Armenia Project Notice - 38929

Project Notice

PNR 38929
Project Name Enhancing High-Value Crop Diversification
Project Detail Project Name Enhancing High-Value Crop Diversification Project Number 53197-002 Country Armenia Project Status Approved 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, Armenias 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 Armenias 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 sectors 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 Minh Giap 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
Funded By Asian Development Bank (ADB)
Sector Administration & Marketing
Country Armenia , Western Asia
Project Value 7,50,000

Contact Information

Company Name Ministry of Agriculture
Address 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
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