Tuesday, 18 February 2014
Government Set To Support Canned Fruit, Vegetable Producing Companies
Prime Minister Tigran Sargsyan chaired a consultative meeting, attended by cannery union representatives and heads of government departments and agencies. The aim of the meeting was to learn the problems faced by vegetable and fruit puree, canned food, fruit juice producing companies in order to discuss ways of extending State support. During the meeting, the Premier was briefed on the current situation and the existing problems.
Some 40 entities are operational in the given field, most of which are running at inadequate workload due to lack in working capital, low sales and shortage of primary raw materials (processed fruits, berries, vegetables), which in turn, is conditioned by high loan interest rates, part-time operating schemes and poor crop (due to bad weather), inefficient use of agricultural land, insufficiently streamlined farmer - processing plant relations.
Taking note of the questions raised, the Prime Minister said, “The government is interested in that the private sector could come together to tackle the aforementioned problems. Therefore, we will back your initiatives, should they reflect a concerted approach. Most of the State budget subsidies are funneled into the farming sector covering subsidized loans, interest rates, fuel, seeds, and fertilizers. This is just the sphere the government keeps in focus.”
With a view to boosting the sales and exports of domestic products, the Prime Minister deemed it necessary to draft a business plan for output branding, which shall specify mutual obligations for the government and the private sector, the cooperation format, the scope of target products and quality standards, as well as the export logistics.
The head of government suggested taking up the discussion in a narrow format to have a finalized document for the government’s approval.
