Overview of Key Development and Trade Issues Emerging in Armenia with the Opportunities and Constraints of Organic Agriculture

Context & Rationale Despite a probable net reduction in the overall population since independence, there has been a small increase in the number of Armenia’s farming households. Many of these are relatively new and inexperienced farmers with very limited access to capital and farm inputs. Agriculture is the primary employer and accounts for about 28% of the GDP. Yet with few exceptions i.e. some fruits, Armenia is a net importer of foodstuffs. Almost all of Armenia's 338,000 farms are small-scale operations while approximately 130 are larger scale commercial farms and, in recent years, a few cooperatives have emerged along with some entrepreneurial farmers leasing neighboring lands to consolidate economies of scale. Higher value crops such as orchard and vineyard properties average less than 1 ha. per owner. The majority of farms have diversified production including at least two types of animal husbandry (i.e. cattle and sheep or pigs and poultry). Given this scenario that is characterized by poor smallholders using mixed farming systems, organic methods would likely be a viable and useful option for a significant number of farmers.