Armenia Liberty reported yesterday that grape farmers in the Ararat valley are protesting against the fall in wholesale prices being paid out to them by distilleries based there. Seems that the factories are reneging on signed contracts that they would pay 130 dram per kilo of grapes and now insist that they will only pay 80 dram because of high crop yields. This breach of contract naturally angered farmers there and they assembled in Ardashat, the administrative center of the Ararat region, to wage their protests. Apparently the issue has become so heated that President Serge Sarkisian himself is about to intervene to find a solution,which obviously should be that the factories should honor the contracts.
As things stand now cognac and wine making factories are already making a killing, placing high prices on their products while paying small change for grapes harvested by local farmers, most of whom are operating small businesses. The quality of the grapes are very high, as can be ascertained as soon as you pop a few in your mouth–they explode with flavor and the taste lingers for several minutes. They sell the same sorts of grapes used to produce wine in the markets, so it’s not difficult to for anyone to sample them.
I have long believed that farmers need to unionize and stand up to the distilleries and packing companies because what they are being paid out is simply too low, there can be no doubt about this. Tomatoes are bought for as low as 60 dram (about 6.3 cents) a kilo wholesale while they are sold in the markets for triple the price, which is still very low. This is ludicrous.
Farmers must be allowed to make a profit, they can’t break even or even lose money on their production, which does happen. Never mind that they are toiling away cultivating their land, trying to make a buck in an already well-rooted capitalist system they are still struggling to cope with. They have a right to earn a living with dignity. And now they are standing up for their rights.
It’s about time.
Unionizing the farmers, or creating cooperatives, would give them enough bargaining power to negotiate fair prices for themselves.
Also, imagine having a futures market for commodities like grapes, grain, livestock and such. The PM talks about making Armenia a hub of financial activity. Here is a perfect opportunity to make progress towards that. Make Yerevan a hub of commodity futures market. Bring in the buyers and the sellers together. Allow the neighboring markets take part (heck, if an Azeri company wants to buy oranges from a Georgian farmer, why not let them do it through Yerevan?).
But when you have a narrow minded and illegitimate government, things like this will remain a pipe dream.