FAO/GIEWS - Foodcrops & Shortages 06/00 - ARMENIA* (5 June)

ARMENIA* (5 June)

A Joint FAO and WFP Crop and Food Supply Assessment Mission in May found that the outlook for the 2000 grain harvest is good. The area sown to winter grains is officially estimated at about 100 000 hectares, mostly wheat. This is somewhat less than last year, reflecting diversion of land to more valuable crops, un-competititive yields and higher fuel prices. Good snowfall this winter minimised crop damage and helped replenish soil and irrigation water reserves after last year's dry conditions. Providing weather conditions remain favourable until the harvest, 2000 cereal output is officially forecast at 320 000 tonnes, somewhat more than last year (301 000 tonnes), despite lower spring grain plantings.

In 2000/01 cereal imports are estimated at 368 000 tonnes, including 350 000 tonnes of wheat. The bulk is expected to be commercial; humanitarian food aid needs, for targeted distribution and food for work programmes are estimated at 25 000 tonnes.

There is more food in the market than the population can purchase. Despite financial stability and economic growth, a large proportion of the population remains effectively under or unemployed and poor. Transport and access to markets remain a major obstacle to increasing agricultural production, employment and incomes. Without export markets, the country lacks adequate solvent markets for much of its agricultural production, as well as the economies of scale for investment in agro-processing and manufacturing. Solvent market opportunities are limited resulting in seasonal and/or localized surpluses of foodstuffs and low returns per hectare, limiting farmers' ability to invest in inputs to increase yields.

Income distribution is very uneven and living conditions precarious for many households. Purchasing power remains low and at times insufficient to cover the cost of the minimum consumption basket. In total, some 170 000 vulnerable people will be covered by WFP food assistance, including some 110 000 refugees and vulnerable persons being provided with relief food aid, while 60 000 will be reached through community based food-for-work activities, supporting economic and social development. The programme is planned for three years and will be reviewed annually.


TOCBack to menu