©FAO/Ani Grigoryan

Based on previous FAO studies, the dairy sector in Armenia lacks sufficient quality feed supply to help improve milk production and contribute to the country’s overall economic and social development. Current feeding practices, in particular those of small-scale producers, were also found inadequate, limiting productivity and farming conditions.

A workshop here today, organized jointly by FAO, the Center for Agribusiness and Rural Development and the International Center for Agribusiness Research and Education, brings together interested parties of the dairy sector with technical experts to discuss a survey results on consumer needs and habits. Based on the key factors influencing dairy cow milk productivity, situation of the dairy processing sector, consumer preferences and the international market potential for Armenian dairy products, the participants will elaborate recommendations for an investor roadmap for dairy value chain.

Collected information and solicited feedback of the workshop will be used to develop the investment strategy and roadmap that can guide the Government of Armenia and the donor community to improve feed resource, enhance processing, and a market-oriented dairy sector in Armenia.

The event is part of an FAO project that started in 2017 intended to have a broad impact on the Armenian dairy sector, complementing other activities in the dairy cattle and animal health sector.

“The industry’s growth and competitiveness are constrained by low productivity and seasonality in milk production, low quality of milk, as well as high fragmentation of the supply chain. The aim of the FAO support is to develop a strategy to spur the dairy industry into a viable path for a sustainable and inclusive development in Armenia”, said Cheng Fang, FAO economist and project team leader.

For the survey, a total of 400 consumer family household were involved in four cities (Yerevan, Abovyan, Gyumri, and Vanadzor). Also, a consumer preference analysis was carried out; 20 dairy processing companies were in-depth interviewed and the qualitative and quantitative information collected was used to analyze processors’ production capacity and utilization, milk collection, distribution, and market strategy. Over 400 farming households were interviewed by exhaustive questionnaires to investigate the feeding and factors affecting milk productivity and market access.  

Following the data collection and the various assessments, workshop participants are intended to validate the findings. The group of more than 60 people includes representatives from the Ministry of Agriculture, the National Statistical Service, the Food Safety Inspection Authority; the Armenian National Agrarian University, service providers and suppliers, farmers at all scales, processors, local communities, cooperatives, as well as from the donor community, such as the European Union, the World Bank, and the Austrian Development Agency.

The project takes a value chain development approach as it works at both the top and the bottom levels of the value chain. It provides a strategy to increase productivity through improved feed for dairy cattle; identify the market potential, and provide an investment roadmap to improve the markets for the various milk products.

Cheng Fang noted that FAO plans to establish a partnership in Armenia to strengthen the capacity and agricultural innovation for feeding sector and processing sector development.