Thursday, December 17 2020 17:17

Experts: The war only aggravated the difficult situation in the field  of agriculture and food security in Armenia

Experts: The war only aggravated the difficult situation in the field  of agriculture and food security in Armenia

ArmInfo. Military actions and territorial  losses in Nagorno-Karabakh only exacerbated the difficult situation  in the field of agriculture and ensuring food security in Armenia. An  independent expert, former Minister of Agriculture of Armenia Gagik  Petrosyan expressed this opinion at a press conference organized by  the Club of Economic Journalists. He noted that the problems of the  industry have been accumulating over the years, and the fact that the  field has faced a bad situation cannot be considered the result of  the work of the last 2-3 years.

In this context, the expert highlighted several serious mistakes made  by both the incumbent and previous governments. He does not  understand the motives for the liquidation of the Ministry of  Agriculture by the current government and the transfer of its  functions to the Ministry of Economy, as a result of which the  management of the industry has seriously weakened and many  specialists who could be useful for implementing reforms remained  without job.

The next unresolved issue is insufficient work in the field of  organizing the export of agricultural products, logistics routes and  neutralizing artificial barriers in the direction of exporting  products to the Russian market. The activities aimed at greater  diversification of sales markets for Armenian agricultural products  and winemaking were also insufficient.

At the same time, the state has not been able to solve the problem  associated with the processes and procedures for harvesting grapes,  which is why many wine and vodka enterprises - procurers, except for  1- 2, taking advantage of the dominant positions in the market,  actually impose on peasant farms their low purchasing prices,  sometimes forcing peasant winegrowers to work even at a loss. Instead  of regulating the sector, the state "extinguishes the fires" by  providing procurers with "zero credits" for purchases while they get  high profits.

In terms of export, the expert believes, the state needs to think  about supporting the export potential of Armenian small and  medium-sized producers, since large players, despite the costs, are  still able to overcome barriers. ''But no one thinks about how medium  and small producers can export their products.  And without  established export supplies with their own clear logistics, small  producers will not survive, not to mention developing within a small  local limited market'', the expert noted.

At the same time, losing the war with Azerbaijan will certainly make  its own serious adjustments in the development of the agricultural  sector. This is, of course, first of all, the loss of pastures, many  of which went beyond the border line of the Soviet period, and the  current arable land for grain crops. Thus, Armenia will lose a part  of its own grain harvest and at first it will be limited in the  possibilities of developing pasture animal husbandry, which will have  to be covered by imports.

And nevertheless, the specialist believes, these losses can become  challenges, which can be overcome by intensifying agricultural  production, increasing its productivity, modernizing fixed assets, as  well as increasing arable land, given that in Armenia itself about  35% of land of agricultural destination is simply not processed. The  reason is the lack of incentives that the state should create.  "Unfortunately, the state still cannot decide on its policy in the  agricultural sector and actually does not support its agricultural  producer in any way," Petrosyan noted.