December 2010 STUDY OF POSSIBLE EXPORTING VOLUMES OF ARMENIAN FRUITS AND VEGETABLE Report Authored by: AM PARTNERS CONSULTING COMPANY Ministry of Economy of the Armenian Development World Bank / Foreign Financing AM Partners Republic of Armenia Agency Projects Management Centre Consulting Company Study of possible exporting volumes of Armenian fruits and vegetable Content CONTENT 1 INTRODUCTION .......................................................................................................................... 6 1.1 SURVEY OBJECTIVE ...................................................................................................................................................... 6 1.2 METHODOLOGY ARRROACHES ...................................................................................................................................... 7 1.2.1 Studied products........................................................................................................................................................ 7 1.2.2 Sources of information ............................................................................................................................................ 11 1.2.3 Information Collection ............................................................................................................................................. 12 1.3 FIELD WORK. GENERAL DATA ..................................................................................................................................... 13 2 PRODUCTION OF FRUITS AND VEGETABLE ................................................................................ 16 2.1 PRODUCTION BASE AND FIGURES ............................................................................................................................... 16 2.1.1 Plots .......................................................................................................................................................................... 16 2.1.1.1 Fruit plantations ............................................................................................................................................... 17 2.1.1.2 Plots of vegetables ........................................................................................................................................... 21 2.1.2 Production volumes ................................................................................................................................................. 22 2.1.2.1 Fruit production volumes .................................................................................................................................. 22 2.1.2.2 The volumes of vegetable production ............................................................................................................... 26 2.2 PRODUCTION GEOGRAPHY AND SEASONALITY ............................................................................................................. 29 2.2.1 Production geography ............................................................................................................................................. 29 2.2.1.1 The geography of fruit production ..................................................................................................................... 30 2.2.1.2 The geography of vegetable production ........................................................................................................... 35 2.2.2 Production Seasonality ........................................................................................................................................... 38 2.3 LARGE PRODUCERS .................................................................................................................................................... 48 3 FRUIT AND VEGETABLE EXPORTS ............................................................................................ 50 3.1 EXPORT VOLUMES ...................................................................................................................................................... 50 3.1.1 Exporting volumes of fruits .................................................................................................................................... 50 3.1.2 The volumes of vegetable exports .......................................................................................................................... 53 3.2 EXPORT MARKETS ...................................................................................................................................................... 55 3.3 TRANSPORTATION TYPES ............................................................................................................................................ 57 3.4 EXPORTERS ................................................................................................................................................................ 58 4 FRUIT AND VEGETABLE IMPORT ............................................................................................... 63 4.1 IMPORT VOLUMES ....................................................................................................................................................... 63 4.1.1 Fruits import volumes.............................................................................................................................................. 63 4.1.2 Vegetable import volumes ....................................................................................................................................... 65 5 FRUIT AND VEGETABLE CONSUMPTION ..................................................................................... 68 5.1 FINAL DISTRIBUTION OF FRUITS AND VEGETABLES: POPULATION CONSUMPTION .......................................................... 68 5.1.1 Sales (consumption) structure ................................................................................................................................ 68 5.1.2 Own consumption of farms ..................................................................................................................................... 68 5.1.3 Procurements of processing enterprises ............................................................................................................... 71 5.1.3.1 Grape processing quantities ............................................................................................................................. 71 5.1.3.2 Fruit and vegetable processing quantities ........................................................................................................ 73 5.1.4 Consumption by population .................................................................................................................................... 77 5.2 SALES PRICES ............................................................................................................................................................ 80 5.2.1 Main factors influencing sales prices ..................................................................................................................... 80 5.2.2 Fruit and vegetable sales prices ............................................................................................................................. 82 6 ESTIMATION OF FRUIT AND VEGETABLE EXPORTING VOLUMES .................................................. 99 6.1 REASONS OF POSSIBLE MISTAKES OF EXPORT VOLUMES ESTIMATION ......................................................................... 99 6.2 ESTIMATION OF FRUIT AND VEGETABLE EXPORT VOLUMES IN UPCOMING YEARS .......................................................... 99 6.2.1 Factor of changes in plots’ and production quanitiy ........................................................................................... 100 6.2.2 Factor of operation volumes of “traditional” exporters....................................................................................... 101 6.2.3 Factor of “Spayka” ................................................................................................................................................. 102 6.3 POSSIBLE IMPACT OF EXPORT VOLUMES INCREASE ON LOCAL MARKET PRICES ......................................................... 103 1 Study of possible exporting volumes of Armenian fruits and vegetable Content 7 SUMMARY ............................................................................................................................. 106 7.1 CONCLUSIONS .......................................................................................................................................................... 106 7.2 RECOMMENDATIONS ADDRESSED TO EXPORTING VOLUMES ....................................................................................... 107 8 APPENDIX ............................................................................................................................. 109 8.1 INFORMATIN SOURCES .............................................................................................................................................. 109 8.1.1 Meetengs and Interviews ....................................................................................................................................... 109 8.1.2 Publications............................................................................................................................................................ 109 LIST