Armenia lacks agricultural strategy as export disruptions hit farmers, consumer advocate says

Armenia's failure to develop a coherent agricultural strategy has left farmers vulnerable to export disruptions and excessive dependence on the Russian market, consumer rights advocate Babken Pipoyan said in an interview with Panorama.am on Wednesday.

Pipoyan, president of the Informed and Protected Consumer NGO, argued that recent restrictions affecting exports to Russia have exposed long-standing weaknesses in the country's agricultural policy rather than creating new ones.

"We keep chanting patriotic slogans while leaving the real problems off the agenda," he said, criticizing the government's approach to the sector.

Pipoyan said he and other experts opposed the 2019 merger of Armenia's Ministry of Agriculture into the Ministry of Economy, arguing that agriculture requires a fundamentally different policy approach.

"The logic of economics is to avoid investing in unprofitable sectors, but agriculture is the opposite," he said. "Even when investment is not commercially attractive, the state must invest for the sake of food security."

He said the absence of a clear agricultural policy has resulted in state support being distributed without distinguishing between strategic and non-strategic sectors.

According to Pipoyan, Armenia has encouraged production aimed primarily at export markets without adequately considering long-term risks. He cited greenhouse flower production and fish farming as examples of industries developed largely for the Russian market.

"Flowers were produced for Russia. Fish production also expanded mainly for export," he said. "People built these businesses on their own, and now they have been left alone to deal with the consequences."

Pipoyan dismissed official praise for small-scale exports to European markets as "showmanship," arguing that true diversification requires adapting production to the demands of new markets.

"As much as we love our basil, Europe wants green basil," he said, using the example to illustrate the need for producers to grow crops that match international consumer demand rather than relying on traditional domestic varieties.

He said Armenia's economy has historically depended heavily on Russia and questioned claims that the country's economic dependence has diminished in recent years.

"You cannot deepen your dependence on one country, make your economy dependent, and then speak about independence," he said.

Pipoyan argued that the government should identify priority sectors and align agricultural support programs accordingly. If wine production is a strategic priority, he said, vineyards should receive targeted support. If food security is the primary objective, then state programs should prioritize wheat cultivation.

"The state needs a strategy and clear priorities," he said. "It's not enough to simply write something down on paper."

He said the current lack of strategic planning has left Armenian farmers bearing the brunt of export restrictions affecting flowers, fruit, vegetables and fish destined for Russia.

Pipoyan also said he has heard reports that some Armenian agricultural products are reaching Russia through neighboring countries and are being marketed as products of those countries. If true, he said, the additional transportation costs reduce the prices paid to Armenian farmers while intermediaries capture a larger share of the profits.

The expert also criticized the government's handling of plant health issues, saying farmers should not bear responsibility for quarantine pests if authorities have failed to implement effective prevention and control measures.

"When the government says businesses do not meet standards, the question is: what has the state done to help them meet those standards?" he said.

Pipoyan said economic pressures should not force Armenia into concessions on strategically important decisions. Instead of relying on optimistic rhetoric, he said, the government should implement practical measures to strengthen the country's agricultural sector and reduce its vulnerability to external shocks.