Although the share of the agricultural sector in the RA GDP has been decreasing in recent years, agriculture continues to be one of the most important sectors of Armenia: it contributes 11% to Armenia’s GDP (2021) and 22% to employment (2020). Agricultural production is also a source of raw material for one of the most important sectors of the economy of Armenia, the food processing sector. Food and beverage production accounts for 33% of Armenia’s industrial output and 21% of exports (2021).
Although the agricultural sector of Armenia has a great potential for development, there are still serious problems and challenges in the sector. Low level of productivity and efficiency, poorly developed infrastructure, dominance of traditional technologies and methods, prevalence of small and fragmented plots of land are only some of the main problems and challenges of the sector. Overcoming them and having a steadily developing, innovative sector is one of the country’s economic priorities.