Income-Generating Activities - Action Against Hunger

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2. Lamb & mutton market situation in Armenia: Industry analysis, milk, meat,
and wool market situation
Starting from 1995, the food industry has been one of leading sectors in Armenian
economy and currently makes up 59% of the country’s processing industry gross product.
Food processing mainly specialize in production of fruit and vegetable preserves
(fruit juices, jams, tomato paste, marinades, baby food, etc.), beverages (wine, beer,
champaign, mineral water, etc.), meat and meat products (smoked meat, sausage,
etc.), milk and other dairy products (cheese, curds, sour cream, ice-cream, etc.),
flour and bread, tobacco and cigarettes.
The Armenian Statistical Yearbook estimates the total output of agriculture is 377.6
billion Armenian drams for 2002, decreasing continually over a 5-year period. In agricultural
output, animal husbandry produced 151.0 billion AMD for 2002, from which 9.3
billion is by commercial organisations, and 141.7 billion is by family farming.
According to the data (main indicators of peasant farms for 2002), livestock ownership
is dominated by poultry and followed next by goat and sheep. The quantity of
other meat than poultry consumed is sensitive to price.
The Statistical Yearbook also estimates 541.1 thousand head of sheep and goats for
2002. This number has decreased compared to 558.9 thousand heads in 2001. Commercial
organisations and family farms produced 79 tons meat, 489.5 tons milk, and
1120 tons wool together for year 2002; family farms produced the main part of all
three productions.
It is important to mention that meat production by commercial organisations increased
significantly over 5 years from 0.3 tons to 3.2 tons, from 1998 to 2002 respectively.
It is true also for milk produced by family farms: the milk production
increased from 444.9 to 486.7 tons in year 2002. It is mainly related with the growth
of cheese and dairy product processing market – increased number of processing companies
and increased demand in local and foreign markets.
Sheep milk makes up only a small percentage of this volume. Currently, there is a
problem of quality and hygienic conditions in sheep milk production, as the fresh sheep
milk has a unique flavour, and there is a problem in milk delivery.
The increase of meat production by commercial organisations and decrease of family
farms are connected with demand of high-quality slaughter and certified meat.
It is important to mention that the number of animals increased over 5 years (from
1999 to 2003, January 1). The number of sheep and goats increased from 546.3 to
602.6 thousands. Heads. This increase could be attributed to the improvement of living
standards in Armenia, as well as development of economy.
In the overall market analysis it is important to refer to production of main agricultural
goods per capita and the consumption of those goods. It should be stated that
the production of most of agricultural goods increased in the 5-year period, except
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INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY