EDB to provide $25 million loan to Yeremyan Farm for development of cattle breeding
YEREVAN, August 5. /ARKA/. The Eurasian Development Bank (EDB), the government of Armenia and the Yeremyan Farm Company signed today in Yerevan a Memorandum of Cooperation to ensure food security and sustainable development of Armenia’s agriculture.
The EDB will assist the Armenian government by financing agricultural projects that promote processing of raw materials and add value to agricultural products.
Under the loan agreement, the EDB will provide $25 million to Yerevan Farm for full-cycle production, including the replacement of low-margin animals with pedigree cattle, expansion of agricultural areas for fodder production, modernization of assets to increase production of meat and dairy products.
The total cost of the project is $31 million. It includes construction of a dairy farm for 1,200 heads of pedigree cattle and a pig farm for 6,000 heads and is expected to increase milk production to 11,000 tons.
The project is expected to cut imports of milk by 7% and improve provision of Armenia with milk by 1.4% (the current level of provision with milk is 82%).
During a press conference Friday, Armenian Economy Minister Vahan Kerobyan said the project is the first in the Armenian government's program to promote large agricultural ventures.
"I am glad that the EDB is becoming active in Armenia. It is very important that large financial structures, which work in the regions, become more active, as the economy is growing and the need for financing is also growing," he said.
CEO of Yeremyan Projects David Yeremyan said that this is the largest investment in the company since its inception 15 years ago.-0-
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