Policy Case Study: Strengthening the Wild-Harvest Value Chain in Armenia

Developing local value chains can make a significant difference in livelihoods of rural communities, and lead to reduced poverty, improved food security and nutrition, reduced risks and vulnerability at household and community levels.

In our new case study, Sergey Meloyan and I discuss policy options aimed at strengthening local agri-food value chains to reduce poverty in rural areas. As an example, we use the wild harvest berry value chain in Armenia.

According to estimates, the volume of wild berries and fruit collection in Armenia amounts to tens of thousands of tons. During collection season (July - October) this provides up to 20 percent of the family income for people living in rural areas. While poverty remains one of the most pressing socioeconomic issues in rural Armenia—the official rural poverty rate is 30.4 percent—additional income-generating activities such as wild harvesting can improve the livelihoods of the rural population. Wild harvested berries—such as rosehips, raspberries, blackberries, cornelian cherries, and sea buckthorn, among others—are in demand both by consumers and the processing industry in Armenia. Policy interventions aimed at strengthening the wild berry value chain will contribute to reducing poverty in rural areas.

The functioning of the wild harvest berry value chain in Armenia is constrained by a number of policy issues related to (1) the value chain supply side, such as unstable supply, small-scale collection, market access challenge, and failure to comply with wild harvest regulations; (2) the value chain demand side, such as unstable demand and lack of innovation and diversification in the processing segment of the value chain; and (3) the overall value chain context, such as the absence of a national data collection system, the challenge of coordinating among value chain participants, and the absence of contractual agreements between value chain participants.

The key stakeholders in the wild harvest berry value chain in Armenia include wild harvest collectors, buyers of wild harvest produce (middlemen), processors, consumers, government agencies, and nongovernmental organizations (NGOs).

Policy measures aimed at strengthening the wild harvest value chain discussed in this case study address the three groups of policy issues identified. The suggested policy options are based on international best practices and experience and take into account the specific wild harvest sector development characteristics in Armenia. Policy options strengthening the supply side suggest a model that would solve the issue of unstable supply in the value chain and focus on capacity building and cooperative development for wild harvest collectors. Policy options strengthening the demand side focus on developing Armenia’s agri-food exports, including establishing agro-based clusters, ensuring compliance with international food safety standards, and investing in market research and export promotion activities. Policy options strengthening the value chain infrastructure suggest developing a data collection mechanism for the wild harvest sector, establishing an online platform/mobile application connecting wild harvesters and processors, and including wild harvesting as part of the organic sector development in Armenia.

However, developing policy options aimed at strengthening the wild harvest berry value chain in Armenia requires a strategic approach to policy making based on (1) accurate wild harvest sector data and (2) stakeholder consultations.

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The complete version of the case study is available in English and in Russian.