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Private Sector
9) ENPARD IV to kick off with EUR 55 million budget
December 17th, 2020, https://agenda.ge/en/news/2020/3945
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The Ambassador of the European Union (EU) to Georgia, Carl Hartzell, and the Minister of Foreign Affairs of Georgia, David Zalkaliani, have signed an agreement to kick off the fourth phase of the European Neighborhood Program for Agriculture and Rural Development (ENPARD IV). This fourth phase will provide EUR 55 million to enhance consumer protection, promote EU exports and improve livelihoods of rural population in Georgia. In light of the COVID-19 pandemic, ENPARD IV will also provide extended assistance in the food safety, sanitary and phytosanitary sector. ENPARD IV will also improve the economic and social integration of vulnerable households in disadvantaged rural regions of Georgia, including eco-migrants, conflict-affected people, ethnic minorities, Georgian returnees and migrants.
10) FAO, ADC conduct trainings on modern agriculture
December 17th, 2020, http://www.fao.org/georgia/news/detail-events/en/c/1365316/
More than 30 field training sessions for approximately 200 farmers in four different communities were conducted by the Food and Agriculture Organization of the United Nations (FAO) and the Austrian Development Cooperation (ADC). These training sessions, conducted between August and November of this year, used different teaching approaches and demonstration plots to deliver modern agricultural knowledge and strengthen the overall capacity of Georgian farmers, with the ultimate goal of increasing productivity and income.
It should be noted that FAO specialists have already begun developing a plan for 2021. This plan is likely to include hands-on trainings for farmers and local extension specialists.
Private Sector
11) Working capital financing harder to find for hazelnut exporters
December 1st, 2020, https://bm.ge/en/article/nutsge-banks-cut-working-capital-financing-for-hazelnut-exporters/70085/
According to the director of the hazelnut processor NutsGe, financial institutions have reduced their working capital financing for exporters. This, combined with COVID-19 measures, the complexity of logistics and other issues, has meant that many companies, especially hazelnut processors, are finding it difficult to procure the resources necessary to maintain their businesses. At the same time, most processors remain optimistic that this is only a temporary setback and that they will be even more determined to return to normalcy in 2021.
12) Food security in Georgia during the COVID-19 pandemic
December 3rd, 2020, http://georgiatoday.ge/news/23236/Food-Security-%26-COVID-19-in-Georgia
The government of Georgia has been active in ensuring the food security for its population, including state subsidies on nine important food products. Despite this, the country’s food security status is still uncertain according to the Food and Agriculture Organization of the United Nations (FAO). Most of this uncertainty, however, seems to stem from a lack of regular and/or current data on the four most important food security indicators: food availability, food access, supply stability and food utilization.
Given that there is some uncertainty related to Georgia’s food security situation, FAO is recommending that policymakers focus on investments in food supply chains, address bottlenecks at the various production and sales stages, promote inter-regional trade, recognize the importance of local, domestic food
markets and work to address the constraints faced by women and youth engaged in food production activities.
13) Russia not banning the import of Georgian agricultural products
December 10th, 2020, https://sputnik-georgia.ru/economy/20201210/250303548/
Russia’s Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) recently announced a ban on the import of certain agricultural products from Azerbaijan and specific areas of Armenia, Uzbekistan and Turkey into Russia due to the detection of pests. This has sparked some confusion that Georgian products were also being banned for similar reasons. Rosselkhoznadzor, however, was quick to dismiss this, stating that they have no complaints with the quality of Georgian fruits and vegetables and that Georgian agricultural products continue to be actively imported into Russia.
14) Increased investments needed in value-added agricultural production
December 16th, 2020, https://bm.ge/en/article/what-are-some-challenges
According to the Organization for Economic Cooperation and Development (OECD), Georgia’s agricultural sector has the potential to generate substantial benefits for the country’s economy if appropriate investments can be made in its agricultural value chains. In particular, OECD notes that there need to be investments in value-added production in the country, which has declined significantly since the liberalization of the economy over the past decade. Such investments would not only boost the sector as a whole, they would also provide more jobs, improve food security, support rural development and maintain the sector’s competitiveness in international markets
15) No food shortage amid COVID-19 pandemic
December 16th, 2020, https://sputnik-georgia.ru/reviews/20201216/250362488/
According to Agricultural Minister Davitashvili, there has been no shortage of food in any region of the country during the COVID-19 pandemic. This is the result of the work of the Ministry of Agriculture in ensuring that issues related to the management of food supplies, logistics and transportation were resolved quickly and effectively. The Ministry was also able to enact program to help farmers find markets for products amid market closures in addition to their other agricultural sector support programs. The Ministry also helped agricultural producers and exporters expand their markets, resulting in record high export rates for many agricultural products.
16) Agricultural exports increase
December 16th, 2020, https://mepa.gov.ge/En/News/Details/20179
The Ministry of Agriculture, even amid the COVID-19 pandemic, has been able to successfully help boost agricultural exports. In fact, during the August 1, 2020 through December 13, 2020 period, Georgia has exported 25,287 tons of peaches and nectarines (valued at USD 21.3 million), 16,062 tons of tangerines (valued at USD 7.7 million), 12,664 tons of hazelnuts (valued at USD 65.7 million), 10,834 tons of persimmons (valued at USD 5.7 million), 6,739 tons of apples (valued at USD 2.9 million) and 674 tons of blueberries (valued at USD 3.8 million).
17) State program boosting farmer confidence in agricultural insurance
December 21st, 2020, https://sputnik-georgia.ru/economy/20201221/250404148/
The area of agricultural land covered under the state’s agricultural insurance program in 2020 increased by 31% compared to 2019 and exceeded 18,000 hectares. In total, 17,532 policies were issued under the state program, with more than GEL 8 million in subsidies for these policies. The program, which began in 2014, has allowed farmers to receive more than GEL 44 million in compensation for damaged and/or lost production. The program appears to be successful in its push to develop a transparent and trustworthy agricultural insurance sector in the country.
December 22nd, 2020, https://bm.ge/en/article/30000-t-of-wheat-to-be-imported
According to Georgian Flour Producers Association, 30,000 tons of wheat will be imported from the United States late this year. The import of this wheat is very important for Georgia given the recent difficulties with wheat on the regional market.
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