Armenia Fund USA, Inc.
152 Madison Ave, S-803
New York, NY 10016, U.S.A.
Tel:1-212-689-5307
Fax:1-212-689-5317
E-mai l: info@armeniafundusa.org

Armenia Fund USA’s Agricultural Initiative in
Nagorno-Karabakh Underway
~The first Agricultural Development Association established in Mardakert ~

NEW YORK, New York – Armenia Fund USA, East Region affiliate of
All-Armenian Fund is pleased to announce that its agricultural
development project, promising to revitalize the agricultural sector of
Karabakh’s economy, is currently underway. The Agricultural Initiative
aims at upgrading the standards of living of the rural communities
in the Mardakert Region of Nagorno-Karabakh. The three-year, three
phase program, developed by leading experts in the United States
with the initiation of Armenia Fund USA and All-Armenian Fund, and
in cooperation with the governments of Armenia and Nagorno-Karabakh,
involves a new approach to the idea of development by empowering
rural communities to invest in their agricultural potential.

While initially aimed at converting subsistence farmers (producing
just enough to feed their families) into export producers, the Agro
Initiative is a long-term strategic plan targeting rural poverty
reduction in the region.

The Agro Initiative, implemented by Armenia Fund USA, is one of the
many other components of the "Rebirth of Artsakh" Regional Development
Program – a large-scale initiative undertaken by all 18 affiliates
of the Fund to provide much needed assistance to Nagorno-Karabakh
through a series of projects that include construction of new schools,
healthcare facilities, drinking and water irrigation systems and
access roads.

Building upon continued success of implementing development projects
in Armenia and Nagorno-Karabakh, Armenia Fund USA is now focusing on
the Agro Initiative. Addressing the issue of functional agricultural
infrastructure, given the region’s historical potential as a major
agricultural area, appears to be the logical place to start in
revitalizing the agricultural economy on basis of which regional
development can become feasible.

After conducting a field study of Nagorno-Karabakh villages and the
situation of rural farming communities, a team of leading experts from
Turnaround Associates, Inc., a New York based corporate consulting
firm, designed a step-by-step plan to expand Karabakh’s food production
capabilities by careful balancing of import-export ratio.

The plan involved supporting rural farmers in nearly all aspects of
agricultural activity. However without access to fundamental farm
equipment, this was simply impossible. Armenia Fund USA therefore
focused on strategies that would support purchase and maintenance of
new agricultural equipment as well as provide technical support related
services to small farmers. This is when the necessity of establishing
Agricultural Development Associations (ADA), complemented by Service
centers to house equipment and serve as a source of technology transfer
through Agricultural Service Corporations (ASCOs), came into being.

A very recent trip (May 2006) to the region by Armenia Fund USA
representatives was, among many other activities, to establish the
Mardakert Agricultural Development Association (MADA) in Mardakert
Region of Nagorno-Karabakh, which was done in cooperation with
All-Armenian Fund in Yerevan and the local government.

After selecting the site for the MADA and appointing Director in
Residence responsible for the project in Karabakh, the rationale
of the Mardakert Agricultural Development Association, a voluntary
non-profit association of farmers, as well as Mardakert Agricultural
Services Corporation, a joint stock commercial company that is to
provide technical and farm equipment services at affordable rates, was
presented to the Karabakh Ministry of Agriculture on the one hand, and
to the local farming communities on the other. To introduce Mardakert
farmers to the organizational structure of the ADA and explain the
benefits of becoming a member of the Association, Armenia Fund USA held
meetings with Karabakh farmers to encourage them to join. Particularly
noteworthy were the farmers’ enthusiasm and openness to cooperate and
receive expert training in areas where their agricultural methods
had proven outmoded. Their readiness to join efforts in improving
agricultural production by collective efforts is what will make the
further development of the ADA a success.

According to present estimates, over 18 villages with a population of
more than 9,000 will be direct beneficiaries of this initiative. The
newly established Mardakert Agricultural Development Association will
start accepting applications for local farmers in the fall. Currently,
the Fund is in the process of purchasing the necessary equipment for
the first ADA.

Tractors, share plows, wheat seed drills, trucks mowers and combines
are being ordered from China and Russia to be transported to Armenia
and then to Nagorno-Karabakh. A $700,000 worth of farm equipment is
needed for the ADA to start its function this fall.

The Agro Initiative will start with production of wheat, the dominant
field crop in Karabakh. Apart from providing upgraded technical
assistance to farmers, the Initiative involves significant efforts
to involve the social factor of change in agricultural production
in Karabakh. The idea of ADAs owned by local farmers, the expert
trainings and exchange of information are specific steps to engage
rural farming communities to become entrepreneurs.

ABOUT ARMENIA FUND USA: ARMENIA FUND USA, founded in 1992, was one of
the first of Hayastan All-Armenian Fund’s 18 international affiliates
and serves constituents in all states east of the Mississippi. As
a non-profit, non-governmental, nonsectarian organization, the Fund
represents all Armenian constituents.

Armenia Fund USA is the largest contributor among the 18 international
affiliates – supporting strategic infrastructure projects in Armenia
and Karabakh, and having helped build 138 miles of roads, 100 miles
of waterways, 36 schools, 3 electric transmission networks, 210
residential buildings and 15 healthcare institutions.

Armenia Fund USA’s Mission is the development of strategic
socio-economic infrastructure in Armenia and Karabakh, focusing
on major projects such as major highways, schools, drinking water
to communities and humanitarian programs in education, training and
medical facilities. The Fund has adopted a policy to go "Beyond Bricks
and Mortar" to provide sustainability for projects it sponsors.