Profitability of the climate change adaptation strategies in the farming sector in Azerbaijan

Ing. Eva Baldassarre Švecová, Ph.D.

Master's thesis

Abstract:

Azerbaijan faces severe climate change (CC) impacts, aggravating land degradation caused by wind erosion and inappropriate agricultural practices. This is particularly the case in the lowlands, where most agricultural production occurs and is carried out by smallholder farmers. Farming practices like agroforestry would enable CC adaptation and mitigation, but the adoption has so far remained limited. The thesis analysed the potential of agroforestry in the lowlands of Azerbaijan with the following objectives: (i) to review the non-financial and financial benefits and costs of agroforestry; (ii) to estimate the profitability of agroforestry and wheat monoculture, including changes in the prices of inputs and outputs, through cost-benefit and sensitivity analyses; (iii) to determine farmers' awareness of CC effects and agroforestry practices and their perceived feasibility through a quantitative questionnaire survey; (iv) to identify the strengths, weaknesses, opportunities and threats of agroforestry through a weighted SWOT analysis. Agroforestry practices (pomegranate orchard, pomegranate orchard intercropped with wheat, windbreaks with wheat) were more profitable than wheat monoculture. They had a greater capacity to deliver various environmental and social benefits, but they were more sensitive to changes in input and output prices (product selling prices, labour cost, subsidies, cost of agrochemicals). The Azeri farmers perceived CC severity and the importance of climate-smart strategies. However, farmers were rather sceptical about implementing fruit orchards and windbreaks, although the strengths and opportunities outweighed the weaknesses and threats in the SWOT analysis. The major strengths identified were improved livelihoods and knowledge. Investment costs and lack of access to technology and innovation were the main weaknesses. Key opportunities were infrastructure development and improved food security. The threats were limited knowledge and awareness of CC risks and adaptation solutions, insufficient institutional coordination and community capacity, and deteriorating infrastructure. It can be concluded that agroforestry is a valuable alternative to traditional monoculture, but its adoption would be feasible only with institutional support for the investment costs and for addressing the identified threats.

Keywords

fruit orchards, SWOT analysis, sensitivity analysis, profitability, cost-benefit analysis, windbreaks

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 24. 4. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 29. 5. 2023
• Vedúci: doc. Ing. Miroslava Bavorová, Ph.D.
• Oponent: Handan Giray, externi

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Master programme:
International Development and Agricultural Economics