all, officials and leading people of this sector have contributed with an interview or article covering recent activities, short term achievements and perspectives of agri- Advertising opportunities: culture in Azerbaijan. Secondly, with stock of international expertise and best practices, Please contact the Editor at member companies have provided fresh vision and future steps towards sustainable [email protected] development. Overall, this edition will be very interesting to read and find potential for your businesses. Herein, it is my pleasure to appreciate one more time for interviewed officials, authors of Tel: (+99412) 497 1333 articles, as well as for the companies who see deep value to advertise their business in IMPACT, including Azerfon, Mosaik Printing, PASHA Insurance, Azersun Holding, PMD The articles in IMPACT Azerbaijan Hospitality, Turkish Airlines and ITECA. express the opinions of the authors Keep reading and enjoying! and do not necessarily reflect the position of the American Chamber of Sincerely, Commerce in Azerbaijan Aykhan Nasibli contents IN FOCUS 4 25 A Word From the The Perspectives of Remote Sensing President of AmCham Azerbaijan Application Products for Increase of the Efficiency in Agriculture Elman Alaskarov, Azercosmos Nuran Kerimov President of AmCham Azerbaijan 34 5 Value-added Agricultural Products: Special Interview with Run Away From Laziness Deputy Minister of Agriculture, Ashraf Hajiyev Mr. Ilham Quliyev SIAR Research and Consulting Group 10 38 Diversification and Development Modern Technology and Innovations of Agriculture Remain High are Applied in Agriculture Sectorthe Priority for Azerbaijan Vugar Babayev Ganja Agribusiness Association Mammad Musayev, National Confederation of Entrepreneurs (Employers`) Organizations of Republic of Azerbaijan MEMBER CONTRIBUTION 14 40 Active Engagement of FAO to Working Time Challenges in Agricultural Development of Oil & Gas Industry Azerbaijan Bahar Kavuzova Melek Cakmak, FAO in Azerbaijan PwC Azerbaijan 18 From Know-how Production AMCHAM AZERBAIJAN Technologies to Higher Productivity 43 Savash Uzan About Us Azersun Holding 20 50 The EU Market is Open to Committee Highlights Azerbaijani Products Dr. Olaf Heidelbach, European Union Delegation to Azerbaijan 55 AmCham Legal Update 22 The Current Situation and Development Perspectives of Agriculture in Azerbaijan 62 Members’ News and Events Suleyman Kalashov, AmCham Calendar of Events Azerbaijan Micro-finance Association 64 2 Issue 25 PHUKET 21.6x28cm ING.indd 1 14.03.2017 11:12 in focus A Word From the President of AmCham Azerbaijan part in economic transformation is going to be one of top priorities for AmCham. Our organization enjoys great level of cooperation with the President and the Government of Azerbaijan, and we consider it very important to continue this dialog. We will continue working hard in connecting the private sector with the Government with the purpose of improving business climate in Azerbaijan. We have been consistently producing the White Paper with our recommendations around improving business climate in Azerbaijan, and we look forward to delivering our new proposals reflecting new economic realities. AmCham brings together many businesses not just from US but from different countries. Among our members we have a great number of Azerbaijani companies. The Board and the management team of AmCham will continue creating exceptional business opportunities and supporting our First of all, using this opportunity, I would like to express members in advancing their commercial interests. my gratitude to the members of AmCham for their trust and We are going to continue working hard on delivering greater selecting me as new President of the organization. value for our members by introducing new member services, Over the years AmCham has become a hugely successful through the work of our committees and organizing various organization. AmCham is special. What makes our events. We find it very important that more members are organization special is its purpose and mission. This is a involved in numerous initiatives and programs organized by unique group of people united by common values of ethics in AmCham. business and fair competition. This business association is In the end, on behalf of the Board of AmCham let me wish a driven by goals of making Azerbaijan a better place for doing very happy Novruz to all our members, and I look forward to business, contributing to mutual trade between the United working closely with them. States and Azerbaijan. Starting from 2016 the Government of Azerbaijan has Nuran Kerimov commenced substantial economic reforms, and taking active President of AmCham Azerbaijan Photo: New AmCham Board of Directors 4 Issue 25 in focus Special Interview with Deputy Minister of Agriculture, Mr. Ilham Quliyev associated with science and education in modern times called the “Knowledge Age”. In this regard, the curricula and educational plans of Azerbaijan State Agricultural University, the country’s staff training center in agriculture, are being improved in collaboration with leading universities of the world, all the labs have already been completely renovated and equipped with modern facilities and new experiment bases have been established in the university. In parallel, an international master's program on “Business management in agriculture” has been launched within a project co- implemented by the Ministry of Agriculture and ADA University in order to further expand the qualified staff training in various fields of agriculture since 2016. Institutional reforms have been performed in the direction of empowering the agricultural research institutes and transforming those institutions into an information and consulting network, Azerbaijan Agricultural Science Center has been restructured as Information and Consulting Center for Agricultural Sciences and the structure of scientific research institutes operating under the center has been optimized. The regional “Farmer house” pilot project was implemented in 2015 under the Regional Information Agriculture is a traditional economic area with great and Consulting Center for Agricultural Sciences to provide potential in Azerbaijan. Recently, new reforms have