Partnering for Agricultural Development in Armenia

January 2024

Owning an agricultural business means much more than cultivating crops. Agriculture is to a certain extent the backbone of an economy and society. Food security cannot be achieved without a functioning and efficiently planned agricultural sector. This includes making informed decisions and investments about products and how to effectively market them. Essential to this is a foundational understanding of financial and business principles and the ability to gather and interpret data accurately. 

Long-term collaboration between ICARE Foundation (International Center for Agribusiness Research and Education) and DSIK (Deutsche Sparkassenstiftung für Internationale Kooperation) commenced in 2023 when both institutions realised that they were pursuing similar goals and visions. DSIK’s simulation training modules for agro-business owners provided ICARE’s experts with new approaches and skills to support farmers with their agro-business management. 

ICARE Foundation was established in 2005 by the Texas A&M University and implements various educational initiatives aiming at improving the agriculture sector in Armenia. These programs integrate insights i.a. from Training of Trainers (ToT) capacity building sessions for specifically tailored and needs-based simulation trainings conducted by DSIK. ICARE's beneficiaries encompass a diverse range of stakeholders, including farmers, rural residents, and agricultural students. Despite their differing demographics, these programs share a unified objective: advancing Armenia's agricultural sector.

 

Education Through Business Simulation Exercises


Sargis Mkrtchyan, coordinator of the ‘Fruitenia’ program at ICARE, says many Armenian farmers face significant challenges in these areas. He notes that a considerable number of participants in ICARE's educational courses struggle to determine the true cost of their goods and products, even though they are very skilled and experienced farmers. Consequently, they find it challenging to determine appropriate prices which leads to potential market disadvantages and financial setbacks. 

"In all our years of operation, we've met only one farmer who documented and calculated all his expenses using Excel. The majority does not keep any records and is not aware of their production costs. Without this information, it is difficult to make informed business decisions or whether certain crops are even worth growing. This leads to losses, making them think farming is not a profitable business," explains Sargis Mkrtchyan. 

"We are really impressed with how DSIK uses the gamification approach to teach. Just talking about theory is not as effective; such knowledge does not ‘take root’. However, engaging participants in simulation-based exercises significantly enhances the learning experience. This exercise is often initially met with skepticism, but it quickly captivates the participants, making the process both enjoyable and educational," says Sargis. "People usually hesitate about taking loans. But in the simulation training, they learn that borrowing considerately and investing wisely can bring great results. This changes the way participants think about many things and helps them make better, more informed decisions". 

Innovative Solutions for Agricultural Advancement


Sargis Mkrtchyan envisions a continued partnership between ICARE and DSIK and has collected numerous ideas for future collaborations aimed at bolstering Armenia's agriculture sector, both within the ‘Fruitenia’ program, which he spearheads, and the ‘AGRI CAMP’ program, which aims to promote innovative agriculture through partnership with industry sector, academic institutions and agricultural entrepreneurs. 

One of these ideas is a tailored mobile application, in collaboration with DSIK, designed to support farmers to manage and plan their operations. Such an application would enable farmers to record expenses, facilitate budget planning, and gather crucial data for strategic decision-making.  

"Our educational courses and this app share a common objective. Once developed, the application will complement our training programs. Our goal is to convince sure many farmers to use it, so they can make better decisions based on facts," he explains. 

Taking Agriculture to the Next Level


Both ‘Fruitenia’ and ‘AGRI CAMP’ as two of ICARE’s flagship projects, aim to cultivate interest in the agricultural sector among farmers and stimulate collaboration with educational institutions and the sector industry to harness full agricultural potential. 

Climate change and its impact on agriculture in Armenia will be an increasingly important topic for the future with its implications already being perceptible today. To support Armenian micro- and small-scale farmers in this regard and to demonstrate ways of adapting and of avoiding risks, a new simulation training course tailored specifically to this issue is being jointly designed with DSIK. 

"At ICARE, we are here to teach modern farming, train the next generation, advise the agricultural sector, and help our country grow," concludes Sargis.