Anti-crisis smell: businessman in Vanadzor sets up garlic powder production
First garlic powder production in Vanadzor The idea of garlic powder production belongs to businessman Armen Galoyan from Vanadzor who conceived it while studying the local market. Galoyan found out that local sausage producers use garlic powder of Chinese production, which he says is of low quality. In February Galoyan and four of his friends set up the production of garlic powder ‘Miasin’ (together) in Vanadzor with a loan from the World Bank (WB), which within the framework of ‘Rural Enterprise and Small-Scale Commercial Agriculture Development Project’ (RESCADP) allocated $37,000 (13.5 million drams). Some 1.5 hectares of land were planted with garlic and three tons of garlic powder was produced, which was sold out. The support from the WB and the Ministry of Agriculture stopped in February, however, the partners decided to keep on cooperation at the expense of the revenues obtained from this production. The next amount of powder product of ‘Miasin’ trademark, as the partners foresee, will be produced in September, when the harvest will have been gathered. This time they planted garlic in three hectares land instead of the previous 1.5 hectares. Galoyan says they plan to expand production; they have already made arrangements with residents of several villages of the province concerning garlic planting and selling. The only problem is the garlic of Chinese production, which, as the authors of the initiative say, is rather cheap. However, it is not possible to find garlic powder of Chinese make in Vanadzor. Elmira Sargsyan, a 54 year-old housewife, even though has no idea about the existence of garlic powder, but she says that she uses garlic at her kitchen. “If garlic powder is sold at shops, it will be more effective to buy it. Let’s say, one kilogram of garlic powder can be used for a whole year,” says Sargsyan. Galoyan’s estimations showed that the prime cost of Chinese garlic powder is 30 drams (8 cents) and one kilogram of this product sells at 1,500 drams ($4) in the Armenian market. Meanwhile, one kilogram of Lori garlic powder is 6,500 drams ($17), while one kilogram of garlic is 600 -700 dram ($1.60-$2). Despite a successful sale of the initial batch of the product locally, the entrepreneurs still plan to focus on expanding to foreign markets. At the same time, they say the enterprise is trying to gain a foothold on the domestic market with such products as dried fruits and berries.
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