1.4% Increase in Agricultural Sector in 2020

Under the leadership of Prime Minister Nikol Pashinyan, a consultation was held regarding the results of the agricultural year 2020 and the planned programs for 2021. This was reported to Armenpress by the information and public relations department of the Prime Minister's Office.

Deputy Minister of Economy Arman Khojoyan reported that according to the Statistical Committee data, a 1.4% increase in gross domestic product was recorded in the agricultural sector in 2020. An increase of 2.3% was observed in crop production, while livestock also recorded a 0.6% increase. The area of arable land amounted to 228,000 hectares, with irrigated land reaching 155,000 hectares.

Among the state support programs, the leasing program gained significant momentum in 2020, resulting in the acquisition of 295 units of agricultural machinery, with nearly twice the number of beneficiaries. A notable increase was reported in the intensive gardening program: the area of intensive gardens increased almost tenfold from 53.2 hectares in 2019 to 518.6 hectares in 2020, with the number of beneficiaries growing from 17 to 53.

Given the growing interest in the program, it is planned to introduce a systematic approach in 2021 that will also include educational components, with short-term and long-term courses on intensive gardening conducted at the Agrarian University.

The agricultural insurance program was implemented in six regions in 2020, covering two crops, and it is planned to increase the number of insurable crops to 11 and implement the program in all regions in 2021.

The genetic livestock breeding and animal husbandry program has shown effective progress. This was also facilitated by the "Sustainable Communities" program of UNDP and the joint project with the Ministry of Economy of Armenia for the construction of “smart” livestock farms. In 2020, 20 smart livestock barns were built, with 35 contracts signed, currently in the implementation phase. The program is being implemented in the border areas of Gegharkunik and Vayots Dzor provinces, and from February 15, it will also be available in Syunik province.

Preventive measures for animal vaccination and preparatory work for animal registration were carried out. Addressing the procurement process, the deputy minister noted that in 2020, 98,000 tons of fruits and vegetables were procured, which is 11,000 tons more than the previous year. Mapping of vineyard plantations was conducted, which is important for the creation of a registry and will continue this year with an expanded geographical coverage of the regions.

To promote the export of local wines, it is planned to create a collective cargo warehouse and an online platform in Berlin in 2021, through which Armenian wines will be accessible throughout Europe. Work is underway. Legislative reforms have been made in the brandy production sector. Currently, negotiations are underway with the management of three Russian supermarket chains to establish a presence in Armenia, open a logistics center, and organize direct export of local products through these supermarkets.

Using funds from the World Bank, contracts have been signed with 57 processing organizations in 2020-2021, under which support will be provided for the modernization of production capacities and the implementation of food safety systems.

Regarding state-subsidized agricultural loans, the number of loans in 2020, compared to 2019, increased more than fourfold, with the volume of the loan portfolio nearly doubling. The Prime Minister was also informed about the management of pastures and the results of infrastructure development in 2020. With World Bank funding, a Veterinary Service Center was built in the city of Hrazdan in Kotayk province, the Animal Husbandry Faculty of the Agrarian University was equipped with modern equipment, and the construction of irrigation systems for pastures was completed in eight communities.

In 2021, a Veterinary Service Center will be constructed in the Tumanyan community of Lori province, and construction work on pasture irrigation systems will be carried out in 11 communities, with plans to build collection points for livestock in 70 communities to facilitate animal registration and vaccination.

The deputy minister noted that in 2021, the continuation of state support programs for the agricultural sector is planned, and the aforementioned programs will continue to be implemented after assessing and improving the identified risks. Soon, a state support program for promoting the production of spring-sown grain and forage crops in Armenia will also be presented.

Prime Minister Pashinyan emphasized the importance of consistently implementing programs that have shown positive dynamics and effectiveness, noting that no strategically significant program should fall outside the scope of state support.

Prime Minister Pashinyan inquired about the current situation in water management. The process of reforming the water system, the management of accumulated debts by water supply companies due to government efforts to rejuvenate the system was reported. In this context, issues related to increasing the cost-effectiveness of the system were discussed. The Prime Minister instructed to explore options for enhancing the accuracy of planning in the water management process, minimizing water losses, and proposing systematic solutions for the repayment of the accumulated debts of water supply companies for discussion.