Development trends of viticulture and winemaking enterprises in Azerbaijan

Abstract

The article presents the results of a study on the development of viticulture and production enterprises in Azerbaijan. Based on the analysis of key performance indicators of enterprises during 2019–2023, it is concluded that the sector makes a stable contribution to the overall volume of agricultural production. It is noted that despite the trend of decreasing vineyard areas, enterprises in the sector ensure an increase in grape yield, particularly among private and family farms, as well as an increase in grape processing volumes. The analysis of the relationship between key performance indicators of viticulture and production enterprises revealed a strong correlation between grape yield and wine production volumes. A direct moderate relationship was established between grape yield and the cost of cultivation. Despite some challenges, such as the reduction in vineyard areas, enterprises are adapting to the new business conditions by improving resource utilization efficiency and increasing yields. The rising costs of grape cultivation require finding ways to optimize expenses and implementing innovative methods in the industry to further enhance its productivity and competitiveness in the international market.