Canned food sub-sector study

Abstract

After the devastating economic recession in the post-soviet Armenia, the local food processing industry is slightly recovering, becoming the most productive industrial sector in Armenia. However, the development of Armenian canned food industry is still going at a slow pace. Active development of canned food sub-sector of Armenian food industry will contribute to the economic development of the country. The goal of this research project is to evaluate the potential for the development of canned food industry in Armenia, analyse the production potentials of key local players in the industry, and to identify the possible directions of effective investments for improvement in different areas of their business activities. According to our research, the canned food sub-sector today needs financial and marketing support, as well as structures capable of serving as connecting links between the canneries, raw material suppliers and final goods consumers. Our research findings specifically pointed out the problems of shortage of capital investments, the inadequacy of Armenian agricultural produce and processed food with internationally accepted standards and specifications, and the lack of export-oriented marketing efforts. Based on the analysis of our findings, we propose some solutions to the most actual problems outlined above. These are: Establishment of a system of lease of equipment Improvements in standardization of the product specifications and product quality Development of forward contract for agricultural products, and Centralised (by government or by a large wholesale agent) Internet promotion of the Armenian canned food produce These improvements would encourage faster capital renovation of the canneries, expansion of their production capabilities, use of productivity, and decrease in product costs, and sales increase.