New export markets open as Armenian agricultural output meets high international standards, economy minister says

Minister of Economy Gevorg Papoyan said that the Armenian government continues to support exporters by subsidizing customs duties on a number of goods and a significant portion of transportation costs.

As a result, exports have already been shipped to Georgia, Greece, Ukraine, Kazakhstan, and other countries.

The government has recently approved a support package for greenhouse producers amid Russian restrictions. 

“The government subsidizes customs duties and a significant part of transportation costs, as a result of which we already have exports to Georgia, Greece, Ukraine, Kazakhstan, and many other countries,” the minister told lawmakers at a joint committee hearing when asked to provide an update on the matter.

There is no limit on export volumes within the framework of the program.

“The more is exported, the more we will subsidize the entire volume. I am pleased to note that with each passing day, export volumes continue to grow,” the minister said.

Papoyan also said that an additional support program will be adopted at today’s government session, which will cover the subsidization of transportation costs for exports of non-greenhouse products.

“In particular, we are talking about fruits and vegetables, which are non-greenhouse products. There will also be customs duty reimbursement, which typically ranges from 8.5% to 14.5%,” he said.

The Minister of Economy emphasized that a significant share of Armenia’s products is not inferior in quality to goods offered in European markets. According to him, intensive orchards and greenhouse farms in Armenia are technologically identical to similar facilities in leading European countries.

“The intensive orchards in the Republic of Armenia are absolutely identical to the intensive orchards in Greece, Italy, Spain, and France. The greenhouse farms in Armenia are the same as those in Spain, Italy, France, or Germany. There is no difference in methods or technology whatsoever,” Papoyan stressed.

The minister noted that the products obtained from these farms meet the highest standards, and a significant portion has the necessary international certifications.

“That production meets all standards. That is why when we subsidize it, for example, and it reaches the European market, it sells quickly,” Papoyan said.

According to him, Armenia’s main problem is not the quality of its products, but its geographical distance from large markets, which results in higher transportation costs.

“Armenia is at a certain geographical distance from the European market and is still not bordering the European Union. Because of this distance, certain technical issues arise,” the minister noted.

Papoyan gave the example of strawberries produced in Armenia, emphasizing that they are grown using the same technology as in France.

“The strawberries produced in the Republic of Armenia are the same as those produced in the French Republic. They are produced with the same technologies, the same equipment, the same seedlings, and the same methods. There is nothing that differentiates them,” he said.

The minister added that in modern greenhouse farming, pest control is often carried out not with pesticides, but through biological methods.

“Pesticides are not used; pests are controlled using biological methods. A French company comes, carries out the construction, French specialists monitor plant growth, and the seedlings are brought from the same source,” Papoyan noted.

He said it is necessary to abandon the perception that Armenian products have quality issues and cannot be sold in international markets.

“The products of the Republic of Armenia are of high quality and meet all standards. The days when people said our goods are not good and cannot be sold anywhere are over. We do not have a quality competitiveness problem at all, but we do have a price competitiveness problem for objective reasons,” the minister said.

Papoyan explained that within European countries, transportation distances are much shorter, whereas exporting goods from Armenia to European markets requires more time and higher costs.

He noted that competitiveness issues should be addressed by increasing productivity and expanding production volumes. He also emphasized that productivity in Armenia has doubled over the past 7–8 years.

Responding to a question from MP Arusyak Manavazyan on whether exporters and individuals in agriculture face problems, the minister said it would not be correct to claim there are no issues.

“To say there are no problems would not be correct. There are problems. For example, a producer who has exported to Russia all his life is now exporting to Greece. That is already a shock for him; he has to learn something new,” Papoyan said.

According to him, entering new markets also brings technical and documentation-related challenges.

“There are various issues. For example, documents related to transit through Türkiye were needed, which had to be learned for the first time—what they are, and studying regulations. So yes, there are issues and there will be more,” the minister noted.

At the same time, Papoyan emphasized that a significant portion of products manufactured in Armenia—especially those produced in intensive orchards and greenhouse farms established through state support programs—meets all required standards.

“These are intensive orchards covering thousands of hectares and greenhouse farms covering hundreds of hectares. They fully comply with all standards and can easily be sold in the United Arab Emirates, the European Union, the United States of America, the Russian Federation, and other countries,” Papoyan concluded.

Russia has recently been imposing increasing restrictions on the import of Armenian goods, ranging from flowers and certain fruits and vegetables to mineral water, citing phytosanitary violations.

The Armenian government has rolled out relief programs for exporters to help them find new markets and avoid losses. The European Union has pledged continued support to Armenia, including efforts to identify and develop new export markets. The EU announced immediate financial assistance worth over €50 million, in addition to other measures.

Most recently, a batch of flowers produced in Armenia was shipped to Latvia, while the Netherlands also announced the opening of its market. It was also announced that apricots will be shipped to Poland.