03/2018
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34 A rm e n i a Agriculture Bulletin Government hosts meeting on improving animal husbandry EUR 10 million grant for agricultural programs World Bank, Armenia discuss 2018-2022 partnership framework Fruit and vegetable exports more than double
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Government hosts meeting on improving animal husbandry ........................................................ 2 Agriculture Minister predicts agricultural sector growth ................................................................ 2 Prime Minister calls for digital solutions for food safety ................................................................ 2 HACCP system promoted by Food Safety Service ........................................................................... 3
Foreign Aid ................................................................................................................. 3 5) 6) 7) 8) 9) 10)
EUR 10 million grant for agricultural programs............................................................................... 3 World Bank, Armenia discuss 2018-2022 partnership framework ................................................. 3 Buckwheat cultivation begins in Shirak ........................................................................................... 4 ENPARD helps establish rural women-led agribusinesses .............................................................. 4 Agricultural Development Fund, World Vision Armenia discuss cooperation ................................ 4 ADB loan to help boost agricultural production, exports................................................................ 4
Private Sector.............................................................................................................. 5 11) 12) 13) 14)
Fruit and vegetable exports more than double .............................................................................. 5 Cost of anti-hail grids prohibitive for many Armenian farmers ...................................................... 5 Converse Bank joins state agricultural subsidy program ................................................................ 5 Farmers expected to face water shortage this year ........................................................................ 6
Note: The Agriculture Bulletin presents a monthly roundup of headlines and news stories related to Armenia’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Eastern Europe, Central, South and South East Asia and North Africa. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
Government hosts meeting on improving animal husbandry
March 27th, 2018, http://arka.am/en/news/business/government_discusses_ways_to_improve_cattle_husbandry/
Prime Minister Karen Karapetyan chaired a meeting on the state of animal husbandry in the country. At the meeting, the Prime Minister attached great importance to the implementation of the livestock development program, directing that the effectiveness of existing livestock cooperatives be assessed and the possibility of bringing veterinary personnel to rural communities be examined. It was also noted during the meeting that several other projects designed to boost cattle, sheep and pig breeding as well poultry farming and livestock machinery were in the final stages of elaboration. The meeting also touched upon the substitution of imported dried milk with domestic products, livestock farm subsidies and improving pasture conditions. Particular attention was given to the implementation of the artificial insemination of cattle, a program for which an action plan has been developed through 2024. In 2018, it is planned that 20,000 heads of cattle will be inseminated artificially. This is expected to result in a meat production increase of 50 kilograms per head as well as AMD 330 million in additional earnings for milk production.
2)
Agriculture Minister predicts agricultural sector growth
March 21st, 2018, http://finport.am/full_news.php?id=34031&lang=3
Agriculture Minister Ignati Arakelyan has announced that, following two years of recession caused by unfavorable climatic conditions, agriculture is poised to demonstrate growth in 2018, partly due to the introduction of drip irrigation systems, intensive gardens and anti-hail networks as well as the availability of working capital. The Minister noted that, currently, the efforts of authorities are concentrated on ensuring that a water shortage due to meager weather conditions this winter will not adversely affect the sector this year. The Minister also emphasized the importance of continued development within the agricultural sector as a way of making sure that the sector is not reliant on having good weather conditions. He specifically mentioned the need to further develop intensive agriculture, create an agricultural risk insurance system and assure adequate human resources are involved in the sector.
3)
Prime Minister calls for digital solutions for food safety
March 15th, 2018, http://arka.am/en/news/business/pm_armenia_needs_to_introduce_a_system_of_digital_solutions_to_ensure_safety_of_food _products/
Speaking at a conference marking World Consumer Rights Day, Prime Minister Karen Karapetyan stated the importance of introducing digital solutions as a way to ensure the safety of food products in Armenia. He further commended the work already done by the State Food Safety Service in the field of consumer protection, particularly their work in ensuring that livestock are exclusively slaughtered in slaughterhouses. The Prime Minister also noted that it is important that the public know their food safety rights and work actively to protect them, specifically citing the increased role of public organizations and media in this regard.
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4)
HACCP system promoted by Food Safety Service
March 13th, 2018, http://shamshyan.com/hy/article/2018/03/13/1091271/
The State Food Safety Service has brought together representatives of scientific organizations and specialists of the HACCP system in order to promote the rapid introduction of the risk analysis and control system in the country. As part of this effort, an HACCP audit checklist has already been developed and shared with the Republican Union of Employers of Armenia, allowing them to evaluate their compliance with the norms and ratings the system utilizes. The introduction of the HACCP system is expected to bring with it numerous benefits, not only to consumers but also to producers, as increased quality and consistency should make products more competitive and increase export opportunities. It should also be noted that there are support programs and subsidies available for businesses wishing to introduce the system.
Foreign Aid 5)
EUR 10 million grant for agricultural programs
March 28th, 2018, http://minagro.am/2018/03/%D5%BD%D5%A5%D5
The French Development Agency has allocated a EUR 10 million grant to Armenia for the implementation of agricultural programs in the Ararat and Armavir regions. More specifically, the funds will be directed for the implementation of drip irrigation and anti-hail systems, the creation of intensive gardens, the processing of fruit crops and the consolidation of land. It is also planned to increase the number and size of communities located in the vicinity of the Vedi reservoir (Ararat region) that is currently under construction as, once finished, a drip irrigation system will be introduced in this area. French Ambassador to Armenia Jonathan Lakot noted that the implementation of such projects will further strengthen the ties between France and Armenia as well as serve as a platform for experience exchanges between the two.
6)
World Bank, Armenia discuss 2018-2022 partnership framework
March 20th, 2018, http://www.armradio.am/en/2018/03/20/world-bank-armenia-discuss-2018-2022-partnership-framework/
Prime Minister Karen Karapetyan received a delegation from the World Bank to discuss the partnership framework between the World Bank and Armenia for the period of 2018-2022. During the meeting, Sylvie Bossoutrot, head of the World Bank Yerevan office, underlined that the Bank is ready to build on the ties of effective cooperation with Armenia in a number of areas, including public administration, infrastructure, export promotion, human capital development, sustainable environment and natural resource management. For his part, the Prime Minister expressed his gratitude for work already completed as a result of partnership efforts in the past, specifically the important work done in water resource management and in directing farmers to engage in more efficient, modern and intensive agriculture. He also noted the importance of expanding cooperation in the future and welcomed the draft partnership plan as well as proposed reforms in it. The Prime Minister proposed that project specifics be further discussed with various government agencies responsible for them.
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7)
Buckwheat cultivation begins in Shirak
March 10th, 2018, http://www.aravot-en.am/2018/03/10/208808/
Buckwheat is now being produced in Armenia thanks to the efforts of the EU-funded European Neighborhood Program for Agriculture and Rural Development (ENPARD). Specifically, the ENPARD program actively promoted field-crop cultivation in Bavra (Shirak Province) as a way to combat soil degradation associated with growing the same crop in the same place year after year. The program, which began in 2015, is expected not only to have an impact on the economic profitability of field-crop cultivation, but also cattle production.
8)
ENPARD helps establish rural women-led agribusinesses
March 8th, 2018, https://www.euneighbours.eu/en/east/stay-informed/news/eu-supports-women-led-dried-fruit-and-herbproducers-rural-communities
Thanks to the EU-funded European Neighborhood Program for Agriculture and Rural Development (ENPARD), six women-led modern dried fruit and herb-production facilities have been established in Arevshat, Aragatsavan, Katnaghbyur, Byurakan, Dprabak and Geghard. The facilities use a closed drying cycle and maintain modern food safety norms. Their high-value products are becoming increasingly competitive in markets and are providing stable jobs and incomes. ENPARD helped in the development of these facilities by helping the women entrepreneurs acquire business management and business development skills, establish market connections and prepare high-quality dried fruits using the latest technologies. The three-year ENPARD program began in 2015 and worked to support agricultural institutions, encourage the development of farmer associations and improve the access of more affordable food in the European Neighborhood countries.
9)
Agricultural Development Fund, World Vision Armenia discuss cooperation
March 2nd, 2018, http://minagro.am/2018/03/%d5%a3%d5%b5%d5%b8%d
David Babayan, head of the Agricultural Consulting Department of the Agricultural Development Fund, has met with representatives of World Vision Armenia to discuss programs being implemented in Aragatsotn as well as possible ways of enhanced cooperation. Mr. Babayan suggested expanding cooperation in consulting services provided. For his part, Mr. Sargsyan of World Vision Armenia highlighted not only the importance of the activities currently being undertaken but also the need to help locals with analysis methods and market analysis approaches as well as providing them with success examples and lessons learned from the implementation of local value programs. Both sides agreed to organize further meetings in other regions.
10) ADB loan to help boost agricultural production, exports March 2nd, 2018, http://www.panarmenian.net/eng/news/252671/
The Asian Development Bank (ADB) and Spayka Limited Liability Company (Spayka), a leading food producer and exporter in Armenia, have signed a USD 32 million loan agreement to help the company expand greenhouse operations and increase exports. More specifically, the company plans to develop 30 hectares of climate-controlled greenhouses that make use of drip irrigation systems. The
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greenhouses are expected to create 275 full-time jobs and will be used to produce an estimated 10 million kilograms of tomatoes and 2 million kilograms of bell peppers for export annually. The ADB loan is important for Spayka’s development strategy, but it will also help introduce modern climate resilient technological solutions into the region.
Private Sector 11) Fruit and vegetable exports more than double March 23rd, 2018, http://minagro.am/2018/03/%D5%BA%D5%BF%D5%B8%D6
Armenia’s fruit and vegetable exports have more than doubled in the first three months of 2018. As of March 22, 2018, Armenia has exported a total of 24,965 tons of fruits and vegetables, up nearly 14,000 tons year-on-year. The majority of these exports (23,370 tons) were delivered to Russia, with the remaining sent to Belarus, Georgia, Iraq, Romania and the United Arab Emirates.
12) Cost of anti-hail grids prohibitive for many Armenian farmers March 19th, 2018, http://arka.am/en/news/business/armenian_farmers_cannot_afford_anti_hail_grids/
According to Sarkis Sedrakyan, head of the non-governmental organization Farmer Heritage, the cost of installing anti-hail grids on one hectare is approximately USD 25,000, a price most Armenian farmers cannot afford. Sedrakyan added that, because of this, the best protection against hail damage is still anti-hail rockets. Sedrakyan also noted that there are still major problems with water resource management in the country, including water losses that amount to up to 80% in some areas and water resources being filled with waste. He stated that, as such, the introduction of drip irrigation remains very important for Armenia agricultural development.
13) Converse Bank joins state agricultural subsidy program March 15th, 2018, http://minagro.am/2018/03/%D5%BD%D5%B8%D6%82%D
A memorandum of cooperation has been signed with Converse Bank, making it the sixth financial institution to join the state agricultural subsidy program. The signing of the memorandum will enable small farms to purchase agricultural machinery using preferential credit, which will help the further development of the agricultural sector. Within the framework of the state program, loans of AMD 3-10 million are issued at an annual rate of 5% (or 3% for border regions and agricultural cooperatives). Beneficiaries applying under the program must undergo mandatory training provided by the Agricultural Development Fund and obtain a certificate from them. So far, 1,534 loans for AMD 6.9 billion have been issued as part of the state program. There have also been 224 seminars conducted for program beneficiaries, resulting in 5,300 certificates being issued.
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14) Farmers expected to face water shortage this year March 7th, 2018, http://arka.am/en/news/economy/armenian_farmers_to_face_water_shortage_problem_this_year_/
A shortage of water is expected to be a major problem to Armenian agriculture this year as the winter was drier than usual and water in reservoirs are lower due to hydro-power plants consuming large amounts of water. It is believed that farmers in the Ararat Valley and Shirak province will be the mostaffected by the shortage. Hrach Berberyan, head of the Armenian Farmers Association, urged authorities to cease operations of the hydro-power plants as water shortage is already a five-year long problem for farmers. According to the most recent data, Armenia has 80 water reservoirs, with a total capacity of 1.1 billion cubic meters.
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