Moving Forward

Rural Newsletters

On Friday, after a long process of negotiations with Mellat Bank, and with our Iranian partner Garnik Galstyan and with the Iranian producer of the milking units, as well as overcoming the obstacles of customs clearance and manual unloading of the units (weighing 7.2 tons) we finally received the 36 milking units we had ordered in January. This time we have also included a walking tractor in the order, to implement a pilot phaze of a different type of farming machinery provision. These type of machines are widely used in agricultrure worldwide and needs presentation for Armenian farmers.

Although purchase and shipment of goods seems to be a fairly simple and straightforward process, it took not only a lot of time and energy but also demonstrated the complexities one goes through in this part of the world.

Amazingly between the Iranian and Armenian holidays and mixed up weekends (Thursdays and Fridays are official weekends in Iran leaving only 3 days per week for business between Yerevan and Tehran) and different understandings of Letter-of-Credit procedures and different calculations of invoice totals (apparently accountants round up or down, while banks require strict calculations, go figure!) a lot of time was wasted. But then again, there was no way of doing this any faster despite on all our efforts (from all sides).

To share our excitement and to show you how the loading and unloading used to be done before invention of forklifts we have filmed the whole process from unloading to final counting of the cargo, which is a sort of confirmation of receipt of goods.

video1 video2

At the same time, we were working to ensure the expansion of the project. In that direction we had several meetings with various organizations including dairy producers, associations of milk producers, NGOs and international organizations that are implementing projects in this field.

Armenia has more than a dozen dairy producers and cooperation with each of them and expansion of the beneficiary base is the ultimate goal of the project. During the recent years each of these producers had their own experiences with the farmers positive and negative, but overall support of the already functioning system that has room to grow, and elevation of the milk producing farmer’s income to a new level is in the core of this project. To involve more partners we are sending out a letter next week to all major dairy producers in Armenia with presentation of the project mechanisms and invitation to a discussion and collaboration.

In the effort to expand the potential base of project beneficiaries, we met with the Farmers Union that unites milk producing farmers around the town of Goris, on the way to Meghri. These farmers cooperate with the Elola cheese factory selling their milk on a daily basis. Arthur, the head of the union, had heard about the project and thought it’s a good opportunity, but was reluctant as there is no electricity at the pastures where he and the members of the union graze their cows throughout the summer.  With examples of other farmers in Gegharkunik who purchase an electric generator for sole purpose of milking with a unit in the high mountainous pastures and our promise to try to find out if there are diesel or gas powered units we moved along understanding that if “jumping” is not the first reaction of the farmer then the fruit is not ripe.

sisian

Our second meeting was way more productive. We were hosted by the mission of Action Against Hunger in Armenia. We were in contact with one of the managers of this organization and were trying to understand if they would be interested in partnering up with us to expand the project, as they work with more than a dozen communities around the town of Sisian. With our presentation and understanding of their projects we came to an overall agreement that they will present the project to various milk collection cooperatives and try to involve farmers, initially there were some farmers who already expressed interest in purchasing these machines, this interest needed to be put in the overall frame of the project to get a green light. With a two to three week timeframe for a final decision we left for Yerevan, hoping that some of the machines that just arrived will be assist several farmers in this area to become more self sufficient.

And we have every reason to be hopeful. On the four machines we had dispersed last fall, the monthly payments being made by each beneficiary farmer are not only being made on time but we have received more than 20 new applications from farmers throughout Armenia willing to become a beneficiary of the Milk Production Enhancement project.

Another piece of exciting news is the fact that we made the first purchase of a machine using the funds generated by the monthly payments we received throughout the winter. One of the most important components of this project was the idea of repayment for the total value of the unit (the unit price includes sticker price, transportation and customs costs and does not incorporate any overheads or profits) by the beneficiary in 12 months to get most mileage for the funds donated.

unit

The first machine that has been purchased by revolving funds from the initial donation is a milestone and a proof that the project is on the right track with a working mechanism in place.

We’re moving forward, one family and one village at a time!

If you have any questions and/or comments please do not hesitate to contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 
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