UNDP and U.S. Government Funded Agro-Processing Unit

Today, Dafina Gercheva, UN Resident Coordinator/UNDP Resident Representative in Armenia, Armen Gevorgyan, Deputy Prime Minister, Minister of Territorial Administration, Armen Ghularyan, Governor of Tavush region, Alex Russin, Millennium Challenge Corporation’s (MCC) Resident Country Director in Armenia, and Ara Hovsepyan, MCA-Armenia Chief Executive Officer took part in the opening ceremony of the agro-processing unit, including the MCA-Armenia supported collection center, UNDP public relations center reports.

Agricultural activities and agro-processing are the main sources of employment and income generation of the population in Lusadzor community, Tavush region, where the United Nations Development Programme (UNDP) in Armenia during 2007-09 has successfully implemented eight development projects targeting both the recovery of socio-economic infrastructure and the creation of income generation opportunities for the households. The projects included the construction of the gas and irrigation networks, as well as provision of Lusadzor households with 17 tons of quality wheat seed which resulted in returning of 55 hectares of the community arable lands into crop cultivation, establishment of 28 greenhouses and 20 hectares of persimmon orchards, thus, improving the living standards of the households with the persimmon harvest expected to total 1,000 tons per annum.

As a result of the UNDP intervention, fruit production rapidly grows in the community which, in its turn, has necessitated the establishment of a cooperative agro-processing unit with the main objective to increase the income of farm households through processing, packing, branding and sales of leftover (unsold) agricultural products in compliance with food safety norms. The U.S. Government funded MCA-Armenia Program (MCA-Armenia) partnered with the UNDP and provided the cooperative with cold storage facility equipment.

“Poverty reduction and ensuring access to basic socio-economic services for the most vulnerable layers of the society are priorities for the UNDP activities in Armenia. We can address development challenges in the country through collaboration and partnership with our international and national counterparts. By working together, we can make a difference,” said Dafina Gercheva, UN RC/UNDP RR. She further stressed that that the role of cooperatives in poverty reduction efforts has become so prominent that the UN General Assembly has proclaimed Year 2012 as the International Year of Cooperatives.

“MCC is happy that working alongside with UNDP partners has made a difference in the lives of Lusadzor farmers. I am confident that this investment into processing infrastructure will ultimately increase their incomes. By improving irrigation infrastructure, farmer training, increasing sales opportunities and providing access to credit, MCA-Armenia addresses the most prominent constraints to growth, and is enabling farmers to pursue brighter futures for themselves and their families,” said Alex Russin, MCC Resident Country Director in Armenia.

Post-harvest, processing and marketing assistance is a key part of USD 177 million MCA-Armenia Program. Support was provided to 227 enterprises and farmer groups and part of this assistance resulted in the creation of 21 collection centers all over Armenia. These facilities provide farmers with opportunities to store, sort and then sell their produce in appropriate conditions. Many of these centers were created in collaboration with other donor organizations, such as OXFAM and CARD, and the center in Lusadzor is yet another example of a successful partnership between MCC and UNDP. Additionally, MCA-Armenia has provided agricultural training to around 150 farmers in this community and invested USD 145,000 to renovate Lusadzor tertiary canal benefiting over 500 farmers. Overall, MCA-Armenia’s investment in irrigation infrastructure across Armenia has resulted in refurbished major sections of the country’s canal system, modernized 17 pumping stations, introduced gravity irrigation schemes, re-built tertiary canals in nearly 100 communities and restored sections of the Ararat Valley drainage system.

Within the framework of the UNDP project, Lusadzor community households received specialized trainings and can process their products both for family needs and sales of surplus products by paying a preliminary defined fee for the relevant services. The unit is equipped with solar panels for hot water supply and up-to-date food processing - washing, drying, cooking, freezing, sterilization, as well as packaging and labeling – facilities. It has also a bakery, a cold storage facility and a shop. Sales of the products will be organized in the markets, nearby restaurants and shops after the conclusion of relevant contracts.

It is anticipated that not only the cooperative members, but all 180 households of Lusadzor community and more than 2,000 households of five neighboring communities – Khashtarak, Lusahovit, Ditavan, Azatamut and Aknaghbyur will benefit from the initiative.