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The Armenian government is seeking to diversify export markets for Armenian products, with businesses and individuals abroad offering to help Armenian companies gain access to new markets, including the European Union.
The Club of Economic Journalists and the Konrad Adenauer Foundation organized a discussion titled “Opportunities and Challenges for Armenian Exports to the EU.”
German Bundestag member Philip Hoffmann traveled to Armenia for this purpose to understand how he could help Armenian businesses gain easier and faster access to EU markets.
“Armenia faces a challenge in terms of visibility, while Armenian businesses face logistical constraints. There is little advertising, and visibility is low. First of all, we need to increase the number of people who know about Armenia. I will return to Germany and talk about Armenia’s climatic zones. I will also talk about the quality of Armenian products and wine. The more we talk about this and the more people spread these ideas, the more Armenia’s visibility will increase. We have old and good traditions of wine production, but everything depends on supply and demand. There are Armenian products for which demand can be created,” Hoffmann said.
International trade expert Karen Azaryan, in turn, said he was confident that there is potential for exporting Armenian products to EU markets and that there are businesses whose products meet European requirements.
“Export potential can also be developed, especially since there is demand in European markets for large fish species, such as sturgeon. The most common, for example, is salmon and fish products made from salmon. There are businesses in Armenia, but this is a sector that remains at an amateur level and is something that could be explored,” Azaryan said.
Davtyan Farms is a certified producer and, as an organic food producer, has an opportunity to establish itself in the European market. However, company head Davit Davtyan believes that opportunities for conventional producers are limited.
“It is impossible to surprise European consumers with the production of certain products, but the way they are presented can change the situation to our advantage. When working with new markets, we understand that we have a problem with volume. Perhaps we are large for Armenia, but small for foreign markets. Therefore, we could buy from small farmers, who generally lack the ability to meet standards. In that case, we would present an entire market,” Davtyan said.
Aratashen Winery is particularly known for producing Shunch wines. According to the company’s founding director, Vahan Yeghoyan, Europe is one of the most difficult markets for wine. He believes that Armenia needs to develop the concepts of geographical indications and designations of origin. He also said that the lack of affordable financing is hindering businesses, as loan interest rates are high.
Aharon Chilingaryan, partner for tax and related matters at BDO Armenia, disagreed with Yeghoyan. According to him, in the modern world, access to financing is not provided solely through loans. He pointed to the bond and stock markets, adding that Armenia’s two mandatory pension funds are also looking for good programs in which to invest in the real economy.
Meghak Apresyan, president of the Armenian Tourism Federation, said that Europe, and Germany in particular, is important for Armenian tourism, while assessing the Bundestag member’s visit to Armenia.
“Germany has an intellectual tourism market, where national characteristics and culture are important. Germany ranks second in the world after China in outbound tourism. Germany is also a donor country for global tourism. Tourism between Armenia and Germany has a good history, with good development and dynamics, although it does not account for a large share of total visits. Europe as a whole ranks third among visitors to Armenia, after Russia and Georgia. It is followed by Iran and the US. Germany accounts for 2% of the total. But it is important and has a key significance,” Apresyan said.
German Bundestag member Philip Hoffmann said he would return to Germany impressed by Armenia, expressing hope that he would return in a year and discuss with his Armenian counterparts how many of the issues raised over the past year had been resolved.