The Economy Diagnose of Ijevan City

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Ijevan Municipality
LOCAL ECONOMY DEVELOPMENT IN IJEVAN
PARTICIPATORY APPRAISAL OF COMPETITIVE ADVANTAGES (PACA)
IJEVAN, FEBRUARY 2013
1
Partner Organizations
German International Cooperation (GIZ)
Gegharkunik Chamber of Commerce
Small and Medium Entrepreneurship Development National Center of Armenia
Municipality of Ijevan
Local Economy Development activities in Ijevan and neighbouring communities (Ijevan city, Gandzaqar and
Getahovit village) have started in January 2013 by initiative of Gegharkunik Chamber of Commerce and Industry
(GCCI) and SME DNC Fund of Armenia and by support of German International Cooperation (GIZ). It helped to
discover basic competitive advantages of the communities as well as to diagnose the main sectors of the economy. As
a result, activities were planned, which have fundamental importance for economic development of the locality.
Activities in Ijevan involve following phases
 General presentation of procedure, cognition, group collection:
 Economic mapping of community-seclusion of community leading sectors, identification of sectors’ leading
players.
 Business meetings for leading sectors analyses.
 Results summary, initiatives approval
 Field work – meeting with community active players for results and initiatives inspection.
 Results finalization, booklet design.
2
Process in photos
Local team during highlighting community
competitive advantages
Teamwork
Local team is discussing education sector
Meeting with community businessmen for
activities presentation
3
Content
Partner Organizations ......................................................................................................................................... 2
Process in photos ................................................................................................................................................ 3
Ijevan ................................................................................................................................................................... 5
Competitive advantages of Ijevan ....................................................................................................................... 6
Analyses of Ijevan economoic sectors ................................................................................................................ 7
Tourism in Ijevan ................................................................................................................................................. 9
Initiative. Tourism development in Ijevan ........................................................................................................ 13
Initiatives/activities in tourism development sector .................................................................................. 14
Wood processing in Ijevan ................................................................................................................................ 17
Initiative for wood processing sector development in Ijevan ........................................................................... 20
Manufacturing sector ........................................................................................................................................ 24
Construction ...................................................................................................................................................... 25
Service sector .................................................................................................................................................... 26
Trade sector ...................................................................................................................................................... 26
Agriculture as one of the leading sectors in Ijevan ........................................................................................... 26
Livestock ............................................................................................................................................................ 27
Collecting ........................................................................................................................................................... 32
Offers and initiatives/activities in collecting sector ................................................................................... 33
Gardening .......................................................................................................................................................... 34
Offers and initiatives/activities in gardening sector ................................................................................... 36
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Ijevan
Ijevan city (former Qarvansara) is the administrative centre of Tavush region. City is located 123
km north from Yerevan on the base of Ijevan sierra. Aghstev River crosses the city. Height
above sea level is 730 m; it’s located 18 km far from RA state borders. Community occupies 596
ha area, population is 20700 according January 1, 2012 census results. The city has 91 apartment
blocks and 2350 houses.
The city is surrounded with mountains covered with wonderful forests and alpine meadows.
The weather is mild and warm, cold days are very few. Average air temperature on August is
23˚C, on January is near 0˚C, annual rainfall is 563 mm.
The city’s glory is the botanical (“Dendro park”), large amount of unique plants can be found.
From 1985 to 1990 Sculptors Annual International Symposium was being organized in Ijevan.
Central park is located in the city centre, where the visitors can enjoy the sculptures of sculptors
from different countries who participated in the Symposium. Visitors can walk in the park,
admire the wonderful sculptures and relax.
Traditionally Ijevan was famous with Carpet weaving. The biggest Carpet weaving plant in
Transcaucasia used to be here, and was very popular in Soviet Union was. Ijevan carpet samples
(Carpets with Ijevan special ornaments called “Deghnaqunj”) are still presented in History
museum of Armenia.
Ijevan is also famous with its wine. Ijevan wine factory is located near the city entrance. Here
wines stand out for their wonderful test, which is the result of great nature. Everybody can visit
the factory, follow the wine production procedure, test it and buy wines from the factory trade
shop.
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Ijevan is also famous with its architectural monuments and the most famous of them is
Makaravanq. It was built on 10-13 centuries is located near Achajur village 10 km far from
Ijevan. There are also many caves (Lastiver; Yenokavan village 3 km).
Nowadays city has a Culture centre with 300 places, fine arts and musical schools, five
secondary schools with 3550 pupils, one lyceum, Ijevan branch of YSU, where more than 1000
students study, a branch of “Mkhitar Gosh”
university, two colleges, kindergartens, a
hospital,
a
clinic,
etc.
Through the history the city gave famous
scientists, intellectuals, military and political
figures: academician A. Aslanyan, historian A.
Harents, writer G. Ananyan, philologist G.
Edilyan, B. Nersisyan, colonel G. Blbulyan,
politician J. Ananyan, etc..
Competitive advantages of Ijevan
The competitive advantages of the community have been revealed during the teamwork of local team
and experts in the community. Further initiatives and economic development perspectives have been
discussed and analysed in context with those competitive advantages. The competitive advantages are as
follows:
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Natural

Forest resources-rich with berries and fruits;

Historical and cultural monuments, ancient sites;

Variety of vertical zone;

Ecologically pure and beautiful nature and
production;
 Soft and warm weather;
 Traffic crossroad.
Professional and human resources
 Wine makers, apiculture, wood processing;
 Traditional and unique dishes;
 Professionals of traditional crafts;
 Collaborative environment in community and social
activism;
 Large number of business aimed people.
Technological
 Traditional technologies of homemade wine and vodka;
 Wood processing technologies.
Analyses of Ijevan economic sectors
While analysing the main sectors of Ijevan economy such facts were taken into consideration as the
concentration of the most part of community working population, and also the largest income. The
factors have been assessed, that can effect on those sectors, accessibility of contributory sectors and
required infrastructures as well as the quality of demand in this sphere. Attention was paid to sectors
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profitability comparing with indexes of other sectors and communities (in some cases also comparing
with regions and republics).
Community sectors are divided into 3 main groups:
Strategic sectors
These sectors have great development potential which are based on community’s competitive advantages
and are competitive both in the community and in other regions of RA:

Tourism (includes also service sector: hotels, hostels, catering, etc.);

Wood processing;

Agriculture (not completely, see in details on “Agriculture” section);

Agricultural products processing.
Developing sectors
Sustainable developing sectors which are partly based on local competitive advantages. They are
competitive in internal and external market but yield to other regions of RA or have insignificant impact
on community economy:

Stone production,

Gypsum production,

Services.
Saturated sectors
Already saturated sectors. In this sectors is possible only quality development.

Trade;

Bakery production.
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Tourism in Ijevan
Ijevan is considered as the northern gate of Armenia and taking into consideration its natural,
historical, cultural sites, rich and unique culture, picturesque nature it has great perspectives for
tourism development.
Annually 500-700 foreigners are visiting Ijevan (included foreigners who visited Ijevan for
health, cognitive, business, sport and other purposes). There are no statistics held on city’s
foreign visitors and this data is taken during interviews with the sector’s services.
Annually 3000 tourists visit Ijevan (included short term guests from RA other regions who
visited Ijevan for health, cognitive, business, sport, festive and other purposes) from different
regions of Armenia.
The distribution of foreign and local guests by visit purpose is presented in tables below.
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Chart 1. Distribution of foreign guests’ visiting purposes
10%
Այլ
Foreign guests
Target tourism in
Ijevan 10%
Transit station in
Ijevan
20%
Other
10%
Target
sightseeing
60%
Chart 2, Distribution of visiting purposes of guests from different regions of Armenia
45%
Այլ
Target tourism in
Ijevan 5%
Other
45%
Target
sightseeing 20%
Transit station in
Ijevan 30%
Tourism development is under attention of local authorities. The procedure of establishment of
Local information and Tourism operation centre has already been started.
Three organizations are implementing local lour operation activities, which provide complex
services and mainly involve tourists for their internal activities. Those three organizations are
“Lastiver”, “Apaga tour” (“Future tour”), “Mayisyan kamurj” (“May bridge”).
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Guests are accepted and served by 10 hotels and two hostels which can serve up to 200 people
per day.
In Ijevan a new hotel complex is under construction, one more hotel will also be recovered, two
hostels are being built, which will create opportunity to serve another 60 people in 2014.
12 catering cafes function in the city, which can serve up to 600 people per day.
The city also has soccer field with 3000 seats which is one of main bases of sport tourism
development.
The city is famous for its botanical garden (“Dendro Park”), large amount of unique plants can
be found. “Central park” is located in the city centre where works of sculptures from different
countries are exhibited. It has geological museum and gallery.
There are many historical and cultural monuments, picturesque places such as Makaravanq,
Kirantsi cloister, Vardan Mamikonyan’s tree, Ashot Yerkat’s plane tree, medieval arched
bridges, Poqr Anapat (Small desert) ancient place, etc. .
Below the facilities for meeting tourism demand in Ijevan are presented:
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Facilities
An overnight
stay
Improvement directions
Ten hotels and two hostels.
Low quality service in economy class hotels, absence of fixed
Different quality and price rooms are available.
price policy. There are very few hostels and in some cases
tourist who wants to stay at hostel has to stay at hotel.
Accommodation fee is 1500-5000 AMD for economy
class bed and 10000-20000 AMD for VIP class.
12 catering places. Organic and high quality food,
Specific traditional Ijevan dishes are forgotten, mainly there
experienced cooks.
are no menus. At all public indoor restaurants smoking is
permitted. Working hours are from 10 am to 10 pm.
One souvenir shop, market. There are qualified
There are no specialized branding shops. Souvenir sale is not
specialists of wood and stone processing.
developed.
There are in community gallery, Botanical garden,
Community needs evening-time entertainment places, sports
ment
Central Park, museum.
halls.
Security and
Community has famous dentist, hospital, regional and
municipal police departments.
Absence of high quality treatment in hospital.
Local tour operators organize walkathon/hiking and
There are no information and advertising promotion tools for
horserace, rock crumbling. Community has many nice
tour production, guiding tools (posters, indexes, maps, etc.).
sites, historical and cultural monuments. University
trains tour managers.
Lack of trained personnel (tour guides, guide translators,
Food
Shopping
Entertain-
health
Campaign
instructors, etc.). Underdeveloped transport infrastructure
(comfortable tour buses, lack of taxi, in some places poor
condition of roads).
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Initiative. Tourism development in Ijevan
External tourism development plays fundamental role in economic development. Guests of
Ijevan city are additional clients for different enterprises from service sector.
Tourism creates additional incomein city’s economy (an overnight stay, excursions, campaign,
currency exchange, souvenirs shopping, transport, etc.).
The tourism sector development in Ijevan is possible with effective cooperation of business
community, local authorities and supporting structures.
Chart 3.Problems related to tourism development
Repair and cleaning of places of tourism importance
Promotional activities
Service quality improvement
Coaching of tourism sector development
Restart of International Sculpture Symposium
Increasing of number of hostels and hotel chain establishment
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Initiatives/activities in tourism development sector
Initiatives/activity
Initiatives/activity
coordinator
Initiatives/activity
supporting institutions
Goal
Tourism development in Ijevan city
Ijevan Municipality
Objectives
Repair and cleaning of tourism places
Accompanied development of tourism sector
Promotional-information activities
Service quality improvement
Restart of International Sculpture Symposium
Increasing of hostel number and hotel chain creation
SME DNC of Armenia, Gegharkunik Chamber of Commerce and
Industry, other supporting institutions
Establishment of Ijevan city as a cultural-historical and ecotourism
centre
Future activities in correspondence with the problems and responsibilities
Objective I. Repair and cleaning of places with tourism importance
Initiatives/activity
Cleaning and repair of Central Park and sculptures placed
there
Cleaning of Aghstev river bank, which crosses the city
Responsible
Local authorities,
Supporting institutions
Local authorities,
Supporting institutions
Objective II. Accompanied development of tourism sector
Initiatives/activity
Tourism development strategy
1
Establishment of local tour operator
Trainings for guides, translators and instructors
Responsible
Local authorities,
Supporting institutions
Local authorities,
Supporting institutions
Tour operator,
1
In tourism development strategy available results also will be included: number of tourists, quality standards in service sector, workplaces, etc.
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Tours development and promotion
Adult Education Center
Tour operator (s)
Objective III. Promotional-information activities
Initiatives/activity
Printing of promotional-information booklets
Printing of thematic booklets
Installation of posters, guiding banners and maps in the
city
Participation in tourism events and exhibitions
Website development
Responsible
SME DNC, Tour operator,
Supporting institutions
SME DNC, Tour operator,
Supporting institutions
Local authorities,
Supporting institutions
SME DNC, Local
authorities, Supporting
institutions
Tour operator, Local
authorities, Supporting
institutions
Problem IV .Service quality improvement
Initiatives/activity
Traditional dish service
Responsible
Entrepreneurs
Two language menu using
Entrepreneurs
Quality improvement in hotel service sector: repairing of rooms,
improvement of lighting, heating and hygienic goods.
Improvement of required material resources in eco-tourism
different sectors
Entrepreneurs
Entrepreneurs
Objective V. Restart of International Sculpture Symposium custom
Initiatives/activity
Symposium organization
Responsible
Local authorities,
Supporting Institutions
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Printing of booklets
Supporting Entrepreneurs
Sending invitations
Local authorities,
Supporting Entrepreneurs
Objective VI. Increasing number of hostels and hotel chain creation
Initiatives/activity
One strategy for hostels development and quality standards
formation
Business planning trainings for the businessmen who want to invest
in hostel business
Financial support
Responsible
SME DNC, other
supporting structures
SME DNC, other
supporting structures
SME DNC
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Wood processing in Ijevan
Wood processing had fundamental importance in economy of Ijevan and nearby villages for last
15-20 years. This sector brought 20% of the local income. Region’s (forestry of Ijevan and
Sevqar) forest wood mainly has been sold as firewood and processed wet boards. A small part of
the timber has been reduced to dried boards and wooden. Below are presented wood processing
directions during 2012.
Chart 4. Timber utilization directions in Ijevan
Dried boards 3%
Details 2%
Wet boards 25%
Firewood 70%
Results of the joined work of experts and people involved in the sector gave the following
picture of sector profitability.
Firewood (from 1m3 profit is 3000 - 5000 AMD)
Wet wood (from 1m3 profit is10000 -1 5000 AMD)
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The profit as from firewood as well from wet board is very low which led to growth of timber
volume taken from the forest (also timber robbery).
Further development of this sector is only possible in case of creation of value chain which will
help to get the maximum possible profit from the minimum use of raw materials. (The
calculation is made for 1 m3 wood).
Fuel
Profit3000 -5000 AMD
Timber
Wet board
Dry board
Details
Profit
Profit
Profit
10000 -15000 AMD
25000 -35000 AMD
50000 -150000 AMD
As it is seen, the profitability between one unit of dried board and details production grows
from 100 % to 1000 % which can significantly promote wood processing development and
reduce the timber volumes used during the production. For wood processing value chain
establishment joint work of this sector’s business community, local authorities, state structures
and supporting institutions is required. Possible activities and wood processing value are
presented below:
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Support for importing unique none-processed or semiprocessed timber
Inhibition of wet board,
production of dry board,
creation of board dryers.
Timber
Dried board
Details
Development and update of details,
raw materials, tools and furniture
production technologies.
Promotion of wooden details and
raw materials in Armenian and
foreign markets.
Firewood
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Initiative for wood processing sector development in Ijevan
Initiative/activity
Coordinator of
initiative/activity
Goal
Objectives
Wood processing value chain implementation in Ijevan
SME DNC, Support institutions
Development of wood processing sectors with high income in Ijevan
Establishment of dryers
Technological recreation of wooden details and semi-processed
wooden products
Promotion of wooden details and semi-processed wooden
products in Armenian and foreign markets
Support for importing none-processed or semi-processed unique
timber
During the last 20 years wood processing played main role in the economy of Ijevan
community. Ijevan is famous as wooden processing centre of Tavush region and timber buyers
of Tavush region are looking for timber especially here.
Community has large production capacities for wood processing: the largest wood processing
factory of South Caucasus was here (ДОК).
Ijevan has qualified experts in wood processing sector.
Unfortunately wood processing in the community was mainly concentrated on trade of timber
and primary processed raw materials (wet timber). It brought low profitability and sector
development depended on continuous growth of timber volumes exported from forest.
The development of this sector is only possible by development of more profitable sectors of
wood processing, which will bring to reduction of timber volumes used as raw material, growth
of profitability and creation of work places.
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The allowable average of annual lumbering
In case of wet boards sale the same
from Tavush region forestry is 10,000 m3. If it is
profitability is possible using only 40,000 m3
possible to grow the profitability from 1m
3
timber.
timber to 80 000 AMD then the total
profitability of the sector will be 10,000 x 80
000 = 800,000,000 AMD.
If it is possible to gain 80 000 AMD profit from processing of 1 m 3 processing then processing of
10 000 m3 will bring as much profit as is required for wet board processing and sale from 40 000
m3 timber.
The mentioned results can be gained only by activities in following directions:
Establishment of Dryers
Drying of wet board will grow the profitability from 2 to 3 times.
Requirements in this sector are the following:
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
Support in driers establishment – responsibilities: Supporting institutions and
entrepreneurs.

Support in promotion of dry boards locally –responsibility: Supporting institutions.
Technological recreation of wooden details and semi-processed wooden products
Manufacturing of wooden details, furniture and semi-processed wooden products is the most
productive and profitable in the whole value chain of wood processing. But at the same time the
community technically and technologically is not ready for the development of this sector.
Present equipment is old and as a result the production is not competitive by its price and
quality in local and international markets. It is necessary to implement the following:

Manufacturing Technical support in this sector -Responsibilities: Supporting institutions
and entrepreneurs.
Promotion of wooden details and semi-processed wooden products in Armenian and
foreign markets.
Armenian wood was used in Germany for internal design of “Mercedes” cars, in Italy for firearm
wooden details, in Spain, in Arab Emirates and Iran for furniture. Timber was also exported to
France for wooden barrels production.
Nowadays biggest demand for Armenian wood is in Russia for wooden construction products
and
flooring (parquet) as well as in Iran, which needs exclusively non-processed and sawed
timber.
The following points are necessary:

Promotion of wooden details, tools, souvenirs in foreign market-responsible: Supporting
institutions.

Financial support–responsible: Supporting institutions.
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Support for importing none processed or semi processed unique timber
Community has experience in timber importing. It has furniture makers who use timber
imported from Russia. The imported timber is also used for plywood production in the
community.
There is a necessity for information support for businessmen for importing necessary timber –
responsible: Supporting institutions.
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Manufacturing sector
In the community the leading manufacturing sector is construction products and materials
production.

Stone tiles production,

Alabaster production,

Metal-plastic doors and windows production.
Stone Tiles production
The community has six enterprises involved in the stone production; one of them is “Qarart”
stone processing factory. Mainly felsite imported from Noyemberyan region and marble from
Ijevan are being processed. Small enterprises sell their production in regions, Yerevan, and are
mainly cooperating with construction companies. “Qarart” is mainly exporting its production.
Because felsite raw materials are in distance from production area it increases production unit
cost. Entrepreneurs’ development in this sector is directly connected with railway repair as well
as expansion and improvement of Ijevan-Bagratashen highway.
Alabaster production
Alabaster produced in Ijevan is competitive in Armenian market. It is 30-40% cheaper from the
alabaster produced in Yerevan and relatively dries in longer period of time. Though this sector
has productivity but its further development will not have much effect on community’s
economic development because of raw materials limit.
Metal-plastic doors and windows production
Community has six enterprises involved in metal-plastic
doors and windows production. The production is mainly
sold in the region. Around 20 people work in this sector. The
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sector is closely linked to construction activities of the region.
Bread and bakery production is also developed in Ijevan.
Some 20 enterprises are functioning in this sector, which
sell their production mainly in Ijevan sub-region. There are
also two enterprises involved in lemonade/soda production.
Establishment of bottling of drinking water production
from local water sources is also planned in the future.
Construction
Community has eight construction enterprises, closely 50 construction groups. About 500
workers are involved in this sector.
There is a decrease of construction activities. At this moment only 3 of 8 construction
companies are working.
This sector has a great role in the economic life of the community nowadays as it brings
relatively larger income and creates more work places.
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Service sector
There are around 150 private and 3 taxi services in the community as well as 40 technical service
providers, beauty salons, internet clubs, design centre, TV Company, etc. Service sector is one of
developing sectors in Ijevan.
Along with the development of this sector, the demand for high quality services provided by the
community increases. Service sector needs to be improved especially in qualification of technical service
and other specialists (it will be expedient to cooperate with Ijevan employment centre). It is necessary to
inform about service providers in newspapers and information billboards in foreign languages and
register them in Ijevan’s information publications.
Trade sector
The trade sector is also developed in Ijevan. Especially food, timber, clothing, medicine, agricultural
goods, berries, vegetables, household items, electric devices and automobile spare parts trade is
developed. One of the factors for trade development is availability of local resources (meat, berries,
vegetables), money from abroad, students, the fact that Ijevan is regional centre and is on Tbilisi-Yerevan
interstate highway, forests, market, wholesale warehouses (Masis tobacco, Coca Cola, Sovrano, etc.),
existence of banks and UCOs. Interviews with businessmen from this sector show that during the last six
months the trade has been reduced by about 20%. This is also partly due to recent stricter measures in
forestry administration. A household’s monthly average expense is 300$. 70% of which is spent on food.
About 80% of market is occupied by Chinese and Turkish goods and only 20% is for high quality and
expensive goods. There are still no brand stores/outlets in Ijevan.
Agriculture as one of the leading sectors in Ijevan
Livestock, wild berries collecting and partly gardening are mainly developed in agriculture.
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Livestock
Large cattle dominate in livestock (4,185, from which 1,935 are milking cows); poultry is about 10,801
from which 6,000 are chickens, about 1,795 pigs and round 1,600 beehives.
In milking season the region gives around 4,500 litres of milk daily. Average milk productivity of a caw
per year is 2 tons. Most part of the milk in farms is being processed in home/traditional way as cheese
and is being sold for 1,400-1,800 AMD. The rest of the milk is being sold in local market at 200 AMD per
litre. There is no milk collecting storages.
Livestock distribution and land recourses of target communities
Ijevan
Gandzaqar
Getahovit
Total
Large cattle,
From which cows
1046
501
2141
1008
998
426
4185
1935
Pig
674
689
432
1795
Poultry
3570
4286
2945
10801
Pastures
4,86 hectare
1451hectare
2082 hectare
3538 hectare
Meadow
17,31hectare
959 hectare
321 hectare
1298 hectare
Arable land
68, 9
485 hectare
239,9 hectare
794 hectare
90% of pastures are far from residential areas (25-40 km) and consist from 22 separated mountains. In
summer large farms move their cattle to far pastures. Roads in separate places are in a very bad
condition which makes even harder to implement such periodic activities as milk collection,
logistics, as well as cattle vaccination, artificial insemination. In Ijevan cattle feeding season lasts
7-8 month. For the remaining 4-5 month the cattle are being kept in barns.
Each year the region has problems during haying season. One of communities has very limited
amount of machinery, most of which is old. Others don’t have agricultural equipment at all.
Generally, harvesting is implemented by invited machinists who don’t manage to realize the
haying on time. In winter, part of Getahovit forage is brought from Yenoqavan and Sevqar
communities and other places, and in Gandzaqar the most part of forage is from local resources.
They buy the missing part from the market.
The community’s experienced agriculture
27
specialists insist that in community the lucernes processing was effective as forage. Due to
favourable climatic conditions (7 month-long season) and soil composition haying was possible
4-5 times a year, and cropping of 12-15 tons of (with water conditions) lucerne/forage also was
available. This index is one of the best in Armenia. For example, in Aragatsavan community of
Aragatsotn region nine tons of lucern is cropped from one ha, which is a very good index.
Ijevan provides high efficiency also in feeding of environmentally-friendly poultry. There is a
great demand for it in the market and restaurants. The birds are fed exclusively in local forests
and chemicals are not used.
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Comparative effectiveness of livestock
Taking into consideration that in Gandzaqar the most part of forage is taken from local resources
and only a little part of it is bought from the market, and in Getahovit the most part of the
forage is bought from the market or borrowed from neighbouring communities, the fact is that
in Gandzaqar the unit cost of milk and meat is lower than in Getahovit. And the cattle of Ijevan
is compared with other regions of RA, for example with Gegharkunik region, which is
considered as one of the leading cattle regions, it will be seen that the pasture capacities are
several times larger than the required forage volumes for livestock in Gegharkunik region. In
addition to the huge volume of forage, low unit cost of meat and milk, one of high quality
factors is also forage quality characteristics and the alpine zone. But in Ijevan certain pastures
season length contributes to the effectiveness of industry, which stretches two months more
than in Syunik region. However, in sector livestock Ijevan is behind the leading regions.
Business meeting with farmers
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Value chain of Cattle
Cheese, yogurt
Packaging, packing
Poultry, milk and meat
SALE
production
Meat / sausages, dishes *
Meat production chain is still missing in the community
Recommendations and initiatives in livestock sector
Activity
Responsible/ implementer
Cheese production quality improvement, quality standards
implementation, standardization of product packaging and size,
cooperation in the implementation of quality standards for cheese
Businessmen, cheese producers, farmers,
Supporting structures.
Purchase of new agricultural equipment for harvesting and all
other activities related to it (credit, leasing).
Businessmen, farmers, SME DNC,
leasing companies
Meat processing organization.
Businessmen, SME DNC, other
supporting institutions.
Traditional food production for restaurants / khash, beef tongue,
pork cutlets, etc. /.
Businessmen, SME DNC
Forage/clover production
Farmers
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Compressed and combined food production (acorn, leaf, corn,
currant ...).
Businessmen, SME DNC other
supporters.
Cows sort changes through artificial insemination.
Farmers, CARD.
Establishment of milk storage points.
Businessmen, cheese producers.
Partial repair of roads leading to distant pastures.
Local authorities, farmers, supporting
structures.
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Collecting
Forests of berries and other edible plants are about 1000 ha.
The following plants are growing there:
Berries
Blackberry, currant, cornel, red and black currant, red and black hawberry, strawberries, rosehips, wild
pear, wild plum, mushroom, barberry, emmer wheat, nuts, hazelnuts.
Edible plants
Nettle, thyme, mariamakhot, mint, chamomile, asparagus, sindrik, aveluk, lily, sibekh.
200-300 people are involved in the collecting. It depends on season of fruit or plant. One person is able to
collect 20 kg mushrooms, 20 kg dewberry, about 40 kg nuts, etc. daily. As a result it’s possible to collect
about 2 tons of dewberry, same amount of cornel, about 3 tons of nuts, 1 tone of mushroom, etc. from
forests daily. Any kind of collecting lasts from 15 to 30 days and in some cases even to 3 months (e.g.
mushroom collecting). The whole season lasts seven months. Part of collected products is sold to Ijevan’s
market resellers or directly to consumers, the other part is sold to different processing companies. One
kg of dewberry is sold for 100-250 AMD (the price depends on time and amount of product), currant is
sold for 400-500 AMD, nuts for 200-300AMD, cornel for 150-250AMD. From the remaining (unsold)
edible wild products people make homemade vodka, pickles or marinades and sell.
Costumers of
marinades homemade vodkas and wines are also local restaurants and food shops.
Depending on product type one person creates 6000-10000 AMD value in collecting per day.
Value chain of forest wild edible plants and fruits.
S
Forest products
collecting
Sorting,
Processing
Preserved food,
wine-vodka, dried
fruits, marinades,
drying
Packing (fresh and
processed), bottling
A
L
32 E
Recommendations and initiatives/activities in collecting sector
Activity
Responsible/ implementer
Organization of professional trainings and training for processing
sector.
Adult education centre, Supporting
structures
Foundation of mini productions of preserved berries.
Businessmen, SME DNC, UNDP,
EDMC.
Drying and cooling of edible plants by dryers and refrigerators, and
storage (aveluk, sindrik ...).
Businessmen, SME DNC, UNDP.
Other supporting institutions.
33
Gardening
Gardening is developing in Ijevan. Trees are mostly growing in backyards, there are very few gardens.
There is great amount of black plum trees. The biggest amount is in Gandzaqar community - more than
50.000 trees. The average yield is 30-50 kg per tree. Thus, every year 2,500 tons of plum is collected only
in this community. About 1% of harvest is being processed at homes as dried fruits for own consumption,
from 20% of harvest homemade vodka is processed, half of which is for own consumption, and the other
is for sale for 1300 AMD per 1 litre. About 10% is preserved as jam for own consumption. Half of the rest
of the harvest is used as animal feeding or thrown away. There are more than 100,000 plum trees in three
communities overall.
Distribution of home processing of plum
Dried plum,
2%
Jam, 10%
Vodka, 20%
Animal
feeding,
68%
Recently persimmon gardens begun to expand, currently about 10 hectares are planted; 1 hectare from
these gardens is in Getahovit, 6 in Ijevan and the rest in different backyards. Average yield of a tree is
150 kg, best is 200 kg. The harvest is sold fresh there is no processing in the community. A small amount
of dewberry gardens also were planted. According to the local specialists, maximum 15 tons of harvest is
collected from 1 ha of dewberry garden. According to this index, development of dewberry gardens can
become one of the most competitive sectors of community.
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Value chain of gardening in Ijevan
Gardens
planting
Fruit sorting
Processing: dried
fruits, preserved
products, vodka
SALE
35
Recommendations and initiatives/activities in gardening sector
Activities
Responsible/implementer
Foundation of dryers
Entrepreneurs, SME DNC, UNDP, other
supporting institutions.
Establishment of refrigerators
Entrepreneurs, SME DNC, UNDP, other
supporting institutions.
Establishment of small greenhouses
Entrepreneurs, SME DNC, UNDP,AHPC
New gardens planting (Persimmon, dewberry, currant, kiwi )2
Establishment of anti-hail stations3
Standardization of homemade vodka and wine production
Professional training in horticulture and agriculture
“Armenian fruit” initiative,
gardeners/factories
Entrepreneurs, SME DNC, UNDP, Local
Authorities
Entrepreneurs
Adult education centre, other education
institutions.
For realization all mentioned initiatives/activities, please, contact with Ijevan branch office of SME
DNC of Armenia.
Tel.0 (263) 34458
Ijevan Municipality
2In
Getahovit community the amount of arable lands is 240 hectares, 76 hectares out of it is (grape gardens were previously grown) quite
favourable for new gardens planting and are self-flowing-irrigated but the owners don’t use them.
3
Establishment of anti-hail stations will be realized after gardens planting.
36
Special thanks to the staff of the Ijevan municipality, namely, Ijevan Mayor Mr. Vardan
Ghalumyan for support in project implementation.
Local team members of Ijevan LED project
Suren Manukyan – Ijevan deputy mayor
Vahe Baghmanyan– SME DNC’s Director Consultant
Vahe Mailyan - Young Tavush NGO
Zarmayil Mardanyan– Deputy Mayor of Gandzakar
Angela Saghatelyan - Counterpart Coordinator
Smbat Tsutsulyan – Ijevan Regional Employment Centre
Alvan Harutyunyan– Entrepreneur
Nara Ghazumyan-Kindergarten Director
Nikolai Ghaltakhchyan - Entrepreneur
William Ohanyan– SMEDNC Tavush Branch Director
Tamara Gabrielyan - SME DNC Tavush Branch Expert
Irina Nazaryan - SME DNC Tavush Branch Expert
Project expert panel
Artak Dadoyan, expert
Artyom Grigoryan, expert
Karen Vardanyan
Sevak Dadoyan
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