“Agriculture is a sector where decisions need to be made quickly. Harutyun Mnatsakanyan

15.03 2022

“Agriculture is a sector where decisions need to be made quickly, because one day can feed a year,” said Head of Agriculture Sector at Genesis Armenia Think Tank, Harutyun Mnatsakanyan, during the “Russia-Ukraine Conflict: Economic and Geopolitical Consequences” discussion held at Genesis Armenia.

As stated by Mnatsakanyan, the longer the Russian-Ukrainian war lasts, the bigger the world food deficit will be. “Ukraine is a major supplier of vegetable oil. The country is in a state of war, and spring sowing simply won’t be possible. As a result, in a few months we will experience a shortage of sunflower oil, which is considered a food staple. The situation is the same in the wheat, barley, and corn market. In the meantime, Russia stores grain, banning its export,” Mnatsakanyan said.

In the expert’s opinion, after August 31, Russia will calculate its reserves and use them as a trump card.

The forecasts for Armenia are not encouraging either. According to Mnatsakanyan, the ban on the export of grain from Russia will have a direct impact on livestock.

“If it turns out that Armenia has no fodder stored, it will lead to a widespread slaughter of livestock. Armenia also faces the issue of fertilizers. It would be correct to say that there are simply no fertilizers. Fertilizers that two years ago cost 7,000 drams now cost 22,000 drams, which is a heavy burden for a farmer. What is more, 45% of the agricultural lands are not cultivated, and the rest is degraded, therefore the yield is low,” Mnatsakanyan said.

According to the expert, the root of all the problems is the mismanagement and the incoherent policy towards the agriculture sector.

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