Lower gas tariffs not enough to bring down prices of greenhouse produce – Greenhouse Association president

The public regulator’s decision to establish lower tariffs for natural gas is unlikely to have a serious impact on the greenhouses to allow them to offer their produce for cheaper prices, according to Poghos Gevorgyan, the president of the Armenian Greenhouse Association.

Speaking to Tert.am, Poghosyan said that lower prices would affect the profitability of most greenhouses, which worked with losses in 2016.

“Apart from the lowering prices, the quality of natural gas also really matters. The cold weather this year proved disgracefully shocking, as most economies had to use [gas] day and night, spending considerable money. So they cannot possibly reduce the prices of the produce,” he explained.

Meantime, Poghosyan said he also sees an increasing government attention to the sector. 

“The new minister, with his deputies, keeps the greenhouse economies under permanent spotlight. They seek information in an attempt to help us, and maintain a direct dialogue with farmers, which is very important,” he added.

Poghosyan said they have elaborated a greenhouse development program in collaboration with an initiator group to submit it to the Government. He added that Minister of Nature Protection Artsvik Minasyan has promised to have a meeting with the groups’ members to hear and consider their concerns.   

“Greenhouses must develop especially in the mountainous regions in Armenia, which have warm temperatures due to the sunny weather. Also, importantly, mountainous areas are close to [the state] borders,” he noted.

The Association’s president said they also need scientists’ active efforts to help produce vegetables with local seeds and planting stock.

“We cannot enter into the foreign market otherwise. We need ecologically pure produce to have competitive advantages with Turkish and Israeli vegetables as their produce is rather cheap. If the conditions are normal, and the greenhouses operate in a normal way, we will fully meet [the demand] on the domestic market,” he added.

Related news

• Gazprom Armenia moves to offer plan to reduce gas prices