YEREVAN—Many Diaspora Armenians, after the independence of Armenia, visited their Hayrenik and bought a “piece of the motherland”. Having bought acres of land in Armenia gave a sense of pride to many, yet they also wondered what the best way to optimize their land investment in Armenia could be.
A recent study conducted by Ameria Advisory offers outstanding data on Armenia’s agriculture and potential areas of business development, such as greenhouse farms, gardening and fish-farming.
According to the study, agriculture is currently the largest field in Armenia’s economy, with 19 percent share of GDP in 2012. In fact, this makes Armenia’s agriculture number one in terms of its share of GDP in a country’s economy among 37 countries in the region.
Despite being a vital part of the economy, Armenia’s agricultural industry is not beaming with productivity and there are areas that have potential for growth, such as greenhouses, fish-farming and gardening. Ever considered turning your land into a green-house farm, a garden or a fish-farm? Ameria’s recent study will help you make educated choices.
Fish Farming
According to Ameria’s recent study on agricultural industry, the average annual growth of fish-farming in the last decade was 18.8%. Exports of farmed fish for the same period grew 4.7-fold. According to Ameria’s experts, fish-farming has average growth potential in the upcoming five years. To ensure the growth of the field there need to be changes in the industry’s regulations.
Gardening
Did you know that over 50% of Armenia’s fruits and vegetables come from the Ararat and Armavir regions? Experts say gardening has much growth potential in Armenia and vineyards, plantations of fruits and berries have shown an on-going growth in production. Two thirds of Armenia’s fruits and berries come from four regions, Armavir, Ararat, Aragatsotn and Kotayq. According to the study, gardening has great growth potential. Presently fruit production is not at its peak, as weather, hail and other conditions are hurting it. However, the above mentioned conditions are easy to manage with installment of anti-hail stations in the region.
About Our Favorite Armenian Fruits
Grapes are Armenia’s top fruit product. Its production per hectare is higher than it is in Georgia, Azerbaijan, other CIS countries, Iran, Israel and Turkey. The Armenian apple, apricot, is unfortunately not at its peak in Armenia. Iran and Turkey have higher productivity for apricot. According to the study, last year Armenia produced 50,000 tons of apricot, with 6.38 tons per hectare. Turkey produced 680, 000 tons of apricot in 2012, with 11.33 tons per hectare. Iran produced 450,000 tons of apricot, with 9.03 tons per hectare. While doing a comparative analysis, Georgia’s fruit production was not very strong, making Georgia a major market for fruit export from Armenia.
Green Houses
According to the study there are more than 900 greenhouses (130 hectares) operated in Armenia. The largest greenhouse in Armenia is about 5 hectares. Vegetables make 60% of greenhouse production. 40% of greenhouses produce flowers and decorative plants. Most greenhouses specialize in producing tomatoes, cucumbers, beans and peppers.
Ameria experts anticipate average growth for green houses in the upcoming 5 years for large greenhouses, yet small and medium greenhouses do not seem to show great promise of growth. Turning your land into a large greenhouse farm might be the way to optimize your land.
Import & Export
According to the study, Armenia exports fish and crabs mostly to Russia (more than 80%). Armenia is also big on exporting most of its fruit versus importing. This indicates that Armenia is quite competitive with its fruit products, specifically with fruits such as apricot, cherries, peach and others. If you love tomatoes and cucumbers, Armenia imports these vegetables. Experts say there is huge potential for exporting agricultural products. Armenia’s geographic location somewhat limits its exporting abilities. However, the neighboring country of Georgia can be a major export market for Armenia’s agricultural products.
If you are considering entering Armenia’s emerging market, take advantage of Ameria’s in-depth studies and see the entire chain of agricultural products – from production to sales. The research also gives comparative analysis of each sector in neighboring countries, provides data on foreign trade and identifies the main players in the industry. Growth and expansion opportunities, investments needed for introducing new technologies per industry for higher ROI, are also revealed in the study. Request an in-depth study from AmeriaGroupInc.com.
Ameria Advisory is renowned for market entry studies and comprehensive advisory services in Armenia. It has conducted research for Armenia’s promising industries, such as tourism and hospitality, food processing, and retail trade of fast moving consumer goods.
