Armenian agriculture faces crisis as livestock population shrinks, dairy prices rise

The steady decline in Armenia’s livestock population is not only ongoing but also expected, according to farmer and entrepreneur Harutyun Mnatsakanyan.

He believes the trend reflects a broader transformation in the country’s agricultural sector, with small farms shutting down and livestock production becoming increasingly concentrated in the hands of a few large companies, Caliber.Az reports, citing Armenian media.

Mnatsakanyan shared his assessment with Armenian journalists following the publication of recent statistics by Armenia’s Statistical Committee. The data, reflecting the state of livestock as of January 1, 2025, compared to the same date in 2024, shows a noticeable reduction across nearly all categories of livestock, particularly among small private farms.

According to the report, the only increase was observed in the number of horses, which grew by 9.3%. In contrast, cattle numbers fell by 3.6%, pigs by 1.8%, sheep by 3.2%, goats by 11.6%, and poultry by 7.4%. Commercial enterprises also reported losses: pig numbers declined by 4.4%, and sheep by 10.6%.

“The livestock population is deteriorating, and the entire sector is being consolidated in the hands of a few individuals,” Mnatsakanyan said. “From what I’ve seen, feed sales have decreased across the board for producers. That means livestock numbers are also down. This situation was both predictable and inevitable — there’s nothing surprising about it,” he added, warning that the trend is likely to persist.

Mnatsakanyan believes that small-scale farms will increasingly abandon animal husbandry, allowing larger companies to dominate the market. This consolidation, he said, will lead to oligopolistic control, driving up prices for dairy products.

“This is already apparent. Perhaps the most expensive pasteurised milk in the world is being sold in Armenia. In supermarkets, the cheapest branded liter of milk costs around 1,000 drams. And that’s without even touching on the prices for butter and yogurt. The situation is only going to get worse,” he said.

The farmer blames the ongoing crisis on what he describes as the state’s complete indifference to the livestock sector, and a total lack of government-supported programs to breed dairy cattle suited to Armenia’s natural and climatic conditions. As a result, milk yields are declining annually, both in private farms and larger agricultural operations.

To cover shortfalls, Mnatsakanyan said, companies producing dairy products are increasingly turning to powdered milk. He pointed out that supermarkets are now filled with a growing variety of items made using milk-containing substances and substitutes, rather than real milk.

Addressing the decline in pig farming, Mnatsakanyan said large volumes of imported pork are entering Armenia at low prices and are then sold as if they were produced locally.

“The production cost of domestic pork is relatively high, and neither small nor large pig farms can compete with these imports. That’s why we’ve seen a sharp reduction in the number of pigs, a decline that can no longer be hidden,” he explained.

According to the Statistical Committee, Armenia had a total of 182,315 pigs as of January 1, 2025. Of these, 134,961 were raised on individual farms, while 47,354 belonged to commercial enterprises.

Mnatsakanyan also commented on the rise in poultry consumption, noting that falling household incomes are pushing more Armenians to substitute chicken for more expensive red meat.

“Red meat prices are quite high on the market right now, so many families have had no choice but to switch to chicken. Naturally, poultry consumption in Armenia has gone up,” he said. He predicted that demand for both locally produced and imported poultry will continue to grow, at least until Armenians’ financial conditions improve enough to allow red meat back into their diets.

By Tamilla Hasanova