A flourishing cheese-making business in remote rural Armenia A microcredit loan can make all the difference in transforming a failing small business into a flourishing one. A precarious enterprise run by a widowed mother of three in a remote rural community of Armenia has become a financially viable business, thanks to a microcredit loan provided through an IFAD-supported project. The success of Aida Ghasryan's business is now an inspiration to other women in the region, who are struggling to make a living and support their families. Aida lives in Syunik district, in one of the most remote and least developed regions of the Republic of Armenia. The region's economy, already fragile after the collapse of the Soviet system, was badly damaged during the conflict with Azerbaijan over the Nagorno-Karabakh region from 1991 to 1994. Its distance from the capital and lack of transport connections has impeded economic recovery. When Aida's husband died he was left alone without a job and with three small children to support. "I couldn't give up," she says. "Three lives depended on me."Aida had a small dairy farm and some experience of cheese processing, having worked as a qualified cheese maker in the local cheese factory during the Soviet period. She began to produce cheeses from home on a very small scale. Small businesses can face overwhelming difficulties, particularly in the early stages. For Aida, with few assets, no equipment or production site, and no access to markets, the start-up was particularly difficult.
Undaunted by the risks and responsibilities involved, Aida sold her farm to invest more money in the business, and began buying milk from her neighbours. Eventually her hard work paid off. When she secured a loan of US$20,000 in 2004, it made a crucial difference to her business. She bought new processing equipment, repaired and expanded the production site, and founded Daliha Ltd, named after her three children, David, Lilit and Hakob. Aida received her loan through the IFAD-funded Agricultural Services Project, implemented in Armenia from 2001 to 2006. The project provided microcredit services for small business development, as part of a broader drive to support rural and economic development in disadvantaged and remote areas of Armenia. Since 2002, IFAD has helped strengthen the economic and social position of women through the programmes and projects it supports in eastern European and former Soviet countries, by helping women's businesses to take root and thrive. Today Aida Ghasryan's company is a prosperous family business producing almost 20 tonnes of cheese a year. It specializes in making a Roquefort-type cheese. "This is an especially risky type of cheese," says Aida. "It takes three months to ripen, and even then you have no guarantee of getting the right quality.” “I also make fresh cheese to cover operational costs," she says. One of the major obstacles Aida has had to overcome is the difficulty of gaining market access. Syunik is remote and there is little demand for her cheeses in the district. But she has managed to solve the problem of product distribution by establishing links with three dealers who sell her products in Yerevan, the capital. Aida's business is helping stimulate the local economy. By purchasing 650 litres of milk per day from 15 families, she generates income for her fellow villagers. In the future Aida and her children intend to take out a second (IFAD) loan to expand production. They plan to buy a farm, equipment and a laboratory and open up a second production site. "I'm so happy that I have overcome so many obstacles and been able to secure this prosperous future for my children," she says. Source: IFAD
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Cheese-making is a risky venture. It is a slow and labour-intensive process that requires a great deal of supervision, as well as laboratory analysis and tests. The smallest instance of carelessness can spoil the product, and many risks are involved in the different stages of production, which includes:
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