Father of six, Ararat Gevorgyan, was almost forced to slaughter one of his cattle to buy food for his children and feed for the livestock. Ararat was spared from losing one of his precious cattle thanks to a loan through SEF International, World Vision’s microfinance institution in Armenia. A loan of US$1,500 enabled him to buy hay to feed his animals until the start of the next pasture season.

This winter Ararat Gevorgyan was on the brink of making the difficult decision to slaughter one of his cows in order to meet the needs of his six children. “I bring in the family income by taking care of villagers’ cattle during the pasture period. But this is a seasonal job, and the money I am able to earn finishes much earlier than spring comes”, says Ararat.

Ararat also has his own small herd, which for many years he has wanted to expand in order to increase his income, but he still owns just five cows, five calves and five sheep. “It would not be easy for me to slaughter the animal but I was forced to do that. I did not have money to buy food for the children and feed for the livestock. The hay I was able to store was finishing which put me in front of a hard choice”, remembers Ararat.

Farmers in Armenia do not have easy access to financial resources. The limited number of banks and institutions that offer agricultural loans do not provide options appropriate for different farming activities. But SEF International, World Vision’s Microfinance Institution in Armenia provides agricultural loans tailored to struggling, but hardworking farmers, like Ararat. “They offered me a loan at an annual interest rate of 18%. I borrowed some US$1,500. I was so glad as this amount was enough to buy hay to feed the animals till the pasture season started”, explains Ararat.

Ararat’s son, 14-year-old Mushegh is not yet allowed to go to the pastures because he is too young but he already helps his father to feed and clean the animals when they are in the barn. “I love the cattle and was so sad knowing we have to sell one to survive till the spring comes. I was praying my father would find a way to keep all the animals”, says Mushegh happily smiling that his father found a way out.

Ararat lives in the Vahramaberd Community, located seven kilometres from Gyumri City, in northern Armenia. He takes care of his wife and six children and also supports his brother to raise his (brother’s) six children. “My brother had a stroke twice. His health condition is critical, and he cannot do manual work”, says Ararat. Ararat says his brother’s youngest son, five-year-old Hayk, does not speak. He does not communicate even with family members. “Unfortunately, Hayk has never been taken to a doctor, and I feel so sorry for not being able to take good care of my brother’s child”, says Ararat sadly. “I feel responsible for the well-being of all the children in the family and have to earn well to ensure they are cared for”.

It is almost 10 years that Ararat has made a living for his family by working as a shepherd. In the early spring mornings one can see him collecting cattle from villagers’ barns and walking some five kilometres to reach the pastures. When evening approaches he returns with the cows ready to be milked.

Ararat and his workmate take care of some 100 cows. For each cow villagers pay 12,000 AMD (US$32) annually. The annual earning for each of the shepherds comprises US$1,600. The shepherd signs a contract with villagers at the major’s office. “I am responsible for the cattle; this is the only means of survival for many villagers. And even so my neighbours trust me with their property”, says Ararat proudly. Being a shepherd is not an easy job; heavy rains and hail may be followed by extremely high temperatures. “Both the cold and hot climate is hard to bear when you are in the mountains in the open air”, shares Ararat.

The main portion of the children’s diet is comprised of different dairy products made by my mother-in-law”, says Ararat’s wife Lala, 42. “The milk we receive from five cows is never enough to feed all twelve children in the family. But if we manage to increase the number of the cattle due to the natural growth and through buying a few more calves, we would even be able to sell some milk and buy stationary and clothing for the children”, she continues. And, a priority for Ararat and his family is to take Hayk to the capital Yerevan for diagnosis and treatment.

Lala says that she is very glad her husband found a solution not to slaughter the cattle. “This allowed us not only to keep the animal but count on newborn calves. Ararat even negotiated with some villagers and bought nine calves without advanced payment with an agreement to disburse the money from the amount they owe for the services he provides as a shepherd.

In the past Ararat has borrowed from a financial institution that only provided credit to farmers’ groups. “It turned out to be a real burden on my shoulders. I was ready to pay back the interest and the principal but the other members of the group delayed the payments”, he laments. Instead of improving his situation the loan plunged Ararat into deeper problems. To avoid debts and bad credit history in the credit bureau he paid a greater portion of the loan than others. “The terms offered by SEF International are very favourable. I can borrow money and pay back the principal whenever I have enough extra cash. Though I took this current loan for a two-year period I will pay the money back by October, when the majority of villagers pay me for my services and I have enough cash”, explains Ararat.

“We are happy to partner with farmers like Ararat. He invests money into agriculture which results in enlarging his farming activities little-by-little. Ararat is a responsible client and a hard worker”, says Arthur Khachatryan, Credit Specialist at SEF International’s Gyumri branch.

Ararat intends to use the services of SEF in February next year when again he will need some cash to be able to feed the animals before the pasture season comes. “I like to have some flexibility and apply for the loan when I really need it”. “Currently SEF is introducing a new product for farmers – a loan at 14%. This will help them to have more financial resources that are so crucial for farming activities”, explains Arthur Khachatryan.

World Vision Armenia, in partnership with SEF International, is supporting economic development in Yerevan, Sisian, Kapan, Talin, Stepanavan, Goris and Meghri regions in order to help families meet the needs of their children so that they enjoy good health and are educated for life. Almost 97% of SEF clients live in underprivileged communities in World Vision’s Area Development Programmes.