Armenia: Enhancing High-Value Crop Diversification

Sovereign (Public) Project | 53197-002

The proposed knowledge and support technical assistance (TA) will improve the production system, productivity and competitiveness of the agriculture sector. It will promote holistic value chain development for high-value crops from production to market. It will also increase the institutional capacity of sector agencies in developing and adopting appropriate policies and regulations to unlock the potential of the agriculture sector.

Project Details

  • Project Officer
    Bui, Giap Minh
    Central and West Asia Department
    Request for information
  • Country
    Armenia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Enhancing High-Value Crop Diversification
Project Number 53197-002
Country Armenia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9942-ARM: Enhancing High-Value Crop Diversification
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Industry and trade / Small and medium enterprise development

Gender Equity and Mainstreaming No gender elements
Description The proposed knowledge and support technical assistance (TA) will improve the production system, productivity and competitiveness of the agriculture sector. It will promote holistic value chain development for high-value crops from production to market. It will also increase the institutional capacity of sector agencies in developing and adopting appropriate policies and regulations to unlock the potential of the agriculture sector.
Project Rationale and Linkage to Country/Regional Strategy

The contribution of the agriculture sector to gross domestic product has declined in recent years, from 18% in 2012 to 14% in 2018. However, it continues to provide a significant source of employment. In 2018, agriculture employed 33.3% of the labor force, and around 56% of agricultural labor was provided by women.4 According to Food and Agriculture Organization data, Armenia's agricultural land amounts to 2.04 million hectares (ha) but only 22% (446,000 ha) is arable. Agriculture is predominantly smallholder-based, with an average landholding of 1.5 ha. Crop production accounts for 72% and livestock production accounts for 28% of agricultural value added. In 2017, the distribution of area harvested by crop was cereals (32%), fruit (49%), vegetables roots and pulses (17%), and nuts (1%).5 Growth in agriculture is constrained by low value crops, low productivity, limited connectivity and weak market linkages, inadequate public investment, and sporadic support services. Less than 30% of arable land is equipped with irrigation facilities. Armenia is a net importer of agricultural and food products, with exports of $697 million and imports of $726 million in 2018. In particular, for some key products the level of Armenia's self-sufficiency is low, for instance wheat products only 33%, pork products 58%, and poultry products 23%.

The sector has suffered from limited access to good quality land, specialized agricultural machinery, appropriate inputs, modern technologies, market information, modern distribution methods, commercial finance, and crop insurance. The agricultural value chain is characterized by rudimentary marketing and transportation infrastructure, weak linkages between value chain actors, and limited and technologically poor storage and processing capacity. There is no strategic coordination of wholesale market activity at the national level. All markets nation-wide are managed at the local level, which has given rise to a range of wholesale and retail market outlets of varying capacities and levels of professionalism. Public investment in agricultural research and development, extension services, and agribusiness development, has been negligible, and private sector efforts limited. Linkages with agricultural universities and academic institutions are weak. In the horticulture subsector productivity is low because the industry is highly fragmented. Producers are predominantly individual farmers and small enterprises without access to advanced horticultural techniques, productive seeds, effective plant nutrients and pesticides, efficient logistics, and appropriate financial resources and services. In addition, the industry faces emerging challenges such as shortage of arable land and water resources, greater focus on environmental protection, frequent natural disasters which increase price volatility, insufficient agricultural infrastructure, low incomes for rural farmers, and a growing need for rural reform to ensure the sector's development.

Impact Agricultural competitiveness enhanced
Project Outcome
Description of Outcome Production and marketing of high-value crops increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Policies and regulations for high value crop diversification improved

Suitable financing mechanisms for high value crop diversification developed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Team Leader/Agricultural Economist: individual consultant selection (international)

Other Specialists (policy, finance, and capacity development): individual consultant selection (international and national)

Responsible ADB Officer Bui, Giap Minh
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Ministry of Agriculture
Government Building 3, Republic Square, Yeveran 0010
Ministry of Economy (MOE)
5 M. Mkrtchyan Street, Yerevan 0010, Republic of Armenia
Ministry of Finance and Economy
Republic of Armenia
1, Melik-Adamyan Street
Yerevan 0010
Timetable
Concept Clearance 05 Nov 2019
Fact Finding 30 Sep 2019 to 04 Oct 2019
MRM -
Approval 20 Jan 2020
Last Review Mission -
Last PDS Update 20 Apr 2020

TA 9942-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Jan 2020 14 Feb 2020 14 Feb 2020 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 07 Sep 2021 100,594.79

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Agriculture Sector Policy Specialist (International) Individual - Consulting Closed 02 Mar 2021 08 Mar 2021
Agricultural Finance Specialist (National) Individual - Consulting Closed 26 Jun 2020 09 Jul 2020
Agriculture Sector Policy Specialist (National) Individual - Consulting Closed 17 Feb 2020 01 Apr 2020
Agricultural Economist and Team Leader (International) Individual - Consulting Closed 12 Feb 2020 18 Feb 2020

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.