State Initiatives

1) Discount Diesel Fuel Program to Continue Through 2021

January 29th, 2021, http://bizzone.info/agriculture/2021/1611961613.php

The Ministry of Agriculture has announced that the program to provide Georgian farmers with discounted diesel fuel has been extended until the end of 2021. Minister of Agriculture Levan Davitashvili noted that the program was very successful in 2020, providing 125,000 farmers will benefits of more than GEL 7 million. He also noted that, this year, the Ministry has developed a special electronic platform that will allow farmers to register for the program at gas stations around the country. Registration for the program for this year began on February 1, with discount cards being gradually activated starting on February 7.

Under the program, diesel fuel is provided at a discounted price to individuals and legal entities owning agricultural land of at least 0.25 hectares. The program provides for diesel fuel discounts of up to 150 liters per hectare.

2) Deadline for Registration in Agricultural Support Program Extended

February 4th, 2021, http://bizzone.info/agriculture/2021/1612499668.php

Small- and medium-sized farmers who did not apply for financial support in 2020 under the state’s Incentives for Agricultural Landowners program received an extended registration deadline (February 20, 2021). The program is part of the anti-crisis plan of the Ministry of Agriculture and provides direct state subsidies to farmers who own plots of agricultural land between 0.25 and 10 hectares. GEL 200 in subsidy support is available per hectare for the purchase of planting material, fertilizers and plant protection products.

Only to farmers who have registered their land in the National Register of Real Estate and a special registry of farmers at the Ministry of Agriculture are eligible to participate in the program. To date, approximately 246,000 Georgian farmers have benefitted from a total of more than GEL 32 million under the program.

3) Norwegian Trout and Salmon Farm Opens in Guria

February 14th, 2021, https://georgianjournal.ge/business/36854-norwegian-trout-and-salmon-to-be-farmed-in-guria.html

A Norwegian trout and salmon fingerling farm has opened Guria, in the village of Kviriketi (Ozurgeti municipality). The farm will employ local residents and plans to sell its products both domestically and in foreign markets. The opening was made possible due to GEL 4 million in investment funds and GEL 1.5 million in affordable credit under the Affordable Agricultural Credit program. So far, the program has helped 220 agricultural enterprises establish themselves.

4) 41% of the Population Accounts for Only 6.5% of GDP

February 16th, 2021, http://bizzone.info/agriculture/2021/1613509566.php

Georgia remains a country with an extremely inefficient agricultural sector, as evidenced by 41% of the employed population being engaged in agricultural production at some level yet agriculture only accounting for 6.5% of GDP. By comparison, in most developed countries, only 2-3% of the working population is engaged in agriculture, and agriculture accounts for 2-3% of GDP. At the same time, this 2-