IFC’s First Investment in Armenia’s Agribusiness Sector Boosts Rural Farmers
June 13, 2013 -- For farmers in the Armavir and Kotayk regions of Armenia, opportunity is knocking at the door.
Backed by IFC, Euroterm, the producer of Noyan-brand fruit juice and canned food in Armenia, is expanding production and boosting demand for fresh fruit and vegetables. The farmers expect to seize this opportunity to increase sales.
With $2.5 million from IFC and €2.05 million parallel financing from the Black Sea Trade and Development Bank, Euroterm will be able to grow, employ more workers, and stimulate farmers to increase the volumes of their production.
Euroterm is also looking to explore more foreign markets, and IFC’s Armenia Food Safety Improvement Project is helping the company implement an international food safety management system – one of the preconditions for exporting to demanding foreign markets.
“We view IFC not only as a source for a long-term financing opportunity, but as a strategic partner with a wealth of experience and knowledge of international best practices,” said Vahe Ghazaryan, Euroterm General Manager.
Euroterm and other Armenian companies will also benefit from IFC advisory services in other areas. The Armenia Investment Climate Reform Project advised the government on adopting legislation to simplify agribusiness export procedures. Also, a streamlined construction permit application process, introduced a few years ago withIFC’s advice, has helped Noyan get the paperwork for building a new facility done quickly.
Further, reforms implemented with IFC’s advice have helped Euroterm conduct all tax reporting electronically, saving considerable time. The project works with the government to boostprivate sector growth by creating business-friendly regulations.
IFC’s integrated approach in support of private companies, especially engaged in agribusiness in Armenia, is designed to help companies like Euroterm achieve their goals. Not surprisingly - Vahe Ghazaryan hopes Noyan-brand fruit juice and canned food will reach more foreign homes in the near future.