Armenia Gets Marketing Assistance from A&T Specialist



January 10, 1997

Greensboro, NC: The collapse of the Soviet Union has resulted in new economic opportunities for its former republics. Unfortunately, the transition from a state-controlled economy to a market-based system is not always smooth. Teams of advisors have been helping the newly formed countries learn about their new economic system, and a specialist with the North Carolina A&T State University Cooperative Extension Program was recently among them.

"Under the communist system, workers grew accustomed to a production focus," said Mary Mafuyai, a small farms management specialist with the NC A&T Cooperative Extension Program. "Now that a free market is in place, they need to learn new skills, such as marketing."

Mafuyai worked in Armenia as one of eight marketing advisors sent by the USDA-CSREES to train and advise that country's agricultural professionals. During her six-month stay, she became involved in a number of activities designed to help the Armenian agricultural sector adapt to a market-based system.

The eight marketing advisors were assigned to different areas within Armenia. Mafuyai's area was centered in Yeghegnadzor, in Armenia's Vayots Dzor Region. From her base in Yeghegnadzor, Mafuyai was responsible for the surrounding 60-mile radius.

"The government recently allotted land to a number of farm families," said Mafuyai. "The trouble is that these farmers are only experienced in growing the crops that the government expected them to grow. They have no experience in marketing or exploring alternative crops."

To address this problem, Mafuyai, whose work with the NC A&T Cooperative Extension Program involves advising small-scale growers on marketing strategies, helped Armenian growers make the necessary adjustments to produce and market products which will earn them profits on a free trade market.

"Sometimes, it was just a matter of helping them improve the quality of their produce to a level at which it meets customer and regulatory expectations," said Mafuyai. "Other times, we helped farmers realize that they needed to address a number of issues if they hoped to be successful in the new market." Among these issues mentioned by Mafuyai were processing, storage, transportation, packaging, quality control, food safety, and exploring import and export markets.

According to USDA reports, U.S. farm exports to the 12 former republics of the Soviet Union exceeded $1 billion in 8 of the past 11 years. However, export levels have shown considerable decrease in recent years.

In an effort to stimulate economic growth, USDA provided eight mini grants to Armenian agricultural efforts. The grants' funding was intended to provide technical and financial training to Armenian landowners and businessmen. Officials hope that this one-time funding will provide a framework upon which future Armenian economic growth can be based.

One of the mini-grants helped a winery improve their production to meet consumer standards.

"The Areni Winery had the capacity to make a quality wine, but obsolete techniques and improper handling limited the customer appeal of the wine," said Mafuyai. Mafuyai worked with the winery, which is operated by an association of twelve local farmers, and taught its owners the importance of proper production methods. As a result, an improved product now meets industry standards and is available for international trade.

Other key projects resulting from the mini-grants included: an agricultural fair, a mobile testing laboratory, an agricultural newspaper, establishment of a roadside farmer's market, and training in computer skills and transportation and distribution.

Mafuyai was also involved in establishing a cooperative extension program in Armenia. USDA is trying to establish an extension organization in Armenia that patterns its American counterpart in its promotion and execution of training in new agricultural methods.

"Our goal in working with the extension system of Armenia was to help them reach a level at which they are self-sufficient," said Mafuyai. "We trained these professionals in such areas as strategic planning, securing grants, and organizational structure. With these skills they can continue to build the strength of their organization and consequently, the strength of their country's economy."

- 30 -

For more information, please contact Mary Mafuyai, NC A&T Cooperative Extension Program, (336) 334-7024.