RIA Oreanda, Russia
Aug 10 2009

PM of Armenia Considered Organic Gardens Project

Yerevan. OREANDA-NEWS . On August 06, 2009 RA Prime Minister Tigran
Sargsyan traveled to Vayotz Dzor marz on a working visit to get
acquainted with the status of Tamara Fruit CJSC-implemented organic
gardens project. The Prime Minister was accompanied by Chief of
Government Staff David Sargsyan, Minister of Economy Nerces Yeritzyan
and Minister of Agriculture Gerasim Alaverdyan.

The government has subsidized Tamara Fruit CJSC to the amount of AMD
300 MN for the organic gardens project. The company is going to launch
an organic tree nursery for raspberry-canes, black and red currant
bushes etc. 450.000 saplings are expected to be produced annually
covering the needs of about 60 ha gardens nationwide.

First, Tigran Sargsyan went to Hobik section which hosts about 4 ha of
blackcurrant and raspberry plantations on the basis of premium quality
seedlings imported from Holland.

Then, the Prime Minister called a consultative meeting at the
headquarters of Vayotz Dzor marz administration during which he was
briefed on the work done under the project.

To begin with, the head of government noted that this innovative
project may open up vast opportunities for sustained development of
this branch in Armenia. Organic fruit cultivation offers good
prospects as it will generate several hundreds of strategic jobs all
over the country. The sales problem which has been a serious
impediment to farming will be solved as there is a great demand for
these fruits Noteworthy is that the processing company is cooperating
with farmers under this project.

According to the Prime Minister, this project implies a tripartite
agreement between the Government, Tamara Fruit and individual farmers
providing for mutual control and a targeted use of funds: Corruption
risks are absent in this case, Tigran Sargsyan has said by adding that
this branch is supposed to have a great export potential in Armenia.

1-2 tons of crops from 50 hectares will result in USD 1.5 worth of
exports which can be expanded in the long run. Farmers are getting
know-how with new possibilities offered to them, the Prime Minister
said. The head of government called on our farmers to use the
expertise of Tamara Fruit and apply modern technologies in this
area. The market is sizeable enough and we should think of stepping up
output, Tigran Sargsyan noted.

Vayotz Dzor marz governor Vardges Matevosyan expressed high
appreciation of the governments assistance and added that this
undertaking may have good outlook in Armenia.

President of Tamara Fruit Boris Hovanisyan advised that 3-4 tons of
young trees will be available as early as next year, with 10-12 tons
expected within 3-4 years. According to Mr. Hovanisyan, a similar
nursery is going to be established in Azatamut village of Idjevan
region. AMD 66.3 million has so far been spent out of the total of AMD
300 million allocated in the form of subsidy under the project. Over
100 jobs are currently available at the factory with an average of
3000 dram daily pay. The bulk of Tamara Fruits output is exported
toward Hungary, Poland, the Czech Republic and Germany.

Minister of Agriculture Gerasim Alaverdyan advised that at this point
corporate and individual farmers are submitting bids for over 35
hectares of organic gardens to be launched in Tavush, Lori and Kotayk
marzes of Armenia.