After the restrictions on the Russian market, Armenian agricultural product exporters are trying to find new directions, but entering the European market is not an easy process. Ashot Grigoryan, Director of Agropro LLC, which carries out exports, stated this in an interview with Armenian News-NEWS.am.
According to him, the company tried to export to Europe in small amounts last year in order to study the market, but this experience was not profitable.
“Last year, we exported only one or two cars to Europe for the purpose of studying the market. It was a minus deal, but it was necessary to understand what requirements that market has,” Grigoryan noted.
According to him, this year the main destination of exporters from Armenia has become Ukraine, but problems have also increased there. The exporter notes that cars are often stopped at the Turkish border for several days, which affects both the quality of the product and sales.
“We have cases when cars are stopped for 3 to 5 days due to inspections. The last time, in the case of two cars, the buyer refused the goods because they had arrived late. We had to look for a new buyer,” he said.
As per Ashot Grigoryan, one of the main problems of the European market is also high logistics costs. In the case when transporting one car from Armenia to Russia can cost about $3,500-4,500, the cost of transportation to Europe sometimes reaches $12 thousand.
“Sending one truckload of agricultural products to Europe can cost up to $12 thousand. There is always a risk that the product will spoil on the way or arrive late,” he noted.
The exporter believes that it is also difficult for Armenia’s small farms to meet the requirements of the European market. In his words, European supermarkets require stable amounts and the same quality of products.
“If you work with a large supermarket, you must be able to provide the necessary quantity and the same quality throughout the season. It is very difficult to do this by collecting from various small producers,” said Grigoryan.
Touching upon the issue of certification, he noted that Armenia’s producers have to make large expenses in order to enter the European market.
“The costs for certification of one orchard [in Armenia] can reach 15 to 25 million drams. Moreover, this amount has nothing to do with the size of the orchard, whether it is one hectare or 200 hectares. For small farms [in Armenia], these expenses are a serious obstacle, and many simply cannot go through this process,” said Ashot Grigoryan, Director of Agropro LLC.
In his view, state support is necessary for the development of the export of Armenian agricultural products, especially at the phase of entering new markets.
“If we want to quickly and effectively enter new markets, it will be difficult with the efforts of private companies alone. State support is very important,” he emphasized.
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