A total of 250 small, large and medium-sized fish farms in Armenia have signaled their intention to seek to expand to foreign markets. But the head of the union embracing them says they are meeting difficulties and need state assistance to encompass the task.

Chairman of the Union of Fish-Breeders Arkady Gevorgyan says that 3,000-3,500 tons of fish are produced in the country annually, mainly sturgeon and trout. However, according to him, the potential of fish-breeding farms is much higher, as they can grow some 150,000-300,000 tons of fish a year and ensure an annual amount of trade of between 1.5 billion and 2 billion drams ($4-5.3 million). “But finding sales markets remain a problem,” he acknowledges.

The Union’s chairman says that problems connected with export were presented to the government. According to him, the sphere feels the need of state care. If the amount of trade of 1.5-2 billion ($4-5.3 million) is achieved, then 400 million drams (more than $1 million) will enter the state budget, stresses Gevorgyan.

“So that it doesn’t sound like empty words, I will say that from one square meter we can get 10 kilograms of fish, and if we seriously upgrade our technologies, we will increase our possibilities to up to 80 kg of fish [per sq. m.],” he says.

While being a mountainous, landlocked country, Armenia still enjoys favorable conditions for the development of fish breeding. Fish hatcheries are located in the Ararat valley, which is rich in high-quality artesian waters.

During the Soviet times Armenia’s fish-breeding industry consisted mainly of carp farms, and trout growing began relatively late. Nearly 8,000 tons of carp and 400 tons of trout were produced annually then. After the collapse of the Soviet state carp farms disappeared. Fish farms initially growing mostly trout came to replace them.

From 1996, fish-breeding farms annually produced 15-20 tons of trout, by 2000 the volumes had been raised to 1,500-1,800 tons. From 1998 the production of sturgeon began.

“We should be able to introduce the latest technologies that will allow us to produce locally what we currently import, moreover we should start exporting it. Sturgeon is exactly that kind of fish, and so is trout. Demand abroad is high for these two fish,” says Gevorgyan.

So far fish farms have mainly marketed their products locally. Only about 5-7 percent of all produced fish in Armenia would go for export, mainly to Russia. But Russia and Ukraine stopped the import of Armenian fish in 2009 because of the swine flu outbreak and the economic crisis.

The Union’s chairman says the export to Russia resumed only last month: three batches of fish have already been shipped to Russia this month, 2 tons of product at a time. Another shipment of 2 tons has been made to Georgia. Yellow trout and red-spotted trout are main export items of fish farms - 1 kg of trout at 1,600 drams (about $4), and red-spotted trout at 2,500 drams (about $6).

Nevertheless, Armenia’s fish farmers also want to export fish to European markets and the United States, but acknowledge that food safety standards for access to European markets might be a problem.

“And these standards are quite high. Our country simply cannot comply with it, because we do not have laboratories fitted out with modern equipment,” says Gevorgyan.

He says that demand for Armenian fish exists both in the United States and Canada, but it will be possible to export Armenian fish there only after it is processed – such as smoked, marinated or canned fish.

And director of the Union of Fish-Breeders Artur Atoyan says that banks should have soft loan policies for domestic producers, including fish farmers, who need to borrow for business purposes.

Atoyan says that in the absence of such loans, small and medium-sized businesses simply have to stay afloat and face the prospect of an acquisition by a larger entity, while large companies simply face the prospect of a failure unless they continue to make investments.

“The sphere needs state care and assistance,” says Atoyan.