COMPETITIVE ENVIRONMENT IN THE AGRICULTURAL INPUT SUPPLY MARKET

Abstract

This article analyzes the competitive environment of the agricultural input supply market in Azerbaijan, including the markets for machinery, fertilizers, pesticides, seeds, and agro-technical services. The main objective of the research is to assess the existing level of competition in these markets and to provide practical recom-mendations for future development. The study examines the competitive conditions in specific resource segments (seeds, fertilizers, machinery, pesticides) from both structural and functional perspectives, taking into account the role of the public sector, the activity of private players, and regional disparities.
The analysis is based on official data from FAO, the State Statistical Committee, Agroservis OJSC, the Agricultural Research Center, and AKIA, as well as the results of farmer surveys. The level of competition is evaluated using indicators such as market share (CR1), satisfaction with prices, and barriers to market entry.
The findings show that, following market liberalization after 2018, the overall competitive environment has significantly improved, with increased accessibility and satisfaction among farmers. However, in some regions, state dominance in areas such as machinery leasing and risks of local monopolies still persist. The study recommends supporting private initiatives in the machinery market, strengthening quality standards, and improving regional accessibility.