Wheat harvest in Azerbaijan

Azerbaijan Agricultural technology company provides know-how transfer

Eastern Europe & Central Asia
DEG
Classic

The expansion of the agricultural sector is an important driver for the further development of Azerbaijan and offers good prospects for the numerous (small) farms in the country. DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH provided the agricultural technology company CLAAS with funds from the develoPPP programme of the German Federal Ministry for Economic Cooperation and Development (BMZ) for training in more productive and environmentally friendly agricultural management. In two important agricultural regions of the country, the programme financed the transfer of know-how for the management of an inter-farm equipment park, which supports farmers in the use of modern agricultural technology. By setting up this mechanisation model, CLAAS is making its products known and gaining access to a market of the future, in an effort to further develop its own sales structures with local partners.

With its good soils, favourable climatic conditions and seven climate zones, Azerbaijan offers excellent conditions for the further development of diverse agriculture production. The existing potential is not yet fully utilised because the numerous small family farms typically cultivate only one to three hectares of land and mostly have outdated technology. They have neither the expertise to develop ecologically sustainable agriculture nor access to loans to finance machinery. Azerbaijan has established support programmes to further professionalise agriculture; these promise commercial opportunities for large agricultural machinery manufacturers such as CLAAS. However, the low capital resources among individual farmers and a lack of know-how in the use of complex agricultural machinery make it difficult for farms to access modern agricultural technology. By setting up shared machine pools, CLAAS can also reach small businesses that would otherwise not be able to afford agricultural machinery.

The aim of the project was to promote the inter-farm use of agricultural machinery in the agricultural regions of Gabala and Salyan and to provide farmers with technical know-how and the necessary management skills for this purpose. The following measures were implemented between 2015 and 2019 in two pilot farms with a focus on grain production and milk production and fodder cultivation, respectively, with a total of almost 400,000 euros:

  • Advice on mechanisation concepts and arable farming methods (including the development of operational concepts and maintenance plans, training of operating personnel).
  • Equipping the two pilot farms with modern agricultural technology.
  • Information and training events in educational institutions, at professional associations and cooperatives, among others, on the environmentally friendly use of agricultural machinery and ecologically sustainable production techniques. 

DEG funded the agricultural technology and management initiative as part of develoPPP. CLAAS equipped the two pilot farms with modern agricultural technology and provided training. 

Farms are an important pillar of the Azerbaijani agricultural sector. Together with our partner DEG, we are pleased to contribute to the further development of agriculture there through the efficient use of agricultural machinery and, in this context, also to contribute to higher employment and income in rural areas.
Dr. Nils Roitsch, Claas Global Sales, Regional Director for Eastern Europe
Farmers at harvest
Farmers and contractors attending a practical training event. Photo: Class Global Sales
Farmers undergoing practical training
Contractor harvesting grain on a farm. Photo: Claas Global Sales

With the development of machinery for use across farms and corresponding training, the project contributed to the further professionalisation of Azerbaijan's agricultural economy.

In the Salyan region, the "Mardan" and "Tofig" farms offer agricultural machinery for inter-farm use. In addition, the project reached numerous farmers through advisory services and training. For example, information events and seminars for experts and managers from the agricultural sector were held at the vocational training centre in Gabala. One focus was the transfer of know-how on ecologically sustainable agricultural production techniques and on the environmentally friendly use of agricultural means of production and agricultural technology.

  • 9 enterprises were advised on inter-farm use of machinery
  • 2 farms with modern agricultural technology for inter-farm use
  • Know-how transfer on agricultural production techniques

Development successes

Use of modern production technology for farms

Economic successes

Expansion of distribution structures

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

CLAAS Global Sales GmbH

Founded in 1913, the family-owned company CLAAS is one of the world's leading manufacturers of agricultural engineering and agricultural information technology. CLAAS employs over 11,400 people worldwide.

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

The KFW subsidiary is a specialist in complex financing in developing and emerging countries with comprehensive know-how in long-term investments. DEG promotes and supports companies in the manufacturing industry, the agricultural sector, the infrastructure sector and the financial sector.

Dr. Nils Roitsch Claas Global Sales, Regional Director for Eastern Europe CLAAS Global Sales GmbH
Carla Beckmöller Projekt Manager develoPPP Deutsche Investitions- und Entwicklungsgesellschaft mbH