ARMENIA'S AGRO-INDUSTRY NEEDS A NEW DEVELOPMENT MODEL WITH NEW TECHNOLOGIES AND SERIOUS CAPITAL INVESTMENTS
by Tigran Khachatryan
ARMINFO
Tuesday, July 16, 20:24
Introduction of new technologies and inflow of serious capital
investments will increase the productivity in the agrarian sector and
enhance the competitiveness of Armenian commodities in the foreign
markets.
When presenting the New Research on Food Processing Industry in Armenia
and the Region, Tigran Jrbashyan, Development Director of Ameria
CJSC, said on July 16 that a new segment - industrial agriculture -
is being formed in Armenia. He explained that the matter concerns
large greenhouse facilities, horticulture and fish breeding.
Given the country's small economy, development of the food processing
industry mostly depends on the export potential for agricultural
products, Ameria experts say.
Jrbashyan said that out of the 40 countries of the CIS and Eastern
Europe researched by Ameria, Armenia is in the lead with its
agriculture share in GDP (about 19-21%) but lags far behind with its
productivity. He pointed out that over the past 2-3 years big funds
have been invested in ensuring high productivity in agriculture. "The
state support to agriculture development should be replaced with
the support to productivity. Favorable conditions should be created
for that, because the world experiences transformation of the social
factor of agriculture into an income-producing sector with a potential
for export and productivity. This trend should be considered and
researched not only by the state, and a new model should be worked
out on this basis", Jrbashyan stressed.
The National Statistical Service of Armenia says that over Jan-May
2013 the gross agricultural output (including the fish breeding output)
totaled 152.7 bln AMD (up almost 3% versus Jan-May 2012).
According to the research results, there are some 900 greenhouse
facilities in Armenia with a total area of 130 ha (the biggest
greenhouse facility of Armenia occupies an area of 5 ha). 60% of
the greenhouse facilities in Armenia grow only vegetables, while
the other 40% grow flowers and ornamental plants. Ameria experts
forecast moderate development of the greenhouse facilities in Armenia
for the next 5 years mainly due to big facilities. In the meantime,
the experts say, the small and medium-sized greenhouse facilities in
Armenia are not promising.
The research revealed upward trends in horticulture and viticulture
in Armenia. 2/3 of the total horticultural lands in Armenia is
concentrated in 4 regions: Armavir, Ararat, Aragatsotn, and Kotayk.
The share of Ararat and Armavir in total was the largest: in 2012
these two regions ensured 50% of the total production. According to
the research, climate conditions are the main risk for development of
the given segment. The research showed that the average annual growth
of fish farms for the last 10 years totaled 28.5%, with the actual
volume of the fish exports growing over 4.7- fold. Ameria experts
forecast moderate growth of fish industry for the next 5 years. They
say the given segment is promising enough, but there are two major
tasks in the regulatory framework that need solution.
Ameria Group is the majority shareholder of Ameriabank with 99.99%.
Ameria Group comprises Ameriabank, America Management Advisory, Ameria
Equity Partners, Property Development Company, Ameria Invest. Ameria
CJSC is one of the leading companies in the Armenian market of
advisory services, offers a comprehensive set of professional services
embracing three key areas: management advisory, financial advisory
and legal advisory.
by Tigran Khachatryan
ARMINFO
Tuesday, July 16, 20:24
Introduction of new technologies and inflow of serious capital
investments will increase the productivity in the agrarian sector and
enhance the competitiveness of Armenian commodities in the foreign
markets.
When presenting the New Research on Food Processing Industry in Armenia
and the Region, Tigran Jrbashyan, Development Director of Ameria
CJSC, said on July 16 that a new segment - industrial agriculture -
is being formed in Armenia. He explained that the matter concerns
large greenhouse facilities, horticulture and fish breeding.
Given the country's small economy, development of the food processing
industry mostly depends on the export potential for agricultural
products, Ameria experts say.
Jrbashyan said that out of the 40 countries of the CIS and Eastern
Europe researched by Ameria, Armenia is in the lead with its
agriculture share in GDP (about 19-21%) but lags far behind with its
productivity. He pointed out that over the past 2-3 years big funds
have been invested in ensuring high productivity in agriculture. "The
state support to agriculture development should be replaced with
the support to productivity. Favorable conditions should be created
for that, because the world experiences transformation of the social
factor of agriculture into an income-producing sector with a potential
for export and productivity. This trend should be considered and
researched not only by the state, and a new model should be worked
out on this basis", Jrbashyan stressed.
The National Statistical Service of Armenia says that over Jan-May
2013 the gross agricultural output (including the fish breeding output)
totaled 152.7 bln AMD (up almost 3% versus Jan-May 2012).
According to the research results, there are some 900 greenhouse
facilities in Armenia with a total area of 130 ha (the biggest
greenhouse facility of Armenia occupies an area of 5 ha). 60% of
the greenhouse facilities in Armenia grow only vegetables, while
the other 40% grow flowers and ornamental plants. Ameria experts
forecast moderate development of the greenhouse facilities in Armenia
for the next 5 years mainly due to big facilities. In the meantime,
the experts say, the small and medium-sized greenhouse facilities in
Armenia are not promising.
The research revealed upward trends in horticulture and viticulture
in Armenia. 2/3 of the total horticultural lands in Armenia is
concentrated in 4 regions: Armavir, Ararat, Aragatsotn, and Kotayk.
The share of Ararat and Armavir in total was the largest: in 2012
these two regions ensured 50% of the total production. According to
the research, climate conditions are the main risk for development of
the given segment. The research showed that the average annual growth
of fish farms for the last 10 years totaled 28.5%, with the actual
volume of the fish exports growing over 4.7- fold. Ameria experts
forecast moderate growth of fish industry for the next 5 years. They
say the given segment is promising enough, but there are two major
tasks in the regulatory framework that need solution.
Ameria Group is the majority shareholder of Ameriabank with 99.99%.
Ameria Group comprises Ameriabank, America Management Advisory, Ameria
Equity Partners, Property Development Company, Ameria Invest. Ameria
CJSC is one of the leading companies in the Armenian market of
advisory services, offers a comprehensive set of professional services
embracing three key areas: management advisory, financial advisory
and legal advisory.