participatory appraisal of
competitive advantages (PACA)
Table of Content
Introduction 3
cooperating institutions 3
berd community 5
compettive advantages of berd 6
Main economic sectors of berd 7
Development Initiatives and Recommendations in Viticulture 9
farming 10
Development Initiatives and Recommendations in Farming Sector 13
cattle breeding 14
Development Initiatives and Recommendations in Cattle Breeding Sector 18
comparison of the main economic sectors 19
Cheese and Dairy Production Sector 19
The Value Chain of Dairy Production in Berd 20
Analysis of Dairy Production Value Chain 21
Women’s Participation in Dairy Value Chain 23
Other economic sectors 25
Development Initiatives and Recommendations for Small and Medium Entrepreneurship 26
Introduction
In May 2013, Caucasus Office of CARE International, SME Development National Center of Armenia and “Business Pareta” LLC implemented a local economic development exercise based on “Participatory Appraisal of Competitive Advantages” (PACA) methodology. The exercise was implemented with participation of the local team and the Municipality of Berd.
cooperating institutions
Caucasus Office of CARE International
“Business Pareta” LLC
SME Development National Center if Armenia
The process included the following phases:
ð General presentation of the process, introduction, team recruitment.
ð Economic mapping of the communities- selection of the leading sectors of the community, identification of main players in each sector.
ð Analysis of available value chains, identification of reform activities.
ð Workshops for analyzing of the leading sectors.
ð Summary of the results, collection of initiatives.
ð Field work - meeting with community stakeholders for verification of the received results and initiatives.
ð Finalization of the initiatives, collection of initiatives.
ð Analysis of women’s participation in the leading sectors of economy.
ð Finalization of Initiatives and development of brochure.
berd community
Tavush Fortress was built in 7th century when the region was governed by the Prince Tselik Amram. It is located in hard-to reach side hill of Tavush Gorge. The inhabitation was located at the accessible part of the gorge, next to the fortress. Remainings of this inhabitation are still being excavated till now. During the time the inhabitation was ruined and the inhabitants left the location. After a while, a part of former population returned and established a new inhabitation in front of the fortress and called it Berd (Fortress). Currently there are 2900 households in Berd with 8700 residents.
People are involved mainly in agriculture. Forest berry collection, retail trade and small productions are also developed. A branch of “Pernod-Ricard Armenia”, which operates the Yerevan Brandy Factory, functions in Berd.
Many intellectuals, state figures, economists and businesspeople, as well as many military figures have Berd descent.
There are 880 ha of plough, 21.7 ha of perennial plantations (grape), 5 ha fruit plantation, mainly with walnut, peach and apple trees. The community has also 126.83 ha of hayfield and 541.74 ha of pastures.
compettive advantages of berd
Natural
ð Picturesque forestry nature, virgin forests.
ð Reservoirs of forest fruits, berries and very rare whortleberry
ð River Salmon (Salmon trutta fario)
ð Nature-climatic conditions for growing special grape sorts for cognac production
ð Spring water reservoirs
ð Fortress of Tselik Amram.
Human advantages
· Traditional receipts (made with bread), cornel and medlar marinade, mulberry syrup, cornel vodka, bichina (homemade meat product, which is famous in Berd sub-region and became a traditional meal).
Main economic sectors of berd
People are mainly involved in agriculture, especially cattle breeding, farming and grape growing (viticulture).
Viticulture
144 households are involved in viticulture in Berd. There are 26 ha of vineyards in community. 5 ha of them are backyard vineyards. Soil plots in these vineyards are as big as 0.1-0.3 ha and in backyards it is 100 sqm (0.01-0.05 ha). Mainly “Karmrahyut”, “Babants”, “Aligore” sorts are cultivated. In addition, “Lalvari”, “Rkatsiteli” and “Saperavi” sorts are cultivated in Berd sub-region.
“Karmrahyut” sort is mainly used for homemade wine and vodka production.
“Banants” and “Aligote” sorts are used for cognac production and are stored at Tavush branch of Pernod Ricard (Yerevan Brandy factory). The minimum storing price per kilogram is 130 AMD. The factory provides the wine growers with medicines, new plants and consultation during the cultivation period. Payment for the grapes is made during the storage.
20 tonnes of “Banants” sort and 12 tonnes of “Aligote” sort are harvested from one hectare. The majority of vineyards are “Aligote” sort. Currently the farmers cultivate the vineyards by renting them. This is why they do not change the grape sorts. It will be possible to upgrade the sorts and replace them with more productive and effective sorts only after privatization of vineyards.
The vineyards are not protected against the hail. That’s why the wine growers don’t invest in expanding and upgrading them.
Productivity Calculation
Specification / Aligote / Banants1 / Average harvest from one ha / 12 000 kg / 20 000 kg
2 / Average wholesale price for one kg / 130 AMD / 130 AMD
3 / Income from one ha (1x2) / 1 560 000 AMD / 2 600 000 AMD
4 / Material expenses made for one ha / 700 000 AMD / 800 000 AMD
5 / Labour expenses made for one ha / 104 000 AMD / 104 000 AMD
6 / Profit from one ha (3-4-5) / 756 000 AMD / 1 696 000 AMD
7 / Added value from one ha (3-4) / 860 000 AMD / 1 800 000 AMD
8 / The number of persons/days for one ha / 50 / 50
9 / Daily production capacity of one person = (3-4): 8 / 17 200 AMD / 36 000 AMD
Development Initiatives and Recommendations in Viticulture
Activities / People in ChargeSupply with anti-hail systems / Government, supporting institutions
Raising the storing prices for the grapes. / Brandy factory/storing enterprises.
Establishment of new vineyards. / Grape growers
Vineyards privatization. / LSG, entrepreneurs
Providing long-term and accessible loans. / Supporting institutions, financial institutions.
Application of new equipment. / Mechanical engineers.
farming
There are 880 հa of arable lands in Berd. Only 113 ha are processed out of it.
Distribution of processed lands by sorts and volume of crops:
Crops / Processed / Average crop from one ha (tonnes) / Average crop in ArmeniaWheat / 44 ha / 2.5 / 2.6
Lucerne / 19 ha / 8 / 7
Potatoes / 28 ha / 20 / 20.7
Corn / 12 ha / 3.2 / 6.2
Barley / 7 ha / 1.6 / 2.5
Bean / 3 ha / 4 / 2.5
Around 240 households are involved in farming in Berd.
Distribution of households involved in farming by the scale:
Number of households / Classification of households / Volume of processed lands10 / Medium / 1-6 ha
230 / Small / 0.1-1 ha
There is no concentration on specific crop in farming sector. Only sowing lands have more volume in some extent exceed the volumes of other crops. It was made possible after the initiative of the municipality.
The bean yield is more than the average in the country. However, the volumes of bean yield are not being extended due to the not-irrigated lands. There are 20 ha of arable lands, which are favourable for bean cultivation if irrigated (required length of irrigation pipeline is 800 m).
The price of green string beans in local market is 300-400 AMD/kg, and for red kidney beans the price is 700 AMD/kg.
The arable lands in Berd have not been processed for a long time, which was the reason they become hardened and rooted. Average-powered wheeled tractors are not available to plough these hardened lands. Only track-laying tractors and high-powered equipment is available to do first softening and plough. The municipality purchased a track-laying ДТ-75 tractor (over worn) and organized softening and ploughs of 24 ha unprocessed lands. After that the farmers implemented wheat seeding in that area. The reason why the farmers did not implement first plough and were not involved in farming in these areas is that the first ploughs of rooted lands are very hard and consumable. This is why the municipality took care of the softening and first ploughs motivating the farmers to do the further seeding and processing works and create income from the wheat cultivation.
In addition to the abovementioned equipment, the community needs to upgrade its agricultural equipment and machinery in general. Existing equipment is not enough for organizing efficient works, as it is old and over worn.
Expenses made for ploughing/processing of one hectare of lands for wheat cultivation:
Expenses / Description / Price/AMDPlough / Diesel included / 35 000
Seed corn / 350 kg x 400 AMD (elite seed) / 140 000
Medicines / Applied twice / 30 000
Nitrogenous fertilizer / 5 sacks x 6 000 AMD / 30 000
Seeding / 20 000
Reaping / 30 000
Transportation / From field to houses / 6 000
Unloading / Two people are involved with 4 000 AMD for each. / 8 000
Total / 299 000
In the case of elite seed corns, yield of wheat from one hectare is 3 - 3.5tonnes, and the income is 241 000 AMD.
If the seed corn is regular, the yield is 2-2.5 tonnes, and the income is 131 000 AMD.
Production calculation of one person/day in the wheat cultivation sector.
Classification / Index1 / Average harvest from one ha / 3000 kg
2 / Average wholesale price for one kg / 180 AMD
3 / Income from one ha (1x2) / 540 000 AMD
4 / Material expenses made for one ha / 291 000 AMD
5 / Labour expenses made for one ha / 8 000 AMD
6 / Profit from one ha (3-4-5) / 241 000 AMD
7 / Added value from one ha (3-4) / 249 000 AMD
8 / The number of persons/days for one ha / 10
9 / Daily productivity of one person = (3-4): 8 / 24900 AMD
Development Initiatives and Recommendations in Farming Sector
Activities / People in ChargeProviding the anti-hail defence systems. / Supporting institutions
Softening, ploughing of hardened ploughs and providing them to the farmers. / LSG
Purchasing powerful agricultural machinery (ДТ 75) / LSG, supporting institutions
Providing long-term and accessible loans / Supporting institutions
Purchasing and application of new agro-machinery. / Farmers, mechanical engineers
Ensuring accessible conditions for agro-machinery / Supporting institutions
Construction of 800 m irrigation pipeline / LSG, supporting institutions
Kidney bean acreage expansion / Farmers
cattle breeding
Almost 223 households are involved in cattle breeding in Berd.
There are 1000 large cattle in the community, out of which 480 are cows. The average milk yield of cows is 2000 litres. There are no new cow sorts/breeds in farms: only Caucasus Grey cows are breed.
Distribution of cattle-breeding farms by scale
Classification / Households / LivestockLarge / 3 / 50-110
Medium / 20 / 10-20
Small / 200 / 1-10
The pledges of effective cattle breeding in Berd are Alpine pastures and short-lasting winter (i.e. cattle are stores in cattle sheds for shorter period), which lasts from late November till April.
The cattle in the community are mainly fed with grass and lucerne. Cattle breeders produce the forage mainly by themselves. During the warm months cattle farm workers take the cattle to the long-distance pastures. The monthly fee for the long-distance pastures for each cattle is 3000 AMD.
There is a lack of agro-machinery used to collect the forage. Existing ones are overworn.
12
Analysis of cattle breeding
Capacities of leading farmersStrengths / Weaknesses
Devotion to the work and participation of the family in the works. Enough professional skills. Readiness to purchase new agro-machinery.
Production of forage by the farmers.
Capability to stand/adopt to the sector and market vibrations. / The farms do not correspond to the modern standards
The works are not automated.
Absence of upgraded sorts.
Not enough forage base.
No cattle registry.
Factor quality
Strengths / Weaknesses
Rich pasture zones (1000 ha, distance-30-50 km, upland /Alpine-2000 m.).
800 ha of meadow lands.
State support in cattle vaccination and veterinary services.
Acorn and spelt rich forests for the forage
“Green Path” professional; information centre.
Consultation provided by the Agricultural Support regional Centre.
Accessible loans, high interest rates. / Shortage of pastures: 100 ha. Poor road conditions of long-distance pastures.
Shortage of work force. Absence of infrastructures (power, fresh water, toilets) in pastures.
Bordering location of pastures with Azerbaijan.
Sometimes, state-supported vaccinations are late.
Demand quality
There is no milk storing in Berd due to the low storing price. Some 5% of milk is sold in the community with 200-250 AMD per litre. Other part is processed by the dairy producers.
The resellers buy the meat with average of 2000 AMD. Some part of it is sold inside the community; other part is sold in Yerevan.
Supporting Branch/Sector Quality
Strengths / Weaknesses
Veterinary services.
Agro-machinery-mowing machine-1, combine-1, tractor, assembling machine, baling machine-3.
Veterinary pharmacies.
One expert for artificial insemination.
Meat resellers. / Absence of milk and meat processing centres.
Shortage of agro-machinery and tools, sometimes even absence of them.
Significant shortage of mechanical engineers.
No meat procurement.
No slaughterhouse.