On September 29, 2025, at the permanent scientific seminar of the Institute of Economics of the Ministry of Education, Doctor of Economic Sciences, Associate Professor, Yunus Sadigov, a leading researcher of the Department of Economic Problems of Agrarian Sector of the Institute, delivered a report on "Future at Risk: Weakness of Economic Diversification and the Importance of Agro-Processing Industry".
At the seminar chaired by Professor Nazim Muzaffarli, the speaker made a speech on the role of the agro-processing sector in economic diversification. He noted that effective and transparent regulation of key sectors of the economy - including industry, agriculture and service sectors - has a direct impact on the sustainable development of the state. In such circumstances, it has become necessary for the state to review agriculture and related processing industries, strengthen regulatory mechanisms, and identify new development directions. Although the transition to a market economy and privatization processes at first glance allow for the liberalization of the system, but the practices proved that the state's purposeful intervention and regulatory role means decisive importance in the development of strategic areas such as agriculture. This has brought to the agenda the application of new management models for the sustainable development of agro-processing sector and ensuring national food security.
In particular, the effective functioning of agro-industrial complex is possible not only through the integration of agriculture and industry, but also through the proper regulation of this process and the optimization of economic relations. The field of agricultural processing has played a strategic role in the last half century not only in terms of the technical modernization of the economic structure, but also in terms of the creation of new production and market relations.
Y. Sadigov said that for developing countries, where the bulk of labor resources are concentrated in the agricultural sector, the transition to a high-tech economic system is impossible without development of agro-industrial complexes, especially the agro-processing sector. The processing sector not only increases the value of the product, but also strengthens the stability of the production chain and its competitiveness in the food market. Moreover, the development of this sector is also closely related to the more efficient use of natural resources and environmental stability. In this regard, the purposeful regulation of the agro-processing sector by the state is a multifaceted issue that has not only economic, but also social and environmental significance.
In recent years, ensuring food security in Azerbaijan, strengthening domestic production and reducing dependence on imports have become one of the priority directions of state policy. In particular, the prospect of involving the territories liberated from occupation in economic turnover in 2020 creates new opportunities and at the same time serious challenges in this area. Y. Sadigov believes that the restoration of agro-processing sector in these areas and creation of new enterprises based on modern technologies, along with the socio-economic revival of the region, can also make strategic contributions to the country's overall food supply system. The organization of processing enterprises in these regions will both shorten logistics chains and promote regional equality.
At the end, held broad discussions around the topic and answered questions. In particular, issues such as formation of agro-processing sector in Azerbaijan, its development stages, and state regulation against the backdrop of modern challenges were the main topics of discussion (economics.org.az).
