Armenian minister touts farm exports, cites quality and subsidies

Armenia’s agricultural exports are gaining momentum thanks to government subsidies, Economy Minister Gevorg Papoyan said on Thursday, insisting the country’s produce rivals Europe’s in quality despite logistical challenges.

Papoyan told lawmakers that more than 21 billion drams in loans have been extended to nearly 14,000 farmers under a state-backed credit program. He noted that recent Cabinet decisions also subsidize customs duties and transportation costs for greenhouse-grown products, measures already driving exports to Georgia, Greece, Ukraine, Kazakhstan and other destinations.

“We expect much larger volumes. There is no ceiling — the more they export, the more we will subsidize,” Papoyan said, adding that shipments are increasing daily.

The government is preparing to cover an additional 8.5% of transport expenses and 14.5% of customs duties for greenhouse exports. Papoyan emphasized that Armenia’s intensive orchards and greenhouse facilities are technologically identical to those in Italy, France, Spain and Germany, producing goods that “fully meet the highest standards.”

Still, he acknowledged Armenia’s geographic disadvantage: its distance from European Union markets inflates transport costs and complicates logistics. “Our products are of the highest quality, meeting all standards. Our only problem is the distance from those markets, which increases the transportation costs,” Papoyan said.