The collapse of Armenia's planned economy resulted in the breakup of all Soviet vertically and horizontally established marketing arrangements in the agricultural sector. A decade later, distribution channels continue to be underdeveloped and are primarily integrated with processors which increases transaction costs and decreases efficiency. Due to the marketing, technical and financial support initiated by the USDA Marketing Assistance Project (1993- 2005) and continued by its Armenian legacy institution, the Center for Agribusiness and Rural Development (CARD), many small and medium enterprises (SME's) are increasingly active in the development of domestic and export food supply chains. Considering that Armenia's largest agricultural sector is the dairy industry, this paper explores MAP- CARD's integrated market approach to the vertical integration of the Armenian Dairy Industry and analyzes key problems and how these were resolved or improved to provide SME's greater market access.


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