Strengthening Armenia’s Agricultural Cooperatives: Lessons from the Jinishian Memorial Foundation’s Two-Decade Journey

Author: Gevorg Aboyan, Jinishian Memorial Foundation.

In the fourth in our blog series to celebrate the International Year of Cooperatives, Gevorg Aboyan from Jinishian Memorial Foundation (JMF) explains JMF’s 20+ year history of developing Agricultural Cooperatives in Armenia, the challenges it has faced; innovations tested – and what JMF sees as some lessons for the broader cooperative movement.

Across Armenia’s mountainous landscapes, agriculture remains a vital pillar of rural livelihoods. Yet in the post-Soviet era, smallholder farmers faced an uphill battle — fragmented land ownership, weak market access, outdated agricultural practices, and limited financial resources have kept many in cycles of subsistence and vulnerability.

Against this backdrop, the Jinishian Memorial Foundation (JMF) has spent over two decades nurturing a quiet revolution in rural economic life: the emergence of strong, sustainable Agricultural Cooperatives (AC). Since 2003, JMF’s mission has been clear — to empower farmers to move from isolated struggle to collective strength, helping them build cooperative organizations that generate shared economic benefits, improve living standards, and foster social solidarity in their communities.

Building the Foundations: 2003–2006

Recognising the historical mistrust of “collectivised” models inherited from the Soviet era, JMF began its work with patience and vision — supporting voluntary, farmer-led ACs grounded in democratic principles and economic transparency.

In partnership with the United Methodist Committee on Relief (UMCOR), JMF launched the Support Program for Farmer Organizations in Armenia in 2003. The objectives were ambitious: to improve farmers’ economic conditions; to facilitate the formation of ACs; and to strengthen cooperative governance and operational efficiency.

By 2006, nine ACs were established, uniting 522 farmers — an important first wave of organised rural producers. Crucially, the program also delivered intensive capacity-building: cooperative management, member rights and responsibilities, financial planning, taxation, record-keeping, agribusiness skills, and animal husbandry were all on the training agenda.

Scaling Knowledge and Practice: 2005 and beyond

As ACs gained experience, JMF and its partners recognised that technical training was essential for lasting success. From 2005, with support from the Federation of Regional Associations Uniting Agricultural Cooperatives, the program expanded — now reaching 23 ACs and 1,500 farmers.

Over this time, the curriculum has broadened to include agro technology, plant protection, veterinary services, agribusiness management, and legal frameworks — giving cooperatives the knowledge to navigate complex markets and policy environments. JMF also provided grants and low-interest credit, enabling ACs to invest in equipment and services that improved productivity and income.

As always, JMF continued to contribute to a new phase of cooperative development through its work. Many cooperatives were not only strengthened internally, but new cooperatives also emerged, inspired by the success stories of old cooperatives

Integrating Sustainable Natural Resource Management

In 2012–2013, as the importance of sustainable resource management grew, the Community Pasture/Livestock Management System component was launched. Training sessions were held in 55 rural communities throughout Armenia, benefiting over 5,800 farmers.

This broadened the cooperative movement’s relevance, positioning ACs as actors not only in local economic life but also in environmental stewardship — managing pastures and livestock with greater efficiency and care.

Navigating Challenges: Governance and Power Dynamics

While many Armenian cooperatives have done really well thanks to established rules and governance, there are still some challenges to overcome, many of which are linked to our historical experience.

First, despite democratic governance structures (with elected leadership and decision-making via general assembly), traces of Soviet-era administrative culture sometimes persist: centralisation of power, top-down leadership, and hierarchical tendencies, gradually eroding trust and participation.

Second, external support has diminished. When cooperatives benefit from this — such as grants, technical assistance, or new investment — energy and engagement surges. However, as external resources diminish, risks emerge, such as assets control by the leadership elite, poor transparency, and decline in member involvement.

This is a dynamic familiar to cooperative practitioners worldwide. Genuine, lasting success requires not only technical skills and financial resources, but also cultural change — fostering habits of transparency, accountability, and shared responsibility.

Fostering Innovation and Social Impact: A New Chapter

Recognizing these dynamics, JMF has pioneered new approaches to strengthen cooperative cohesion and embed social values.

Over nine years up to 2020, JMF, in partnership with a credit organisation, provided subsidized, low-interest loans to members of approximately 27 agricultural cooperatives. However, this initiative was developed with a unique social twist: each year, a portion of the loan interest payments is pooled into a Social Solidarity Grant Competition. Through this program, cooperatives compete for funds to implement projects that benefit the wider community, turning healthy competition into a tool for social innovation. These projects include building playgrounds, digging wells, installing street lighting, renovating public parks, and more.

Toward a European Cooperative Model: The Road Ahead

Looking forward, Armenia’s cooperative movement stands at an important crossroads. To achieve higher levels of efficiency, transparency, and sustainability, cooperatives would benefit from learning from the most successful models in Central and Eastern Europe, where countries emerging from socialist legacies have built thriving cooperative sectors through modern governance, professional management, and clear separation of member and leadership roles.

We believe that JMF’s experience shows that Armenian cooperatives can develop in a way where leadership prioritizes the membership, internal fragmentation is minimised, and economic performance is both robust and inclusive.

Lessons for the Global Cooperative Movement

JMF’s two-decade journey offers valuable lessons for the broader cooperative and microfinance community:

• Cooperative development is a long game — requiring sustained investment in people, skills, and relationships;

• Governance and culture matter as much as technical know-how;

• Blending economic and social incentives can generate deeper engagement and solidarity; and

• Local ownership and adaptation — not one-size-fits-all models — are key to success.

  
  

The seeds of change have been planted. The next chapter will rely on enhancing cooperation, building trust, and welcoming innovation, lessons that apply well beyond Armenia’s borders.

About the Author:

Gevorg Aboyan is Community Development Project Coordinator at JMF. Gevorg has been a member of the Jinishian Foundation since 1999, where his extensive experience plays an integral role in the organization’s mission. He coordinates and promotes the foundation's strategic initiatives aimed at fostering community development across diverse projects.