Armenia to Increase State Support for Livestock Farming: 0% Loans and Compensation of Up to 50%
21.05.2026,
16:18
At a meeting on Thursday, the Armenian government adopted a draft amendment to the "Livestock Development Program for 2025-2029."
YEREVAN, May 21. /ARKA/. At a meeting on Thursday, the Armenian government adopted a draft amendment to the "Livestock Development Program for 2025-2029."
As stated by RA Minister of Economy Gevorg Papoyan, the amendments are due to problems with livestock numbers and milk production in the republic in recent years.
According to him, under the current program, compensation was provided at up to 40% for the purchase of more than 25 head of breeding cattle in Armenia or abroad, and 30% for the purchase of up to 25 head.
"Since we see that the current rates are failing to achieve the set goals, and farmers expect a higher level of compensation given the industry's profitability and a number of other circumstances, it is proposed to increase the compensation amount to 50%, regardless of the number of animals purchased," Papoyan said.
The minister stated that while compensation was previously provided for a maximum of 300 head of breeding cattle, this figure is now planned to be increased to 1,000 head.
"We are talking about large farms willing to make significant investments—importing breeding cattle to Armenia or purchasing them from local producers in quantities of up to 1,000 head," Papoyan noted.
According to him, the maximum estimated cost of one purchased breeding animal under the previous program was 1 million drams; the current proposal is to set it at 1.1 million drams. This is due to price adjustments, as both transportation costs and the cost of animals have increased.
Papoyan also reported that previously, farmers could purchase livestock with a loan at 2-3% interest, with the state compensating the interest rate by 2-3%.
"Now, the interest rate will be fully compensated, meaning it will be 0% for the loan recipient, but the loan itself will not exceed 14%. This initiative applies to legal relationships arising from 2026 onward," the minister said.
He added that under the previous program, 2,600 head of high-value breeding cattle were purchased, from which 12,200 head of breeding stock were subsequently produced. ($1 = 367.86 drams).
As stated by RA Minister of Economy Gevorg Papoyan, the amendments are due to problems with livestock numbers and milk production in the republic in recent years.
According to him, under the current program, compensation was provided at up to 40% for the purchase of more than 25 head of breeding cattle in Armenia or abroad, and 30% for the purchase of up to 25 head.
"Since we see that the current rates are failing to achieve the set goals, and farmers expect a higher level of compensation given the industry's profitability and a number of other circumstances, it is proposed to increase the compensation amount to 50%, regardless of the number of animals purchased," Papoyan said.
The minister stated that while compensation was previously provided for a maximum of 300 head of breeding cattle, this figure is now planned to be increased to 1,000 head.
"We are talking about large farms willing to make significant investments—importing breeding cattle to Armenia or purchasing them from local producers in quantities of up to 1,000 head," Papoyan noted.
According to him, the maximum estimated cost of one purchased breeding animal under the previous program was 1 million drams; the current proposal is to set it at 1.1 million drams. This is due to price adjustments, as both transportation costs and the cost of animals have increased.
Papoyan also reported that previously, farmers could purchase livestock with a loan at 2-3% interest, with the state compensating the interest rate by 2-3%.
"Now, the interest rate will be fully compensated, meaning it will be 0% for the loan recipient, but the loan itself will not exceed 14%. This initiative applies to legal relationships arising from 2026 onward," the minister said.
He added that under the previous program, 2,600 head of high-value breeding cattle were purchased, from which 12,200 head of breeding stock were subsequently produced. ($1 = 367.86 drams).
