The Prospects of Beef Cattle Production and Export in Armenia

Evaluating Armenia’s prospects for beef cattle production and export is straightforward for a simple reason: Armenia currently lacks a dedicated beef cattle industry.

Despite having over 1 million hectares of high-quality pastures, with more than 80% unused and located at 1,200–1,800 meters above sea level—allowing for a grazing season of over 10 months—Armenia does not produce beef for export. Surrounded by some of the largest beef markets, including Russia to the north and the Gulf and Middle Eastern countries (e.g., UAE, Saudi Arabia, Qatar, Jordan, Egypt, Iran, Iraq) to the south and west, Armenia imports 4,000–5,000 tons of beef annually, primarily from Brazil, India, Ukraine, Russia, Belarus, and Spain. This paradox seems like a missed opportunity—or worse.

Global Market Demand and Armenia’s Position

Russia, the world’s largest beef importer, purchases 400,000–500,000 tons annually from distant countries like Brazil, Paraguay, Uruguay, Argentina, India, and Colombia. Likewise, Gulf and Middle Eastern countries import 200,000–300,000 tons annually from Pakistan, Australia, New Zealand, the USA, India, and others. Positioned at the heart of these massive markets, Armenia has yet to claim its fair share.

Historical and Current Challenges

The roots of this issue trace back to the 1930s when Soviet policies prioritized meat from dairy cattle over dedicated beef production. Armenia, adhering to this approach, relies on culled dairy cattle for its meat supply. This practice negatively impacts the quality, price, and export potential of Armenian beef, as dairy breeds are genetically optimized for milk production rather than meat quality.

In Armenia, beef is unplanned and comes primarily from culled bulls, cows, and heifers. Consequently, the meat quality is subpar, prices are low, and export opportunities are nonexistent. This dependency forces Armenia to import beef, even to meet domestic demand.

Unlocking the Potential

Beef cattle require less care, are disease-resistant, and do not demand costly infrastructure. They thrive in pastures year-round with minimal human intervention and reduced operational expenses compared to dairy farming. Renewable energy sources, like solar and wind, can easily meet their needs.

Armenia possesses the two essential components for successful beef cattle farming: pastures and breeds suited to local conditions. The country’s 1 million hectares of pastures—largely unused—offer abundant water resources and an environment suitable for extended grazing seasons.

A Model for Growth

Let’s conservatively estimate:

  1. Only 50% of Armenia’s 1 million hectares of pasture is suitable for beef cattle production—500,000 hectares.
  2. Each hectare supports one cow per year, meaning 500,000 cows could graze these lands.
  3. Adjusting for cautious estimates, assume only 250,000 cows are raised annually.
  4. With each cow producing a calf annually, 175,000 calves could be produced due to natural losses.
  5. Each animal yields 200–250 kg of beef, priced at AMD 8,000 per kg (~$15).

This would result in 35,000–35,875 tons of premium beef annually, generating AMD 280–287 billion (~$537–$551 million) in revenue. Over 15 years, this sector could transform Armenia’s economy with minimal environmental impact.

Supporting the Industry

Armenia’s government has already subsidized credit rates and co-financed livestock purchases to support the industry. However, further measures are needed, including:

  1. Strengthening veterinary controls.
  2. Facilitating access to veterinary services and livestock supplies.
  3. Implementing rotational grazing practices.
  4. Encouraging support industries, such as renewable energy systems and mobile shelters.

The development of a beef cattle industry in Armenia could rival the economic impact of its largest mining companies, generating sustainable revenue and revitalizing rural communities. By leveraging its natural advantages and adopting modern practices, Armenia has the potential to become a significant player in global beef markets while enhancing its domestic economy.

Written by Ashot Boghossian for Mountain High Farms

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