Projects

Short Description:

Overall goal

Inclusive and sustainable agricultural growth of livestock-depending rural communities in Armenia through improved productivity and enhanced competitiveness of the private sector in the domestic and export markets.

Expected results

1. Livestock farmers/producers benefit from better functioning and reliable meat and milk markets

2. Livestock farmers/producers benefit from improved access to farm support services

3. Livestock farmers/producers benefit from effective fodder production and sustainable natural resource (grassland, pasture, water) management

4. Female farmers/employees/producers benefit from their involvement and role increase in the livestock sector

Target group / Beneficiaries

The project’s direct beneficiaries are 140 private and public actors involved in the implementation of rural development strategies and/or involved in milk and meat value chains: (a) slaughterhouses, milk and cattle consolidators/buyers, milk processors; (b) veterinarians, artificial insemination (AI) service providers, input suppliers for veterinary and AI services; representatives of local and regional authorities, working group members responsible for development and implementation of socio-economic programs in line with regional/marz programs and state policy; (d) Women-led dairy SMEs and “Lead” Farmers.

End Beneficiaries of the project are rural inhabitants of 70 rural settlements of Syunik, Gegharkunik, and Shirak marzes involved in milk and meat value chains as producer farmers, entrepreneurs or employees and their family members who will benefit in terms of enhanced income and employment. The total number of end beneficiaries is 18,400 livestock farmers/producers (33% female) from 7,200 farming households.

Activities

1.1: Improving livestock transportation and slaughter infrastructure (slaughterhouses, transportation, storage etc.) to establish a steady supply chain

1.2: Raising competitiveness and level of sophistication of existing and new milk processors increase sales of dairy and cheese in local and export markets and enhance demand for raw milk produced by farmers

1.3: Supporting consolidation efforts by smallholder suppliers to ease logistical challenges

2.1: Capacity building and developing private veterinary and AI services in rural settlements

2.2: Improving genetics of cattle stocks through animal replacement and AI services

3.1: Mobilizing and improving/upgrading capacities of local authorities, farmers/pasture users and fodder producers on effective fodder production, pasturelands usage, planning, and management

3.2: Strengthening capacities of direct beneficiaries in effective fodder production and sustainable pasture and water resource management

4.1: Supporting women-led SMEs and “lead farmer/s” to improve their businesses to increase sales of dairy and cheese, support consolidation efforts by smallholder suppliers, and enhance demand for raw milk produced by farmers

4.2: Strengthening capacities of female farmers/fodder producers on effective fodder production

Context

Armenia was the first among the former Soviet republics to implement mass privatization of agricultural lands (average farm size is 1.48 ha, only 1 ha is arable). Agriculture is one of the critical sectors of the country’s economy, which provides about 12% of the gross domestic product (GDP). About 317,000 farming enterprises provide 97% of the gross agricultural output. The sector accounts for 24.3% of the employed in the Republic of Armenia. Rural communities in Armenia face numerous problems: Lack of sustainable economic opportunities, high rates of unemployment and migration, low farm and rural non-farm incomes due to low productivity in agricultural activities. Poverty remains a severe problem in Armenia; it is estimated that one third of the rural population lives at or below the national poverty line.

Though livestock productivity has grown in recent years, yields are still a long way from potential. Livestock productivity could be increased with improved animal husbandry, feeding, and veterinary care. Although these issues are relevant for the whole country, the situation is worse in remote and border areas of Armenia: Syunik, Gegharkunik, and Shirak marzes are amongst the disadvantaged and underdeveloped marzes of Armenia due to the recent war in Nagorno Karabakh (and actually decreased land/pasture resources for use), remoteness from Yerevan, and partially tough climatic conditions which are not favorable for high-value crops.