Despite remaining a net wheat importer, Azerbaijan is positioning itself as a key transit hub in Eurasian grain flows, leveraging its strategic corridors and underutilized milling capacity.

Niyazi Amirbayov, CEO of Agro Dairy, outlined Azerbaijan’s grain market outlook and its growing role in Eurasian trade flows during his presentation at the IAOM Eurasia Conference & Expo 2025 in Istanbul.

Azerbaijan’s wheat consumption has remained stable at around 2.8 MMT annually, with domestic production covering only 1.2–1.5 MMT. The rest is supplied through imports, historically dominated by Russia. However, recent years have seen a shift toward Kazakhstan, which has benefited from two consecutive record harvests.

THE MIDDLE CORRIDOR: A PIVOTAL BRIDGE

Amirbayov emphasized Azerbaijan’s strategic location, particularly its role in the Middle Corridor (Trans-Caspian International Transport Route-TITR), which connects China to Europe through the Caspian Sea and the South Caucasus.

• Grain flows along this corridor rose 63% in 2024 to 4.5 MMT.
• By 2027, volumes are expected to reach 10 MMT.
• A critical step is the reopening of the Zangezur Corridor, a 40-km railway link between Azerbaijan and Armenia that will connect directly to Turkey’s rail network and onward to Europe.

He also highlighted the North-South Corridor, which will enable flows from Russia through Azerbaijan into Iran and global markets. Together, these developments could make Azerbaijan a vital bridge for Eurasian grain trade.

MILLING CAPACITY OFFERS NEW OPPORTUNITIES

Azerbaijan has developed an underutilized milling capacity of about 1 MMT of wheat flour. Coupled with its logistics position, this creates potential for the country to process wheat and supply flour to landlocked countries in Central Asia and beyond. “This combination of location, logistics, and industrial capacity could turn Azerbaijan into more than just a transit hub—it could become a processing hub as well,” Amirbayov noted.

Amirbayov also acknowledged several challenges:

• Price volatility as a net importer leaves Azerbaijan vulnerable to global market shifts.
• Logistical bottlenecks persist due to lack of direct sea access.
• Supply dependence on Russia and Kazakhstan limits diversification in wheat quality and origins.

Despite these hurdles, Amirbayov stressed Azerbaijan’s unique advantages:

• Political and economic stability for over two decades, even amid regional tensions.
• Access to Central Asian landlocked countries, offering new trade routes.
• Attractive investment climate, with favorable tax regimes and incentives for agro-industrial growth.

While Azerbaijan will remain a net importer of wheat in the near term, its strategic corridors, milling capacity, and stable investment environment position it to play an increasingly important role in regional and global grain and flour trade.