Armenia - Food and Agriculture Organization of the United Nations
Food Security Information for Decision Making www.foodsec.org
European Union
Food Security and Agriculture Highlights
Armenia January –March 2011
Key Messages The prevalence of poverty increased from 27.6 % in 2008 to 34.1% in 2009 and is expected to have further increased in 2010. The price of potato increased by 49% between December 2010 and March 2011. The prices of bread and beef also continued to increase in 2011 (3% and 4% respectively). Prospects for 2011 agricultural production are good. Production is expected to be higher than in 2010. Cereal imports in 2010 were 6% above 2005–2009 average. Imports in January–March 2011 were 85% above the quantities registered during the same period in 2010
Food Security and Poverty Situation The prevalence of poverty, the main cause of food insecurity in Armenia, is increasing due to the combined effect of high food and energy prices. According to the latest figures available, a third of Armenians were living in poverty in 2009 (34.1%), compared with 27.6% in 2008. The incidence of poverty is expected to have further increased in 2010, taking into account the high food inflation rate in 2010 (9.4%). The poorest people are the most affected by high food prices as they spend more than 60% of their budget on food. Emigration is increasing as more and more people, in particular in the rural areas, are leaving the country in search of work. INTERNATIONAL CLASSIFICATIONS FAO SCALE OF HUNGER (% of undernourishment)
Very high (>= 35%)
High (25-34%)
Moderately high (15-24%)
Moderately low (5-14%)
Very low (< 5%)
FAO Hunger Map
FAO Hunger Map classifies all countries of the world into five categories based on % of population undernourished.
IFPRI GLOBAL HUNGER INDEX
Extremely alarming
Alarming
Serious
Moderate
Low
IFPRI/2010 GHI
Food Prices Food prices increased by 8.6% between December 2010 and March 2011. Prices were on average 16.7% higher in January–March 2011 than in January–March 2010.
Economic indicators * GDP growth Total population (millions) Population growth Share of rural population Life expectancy (years) Total Unemployment Rural Social protection expenditures as % of government budget Consumer Price Index Food Price Index Remittances as % of GDP (WB) Cereal imports as % of total exports (in value) Agricultural indicators * Contribution of agriculture to GDP (without agro-processing) Share of plant Plant production/livestock Livestock in agricultural GDP Total Share of labour force in Women agriculture Men Average land ownership per farm (ha) Farmgate price index Average monthly salary in Women agriculture by gender Men (AMD) Women's access to land ownership (UNDP) Others indicators * Total Rural Share of food expenditures Total: in total expenditures 1st quintile: Share of staple (cereals and potatoes) in total calorie consumption (FAO) Share of protein of animal origin in total calorie consumption (FAO) Undernourished population 2005–2007 (FAO) Prevalence of iron deficiency among women (anemia, age 15–49) Prevalence of stunting among under 5 children Income share held by lowest 20% (WB) Prevalence of poverty
2.6%
Date 2010
3.3
2011
0.4% 36% 74 7.0% 9.5%
2011 2010 2009
26.2%
2009
108.2 109.4 9.2% 15.3%
2010 2010 2007 2009
2009
Date 16.9%
2010
61.6% 38.4%
2010
44% 53.9% 46.1% 1.37 132
2009 2010 2009
67 093 77 177
2009
Full access
2009 Date
34.1% 34.9% 51% 63.6%
2009 2009
46.9%
2007
10.3%
2007
22% 24.6%
2005
13.0%
2005
8.8%
2008
* Source: National Statistical Service (NSS) unless otherwise indicated
Source: National Statistical Service (NSS)
Bread: Bread price registered a 3% increase between December 2010 and March 2011. Price was on average 12% higher in January–March 2011 than during the same period in 2010. Price increased in January and February and stabilized in March, in line with international wheat grain price trend.
Potato: Potato price rose by 49% between December 2010 and March 2011. Price more than doubled between January–March 2011 and the same period in 2010 due to poor harvests in Armenia and neighboring countries.
At the beginning of the summer crop season, a delay of greenup onset is observed in various provinces.
Beef: Beef price increased by 4% between December 2010 and March 2011. On average, price during the reporting period was 26% higher than in January–March 2010.
Agricultural production Agricultural production was low in 2010 due to unfavorable climatic conditions (early spring frost, hail, heavy rains, high humidity) and insufficient quantities of high quality seeds. Cereal production was 7% lower than in 2010, potato 19%, vegetables 14% and melons 39%. The production of fruits and berries dropped by 61%. Grape production was 7% higher than in 2009 as it was not affected by weather conditions and phytosanitary treatments were applied in time. Production of main agricultural products (thousand tonnes) Avg 2009 2010 2010/2009 2010/avg 2005–2009 Wheat 216.6 198.1 183.5 -7% -15% Potato
585.0
593.6 481.9
-19%
-18%
Vegetables
786.8
819.8 707.7
-14%
-10%
Melons Fruits and berries
171.5
216.1 132.5
-39%
-23%
302.4
332.2 128.5
-61%
-42%
195.8
208.6 222.9
+7%
+14%
Grape
Source: National Statistical Service (NSS)
The decline in crop production in 2010 was also due to limited access to credit, reduced Government’s support to agriculture, as well as shortage of fuel, fertilizers, good quality seeds and prohibitive prices of plant protection chemicals. Government’s support to agriculture in 2010 was 32% lower than in 2009. Support to farmers in marginal areas virtually stopped in 2010.
Source: JRC MARS – FoodSec
Food trade Cereal imports in 2010 (433 thousand tonnes) were 6% above 2005–2009 average. Cereal imports during the first three months of 2011 amounted to 151 thousand tonnes, which is 85% above the quantities registered during the same period in 2010 and 72% above the 2006–2010 average.
Agricultural production in 2011 is expected to be higher than in 2010, taking into account favourable climatic conditions, adequate plant protection measures, and the availability of good quality seeds. Government agricultural policies aim at boosting local production. Government approved the subsidization of agricultural credits in local currency in April with a contribution of 200 million Drams. The state will subsidize credit rates, resulting in low credit rates for farmers, ranging from 8–10%, with lower rates for the poorest farmers. In order to limit price increases, Government has organized the procurement of local agricultural production for processing with farmers and food processors on a contractual basis. Negotiations have started to decrease irrigation prices through subsidies.
Source: National Statistical Service (NSS)
The “Wheat Seed Production Development Programme for 2010– 2014” was launched to produce high quality seeds and 558 million AMD were allocated to procure high quality seeds from local and foreign producers.
Objective of the Food Security and Agriculture Highlights The objectives of the Highlights is to provide an overview of the situation of food security in the country, with a focus on agriculture which is a key sector for developing the country and improving food security of rural and urban populations. The Highlights are produced with support from the EC/FAO Programme on information systems to improve food security decision-making in the European Neighbourhood Policy East Area (2010–2012), funded by the European Union and implemented by the Food and Agriculture Organization of the United Nations. For more information please contact: Mane Tapaltsyan [email protected]
Francoise Trine [email protected]
More readings: FAO - Policy Briefs FAO - Global food price monitor FAO - Crop Prospects and Food Situation FAO - Media Center Word Bank Website: www.foodsec.org
The views expressed in this publication do not necessarily reflect the views of the European Union or the Food and Agriculture Organization of the United Nations.
European Union
Food Security and Agriculture Highlights
Armenia January –March 2011
Key Messages The prevalence of poverty increased from 27.6 % in 2008 to 34.1% in 2009 and is expected to have further increased in 2010. The price of potato increased by 49% between December 2010 and March 2011. The prices of bread and beef also continued to increase in 2011 (3% and 4% respectively). Prospects for 2011 agricultural production are good. Production is expected to be higher than in 2010. Cereal imports in 2010 were 6% above 2005–2009 average. Imports in January–March 2011 were 85% above the quantities registered during the same period in 2010
Food Security and Poverty Situation The prevalence of poverty, the main cause of food insecurity in Armenia, is increasing due to the combined effect of high food and energy prices. According to the latest figures available, a third of Armenians were living in poverty in 2009 (34.1%), compared with 27.6% in 2008. The incidence of poverty is expected to have further increased in 2010, taking into account the high food inflation rate in 2010 (9.4%). The poorest people are the most affected by high food prices as they spend more than 60% of their budget on food. Emigration is increasing as more and more people, in particular in the rural areas, are leaving the country in search of work. INTERNATIONAL CLASSIFICATIONS FAO SCALE OF HUNGER (% of undernourishment)
Very high (>= 35%)
High (25-34%)
Moderately high (15-24%)
Moderately low (5-14%)
Very low (< 5%)
FAO Hunger Map
FAO Hunger Map classifies all countries of the world into five categories based on % of population undernourished.
IFPRI GLOBAL HUNGER INDEX
Extremely alarming
Alarming
Serious
Moderate
Low
IFPRI/2010 GHI
Food Prices Food prices increased by 8.6% between December 2010 and March 2011. Prices were on average 16.7% higher in January–March 2011 than in January–March 2010.
Economic indicators * GDP growth Total population (millions) Population growth Share of rural population Life expectancy (years) Total Unemployment Rural Social protection expenditures as % of government budget Consumer Price Index Food Price Index Remittances as % of GDP (WB) Cereal imports as % of total exports (in value) Agricultural indicators * Contribution of agriculture to GDP (without agro-processing) Share of plant Plant production/livestock Livestock in agricultural GDP Total Share of labour force in Women agriculture Men Average land ownership per farm (ha) Farmgate price index Average monthly salary in Women agriculture by gender Men (AMD) Women's access to land ownership (UNDP) Others indicators * Total Rural Share of food expenditures Total: in total expenditures 1st quintile: Share of staple (cereals and potatoes) in total calorie consumption (FAO) Share of protein of animal origin in total calorie consumption (FAO) Undernourished population 2005–2007 (FAO) Prevalence of iron deficiency among women (anemia, age 15–49) Prevalence of stunting among under 5 children Income share held by lowest 20% (WB) Prevalence of poverty
2.6%
Date 2010
3.3
2011
0.4% 36% 74 7.0% 9.5%
2011 2010 2009
26.2%
2009
108.2 109.4 9.2% 15.3%
2010 2010 2007 2009
2009
Date 16.9%
2010
61.6% 38.4%
2010
44% 53.9% 46.1% 1.37 132
2009 2010 2009
67 093 77 177
2009
Full access
2009 Date
34.1% 34.9% 51% 63.6%
2009 2009
46.9%
2007
10.3%
2007
22% 24.6%
2005
13.0%
2005
8.8%
2008
* Source: National Statistical Service (NSS) unless otherwise indicated
Source: National Statistical Service (NSS)
Bread: Bread price registered a 3% increase between December 2010 and March 2011. Price was on average 12% higher in January–March 2011 than during the same period in 2010. Price increased in January and February and stabilized in March, in line with international wheat grain price trend.
Potato: Potato price rose by 49% between December 2010 and March 2011. Price more than doubled between January–March 2011 and the same period in 2010 due to poor harvests in Armenia and neighboring countries.
At the beginning of the summer crop season, a delay of greenup onset is observed in various provinces.
Beef: Beef price increased by 4% between December 2010 and March 2011. On average, price during the reporting period was 26% higher than in January–March 2010.
Agricultural production Agricultural production was low in 2010 due to unfavorable climatic conditions (early spring frost, hail, heavy rains, high humidity) and insufficient quantities of high quality seeds. Cereal production was 7% lower than in 2010, potato 19%, vegetables 14% and melons 39%. The production of fruits and berries dropped by 61%. Grape production was 7% higher than in 2009 as it was not affected by weather conditions and phytosanitary treatments were applied in time. Production of main agricultural products (thousand tonnes) Avg 2009 2010 2010/2009 2010/avg 2005–2009 Wheat 216.6 198.1 183.5 -7% -15% Potato
585.0
593.6 481.9
-19%
-18%
Vegetables
786.8
819.8 707.7
-14%
-10%
Melons Fruits and berries
171.5
216.1 132.5
-39%
-23%
302.4
332.2 128.5
-61%
-42%
195.8
208.6 222.9
+7%
+14%
Grape
Source: National Statistical Service (NSS)
The decline in crop production in 2010 was also due to limited access to credit, reduced Government’s support to agriculture, as well as shortage of fuel, fertilizers, good quality seeds and prohibitive prices of plant protection chemicals. Government’s support to agriculture in 2010 was 32% lower than in 2009. Support to farmers in marginal areas virtually stopped in 2010.
Source: JRC MARS – FoodSec
Food trade Cereal imports in 2010 (433 thousand tonnes) were 6% above 2005–2009 average. Cereal imports during the first three months of 2011 amounted to 151 thousand tonnes, which is 85% above the quantities registered during the same period in 2010 and 72% above the 2006–2010 average.
Agricultural production in 2011 is expected to be higher than in 2010, taking into account favourable climatic conditions, adequate plant protection measures, and the availability of good quality seeds. Government agricultural policies aim at boosting local production. Government approved the subsidization of agricultural credits in local currency in April with a contribution of 200 million Drams. The state will subsidize credit rates, resulting in low credit rates for farmers, ranging from 8–10%, with lower rates for the poorest farmers. In order to limit price increases, Government has organized the procurement of local agricultural production for processing with farmers and food processors on a contractual basis. Negotiations have started to decrease irrigation prices through subsidies.
Source: National Statistical Service (NSS)
The “Wheat Seed Production Development Programme for 2010– 2014” was launched to produce high quality seeds and 558 million AMD were allocated to procure high quality seeds from local and foreign producers.
Objective of the Food Security and Agriculture Highlights The objectives of the Highlights is to provide an overview of the situation of food security in the country, with a focus on agriculture which is a key sector for developing the country and improving food security of rural and urban populations. The Highlights are produced with support from the EC/FAO Programme on information systems to improve food security decision-making in the European Neighbourhood Policy East Area (2010–2012), funded by the European Union and implemented by the Food and Agriculture Organization of the United Nations. For more information please contact: Mane Tapaltsyan [email protected]
Francoise Trine [email protected]
More readings: FAO - Policy Briefs FAO - Global food price monitor FAO - Crop Prospects and Food Situation FAO - Media Center Word Bank Website: www.foodsec.org
The views expressed in this publication do not necessarily reflect the views of the European Union or the Food and Agriculture Organization of the United Nations.
