The agriculture specialization through the lens of PESTLE analysis

Abstract Economic specialization and diversification have long been central themes in spatial development studies. This article aims to evaluate the role of state policy in shaping the specialization of agricultural organizations (farms), using evidence from Armenia. Given Armenia’s diverse climatic conditions, it is essential to promote agricultural specialization that aligns with regional characteristics while ensuring maximum efficiency, minimal environmental impact, social benefits, and optimal resource use – principles that align with the United Nations Sustainable Development Goals. The article utilizes a mixed-method approach, combining political, economic, social, technological, legal, and environmental (PESTLE) analyses – a framework that considers PESTLE factors, with weighted scoring, a quantitative method used to assess and rank alternatives based on expert-defined criteria. Regional agricultural output data from 2018 to 2022, specifically in horticulture and animal husbandry, were analyzed to identify prevailing patterns of specialization across Armenian regions. Expert evaluations were conducted using a Likert scale to assess the potential impact of selected policy measures. Findings indicate that technological and economic factors (such as support programs for pedigree farms and agricultural insurance) exert the most significant influence on specialization outcomes. Notable regional disparities in land use and production emphasize the need for spatially informed, targeted policy interventions. This article not only identifies high-impact state measures but also offers practical policy recommendations aimed at enhancing resource efficiency, boosting agricultural productivity, and strengthening food security. The proposed methodological framework can be adapted for use in other regions or countries facing similar challenges in agricultural planning and specialization.