In a country where almost 90% of its exports remain in the form of hydrocarbons, the presence of a small Azerbaijan company’s jams and dried fruit products among the stock items in Baku supermarkets may look like a mere afterthought. Nothing could be further from the truth. This project, whereby the Economic Council of Azerbaijan has decided to lease shelf space in six Baku supermarket chains for the placement of 140 different products made by small-scale producers through the KOBIA scheme, provides an insight into an issue which Azerbaijan’s Economic Council deliberated on during their April 20 meeting: Why do small food manufacturers face difficulties getting their products onto the shelves of Baku supermarkets despite the nation’s agricultural capabilities and growing export figures?

With the Prime Minister, Ali Asadov, presiding over the session, which had an informative report prepared by Agriculture Minister, Majnun Mammadov, the conference took place amid some moderate macroeconomic weakness. During the period January to March, 2026, the country’s GDP fell by 0.3 percent – its oil and gas economy shrinking by 1.2 percent while its non-oil economy grew by only 0.2 percent. Azerbaijan’s sovereign reserves, amounting to about $85 billion, offer enough insurance for this situation.

The problem lies in the fact that this economic downturn occurred right at the time when Azerbaijan needed to demonstrate progress regarding its diversification story, which, according to Oliver Wyman’s $150 billion GDP prediction by 2035, should have been expected.

- 52.7%: Non-oil share of GDP, marking the first time it has exceeded 50%. - 8.6%: Non-oil GDP growth rate, despite a 7.3% decline in the oil sector. -$3.3 billion: Non-oil exports from January to November 2025, a 7.3% increase year-on-year. - 34%: Proportion of the employed population working in agriculture and agro-processing.

In terms of export performance excluding oil, 2025 could well go down in history as a good year for Azerbaijan. Exports of agriculture and agro-industries from the country amounted to $1.03 billion in the first ten months of the year, with a growth rate of 19.1%. What is even more important is the nature of the growth: sugar export went up by 54.4%, fruits and vegetables 24.3%, chemical products 39%, and foods in general 19.8%. These numbers cannot be........

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