Agriculture, as one of the key sectors of economic activity, provides the world’s population with food, raw materials, and various other resources. It is this sector that supplies people with essential products vital for daily existence, including grains, meat, fruits, vegetables, milk, and other food items. Without the agricultural industry, feeding the entire planet would be impossible, and many people would face hunger. Additionally, agriculture serves as the foundation for the production of many goods, such as paper, textiles, plastics, and cosmetics, most of which are made from plant raw materials sourced from this sector. It is clear that agricultural products act as a raw material base for many processing enterprises. Instead of exporting these products as raw materials, utilizing them domestically can make a significant contribution to the national economy. Thus, the expansion of processing enterprises in the agricultural sector will lead to an increase in budget revenues, a higher volume of exports of finished products, the creation of new jobs, and, most importantly, an improvement in the self-sufficiency of the country’s population in essential food products, thereby enhancing food security. All of this demonstrates the significant importance of developing and expanding processing enterprises in the agricultural sector. Relevance of the topic: In a number of dominant countries around the world, agriculture, as an important sector of the economy, not only provides the population with basic food products but also offers other opportunities. Agriculture is one of the main sources of employment. The availability of jobs is a crucial factor for the development of specific regions within a country, contributing to the improvement of economic stability and the standard of living in these areas. Agriculture actively stimulates the development of science and technology, including biotechnology, genetic research, the development of fertilizers and pesticides, and new methods of soil cultivation, all of which help increase productivity and improve crop quality. It plays a crucial role in ensuring global sustainable development, as it is vital for the stable progress of humanity. For example, this may include the conservation of natural resources and biodiversity, which can be achieved by reducing the use of chemicals and water in crop rotation and adopting sustainable farming methods—one of the environmentally friendly production techniques. Therefore, evaluating the current state of agricultural processing enterprises and continuously investigating development directions is one of the main research objectives. The purpose of the article is to determine the role played by enterprises operating in the agricultural sector in Azerbaijan and engaged in the processing of agricultural products in the country’s economy, to evaluate the current state of their activities and influencing factors. Additionally, the article aims to justify the role of the state in the development of these enterprises, review the mechanisms of state support, strengthen competitiveness for the expansion of their activities, investigate the directions for expanding market opportunities, and provide recommendations on all of these aspects. Research methods: grouping, generalization, systematic approach, development dynamics, synthesis and analysis, comparative analysis, factor analysis, economic-statistical analysis Scientific innovation: The article justifies the need to reveal and evaluate the economic potential of processing enterprises in the agricultural sector in Azerbaijan, with certain methodological principles serving as the foundation. It emphasizes the need to increase the efficiency of utilizing economic potential and develop a strategy for the development of processing enterprises, adopting a systematic approach. It has been determined that the sustainable development strategy of the enterprises studied aligns with the general development strategy of the industry, the region, and the country’s economy as a whole.
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