Ameria Management Advisory Services started implementation of the “Economic Modelling and Feasibility” project as part of the “Rural Assets Creation Program” implemented by the “Rural Areas Economic Development Programmes Implementation Unit” SA under RA Government Staff PIU.

The purpose of “Economic Modelling and Feasibility” project is to support reduction of rural poverty by promoting sustainable production of fruit and nuts.

Ameria will help to identify approximately seven fruit and nut crops cultivated in Armenia with the biggest commercial potential and develop an appropriate lending product for enhancing the fruit and nut production. Such targeted lending product will make it possible for the small-scale rural farmers to obtain required funding from participating financial institutions under preferential terms and conditions, etc.

Mr. Arman Porsughyan, Senior Consultant at Ameria MAS, said: “Farmers across nearly all rural areas in Armenia grow fruit and nuts. Besides, fruit production has a large share in exports. Actually, there is a strong, unmet demand for fruit and nuts both in domestic and international markets. The project may stimulate development of agriculture and even increase the number of competitive and sustainable farms in Armenia”.

According to the research, agriculture has been a leading sector in the Armenian economy since 2010 in terms of its share in the GDP and its contribution to GDP growth rates. Agriculture employs almost 45 percent of the labor force in Armenia. Around 70 percent of farms, however, are small, with 1.3 ha of land on the average. The target of “Economic Modelling and Feasibility” project is small farms, in particular, farms with up to 3 ha area in high altitude regions.

“Economic Modelling and Feasibility” project is planned to be completed in May, 2015.