Agriculture is a key sector of the economy of Armenia, accounting for a decent share of national GDP and employing more than a third of its labor force. Both plant growing and animal husbandry have an almost equal share in Agriculture, 47% and 53%, respectively.
Armenia covers 29,743 square kilometers, of which around 2,05 mln hectares are classified as agricultural land – making around 68% of the total territory. Pastureland is 1.1 mln ha while arable land is 447.5 thousand hectares, and the country’s agrarian strategy is strongly oriented towards maximizing the value obtained per unit of land area. Vineyards and orchards compile 59 thousand ha of agro land and greenhouses 2000 ha. The greenhouse industry—especially vegetable and flower greenhouses—has long been a significant contributor to Armenia’s agriculture sector. Greenhouse products provide farmers with new possibilities for export. Currently, there are 334,000 farms in Armenia.
Share of Agriculture in GDP
Armenia is a globally influential center of origin of agrobiodiversity. With favorable climate and geographical conditions, rich soil resources, and biological diversity, Armenia’s agriculture is the ideal place where you can experience the power of productive agriculture. With altitudes ranging from 380m above sea level in the Debed River valley to 4,090m above sea level at Mount Aragats, Armenia’s climate is mainly dry continental, varying from subtropical to alpine. These climatic and natural conditions are favorable for animal husbandry and enable the production of various livestock products. Swine breeding is one of the major branches of animal husbandry, while Poultry breeding is one of the most automated and utilizes modern technologies. Armenia’s fertile volcanic soils also enable productive the cultivation of wheat and barley. Rigs, pomegranates, apricots, peaches, walnuts, quince, and other agro products are mostly grown in the subtropical Aras River valley and in the valleys north of Yerevan, where the wealthiest farmland is found.
Armenia imports significantly more than it exports. The export of agro products in 2020 was 774.2 mln USD, 30.5% of total export. According to the Ministry of Economy, the food self-sufficiency level is 52.5% now. Overall, there is huge potential in investing in poultry and dairy productions. Moreover, the poultry sector is the most atomized one, and almost 80% of the products are exported.
The most promising agriculture sectors remain modern greenhouses, intensive orchards, animal husbandry, viticulture, and wine production, and organic agriculture. To induce continuous growth in the sector of agriculture, the government of RA conducts a number of financial intensives that include co-financing for the introduction of modern irrigation systems program, construction/reconstruction of “small and medium” “smart” livestock complexes, the subsidy program on agriculture loan interest rate, etc.