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 4 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. 5 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: 6 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 7 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. 8 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. 9 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”). 10 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: 11 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). 12 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 13 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. 14 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 15 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 16 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) 17 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: 18 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 19 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. 20 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: 21 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. 22 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. 23 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 24 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. 25 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. 26 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. 28 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 29 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 30 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. 31 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. 34 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 37