A R S P I U

Promotion of rural business linkages (competitive grants)

RA Gegharquniq Marz, Gandzak community, Project N  26/2 – “Reproduction of endemic races of Ishkhan (“Winter”, “Gegharkuny, and “Summer’”) of the lake Sevan and preservation  of their genofond”

The absence or shortage of financial services in rural areas, the lack of business management knowledge and skills, limited availability of advanced technologies promoting the growth of competitiveness, imperfection of market relations negatively influence the producers of agricultural production. Most of them are involved in subsistence farming which means that they are not involved in trade and because of the low level productivity are not able to find their place in market which in its turn is very favorable for processors.

Derived from the above described situation it is of high necessity to support the process of passing from agriculture directed to self consumption to commercial agriculture. Up to now the similar projects being implemented in the Republic though ensuring significant progress were somehow irrelevant to the existing problems as they were mainly conditioned with priorities set out by donor organizations.

RA Shirak Marz, Artik community, Project N 57/2 – “Foundation of the center for production and packaging of cellular bee-honey and beeswax-sheet”

The subcomponent of Competitive Grants (CG) presented within the frames of the given project is generally directed towards the localization, demonstration and transferring of improved and examines technologies particularly in the sectors that influence the market accessibility by increasing the production quality, reducing the post-harvest losses, small-scale processing and storing.
CG subcomponent will provide grants to rural enterprises, farmers, producer and agro processing associations, Ltds, farmer cooperatives, formal and informal farmer groups acting in the communities for the demonstration and dissemination of new and improved technologies and best business experiences. It can be concluded that grants will provided for activities that promote commodity production and market accessibility.

RA Kotayk Marz, village Kaputan, Project N 61/3 – “Growing and preservation of shitake and oyster mushrooms”

The objectives of the CGC Component are to:

- Improve profitability of agricultural producers in the RA Marzes and regions and raise the competitiveness of agricultural production through export promotions and marketing;
- Introduce novel technologies in agri-food production, processing and storing;
- Increase quality of agricultural production;
- Develop agri-business and marketing;
- Improve rural business management and demonstrate good agricultural practices;
- Build up agricultural cooperatives.

The Competitive Grants Program has been launched in the Republic of Armenia since 2006.  During 2006-2009, under the “ARS” PIU” SI, competitions for grant projects have been held with 5 rounds, with a total of 56 winning grants, of which 9 in the 1st round, 5 in the 2nd round, 8 in the 3rd round, 16 in the 4th round and 18 in the last 5th round. As of 01.03.2009, 53 of abovementioned grants are being implemented, with 3 grants closed for different reasons. The grant amount requested for implementation of the mentioned projects is estimated at AMD 311.126.256 or an average of US$ 900.000.

RA Kotayk Marz, Nor Geghy community, Project N 75/3 – “Import and breeding of the English white broad-chest pure breed turkey”

 

The 53 grants are implemented in the following 10 Marzes of RA, including:

8 grants – RA Shirak Marz
9 grants – RA Lori Marz
8 grants – RA Tavush Marz
6 grants – RA Aragatzotn Marz
6 grants – RA Gegharquniq Marz
4 grants – RA Armavir Marz
7 grants – RA Kotayk Marz
2 grants – RA Ararat Marz
1 grant – RA Vayots Dzor
2 grants – RA Syuniq Marz

 

The abovementioned 53 grants cover a broad range of topics, including:

RA Lori Marz, Spitak community, Project N 46/2 – “Development of buffalo-breeding and production of dairy products from buffalo milk”

6 grants – Cattle and dairy production 
3 grants – Pig production
3 grants – Sheep and goat production
5 grants – Poultry production
4 grants – Fisheries, fish farming and fish feed production
3 grants – Livestock products processing and marketing
2 grants – Production (also greenhouse) of high-value vegetables
7 grants – Arable/forage crops
3 grants – Fruit production (processing) and marketing
3 grants – Aromatic (medicinal) and other plant processing and marketing
5 grants – Honey products processing and marketing
1 grant – Nurseries (fruit, decorative trees)
2 grants – Crop storage, processing/packaging and marketing
1 grant  – Slaughterhouses
5 grants – Other (services, fertilizers, feeding stuff, etc.)  
 Totally – 53 grants
 
Started in 2006, Competitive Grants are presently at different stages of implementation. Currently, 8 grant projects from the 1st round are completed that received a high score from the Independent Evaluator. According to the schedule, a further 9 grants will be completed during March 2009, of which 5 grants from the 2nd round and 4 grants from the 3rd round.

Within the frames of the CGP Component, the first conference dedicated to “Implementation of Competitive Grants Program in Armenia” was held in Moscow House, Yerevan, on 26 September 2008. The conference was attended by the RA Minister of Agriculture A. Grigoryan, the First Deputy Minister of Agriculture A. Avetisyan, WB representatives, staff of the “ARS” PIU SI and MASCs, managers of ongoing grant projects, service providers and around 120 invited farmers.

The first Conference and Exhibition under the CGP Component on “Implementation of Competitive Grants Program”, held in Armenia, Moscow House, Yerevan (on September 26, 2008), where the farmers implementing grant projects presented new high-quality agricultural products

Within the limits of the conference, the managers of ongoing grant projects submitted reports, thus enabling participants to get acquainted with the objectives of the acting projects, production types and technologies, etc. 

Under the conference, an exhibition on agricultural products was organized, with new high-quality agricultural products demonstrated by farmers implementing projects. The Minister of Agriculture highly appreciated the efforts aimed at the organization of both the conference and exhibition. The activities undertaken to this end have reflected positively and contributed to the development of farmer cooperation. This will help in its turn to promote their future relationship and cooperation development.

The running grant projects include 450 farmers that are acting as direct beneficiaries in the mentioned projects. Over and above, approximately 1500 beneficiaries are being formed up informally that are related one way or another to these projects. They are cooperating with current projects on different contractual bases and receive certain income.

 

 

IMPLEMENTATION OF GRANTS PROJECTS IN ARMENIA: 1-ST CONFERENCE