Insured Animal Rate is Very Low in Azerbaijan: Farmer Paid 180 Manat, Received 4600 Manat

Last year, foot-and-mouth disease spread among large and small livestock in Azerbaijan, causing severe economic losses. Due to this outbreak, many animals died, and farmers suffered significant losses. However, the most effective way to protect against such disasters is to insure the animals in a timely manner. Expanding insurance systems is of great importance for the future of agriculture and livestock farming in the country. Unfortunately, the interest shown by farmers in this matter is not at the expected level.

According to the data of the State Statistical Committee, there are more than 2 million 434 thousand large cattle in the country. Similarly, the number of sheep and goats is at a level exceeding 6 million 880 thousand. These data reveal that the total large and small livestock population in the country is more than 9 million. In contrast, the number of insured animals out of all these herds is only around 1600. This rate painfully shows that the number of insured animals does not even reach one percent of the total animal population.

Ali Ahmedov, press secretary of the Agricultural Insurance Fund, stated that animals can be insured at various age stages starting from 11 days of age. Dairy cows can be covered by insurance up to the age of 7, beef cattle up to the age of 3, and small livestock up to the age of 5. Insurance premiums are extremely affordable for farmers thanks to the fifty percent support provided by the state. For example, the annual insurance for a large cattle worth 1000 manat costs the farmer only between 24 and 39 manat. These low costs clearly demonstrate how accessible and advantageous agricultural insurance is for farmers.

Price differences among insurance packages vary depending on the scope of services provided and the coverage. Packages with higher premiums also cover damages caused by the actions of third parties, such as being hit by a car, theft, and electric shock. In addition, risks such as the death of animals as a result of incorrect treatment by veterinarians are also evaluated within the scope of these comprehensive policies. Authorities emphasize that fully registering animals in the system is essential to increase farmers' interest in insurance. Furthermore, it is stated by authorities that new and comprehensive insurance packages that will meet farmers' expectations are being worked on.

A concrete example showing how useful the system is, is an impressive insurance payment made in recent months. With the premiums received from farmers, a total of 3.5 million manat in insurance compensation has been distributed in the livestock sector recently. One of these compensations was paid to a farmer who insured his animals for only 180 manat. When the farmer's animals died, thanks to the small payment he made, he became eligible to receive 4600 manat in compensation from the state. The Government of Azerbaijan aims to increase the number of insured animals to 100 thousand with the new Agriculture State Program covering the years 2026-2030.