ANNUAL REPORT
2014
M I N I S T R Y O F A G R I C U LT U R E O F G E O R G I A
www.moa.gov.ge
www.moa.gov.ge
Introduction
The agricultural involvement of the population of Georgia is centuries old. Therefore, the major trend to boost Georgia’s social-economic revival is the development of villages and agriculture. Since 2013 the support of agriculture has been one of the priorities for the Georgian Government. The aim of the Government is, based on the principles of sustainable development, to encourage the proper environment for the reliable growth of high quality agricultural production, enhance competitiveness, provide food security and overcome poverty. With pertinent state policy in place, our entrepreneurs, farmers, peasants can stand up to the new challenges which our nation faces after signing the Association Agreement with the European Union; they can produce European standard-compliant ecologically clean, competitive products and be respected on the global market. Given this, since 2013 the Ministry of Agriculture of Georgia has implemented several largescale projects, which provided our entrepreneurs, farmers, peasants with assistance in financial and technical, as well as modern educational fields. The following document is a progress report on activities performed by the Ministry of Agriculture in 2014. With all of the projects implemented by the Ministry of Agriculture in 2014 we managed to make the agricultural sector attractive for both – our population and foreign investors; we restored trust and managed to persuade the population that there is a viable prospect for the development of the agricultural sector in Georgia. Minister of Agriculture of Georgia Otar Danelia
4
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Progress Report of the Ministry of Agriculture of Georgia 2014
3 Goals and Functions of the Ministry of Agriculture of Georgia................................................................................. 6 Structure of the Ministry of Agriculture of Georgia.................................................................................................. 7 Subordinated bodies under the Ministry of Agriculture of Georgia.......................................................................... 8 Budget.....................................................................................................................................................................16 Agriculture in Numbers..........................................................................................................................................16 Investment .............................................................................................................................................................20 Foreign Trade..........................................................................................................................................................24 Projects...................................................................................................................................................................28 Supporting Grape, Apple, and Tangerine Processing............................................................................................34 Insuring Epizootic Reliability..................................................................................................................................35 Plant Protection and Phytosanitary Reliability......................................................................................................37 Food Safety..............................................................................................................................................................38 Creating the Departmental Cadaster of Viticulture in Georgia..............................................................................39 Scientific Research.................................................................................................................................................39 Improving Irrigation and Drainage Systems..........................................................................................................40 Supporting the Development of Cooperation in the Field of Agriculture..............................................................42 Increasing Laboratory Capabilities........................................................................................................................43 Efforts to Popularize Georgian Agricultural Products and Wine...........................................................................44 International Donor Organizations.........................................................................................................................46 Official Visit.............................................................................................................................................................48 Legal Activities........................................................................................................................................................50 Strategy...................................................................................................................................................................52 Introduction................................................................................................................................................................
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
5
Goals and Functions of the Ministry of Agriculture of Georgia Main function of the Ministry of Agriculture of Georgia is to develop and implement a unified government policy on the development of agriculture in Georgia. Goals of the ministry are: implementation of agricultural reforms while considering the country’s traditions and international experience; supporting the development of agricultural cooperation; supporting processing of primary agricultural and food products; supporting the increase of income and food safety in the agricultural sector considering the principles of sustainable development of agriculture; supporting the use of export potential and strengthening positions on the international market; gathering and analyzing information about conditions and tendencies of internal and external markets; supporting and organizing scientific-consulting services, capacity building and training of agricultural entrepreneurs; registration and organization of pesticides, agrochemicals, testing new animal and/or plant breeds; supporting the accessibility and renewal of agricultural equipment and technologies; forecasting the need of pesticides and agrochemicals and supporting their use.
Institutions functioning within the Ministry of Agriculture of Georgia: LEPL National Food Agency LEPL National Wine Agency LEPL Laboratory of the Ministry of Agriculture LEPL Agricultural Development Cooperative Agency NNLE Projects’ Management Agency NNLE Rural and Agricultural Development Fund LTD Georgian United Systems of Amelioration Company LEPL Scientific-Research Center of Agriculture LLC Meqanizatori
6
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Structure of the Ministry of Agriculture of Georgia
Minister Otar Danelia
Deputy Minister
Deputy Minister
First Deputy Minister
Deputy Minister
Deputy Minister
Iuri Nozadze
Levan Davitashvili
Nodar Kereselidze
Gocha Tsopurashvili
David Galegashvili
LEPL Scientific-Research Center of the Ministry of Agriculture of Georgia Levan Ujmajuridze
LEPL National Wine Agency Giorgi Samanishvili
Department of Law and Parliamentary Affairs Givi Merabishvili
Department of Regional Coordination Shalva Kereselidze
United Amelioration Systems Company of Georgia� LTD Levad Dvali
LEPL Agricultural Projects’ Management Agency Mariana Morgoshia
LEPL Laboratory of the Ministry of Agriculture Lali Madzgarashvili
Department of European Integration Lasha Inauri
Department of Policy and Analysis Ekaterine Zviadadze
LEPL Agriculture Cooperative Development Agency Giorgi Misheladze
LEPL National Food Agency Zaza Dolidze
IT Department Aleksei Potapov
Department of International Relations Khatia Tsilosani
Department of Food and Agriculture Constantine Khutsaidze
Department of Amelioration and land Management Valerian Mtchedlidze
LLC Meqanizatori Zviad Chkhaidze
Department of administration Igor Sichinava
Department of Internal Audit Gia Kobakhidze
Department of Public Relations David Tkemaladze
Department of Financial - Economic Otar Shamugia
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
7
LEPL National Food Agency
The main functions of LEPL National Food Agency are: to ensure food/feed safety and quality, to carry out state control over the fulfillment of hygiene, veterinary-sanitary and phytosanitary requirements and rules; risk management and communication based on food/feed, epizootic and phytosanitary risk assessment; registration and control of pesticides, agrochemicals, veterinary drugs (medicine) and mineral water denomination of origin; to assign water trade mark categories; to organize preventive, treatment and eradication measures against especially dangerous animal diseases; to protect plants from quarantine and especially dangerous harmful organisms; to coordinate and supervise private veterinary activities; “issuing import permits and export certificates� and certificates in accordance with the rules laid down in the legislation; to provide population with relevant, impartial and objective information on hazards and potential risks; to develop a crisis management plan in case of emergency situation in the country and to introduce it to the Ministry of Agriculture of Georgia.
8
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
LEPL National Wine Agency
The functions of LEPL National Wine Agency are: regulation, monitoring and control of viticulture-wine making industry; monitoring the production and planting of vine mother plantations, grafting materials and grafted seedlings; technical and phytosanitary control; determining and managing information banks and product movement in vineyards and enterprises; protection of consumer market from counterfeiting products within the Agency’s competence; promotion of the growth of export potential; popularization of Georgian wine; preparation of proposals and recommendations for functionality and development of the field; implementing state control of the appellations of origin of wines and wine brands; issuing of certificates of compliance and origin of alcoholic beverages of grape-origin; labeling control of grape-origin alcoholic beverages; managing relations with national and international organizations in the viticulture-wine making field and organizing marketing and promotional activities; promotion of the arrangement of alcoholic beverage tasting events, competitions, exhibitions and seminars; support the operation of Permanently Acting Tasting Committee at the Agency.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
9
LEPL Laboratory of the Ministry of Agriculture
Main function of LEPL Laboratory of the Ministry of Agriculture is diagnosing animal disease, pathogenic organisms in plants and analyzing food products. LEPL Laboratory of the Ministry of Agriculture controls 3 zonal-diagnostic (Tbilisi, Kutaisi, Akhaltsikhe) and 8 field labs (Gori, Marneuli, Dusheti, Gurjaani, Ambrolauri, Ozurgeti, Zugdidi, Batumi).
10
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
LEPL Scientific-Research Center of Agriculture
The functions of the LEPL Scientific-Research Centre of Agriculture are: organization of selection farms and breed testing; publishing data on recommended breeds and managing the registry of registered breeds; description of local animal breed gene pool, creation of genetic and informational banks; supporting the introduction of production technology of seeding and planting materials of annual and perennial crop cultures; agrotechnological research of perennial cultures and preserving the gene pool; development of integrated systems of plant protection; certification and testing the quality of seeding and planting materials (germination, energy, purity and other); supporting the introduction of organic agricultural production; conduct soil analysis to study the qualitative index and determine soil fertility; risk assessment of food safety, veterinary and plant protection fields; spreading new technologies; creation of demonstration plots; supporting the introduction of modern agricultural machine-tools; agricultural activity studies; studies on storing and processing agricultural products.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
11
LEPL Agricultural Development Cooperative Agency
Main functions of LEPL Agricultural Development Cooperative Agency are: preparing recommendations for the development and support of agricultural cooperatives; providing agricultural cooperatives with consultation services on legal, institutional, production technologies and other matters; granting, suspending and terminating agricultural cooperative status; supporting training and re-training of agricultural cooperative staff, and facilitating the capacity building of cooperative’s authorized representatives.
12
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
LTD United Amelioration Systems Company of Georgia
LTD United Amelioration Systems Company of Georgia company activity planning and defining development prospects on operating territory, considering the needs of consumers (water-user groups) regarding water usage and amelioration services; provision of amelioration services (water supply, carrying off excess water) to physical and legal entities with the use of the amelioration infrastructure owned by the company.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
13
NNLE Projects’ Management Agency
Since 2012, with the purpose of supporting the development of Georgian agriculture the NNLE Projects’ Management Agency is managing projects initiated by the Ministry of Agriculture of Georgia. In two years the Agency implemented up to ten projects and successfully manages Preferential Agrocredit Project, Co-financing of Agro Processing Enterprises, Produce in Georgia, Assistance to Small Farmers During Spring’s Season Work, Agro Insurance, and Assistance in Apple and Tangerine Sales projects. The Agency provides farmers and agricultural entrepreneurs with low-cost, long-term and accessible funding in order to improve processes of primary agricultural goods production, processing and storage-distribution. Within the framework of the projects, in different regions across Georgia, new enterprises were built, existing enterprises were re-equipped, new jobs were created and local production processing started. Project participant entrepreneurs sell their goods not only on local markets, but also export to neighboring countries and European Union. In 2015 a new project “Plant the Future” was initiated by the Ministry of Agriculture of Georgia. The main purpose of the project is to ensure the effective use of agricultural lands of Georgia by planting perennial cultures.
14
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
llc meqanizatori
Agricultural Project Management Agency owns 100% share of llc Mechanizatori. Mission of the company is supporting of agricultural development, provision of accessibility to information and modern technique. The objective of the company is to provide farmers with the full cycle of service of mechanization service; Currently, LLC Mechanizatori has 13 service centers in 9 regions in Georgia and 1 central maintenance/logistical base. Company has more than 1000 tractors, 100 combines and 8000 implements; LLC Mechanizatori has been actively involved in the program of “Assistance to small Farmers During the Spring Season� since 2013; the company also offers to farmers to conduct up to 80 agri operations using the modern technologies; annually, 250 000 ha land plot is being cultivated; There are 1400 employees in the company, included 1000 technical operators;
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
15
Budget Budget Allocation Dynamics for the Ministry of Agriculture (million GEL) 350 300 250 200 150 100 50 0 BUDGET % OF GOVERNMENT BUDGET
2010
2011
2012
2013
2014
2015
30.6
57.8
228.4
227.4
263.5
292.9
0.40%
0.80%
2.90%
2.80%
2.90%
3.10%
3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%
Agriculture in Numbers General Indicators During 2014, the total worth of agricultural product output in the country amounted to 3.4 billion GEL, while products worth 4.5 billion GEL were created as a result of the processing of agricultural products. The total output of the agricultural business exceeds the equivalent figure from 2013 by 10%, which is mainly due to the growth of the processing sector; its growth indicator constitutes 13.8%, and the initial production output indicator has increased by 5.2% compared to the previous year.
16
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Agriculture in Numbers Total Production of Agricultural Goods (million GEL) Growing of grain cultures and other cultures, that are not included in other categories Growing cultures required for production of fruit, walnuts, beverages and spices Growing vegetables, specialized gardening and nursery production Animal husbandry Agricultural services Total, production of agricultural goods
2009
2010
2011
2012
2013
2014*
374
287
471
415
485
515
286
329
476
396
598
610
208
316
290
276
322
361
1,140
1,240
1,337
1,610
1,666
1,732
63
69
99
110
139
161
2,072
2,242
2,674
2,807
3,210
3,378
Total Production of Processed Agricultural Goods (million GEL) Wheat flour
302
346
477
483
475
515
Bread, biscuit and other pastry
949
1,043
1,256
1,264
1,273
1,292
Meat products
90
105
125
131
143
166
Dairy products
361
431
463
488
496
583
Alcoholic beverages
295
401
443
556
685
948
Other products of food industry
532
621
792
813
910
1,030
2,529
2,946
3,556
3,735
3,983
4,533
4,601
5,188
6,230
6,542
7,193
7,911
Country’s total production in base prices 26,315 (million GEL)
30,467
36,431
39,293
40,551
44,044
17.0
17.1
16.6
17.7
18.0
Total, production of processed agricultural goods Total production of agricultural business (million GEL)
Total share of agricultural business production in the country’s total production (%)
17.5
*) Preliminary Data, Source: GEOSTAT ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
17
Agriculture in Numbers Dynamics of Agricultural Business Production (million GEL) 18.5%
9,000 8,000
18.0%
7,000
17.5%
6,000 5,000
17.0%
4,000
16.5%
3,000 2,000
16.0%
1,000 0
15.5%
2009
2010
2011
2012
2013
2014
Total production of processed agricultural goods
2,529
2,946
3,556
3,735
3,983
4,533
Production of primary agricultural goods
2,072
2,242
2,674
2,807
3,210
3,378
% of country’s total production
17.5%
17.0%
17.1%
16.6%
17.7%
18.0%
Added Value in the Agricultural Sector (current prices, million GEL) 4,500
4,147.1 3,781.1
4,000 3,500 3,000 2,500
2,430.0
3,194.2
3,279.9
2,592.1
2,000 1,500 1,000 500 -
2009
2010
2011
2012
2013
2014*
973
1,082
1,339
1,347
1,586
1,834
Primary Production
1,457
1,510
1,855
1,933
2,195
2,313
Total Agricultural Sector
2,430
2,592
3,194
3,280
3,781
4,147
Food Industry
*) Preliminary Data, Source: GEOSTAT
18
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Agriculture in Numbers In 2014, the added value created in agriculture sector exceeded GEL 4.1 billion. In 2013, the same indicator was GEL 3.8 billion, the growth rate for 2014 was 9.7%. The share of agriculture sector in the country’s GDP, according to preliminary data of 2014, equaled to 16.5%.
The share of agricultural products in the country’s GDP.
2009
2010
2011
2012
2013
2014*
Primary Production Share in GDP
9,4%
8,4%
8,8%
8,6%
9,4%
9,2%
Including:
Animal husbandry
4,8%
4,2%
4,0%
4,5%
4,5%
4,3%
Plant growing
3,9%
3,6%
4,1%
3,3%
4,2%
4,1%
Forestry, fishing
0,5%
0,4%
0,4%
0,4%
0,4%
0,4%
Agricultural services
0,3%
0,3%
0,3%
0,3%
0,4%
0,4%
Food Industry Share in GDP
6,3%
6,0%
6,4%
6,0%
6,8%
7,3%
Grind industry production; feed production
0,3%
0,4%
0,3%
0,3%
0,3%
0,3%
Bread and pastry production
0,4%
0,4%
0,4%
0,4%
0,4%
0,4%
Other food products
0,8%
0,7%
1,0%
1,0%
1,2%
1,3%
Mineral water and non-alcoholic beverage production
0,6%
0,7%
0,6%
0,7%
0,9%
1,1%
Alcoholic beverage production
0,6%
0,8%
0,7%
0,9%
1,1%
1,3%
Tobacco production
0,2%
0,1%
0,1%
0,1%
0,1%
0,1%
Product processing in households
3,4%
3,0%
3,1%
2,7%
2,8%
2,8%
Total share of agricultural products in the country’s GDP
15,6%
14,4%
15,2%
14,6%
16,2%
16,5%
Including:
*) Preliminary Data, Source: GEOSTAT In 2014, foreign direct investment (FDI) in the agricultural sector has increased significantly compared to previous years. According to preliminary data, foreign direct investment (FDI) in country’s agricultural sector reached USD 19.1 million, which was 61% more compared to previous year.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
19
INVESTMENTS Foreign Direct Investment in the Agrictultural Sector (Thousand USD) 19,090.6 20,000.0 18,000.0
14,907.6
16,119.3
16,000.0
11,857.4
14,000.0 12,000.0
8,631.9
10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 2010
2011
2012
2013
2014*
*) Preliminary Data, Source: GEOSTAT
Cattle breeding and plant growing According to the preliminary data of 2014, compared to the same period of 2013: Sown areas of annual crops increased by 3.8%; Number of cattle increased by 5.7% and reached 1.3 million; Number of pigs increased by 9.4% and reached 209.2 thousand; Number of birds increased by 8.9% and reached 7.4 million wings; Number of sheep and goats increased by 1.2% and reached 867 thousand; All types of meat production increased by 1% and reached 48.8 thousand tons; Milk production increased by 4.7% an reached 633.3 million liters; Egg production increased by 5.4% and reached 522 million units.
20
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Cattle breeding and plant growing
Dynamics of Sown Areas (Thousand HA)
256.7
262.4
259.6
2010
2011
2012
310.7
322.5
2013
2014*
Livestock Numbers
2010
2011
2012
2013
2014*
SHEEP AND GOAT
653,900
630,400
742,600
856,800
867,000
PIG
110,100
105,100
204,300
191,200
209,200
1,049,400
1,087,600
1,128,800
1,229,700
1,300,400
CATTLE
*) Preliminary Data, Source: GEOSTAT
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
21
Processing Sector According to the data of 2014 there are a total of 3,733 enterprises in the agricultural sector, out of which 1,507 are based in Tbilisi. List of Operating Agricultural Enterprises by Region Name of Region
Number of Enterprises
Georgia, total
3733
Including
Â
Tbilisi
1507
Imereti
424
Kakheti
396
Samegrelo-Zemo Svaneti
326
Kvemo Kartli
286
Adjara
275
Shida Kartli
233
Samtskhe-Javakheti
91
Guria
90
Mtskheta-Mtianeti
73
Racha-Lechkhumi and Kvemo Svaneti
32
816 of the existing enterprises produce primary agricultural goods, while the rest work in the food industry. List of Enterprises by Field of Operation Small Enterprise
Medium Enterprise
Large Enterprise
Primary Production
694
78
44
Food Industry, total
2512
243
162
Field of Operation
Including
Â
Production of mineral water and other nonalcoholic beverages
104
7
4
Wine production
170
31
13
Beer production
20
3
3
Production of distilled alcoholic beverages
39
4
3
22
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Processing Sector Production of long-term pastry goods
196
8
6
Production of bread and other short-term confectionery goods
1300
72
41
Production of grind-cereal goods
80
9
7
Production of pasta
41
9
4
Tea and coffee processing
75
10
3
Fruit and vegetable processing
66
29
24
Meat production
130
15
11
Dairy production
73
17
6
Fish production
31
2
3
Other fields of food industry
187
27
34
Source: GEOSTAT
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
23
Foreign Trade In 2014, compared to 2013, the export of agricultural goods increased by 6.7%. According to the data from 2014, Georgia exported agricultural goods worth 825.9 million USD, 29% of the total amount of products exported from the country. Major exported products include: hazelnuts (22%), wine (22%), mineral water (17%), alcoholic beverages (12%), cattle (4%), non-alcoholic sparkling beverages (3%), live sheep (3%) and others. Based on the export of agricultural goods, in 2014 Georgia had trade relations with 80 countries. Compared to 2013, the import of agricultural goods in 2014 has increased by 1.1%. In 2014, Georgia imported agricultural goods worth 1.3 billion USD, 15.2% of the total amount of products imported into the country. Major imported products include: wheat (12%), tobacco (9%), poultry (6%), sugar (5%), alcoholic beverage (5%), pork (3%), flour-based confectionery (3%), food additives (3%), vegetable oil (3%), fish (2%) and others. Based on the import of agricultural goods, in 2014 Georgia had trade relations with 110 countries. In 2014, compared to 2013, according to the data of foreign trade of agricultural products the negative trade balance decreased by 7.3%, while compared to 2012 the negative trade balance decreased by 37%.
24
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Foreign Trade
Export/Import of Agricultural Products (million USD) 2000 1000
436.7
1305.5 825.9
1291.6
1274.3
1193.7
774.3
512.5
0 2011
-1000
2012
-757
2013
-761.8 IMPORT
EXPORT
2014*
-517.3
-479.6
TRADE BALANCE
Major Agricultural Trade Partners (2014)
EXPORT Russia 27%
30%
Ukraine Azerbaijan Kazakhstan
4%
10%
6% 6%
7%
10%
Germany Armenia Italy Other Countries
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
25
Foreign Trade IMPORT Russia Ukraine
21% 30%
Turkey Brasil Germany
20%
2% 3% 4% 8%
USA Armenia
12%
Other Countries
Basic Agricultural Exports, 2014 year (million USD) 183
181 137
135 95
Hazelnut
26
Wine
Mineral Water
Alcoholic Beverages
30
29
21
15
Cattle
Non-alcoholic sparkling beverages
Sheep
Citrus
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Other Products
Foreign Trade 700
Basic Agricultural Imports , 2014 year (million USD)
152 Wheat
115 Tobacco
72
63
60
61
38
38
Poultry meat
Sugar
Chocolate products
Alcoholic Beverage
Pork
Sunflower Oil
Other Products
TRADE DATA IN AGRICULTURE AND FOOD SECTOR BY TRADE AGREEMENTS (1000 USD) TRADE
TRADE
PARTNERS
REGIME
EU
CIS
TURKEY
USA
CANADA
JAPAN
SWITZERLAND
NORWAY
2009
2010
2011
2012
2013
2014*
EXPORT
67.7
80.1
141.0
105.9
182.6
216.4
IMPORT
115.1
147.2
180.3
203.1
202.5
250.4
TRADE BALANCE
-47.5
-67.1
-39.3
-97.2
-19.8
-34.0
EXPORT
173.9
219.1
261.1
361.1
539.4
535.4
IMPORT
426.2
515.5
589.1
651.7
660.1
623.4
TRADE BALANCE
-252.3
-296.4
-328.0
-290.6
-120.7
-87.9
EXPORT
33.0
11.6
7.9
12.2
24.5
28.5
IMPORT
62.5
76.6
122.7
116.6
139.4
153.7
TRADE BALANCE
-29.5
-65.0
-114.8
-104.4
-114.8
-125.3
EXPORT
4.0
4.4
3.8
3.5
4.6
5.3
IMPORT
41.9
42.0
53.0
43.9
41.6
40.1
TRADE BALANCE
-37.9
-37.5
-49.2
-40.3
-37.0
-34.8
EXPORT
0.5
0.6
0.6
1.1
0.8
1.5
IMPORT
7.4
10.9
10.4
10.7
13.3
6.9
TRADE BALANCE
-6.8
-10.3
-9.7
-9.6
-12.5
-5.4
EXPORT
0.2
0.3
0.2
0.4
0.5
0.8
IMPORT
0.3
0.1
0.8
0.1
0.0
0.0
TRADE BALANCE
-0.1
0.1
-0.6
0.3
0.5
0.8
EXPORT
1.4
0.4
0.9
0.7
0.6
1.0
IMPORT
4.2
4.1
3.8
3.8
5.8
1.1
TRADE BALANCE
-2.8
-3.7
-2.9
-3.1
-5.2
-0.0
EXPORT
0.0
0.0
0.0
0.0
0.0
0.0
IMPORT
1.6
2.9
3.5
9.0
10.0
8.3
TRADE BALANCE
-1.6
-2.9
-3.5
-9.0
-10.0
-8.3
DCFTA
FTA
FTA
GSP
GSP
GSP
GSP
GSP
*) Preliminary Data, Source: GEOSTAT ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
27
projects The Important Projects Implemented in 2014
Fund Accessibility
The provision of cheap and accessible funds is one of the factors facilitating the establishment of new enterprises, as well as the expansion of existing ones. With this aim in mind, the Ministry of Agriculture of Georgia is implementing the “Preferential Agro Credit” project, based on which beneficiaries are provided with loans (or leasing) from financial institutions participating in the project, using the principle of interest rate co-financing. Concessional Agro Credit Project Within the framework of the Concessional Agro Credit Project project, 27,220 credits have been issued in 2013-2014, including 18,333 credits that were issued in 2014. Funds issued in 2013-2014 amount to 722,766,960 GEL in total, with 480,416,394 GEL having been issued in 2014. The active portfolio of the Preferential Agro Credit project comprises 475,599,914 GEL. 89 new enterprises have been created within the framework of the Preferential Agro Credit project. Within the framework of the projects implemented by the Agriculture Project Management Agency 105 new enterprises have been financed. 89 new enterprises have been financed through Concessional Agro Credit Program, 5 through “Produce in Georgia” program and 11 new enterprises will be operational in 2015 financed through Co-financing of Agro Processing Enterprises project. The table below shows the loans disbursed within the second and third component Region
Quantity
Amount GEL
Tbilisi
161
22,064,841
Ajara
66
5,656,602
Guria
102
7,932,461
Imereti
1,138
24,459,198
Kakheti
9,646
271,062,156
Mtskheta-Mtianeti
280
7,244,402
Racha-Lechkhumi
14
1,863,514
Samegrelo
595
25,439,378
Samtskhe-Javakheti
1,448
26,062,662
Kvemo Kartli
5,406
104,005,889
Shida Kartli
2,756
65,340,685
Sum
21,611
561,131,794
Within the framework of the Concessional Agro Credit Program, the agency has disbursed 33,415,703 GEL as an interest rate co-financing in 2013-2014.
28
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
projects In 2015 there will be some changes in the Concessional Agro Credit program aimed at project optimization, consolidation of farms, facilitation of farmers’ cooperation and improvement of communication. Concessional Agro Credit Program will have flowing components: Concessional Agro Credit with two components – for working capital and capital stocks. Concessional Agro Leasing State program “Produce in Georgia” Interest rates co-financing according to different components will be following: For working capital – 8% For capital stocks – 11% Concessional Agro Leasing - 12% Produce in Georgia – 10% As a result of successful negotiations between the agency and the commercial banks, the interest rates have been decreased by 1 %. Accordingly, the co-financing of interest rates for working capital and capital stocks from the agency’s side have also decreased by 1 %. “Produce in Georgia” Within the framework of the program “Produce in Georgia” 9 agreements in agriculture field have been signed in 2014. Loans disbursed by the commercial banks amounted to 14,670,000 USD. The regional diversification of the approved projects has following pattern: Kvemo Kartli – 3 enterprises; Samegrelo – 3 etreprises; Kakheti – 1 enterprise; Guria – 1 enterprise; Ajara – 1 enterprise; Sectorial diversification of the approved project has following pattern: Greenhouse – 2 enterprises; Fish meal and oil production – 2 enterprises; Poultry meat production – 1 enterprise; Milk production – 1 enterprise; Tea packaging – 1 enterprise; Mushroom production – 1 enterprise; Cold storage/warehouse – 1 enterprise;
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
29
projects Co-financing of Agro Processing Enterprises Main goals of the Co-financing of Agro Processing Enterprise program: •
Sectorial and geographic diversification of agro processing sector;
•
Creating of added value in agriculture sector;
•
Increasing income for rural population;
•
Increasing primary agriculture production;
16 projects have been approved with the total value of 11,703,238 USD. State co-financing amounted to 4,681,295 USD. Grants disbursed in the framework of the program reached 1,108,120 USD. The regional diversification of the approved projects has following pattern: •
Samegrelo-Zemo Svaneti – 8 new enterprises;
•
Mtskheta-Mtianeti – 2 new enterprises;
•
Guria – 2 new enterprises;
•
Ajara – 1 new enterprise;
•
Imereti – 1 new enterprise;
•
Racha-Lechkhumi Kvemo Svaneti – 1 new enterprise;
•
Shida Kartli – 1 new enterprise;
Sectorial diversification of the approved project has following pattern: •
Fruit processing – 5 new enterprises;
•
Hazelnut processing – 4 new enterprises;
•
Fish processing – 2 new enterprises;
•
Bay leaf processing – 2 new enterprises;
•
Tea processing – 1 new enterprise;
•
Grain processing – 1 new enterprise;
•
Animal feed – 1 new enterprise;
Assistance to Small Farmers during 2014 Spring Season’s Work Within the framework of the project – “Assistance to Small Farmers during 2014 Spring Season’s Work” 757,145 beneficiaries received the benefit in the form of agricultural input material with the total value of 51,895,536 GEL and land cultivation works with the total value of 18,059,387 GEL. In 2014 land cultivated within the project amounted to 220,466 hectares.
30
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
projects Region
Land cultivation according to regions: Number of Beneficiaries
Area of Cultivated land, in hectares
Ajara
2,813
1,482
Guria
21,177
11,706
Tbilisi
148
110
Imereti
70,390
40,420
Kakheti
59,364
45,160
Mtskheta-Mtianeti
14,163
9,789
Racha-Lechkhumi
2,303
1,407
Samegrelo
60,177
36,903
Samtskhe-Javakheti
30,887
26,174
Kvemo Kartli
33,557
20,540
Shida Kartli
36,402
26,775
Sum
331,381
220,466
The table below shows the categories of agricultural input materials received by the beneficiaries: Product
%
GEL
Fertilizer
68,09%
35,335,670
Pesticide
28,37%
14,722,764
Seed material
3,54%
1,837,102
Sum
100%
51,895,536
In August 2014 a study on implemented projects has been conducted. Sown area: According to study results the total area sown with annual crops by the beneficiaries amounted to 191,484 hectares, which is 92% of the total cultivated land plots under the project (As of August 2014). Sown cultures: 78.4% of beneficiaries have sown main crops. According to the study, 77.6% of the beneficiaries’ main objective of the production was own consumption and 22.4% of the beneficiaries had commercial goals. The Study showed that in 68% of cultivated lands nitrogen fertilizers have been used by the beneficiaries and in only 7.4% of the cultivated lands combined fertilizers have been used. In about 20% of all cultivated and sown lands fertilizers have not been used.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
31
AGRO INSURANCE PROJECT The Agro Insurance project has been launched in September 1, 2014, which was a pilot project and implies state subsidies (considering the specific conditions). 21,194 insurance policies were issued, 18,646 ha land plots and 152,140,160 GEL amount of yield were insured. According to the Yield Value, the insured crops were as follows: Yield Value
Percentage Share
Insured area in hectares
Percentage Share
Vine
63,850,460.21
41.97%
5,769.93
30.94%
Fruit trees
27,133,380.41
17.83%
1,855.57
9.95%
Citrus
28,767,591.89
18.91%
3,212.70
17.23%
Melon Crops
1,734,984.44
1.14%
186.79
1.00%
Berries
612,670.76
0.40%
90.08
0.48%
Beans
216,833.69
0.14%
148.70
0.80%
Subtropical Crops
425,041.32
0.28%
40.25
0.22%
Cereals
6,740,738.87
4.43%
4,247.07
22.78%
Vegetable crops
4,461,165.44
2.93%
367.97
1.97%
Nuts
18,197,293.43
11.96%
2,727.03
14.63%
Total
152,140,160.46
100.00%
18,646.09
100.00%
Crops
32
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
33
Supporting Grape, Apple, and tangerine Processing Coordination headquarters, which were working round the clock, were opened in 2014 in order to conduct the grape harvest in an organized manner, and to make the sale of grapes as simple as possible for the grape growers. The delivered grapes were registered in a unified database using a special computer program. Consequently, the grape harvest was successful throughout the entire country. Over 124,000 tons of grapes were processed in total, and the income generated by the sale of grapes exceeded 175 million GEL. The price of grapes during the harvest period was unprecedentedly high and constituted a historical record. During the grape harvest of 2014, plants processed: 73,500 tons of Rkatsiteli, 42,800 tons of Saperavi, 2,300 tons of Kakhuri Mtsvane, 873 tons of Mujuretul-Aleksandrouli, and 4,500 tons of other varieties of grapes. Over 122,200 tons of grapes were processed in Kakheti, and the income amounted to 161.4 million GEL. 1,628 tons of grapes were processed in Racha, and the income amounted to 12.6 million GEL. Coordination headquarters were established to facilitate the sale of tangerines intended for industrial processing, as well as to ensure the organized delivery of tangerines and nonstandard apples to processing plants. 43,376 tons of nonstandard apples and 10,358 tons of nonstandard tangerines were processed during the 2014 season. In 2014 21.8 ths tones Tangerines was exported from Georgia
34
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Insuring Epizootic Reliability The functioning of a flawless and effective system of animal healthcare, surveillance, and monitoring is important for the production of safe and high-quality food products. This includes introducing a country-wide Electronic Integrated Diseases Surveillance System (EIDSS) in order to control and avoid animal diseases, as well as potentially hazardous diseases and those that might be contagious to humans. Prevention and eradication programs aimed against contagious diseases take place based on existent and anticipated risks. Compared to previous years, the epizootic situation has changed considerably in 2014 in Georgia. This was brought on by the increase in the scale of prophylactic vaccinations of animals against especially dangerous diseases.
Vaccination - FMD Foot and Mouth Disease 2 622 981 2 006 223 1 102 343
2012
2013
Vaccination - Anthrax
2014
952 723
303 044 52 342 2012
2013
2014
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
35
Insuring Epizootic Reliability 124202 domestic carnivorous animals were given preventive vaccination. In 2014, 133,982 susceptible animals were investigated for brucellosis, and 2,926 animals tested positive. In 2013, 941 large cattle were investigated for brucellosis, with 276 of them testing positive. In 2014, a total of 281,372 large cattle were identified. 161,283 cattle were identified in 2013. A total of 58,019 sheep and goats were vaccinated for sheep pox and goat pox. In 2014, prophylactic vaccination against Rabies was provided to 236 901 domestic carnivorous animals (cats and dogs), In 2013, prophylactic vaccination against Rabies was provided to 124,202 domestic carnivorous animals (cats and dogs) Bovine, Ovine and Caprine animals identification and registration systems are being gradually introduced. This will promote animal and human healthcare, the control of the epidemiological situation, the provision of trustworthy information on the origin and safety of animal products to the consumer, the veterinary control of livestock movement and export-import within the country, the use of labeling during the sale of beef, insuring transparency and traceability, and the improvement of livestock breeding. A total of 266,363 large cattle were identified in 2014. In 2014, 183 samples of veterinary pharmaceuticals and 220 facilities, including veterinary pharmacies, wholesale trading facilities, pet shops, veterinary clinics, and veterinary pharmaceutical production plants were investigated in order to control the quality and safety of veterinary pharmaceuticals. The list of products allowed for import was enlarged in 2014. Permits allowing the import of 5,912 veterinary controlled products and 1,274 phytosanitary controlled products were issued.
36
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Plant Protection and Phytosanitary Reliability Observing phytosanitary regulations is an important mechanism for ensuring phytosanitary reliability and the food product security in a country. In order to minimize the damage to agricultural cultures and preserve the harvest, it is essential to improve the population control and diagnosis of pests that are especially harmful or require quarantine, conduct phytosanitary monitoring of the country’s territory, determine infestation zones that are free from pests that require quarantine, and based on these data, to plan appropriate opposing measures, in accordance with international standards of phytosanitary control. This will facilitate the export of local agricultural produce to the EU market. In September 2014, Georgia became a member of the European and Mediterranean Plant Protection Organization (EPPO), which will facilitate the improvement, and the export, of the level of phytosanitary protection in the country. Every year, measures aimed against the proliferation of pests that are especially harmful and require quarantine take place throughout the country. Efforts are underway to neutralize the American white butterfly in western Georgia, and grasshoppers in eastern Georgia. It should be noted that in 2013-2014, the intensity of the spread of the American white butterfly has decreased to a minimum in western Georgia; this was brought about by the large-scale measures that were undertaken. In 2014, measures against the spread of the American white butterfly were undertaken on 293.3 hectares in Samegrelo, Guria, and Adjara regions. In 2014, the Italian grasshopper was widespread in eastern Georgia. 49,874 hectares of land were treated, including 10,000 hectares that were treated using aircraft. Pesticides and agrochemicals available on the market were investigated within the framework of the 2014 program, “Food Product Safety and State Control of Veterinary Medicine and Plant Protection.” This is primarily aimed at protecting the consumer interests, in order for them to bring in a high-quality and safe harvest, and to eradicate the sale of counterfeited, expired, and low-quality pharmaceuticals.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
37
Food Safety State control of food product safety encompasses the control of the entire food chain from initial production to the end consumer, which is the so-called control «from the farm to the table,» and applies to the stages of production, including initial production, processing, and distribution. It considers not only the possible immediate, short- or long-term effects of food products on people›s health, but also their effects on future generations. The aim of state control of food product safety is the protection of human life and heath, as well as of consumer rights. It is implemented based on risk, using the following mechanisms: planned and unplanned inspections, supervision, monitoring, collecting samples, and inspecting documents. Despite the fact that compared to last year, the documents of 40% more food product retail facilities were inspected in 2014, the number of instances of expired food products being sold has decreased by 38.4%. In 2014, at the slaughter houses operating in Georgia, 202 934 cattle and 29 338 poultry slaughtered under veterinary supervision. in 2014, compared to 2013, the number of cattle slaughtered in Georgian slaughter houses under the veterinary supervision has increased by 32%.
Inspecting Business Operators
5 184
2 106 504 2012
38
2013
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
2014
Creating the Departmental Cadaster of Viticulture in Georgia
Since 2014, the implementation of a large-scale project on creating a cadaster of vineyards has begun. It aims at regulating viticulture and winemaking in the country. Within the framework of the vineyard cadaster project, all of Georgian vineyards are being cataloged and registered by plots of land. Data from the cadaster will be uploaded to a special computer program. The first stage of works pertaining to land surveying in Racha-Lechkhumi grape-growing region has already finished. Similar works are underway in Kakheti and other grape-growing regions of Georgia. Data from the vineyard cadaster will be used for the monitoring of viticulture and winemaking, and also to verify the boundaries of zones and sub-zones.
Scientific Research Scientific research has been actively ongoing since 2014. In various regions throughout Georgia, there have been created: 19 plots of land used for selection, crop testing, and demonstration; a seed production facility in Akhalkalaki, with annual cultures and fields of seed potatoes (30 hectares); virology and tissue culture laboratories with modern equipment (in-vitro), grafting, certification and refrigeration complexes (Mtskheta - Jighaura); seeding material refrigeration units (Mtskheta - Tsilkani, Akhalkalaki - Vachiani); greenhouses and orangeries (Mtskheta - Jighaura, Tsilkani); equipment for the thermal treatment and disinfection, grafting, and paraffining of plants; soil treatment, mulching, integrated plant protection; a satellite meteorological station; modern irrigation systems, and other infrastructure. At the of the perennial cultures base belonging to the Agricultural Research Center in the village of Jighaura (Mtskheta municipality), research is being carried out in the following directions: the collection planting, of Georgian endemic grapevine species - 437 species; collection planting of foreign grapevine species - 350 species; pome, stone fruit, nuts and berry crops orchards - over 300 species; vineyard rootstock and scion mother plantings, nurseries, fruit crops vegetative rootstock, mother planting and demonstration plots.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
39
Improving Irrigation and Drainage Systems Due to the climatic condition in Georgia, the amelioration of land, the construction of irrigation and drainage systems, and their exploitation and control constitutes an important sphere that should ensure the creation of proper conditions for intensive and effective agricultural production in the country. While the relatively dry climate of eastern Georgia requires widespread use of irrigation, in a number of regions in western Georgia, it is necessary to remove excess water using drainage systems. 34 projects were concluded in Georgia within the framework of the reconstruction works that were conducted in 2014. As a consequence of the projects, it became possible to provide irrigation services to an additional 23,647 hectares, and engineering services on 7,033 hectares of land. 35 amelioration infrastructure reconstruction projects began in 2014. Once the projects are concluded, the area of agricultural land that is provided with water will increase by 37,457 hectares, and engineering services will be carried out on an additional, 3,805 hectares. In 2014, while exploiting the Georgian amelioration infrastructure, 1,895 kilometers of irrigation canals and 207 kilometers of drainage canals were cleared and fixed, and 1,400 hydrotechnical facilities, i.e. dams, Headworks drain tunnels, aqueducts, tunnels, pumping stations, water diversion structure and division boxes, gates, valves, hydrants, pipes , and so forth were repaired or replaced.
Irrigation (ha) 88,000 64,000
14,000
45,000
2012
40
2013
2014
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
2012
In 2014, 35 units were added to the special equipment fleet of the unified amelioration systems company. Currently, practically all large main and distributary canals have been reconstructed throughout Georgia. In order to use water resources in an optimal manner, and also to improve the price system, a modern system of billing was established in 2014, which will facilitate the regulation of water demand and supply, as well as the logging of subscribers’ information, payment schedules, paid funds, and irrigated areas.
Drainage (ha) 88,000
25,000 19,000 14,000
2014
2012
2013
2014
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
41
Supporting the Development of Cooperation in the Field of Agriculture Institutional structure based on the principles of cooperation of the field of agriculture constitutes the most effective system in the current period. It ensures increased competitiveness and makes production, service, and sale more accessible to farmers. Agricultural cooperatives also have the best platform for overcoming poverty. The development of cooperatives improves the inclusion of vulnerable groups, cooperator women and young farmers in socio-economic activities. The process of agricultural cooperation began in Georgia in 2013, with assistance from the government, and is currently proceeding successfully. •
As of 31 December 2014, 464 entities have received the agricultural cooperative status;
•
3,450 shareholders are members of agricultural cooperatives, 783 of them being women;
•
Capital accumulated in agricultural cooperatives exceeds 7,666,599.5 GEL.
An advisory rulebook on agricultural cooperation was developed in 2014, and a guide was issued for interested parties in Georgian, Azeri, and Armenian languages. As of 31 December 2014, 207 motor hoes and 139 manual seeders were distributed among 72 cooperatives that had an agricultural status, within the framework of the program on providing agricultural cooperatives with motor hoes and manual seeders.
42
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Increasing Laboratory Capabilities Laboratory of Ministry of Agriculture is a nationwide network of 11 laboratories consisting of 3 Zonal Diagnostic Labs and 8 Laboratory Support Stations. Since the beginning of 2014 fundamental changes have occurred at LMA; among them: receiving the international accreditation according to ISO 17025 and implementing the ISO 9001 compliant Quality Management System by the head laboratory; personnel became authorized to work at Biosafety Level 3; first time in country diagnostics of Tularemia and CCHF from animal samples were implemented. The scope of microbiological and biochemical tests for food and water quality has expanded significantly; old Soviet-“ГОСТ” based -testing methods were replaced with the modern- ISO based- ones. The concept and functional design for the phyto-sanitary laboratory compliant with the international standards were prepared and construction of the new building started.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
43
Efforts to Popularize Georgian Agricultural Products and Wine • The Ministry of Agriculture of Georgia is actively supporting to present Georgian products at intenational agricultural fairs within the program of “Popularization of the Georgian Agricultural Products, Wine and Cuisine”. After signing EU Association Agreement, special emphasis is given to the awareness of Georgian products on international markets, which promotes export growth of Georgian agricultural products, market diversification and strengthening the positions on existing markets. • Ministry of Agriculture of Georgia was participating in the 7th Tallinn FoodFest (TFF), held in Tallinn in October 2014. It should be admitted that it was the first event of its kind, the Ministry of agriculture of Georgia took part in after signing of the Deep and Comprehensive Free Trade Area Agreement (DCFTA) with the European Union. As well, with the support of the Ministry of Agriculture of Georgia, Georgian companies presented their products in the 20th International Specialized Wholesale Exhibition “PRODEXPO – 2014” held on November, 2014 by the National Exhibition Centre “BELEXPO” in Belarus, Minsk. • In 2014 the Embassy of Georgia in Hungary and in the State of Israel, held a reception in honor of Independence Day of Georgia, attended by the officials and representatives of diplomatic missions. With the support of the Ministry of Agriculture of Georgia, Georgian wine, Chacha, natural juices, churchkhela, dried fruit, tea, spices and Georgian Cheese were presented on the abovementioned reception.
44
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
• It is noteworthy that the Ministry of Agriculture of Georgia annually participates in one of the largest and most prestigious international agricultural exhibition, such as International Green Week for the food, agriculture, and gardening in Berlin, Germany. At the same time, the international Green Week is the point of origin for Global Forum for Food and Agriculture with more than 70 departmental ministers. With the support of the Ministry of Agriculture of Georgia over 20 Georgian companies, producing wide range of agriculture production will be represented at the Green Week. Georgian wine, beer, non-alcoholic drinks, natural juices, dried fruits, traditional sweet - “Churchkela”, jams, canned fruits, tea, Georgian cheese and other products will be exhibited at the Georgian stand. Visitors will also have the opportunity to taste some of the unique dishes form the famous and delicious Georgian cuisine. As well, Georgian ensemble “Shvidkatsa” introduced visitors traditional Georgian polyphonic songs.
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
45
INTERNATIONAL DONOR ORGANIZATIONS Ministry of Agriculture of Georgia actively cooperates with the diplomatic missions, representatives of other international governmental and non-governmental and donor organizations. United Nations Food and Agriculture Organization (UN FAO), European Neighbourhood Partnership Agriculture and Rural Development (ENPARD), Comprehensive Institution Building (CIB), Restoring Efficiency to Agriculture Production (USAID/REAP), Strengthening Extension and Advisory Services Activity in Georgia (USAID/SEAS), Swiss Development Cooperation (SDC), The United States Department of Agriculture (USDA), German International Cooperation Agency (GIZ), German Development Bank (KFW), Oxfam Great Britain, Lithuania, Latvia, Estonia, the Czech Republic, Poland, the Netherlands, Israel, Hungary, the World Bank, the International Fund for Agricultural Development (IFAD), Austrian Development Agency, Japanese International Cooperation Agency (JICA), Care International, Mercy Corps, PiN, traditionally actively cooperate with the Ministry and implement important projects for the development and support of agricultural sector. Herewith, in accordance with the planned benchmarks of the Strategy for Agricultural Development in Georgia 2015-2020 and action plan, the Ministry will actively collaborate with international and donor organizations.
46
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
Georgia was unanimously elected as 51 member of EPPO
• In September 2014, the delegation of the Ministry of Agriculture of Georgia held an official meeting in France. The members of Georgian delegation participated in the 64th session of the council of the European and Mediterranean Plant Protection Organization (EPPO), discussing different issues, as well as the membership of Georgia in the above mentioned organization. According to voting, Georgia was unanimously elected as a 51st member of EPPO. One of the prerequisites for entering into force of „Deep and Comprehensive Free Trade Area” Agreement (DCFTA) is a harmonization of sanitary and phytosanitary regulations with European legislation. Georgia, as a member of EPPO, will contribute to the success of the organization and, at the same time will use all the benefits of this membership implies: promotion of a modern, safe and effective methods of pest control, encourage of harmonization of phytosanitary and plant protection regulations, development of strategy against fight of emergence and distribution of wreckers for cultivated and wild plants and etc.
Meeting with FAO Director-General H.E. Jose Graziano Da Silva
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
47
official visit • In October 2014, the delegation from the Ministry of Agriculture of Georgia held an official visit to the United States with the representatives of United States Agency for International Development (USAID) and representatives of World Bank Agriculture Global practice. During the meeting, parties discussed the project for the development of the irrigation system and land market in Georgia. The cost of this project is estimated as $50 million. Georgian Irrigation and Land Market Development Project financed by the World Bank will be implemented in 2015. The objective of the project is to improve delivery of irrigation services in Zemo Samgori area. About 31,000 thousand farming households cultivating approximately 26,000 ha of agricultural land on which irrigation services will be improved under the project. The sides emphasized the significance of the project in the development of agriculture. • The delegation from the Ministry of Agriculture of Georgia held a working meeting with the Chief Officers of the US Department of Agriculture, during the visit to the United States. The two sides highlighted the importance of ongoing agricultural programs, which are supported by the US Department of Agriculture. The “Agricultural Statistics Improvement Program” is implemented in the Ministry of Agriculture of Georgia and the National Statistics Office of Georgia as well. The program includes the methodology and improvement of primary data collection, as well as the improvement of methodology, regarding annual agricultural census for National Statistics Office; The second US support program, provides training courses for agriculture specialists in various educational institutions of the United States. The National Animal Health Program is also crucial, as far as, it’s Coordinating Council is composed of the USDA representatives. The two sides highlighted the future projects which should be implemented in 2015. The ‘’Program of Future Farmers in Georgia” aims
48
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
young people’s interest and involvement in various projects of the agricultural sector, as well as promotion of agriculture sector in general. The second program, which is reviewed and planned by the USDA, includes agricultural cooperatives’ support and development. Capacity Institutional Building, as well as retraining courses for the members of the cooperatives to improve their skills in the US is also planned by the above mentioned program. • In October 2014, the annual Ministerial meeting of the United Nations Food and Agriculture Organization (FAO) was held in Rome, Italy. The Ministers of Agriculture of the member states of FAO attended the Ministerial meeting. Otar Danelia, Minister of Agriculture of Georgia, personally invited by the General Director of FAO, attended the Ministerial meeting as well. Within the frame of the official visit in Italy, the delegation of the Ministry of Agriculture of Georgia held a working meeting with the officials of International Fund for Agricultural Development (IFAD). Parties discussed the ongoing IFAD funded projects in Georgia, along with the future projects, including the “Modernization of Agriculture and Market Access Program”, with an overall budget of 19 million dollars in total.
Meeting with President of IFAD H.E. Kanayo F. Nwanze
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
49
legal activities
The improvement of the legislative base regulating food safety is actively ongoing. Specifically, the Ministry of Agriculture of Georgia developed a strategy of the development of food product safety and legislative approximation. It has been prepared in the context of moving closer to EU legislation, and will provide legislative, as well as institutional improvement. The following Georgian laws have been amended: “The Code of Food Product/Animal Feed Safety, Veterinary Medicine, and Plant Protection,” “On Entrepreneurs,” “On the Public Registry.” The aim of the aforementioned legislative amendments is the protection of human life and health and consumer interests, as well as the protection of the health and wellbeing of animals and of the healthiness of plants, the establishment of a unified principle of state regulation in the spheres of the safety of food products and animal feed, veterinary medicine, and plant protection, establishing an effective system of state control, harmonizing “The Code of Food Product/Animal Feed Safety, Veterinary medicine, and Plant Protection” with EU legislation, and facilitating the establishment of a robust system of veterinary medicine and plant protection in Georgia. The code applies to the production of food products/animal feed, livestock, plants, plant and animal products, their processing and distribution that takes place within Georgia, initial production, animal health and wellbeing, the healthiness of plants, veterinary pharmaceuticals, pesticides and agrochemicals, and also the protection of the environment, based on the aims of “The Code of Food Product/Animal Feed Safety, Veterinary Medicine, and Plant Protection.” Furthermore, the following has been prepared and approved by the government, based on “The Code of Food Product/Animal Feed Safety, Veterinary Medicine, and Plant Protection”: • The rule regulating the recognition of an entity as a business operator, which, in accordance with Georgian legislation, determines the general principles and procedures of recognition as a business operator, and the associated relations, and applies to the government-controlled business operators that produce or process food products of animal origin. According to the rule, a business operator lacking recognition or notional recognition is prohibited from the production or processing of products of animal origin. The recognition, or the notional recognition, of a business operator is granted by the agency, in accordance with the results of state control. • The rule regulating the identification and registration of large cattle, and the registration of their corrals/temporary corrals, which is used to determine the rules governing the identification and registration of large cattle, as well as the registration of their corrals/temporary corrals, rules of maintaining an electronic database, the minimal number of corrals that should be under state control, and if necessary, may face restrictive measures. According to the rule, the registration of large cattle in Georgia comprises four elements: branding, an electronic database, the passportization of large cattle, and the registration of every corral/temporary corral and the possession of a corral logbook. •
“The specific rule of controlling food products of animal origin.”
• Technical regulations on honey -- the aim of the technical regulations on honey is to develop entrepreneurial activity in the country, to facilitate the production of honey as a potential export food product, to increase the quality of honey and to bring it in compliance with international standards. The
50
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
legal activities
regulation has been prepared in accordance with the European Council’s directive N2001/110 and Codex Alimentarius’ codex stan 12-1981 (rev. 1-1987 rev.2-2001). • In order to ensure the fulfillment of the Georgian law “On New Species of Plants and Animals,” the Georgian Government approved the law on “Additional Conditions for the Distribution of Seeds and Planting Material in Georgia,” which regulates the relations pertaining to the distribution of seeds and planting material in Georgia. Specifically, seeds that are intended for distribution in the country should correspond to the foundation seed (elite seed), first- and second-reproduction seed, and planting intended for distribution in the country should correspond to primary or secondary quality material, which is certified with a certificate of quality, a phytosanitary certificate. • “Rules on preventive and quarantine measures aimed at combating the African swine fever virus;” •
“Rules on preventive and quarantine measures aimed at combating the Newcastle disease;”
Work has finished on draft statutory acts determined by the comprehensive strategy in the field of food product safety and the legislative approximation program for 2014: •
“The Rule on Labeling of Beef and its Derivative Products;”
•
“Principles of State Control;”
•
“The Rule on Animal Feed Hygiene;”
•
“The Rule on Regulating Wooden Packing Material;”
•
“The Rule on Managing the Potato Wart Disease;”
• “The Rule on Notification of Noncompliance of Cargo to Phytosanitary Requirements during International Transport;” • “The Rule on Importing Certain Harmful Organisms, Plants, Plant Products or other Items for Scientific Research and Selection Purposes;” •
“The Regulation on Milk and Dairy Products.”
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
51
STRATEGY 2015-2020
The "Strategy for Agricultural Development in Georgia 2015-2020" was developed in 2014 and approved at the beginning of 2015. Based on principles of sustainable development, the strategic vision of the development of Georgian agriculture envisages creating an environment that will facilitate increasing competitiveness in the agricultural production sector, providing the stable growth of the production of high-quality goods, ensuring food product security and food product safety, and overcoming rural poverty. 7 main directions and corresponding measures have been determined in order to implement the strategic vision of agricultural development. A concrete action plan will be devised based on these directions. The action plan will include implementation deadlines and sources of financing. The main strategic directions are: 1. Increasing the competitiveness of those employed in the agricultural sector; 2. Institutional development; 3. Amelioration and soil fertility; 4. Regional and sectorial development - facilitating the development of full cycle production that creates added value; 5. Ensuring food product security; 6. Food product safety, veterinary medicine, and plant protection; 7. Climate change; preserving the environmental and biological diversity. During the process of implementing the strategy, special attention will be paid to measures aimed at the economic development of regions and municipalities, the improvement of structure, the effective functioning of informational and consultancy services, the training of farmers in accordance with the requirements of market relations, the integrated development of agricultural cooperatives, the reconstruction of agricultural infrastructure, the improvement of statistical record-keeping, the creation of a market information system, improving the quality of the analysis and monitoring of food product security, and the development and implementation of corresponding, flexible legislative initiatives.
52
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014
ANNUAL REPORT
2014
M I N I S T R Y O F A G R I C U LT U R E O F G E O R G I A
www.moa.gov.ge
54
ANNUAL REPORT of the Ministry of Agriculture of Georgia 2014