Organizational Structures of Selected Developing World Competition Authorities

Modern Azeri cold storage operations are a recent development, with all 10 operations visited during this assessment being newly constructed within the past 2 years. In Azerbaijan, produce, meats, and other food products are typically managed with centuries-old processes used to maintain shelf life. Cold storage techniques are rarely used as a normal methodology in day-to-day Azeri life. The aims of cold storage are to extend shelf life, slow the aging process, maintain quality and taste, maintain resale value, reduce losses, and maintain food safety. The introduction of cold storage techniques has the potential to emerge a more viable domestic and export market. Agriculture in Azerbaijan provides 39.3% of all employment, but only 6% of GDP. The country's major cash crops, including grapes, cotton, tobacco, citrus fruits, and vegetables, are dependent on an effective cold chain to be economically viable and sustainable. The UN Food and Agriculture Organization estimates that approximately 40% of the value of these crops is currently lost due to the lack of adequate cold chain facilities. Improvements in the country's cold chain segment of major cash crops will have a significant monetary impact. Cold storage warehouses are an essential supporting component impacting nearly every value chain. A typical modern cold chain includes harvesting, pre-cooling, processing, cold storage, cold transportation, wholesale, and retail. A robust cold chain follows several tenets, including "fewer touches, fewer problems," which means handling the product as few times as possible to gain efficiency and control costs. The Government of Azerbaijan has determined that agriculture is a priority growth area and is working to develop the sector. New, modern cold storage facilities have been built with the aid of the Government of Azerbaijan, and further processing opportunities will emerge in time as a result of the increase in food-related infrastructure. Azerbaijan has many resources and infrastructure bases already in place, including a viable climatic opportunity for a variety of agricultural commodities, an extensive transportation network, and linked agricultural areas to traditional infrastructures. The country has a primary highway artery system in place and in good repair, making it efficient to move commodities to transportation and logistical hubs. Cooperative extensions, government, and NGO training opportunities exist at the farm level for extension training in crop management, pesticide and herbicide use, as well as proper harvesting and post-harvest handling. High-quality produce exports are an opportunity market for Azerbaijan. To seize this opportunity, several infrastructure and support areas need to be addressed. The action plan includes improving the cold chain segment of major cash crops, increasing the production of agricultural commodities, and increasing economic opportunities naturally stemming from them. The country's resources and infrastructure bases can be added to, repaired, and further supported to lead to an increase in production and economic opportunities.