AMBASSADOR'S INTRODUCTORY MEETING WITH MINISTER OF

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 001033

SIPDIS

E.O. 12958: DECL: 12/12/2018
TAGS: PGOV PREL EAGR EAID AM
SUBJECT: AMBASSADOR'S INTRODUCTORY MEETING WITH MINISTER OF
AGRICULTURE

Classified By: Ambassador Marie L. Yovanovitch. Reasons 1.4 (b/d)

SUMMARY
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1. (C) In the Ambassador's December 10 introductory meeting
with Minister of Agriculture Aramayis Grigorian, the Minister
outlined the GOAM's priorities in the agriculture sector, and
assured that planned changes to safety standards on poultry
imports were not intended to exclude imports in violation of
Armenia's WTO commitments. Grigorian emphasized his desire
to seek MCC funding for a reservoir in Vedi, but there is
little likelihood that MCC would be able to fund this costly
project. End Summary.

AGRICULTURAL PRIORITIES
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2. (U) Meeting for the first time with the Ambassador
December 10, Minister of Agriculture Aramayis Grigorian
thanked the Ambassador for continued USG assistance,
including programs at the State Agrarian University, the
USDA/CARD Animal Health program and development of milk
storage facilities. He presented his priorities in the
agricultural sector, focusing on development of rural
infrastructure, irrigation, and technical assistance and
storage facilities.


3. (SBU) Grigorian indicated the GOAM would like to request a
new MCC-funded irrigation reservoir in Ararat Marz (Vedi) in
addition to those already planned, and thanked MCC for the 20
rural irrigation projects now underway. He understands the
cost of such a reservoir would be high, but indicated it is a
high priority and outlined such benefits as increased yields
and more efficient water usage. MCC Resident Country
Director explained the MCC process and noted that the
proposal could be discussed at the next meeting of the MCC
Governing Council. Ambassador agreed to review any new
proposal from the Minister regarding a new reservoir, but
offered no promises. (Note: This reservoir project has been
studied by the World Bank and determined to be very
expensive. While it has been studied by the GOAM for several
years, it has never been included in the GOAM request for
funding under the MCA-Armenia Program. It is unlikely that it
would receive serious consideration for MCC funding. End
Note).


4. (U) According to Grigorian, there is a "crisis" with
domestic producers in all agricultural sectors, including
domestic poultry production, which is very expensive due to
the high cost of feed. Grigorian outlined initiatives to
help farmers and reform the agricultural sector, including a
land-awareness program, an equipment leasing scheme,
subsidization of fertilizer, an improved national program for
food safety inspection, and a continued drive toward food
sustainability in wheat, corn and barley. He indicated the
MoA hopes to see grain imports reduced from 60-65 of domestic
consumption to 30-35 percent.

POULTRY SAFETY STANDARDS - WTO-COMPLIANT?
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5. (SBU) Ambassador asked about plans announced in October to
implement new safety standards on poulty imports. Ambassador
commended Grigorian for pursuing higher standards in food
safety and addressing the problem of low-quality products in
Armenia, but cautioned against using such standards to
discriminate against imports, in violation of Armenia's WTO
commitments. Grigorian assured the Ambassador that there
will be no problems regarding imports of U.S. poultry into
Armenia, as there are no concerns about its safety or
quality. Grigorian explained that there have been no
discussions regarding tariffs on imported poultry.

COMMUNITY WATER ASSOCIATIONS
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6. (C) Ambassador encouraged Ministry support to community
water associations in collaboration with the MCC program.
Communities need to develop these entities to ensure that
once MCC funds the projects, user fees and other resources
are available to maintain these systems in the long run.
While MCC is able to provide technical assistance in support
of such projects, ultimately communities need to determine
their policies and procedures. Grigorian responded that he
has little authority in this area, as it falls under the
purview of the Ministry of Territorial Administration, but
could offer recommendations.

GLOBAL PARTNERSHIP FOR AGRICULTURE AND FOOD (GPAF)
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7. (C) Ambassador explained the Global Partnership for
Agriculture and Food (GPAF) Program and welcomed input from
the MoA on how they could participate. Ambassador promised

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to send a letter about GPAF to Grigorian, who said he would
review it and respond accordingly.

COMMENT
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8. (C) While the Embassy enjoyed an excellent relationship
with Grigorian's predecessor, Grigorian has been more
elusive. There continue to be problems with MoA in the
field--in terms of competence of its personnel, adequacy of
resources and outright corruption--in particular with respect
to the Animal Health program, which we will report septel.
The fact that it took more than six weeks to get this
introductory courtesy call--after our October request--does
not augur well for cooperation with the new minister.
YOVANOVITCH