The Armenian project has chances to win in the WB competition on the agricultural sector development

YEREVEN, September 19. /ARKA/ Armenian Center for Agribusiness and Rural Development (CARD) Fund has presented its proposal for development of milk production and marketing to participate in the World Bank Development Marketplace 2008 competition and has good chances for winning.

As Sevak Manoukyan, Deputy Director of CARD has noted, the Fund’s project has passed through the first stage of competition and is among 100 finalists selected among 1,760 applicants from all over the world. The second stage will take place in Washington D. C., on September 23-26, at the World Bank Headquarters, where the finalists’ would be presenting their respective projects.

The winners will be selected by a professional jury composed of experts of the WB, IMF and international non-governmental organizations. The competition is mainly targeting to present innovative ideas that the World Bank would provide financing.   

“Armenian project is the only one in the South Caucasus and one of the three projects from the Europe and Central Asia region along with the projects from Serbia and Ukraine,” said Manoukyan in his interview to “ARKA” agency. According to him, one of the main objectives of the project is to ensure links between the farms engaged in milk production and the market.

“Our milk producers have a problem to sell their output on the market, while at the same time processing enterprises face difficulties to procure quality raw milk. To this end, the main idea behind the project is to establish a system that will encourage farmers to produce higher quality milk, while processors will be able to purchase it in a centralized manner,” – said Manoukyan.

The project plans to establish a center that will combine and provide a number of services to farmers, including a milk collection point with appropriate refrigerators to store milk, check its quality, veterinary service engaged in veterinary activities as well as carrying out artificial insemination of cows.

The project includes two communities from each of the following four marzes (regions) of Armenia: Syunik, Lori, Aragatsotn and Gegharqunik.  Four thousand farmers, including nearby communities participate in the project. Thus, it is planned to establish eight such centers. According to Areg Ghevondyan - a rural development program specialist – these centers will introduce and implement advanced technologies in Armenia.

“Some components of the idea that we have presented to DM are already being implemented by our organization. However, regardless of outcome in the DM competition - we would definitely attempt to implement it; however, if we win, we would be able to engage additional funds from the World Bank for rather quick and large-scale implementation of the project,” – said Manoukyan.  

The overall cost of the project is $560,000. In case of success, the World Bank will finance its 40%, while the other 60% will be covered by the USDA. Relevant agreement with the USDA will be signed by October.

The project is planned for 18 months. The CARD team assumes that 1.5 years is a sufficient period to install a system that will autonomously function thereon.  CARD specialists also plan to provide loans to farms for expansion of production and procurement of necessary tools using these funds. “Thus, we foresee a cyclic process – milk is sold and acquired funds are used to purchase tools and materials, and as a result yield of cattle is increasing, farms are expanding and their income is growing,” – said Manoukyan.   

Since 2000 CARD has supported the establishment of 35 milk collection centers and 18 milk co-operatives. In 2007-2008 the inflows of farms from milk sales have exceeded $3 million as compared to $81,000 in 2001.     

CARD Fund was established in April, 2005 on the basis of the Marketing Assistance Program Armenia Office of the USDA (USDA-MAP). Now CARD is active in five areas – milk, meat, wine, fruits/vegetables and irrigation.  

Since 1996 the USDA-MAP has supported more than 25,000 farms and 100 processing plants providing technical, financial and marketing assistance. During this time the overall cost of implemented projects amounts to $50 million. –0—