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Agriculture Bulletin Food Bank to Be Set Up to Help Georgian Populations in Need FAO Support for the Development of the National Aquaculture Strategy of Georgia 27 Grants Awarded to Young Entrepreneurs for Social and Green Initiatives Georgian Honey Exports Up 1329%
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Georgian Agriculture Finance Bulletin Edition #110, October 2021
Contents State Initiatives ........................................................................................................... 2 1) 2)
GEL 14 Million in Subsidies for the Harvesting of Damaged Grapes ............................................... 2 Food Bank to Be Set Up to Help Georgian Populations in Need ..................................................... 2
Foreign Aid ................................................................................................................. 2 3) 4) 5) 6) 7)
FAO Support for the Development of the National Aquaculture Strategy of Georgia ................... 2 Multifunctional Regional Beekeeping Center Hosts Series of Trainings ......................................... 2 27 Grants Awarded to Young Entrepreneurs for Social and Green Initiatives ................................ 3 Georgia Celebrates World Food Day ............................................................................................... 3 Four-Year Swiss Program to Support Rural SME Development ...................................................... 3
Private Sector.............................................................................................................. 3 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)
Table Grape Producers Encouraged to Explore Different Varieties ................................................ 3 Georgia’s Agricultural Production Decreases in Second Quarter of 2021 ...................................... 4 Cheese and Cottage Cheese Imports on the Rise............................................................................ 4 Potato Exports Increase 865.7% ...................................................................................................... 4 Georgian Honey Exports Up 1329% ................................................................................................ 4 2021 Citrus Harvest Forecast at 70,000 Tons .................................................................................. 4 Greenhouses in Georgia Face High Costs and Lack of Qualified Professionals ............................... 5 Desertification Is Threatening Agriculture in Kakheti ..................................................................... 5 235,000 Tons of Grapes Processed ................................................................................................. 5 Tea Production Could Boost Rural Development in Georgia .......................................................... 5 Georgian Grapes Key in Wine-Makers’ Battle Against Climate Change .......................................... 6 65 Million Bottles of Wine Exported So Far This Year ..................................................................... 6
Note: The Georgian Agriculture Finance Bulletin presents a monthly roundup of headlines and news stories related to investments and financing flows to Georgia’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Georgia. Currently, BFC is implementing the Agricultural Lending Programme for KfW. Read more »
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BFC. Georgian Agriculture Finance Bulletin. Edition #110, October 2021
State Initiatives 1)
GEL 14 Million in Subsidies for the Harvesting of Damaged Grapes
October 4th, 2021, https://agenda.ge/en/news/2021/2985
The government of Georgia has allocated GEL 14 million in the form of subsidies to assist in the harvesting of grapes damaged by heavy hail in the Kakheti region. This is in addition to other subsidies aimed at financially supporting farmers amid the COVID-19 pandemic. In August 2021, heavy hail and strong winds destroyed approximately 4,600 hectares of vineyards across nearly 30 villages in the municipalities of Kvareli, Telavi and Gurjaani.
2)
Food Bank to Be Set Up to Help Georgian Populations in Need
October 7th, 2021, https://georgiatoday.ge/shops-restaurants-will-no-longer-throw-away-expiring-but-harmless-products/
The Parliamentary Committee on Agrarian Issues, in cooperation with the Food and Agriculture Organization of the United Nations (FAO), is working on a project to help populations in need in Georgia. Particularly, a food bank of expiring products that are harmless to human health will be created. The food bank will work primarily with restaurants, hotels and supermarkets, and participation with the food bank will be voluntary, although a special tax regime will be designed to encourage participation. Currently, the relevant legislative framework is being developed for its establishment and operation.
Foreign Aid 3)
FAO Support for the Development of the National Aquaculture Strategy of Georgia
October 4th, 2021, https://eu4georgia.eu/eu-and-fao-support-georgian-government
The Food and Agriculture Organization of the United Nations (FAO), under the European Union (EU)supported European Neighborhood Program for Agriculture and Rural Development (ENPARD), gathered public and private stakeholders as well as representatives of local and international organizations to discuss the development of the National Aquaculture Strategy of Georgia. The online workshop served to initiate a discussion on a variety of topics related to the strategy’s development, including extensive aquaculture, mariculture and fish farming. The workshop also discussed support initiatives for the actual writing of the strategy. The strategy is being developed in line with the EU’s Strategic Vision for Sustainable Aquaculture Production and Consumption.
4)
Multifunctional Regional Beekeeping Center Hosts Series of Trainings
October 12th, 2021, https://georgiatoday.ge/multifunctional-regional-beekeeping-center-hosts-training-for-beekeepers/
A multifunctional regional beekeeping center, which officially opened in July 2021 as part of the Sustainable Beekeeping Development in Georgia of the Czech Development Agency, is hosting a series of trainings designed to deepen the knowledge and skills of Georgian beekeepers. The trainings include theoretical and hands-on practice related to a variety of important topics, including exports and related regulations, food safety standards, and the production of various bee products.
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BFC. Georgian Agriculture Finance Bulletin. Edition #110, October 2021
5)
27 Grants Awarded to Young Entrepreneurs for Social and Green Initiatives
October 14th, 2021, https://georgiatoday.ge/the-eu-and-cenn-award-grants
27 grantees in Georgia and Armenia have been awarded grants under the European Union (EU)-funded EU4Youth: Social Entrepreneurship Ecosystem Development (SEED) for Green Growth grant competition. The grants will help ensure the employment of young people, especially those belonging to vulnerable groups, as well as the continued development of their entrepreneurial skills. One of the Georgian grant winners will use the funds to establish an innovative greenhouse for growing black tomatoes. Specifically, funding will be used to develop solar energy solutions that will reduce negative impacts on the environment.
6)
Georgia Celebrates World Food Day
October 16th, 2021, https://www.fao.org/georgia/news/detail-events/en/c/1444326/
Georgia, along with 150 other countries around the world, celebrated World Food Day on October 16, 2021. Each year on world food, the Food and Agriculture Organization of the United Nations (FAO) highlights ongoing global challenges related to the world’s food security and safety. To celebrate this year, Georgia launched a two-week informational campaign on food safety issues as well as reaffirmed its commitment to creating sustainable and climate-oriented agri-food systems in the country.
7)
Four-Year Swiss Program to Support Rural SME Development
October 29th, 2021, https://georgiatoday.ge/switzerland-to-kick-off-four-year-rural-sme-development-project/
The Embassy of Switzerland in Georgia has announced the new four-year Regional Cooperation Program for the South Caucasus 2022–2025, which will launch next year with the aim of increasing the income and employment opportunities for rural inhabitants. In particular, the program will work to improve the capacities of national agencies, local business support service providers and business associations to offer more effective services to rural SMEs, especially as related to financial literacy and management skills. This, in turn, will translate into more resilient and growing SMEs and, ultimately, the creation of additional jobs and income opportunities for rural inhabitants. Working with the program, the complementary fouryear Rural SMEs Development Project will also provide a platform for identifying and promoting market opportunities that increase the uptake of financial and business services by businesses in rural areas, especially by vulnerable groups.
Private Sector 8)
Table Grape Producers Encouraged to Explore Different Varieties
October 1st, 2021, https://commersant.ge/en/post/georgian-farmers
Producers of table grapes in Georgia are being encouraged to switch to the production of new varieties as traditional table grapes (mainly the Tita and Moldova varieties) are waning in popularity, especially in export markets. In particular, Georgian producers are being encouraged to explore the production of Red Globe, Thompson Seedless, Crimson Seedless and Regal Seedless varieties. Moreover, the production of both early and late varieties will help producers better meet local and international demands.
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BFC. Georgian Agriculture Finance Bulletin. Edition #110, October 2021
9)
Georgia’s Agricultural Production Decreases in Second Quarter of 2021
October 7th, 2021, https://georgiatoday.ge/iset-agri-review-october-2021-the-sector-at-a-glance/
According to the National Statistics Office, Georgia’s agricultural production decreased by 2.3% year-onyear in the second quarter of 2021. During this same period, it also contributed to 7.8% of the country’s total gross domestic product. Foreign direct investments (FDI) in agriculture decreased significantly (73% year-on-year) in the second quarter and only represented 0.6% of total FDI in the country. In terms of domestic prices, the consumer price index (CPI) in August 2021 increased 0.75% over July 2021’s CPI and 12.8% over August 2020’s CPI. In August 2021, the international food price index also increased, by a drastic 32.9% year-on-year. This rise was driven by concerns over production levels in several major exporting markets.
10) Cheese and Cottage Cheese Imports on the Rise October 11th, 2021, https://commersant.ge/en/post/cheese-and-cottage-cheese-imports-grow-in-georgia
Georgia imported 875.5 tons of cheese and cottage cheese worth USD 2.46 million in the first eight months of 2021. In comparison, Georgia imported 686.2 tons worth USD 1.77 million during the same period in 2020. The top five importing countries were Ukraine (241 tons), Russia (237 tons), Turkey (98 tons), Armenia (93 tons) and Germany (53 tons).
11) Potato Exports Increase 865.7% October 14th, 2021, https://bm.ge/en/article/potato-exports-from-georgia-up-by-8657/93162/
The volume of fresh and frozen potatoes exported from Georgia between January and August of this year reached 23,748 tons, an 865.7% year-on-year increase. This represents a total revenue of USD 8.8 million. The main export market for the exports was Russia (17,602 tons), with other countries of the Commonwealth of Independent States (CIS) importing lesser amounts. During the same period, Georgia imported 10,158 tons of fresh and frozen potatoes, a 30.2% year-on-year decrease.
12) Georgian Honey Exports Up 1329% October 15th, 2021, https://www.newsgeorgia.ge/%d0%b
In the first eight months of 2021, Georgia exports 116.5 tons of honey valued at a total of USD 403,000. This represents a 1329% year-on-year increase in terms of volume exported. The top five importing countries were: Bulgaria (49.9 tons), France (43.8 tons), Russia (10 tons), Kazakhstan (3.9 tons) and the United Arab Emirates (3 tons).
13) 2021 Citrus Harvest Forecast at 70,000 Tons October 18th, 2021, https://commersant.ge/en/post/2021-citrus-crop-is-forecast-at-70000-tonnes
Georgia’s 2021 citrus harvest is being forecast at 70,000 tons. This is 20,000 tons more than the 2020 citrus harvest. Moreover, farmers believe that the quality of this year’s harvest will also be higher than that of last year’s. As the citrus harvest continues, state subsidies will ensure that buyer companies provide producers with higher prices to help the industry further develop. The citrus harvest is expected to last throughout the month of November.
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BFC. Georgian Agriculture Finance Bulletin. Edition #110, October 2021
14) Greenhouses in Georgia Face High Costs and Lack of Qualified Professionals October 21st, 2021, https://commersant.ge/en/post/georgia-faces-an-acute-shortage-of-professional-staff-in-greenhouses
Interest in greenhouses has increased in recent years, especially as a way to bolster the country’s food security. Now however, the development of greenhouses in Georgia is being hindered. In particular, high costs and the lack of qualified staff are making it difficult for greenhouse development to really take off in the country. High costs are associated mostly with ensuring adequate, year-round heating. Staffing issues are slowing being resolved as more and more greenhouses train and employ locals (as opposed to bringing in specialists from Tbilisi. It is expected that both issues will be overcome, especially with the ongoing support of state and international donor projects.
15) Desertification Is Threatening Agriculture in Kakheti October 21st, 2021, https://georgiatoday.ge/iset-economist-desertification-in-kakheti-a-threat-to-kakhetian-agriculture/
Georgia’s Kakheti region is economically dependent on agriculture. Unfortunately, it has also been identified as a region especially vulnerable to desertification as climate change continues to slowly alter landscapes across the globe. In particular, the Kakheti region has seen increasing average temperatures and decreasing precipitation rates in recent years. Although various measures have been enacted to mitigate the effects of climate change on agricultural production and proactive measures have been taken to bolster agricultural production cycles, the scale of these measures appears to be falling short of what is needed. At the same time, there are several actions that could increase resilience in the region, including increasing investments in irrigation systems, setting up windbreaks, growing plants with strong root systems and planting climate-resilient crop species. Going forward, it is clear that the National Action Program to Combat Desertification needs to proceed at an accelerated pace.
16) 235,000 Tons of Grapes Processed October 28th, 2021, https://bm.ge/en/article/the-value-of-the-grapes-sold
According to the National Wine Agency, 25,000 individuals participated in selling more than GEL 285 million worth of grapes this harvest season. Additionally, 245 companies participated in grape processing across Georgia. In total, they processed 235,000 tons of grapes, a new record since Georgian independence.
17) Tea Production Could Boost Rural Development in Georgia October 29th, 2021, https://georgiatoday.ge/rural-development-in-georgia-could-tea-be-an-answer/
A small number of Georgian tea producers are reviving tea plantations as part of an effort to revitalize Georgia’s once booming tea industry. Such efforts are being supported by the government and offers the possibility of further stimulating rural development in Georgia. In many Georgian regions, tea has the potential to provide employment opportunities that will sustain rural livelihoods. This includes direct employment in terms of tea cultivation and processing as well as tea-related tourism. While Georgia’s tea industry is often overlooked, its rich history and the recent success of efforts to revitalize Georgia’s wine industry give Georgian tea (and the rural areas engaged in tea production) a hopeful outlook for the future.
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BFC. Georgian Agriculture Finance Bulletin. Edition #110, October 2021
18) Georgian Grapes Key in Wine-Makers’ Battle Against Climate Change October 29th, 2021, https://georgiatoday.ge/saperavi-to-the-rescue-how
Climate change is posing a serious challenge to wine-makers around the globe. To combat the impact of climate change on bottom lines, many wine-makers are taking an interest in Georgian grapes. In particular, the Rkatsiteli and Saperavi varieties, both of which have tough skins, are being examined for their resistance to sunlight, disease and less predictable weather patterns. In fact, trials cultivations of both varieties are underway in Australia, France, Italy and the United States. The relative success of these two varieties so far has also sparked interest in other Georgian grape varieties, with two European research programs (GrapeGen06 and COST Action FA1003) working to genetically characterize and preserve the genetic resources of Georgian vines. While it remains to be seen exactly what the future holds, it seems likely that Georgian grape varieties are poised to serve as the foundation of future vine breeding programs all over the world.
19) 65 Million Bottles of Wine Exported So Far This Year October 29th, 2021, https://georgiatoday.ge/the-2021-georgian-harvest-wine-export-potential/
Between January and August of this year, Georgia exported 65 million bottles of wine to 59 countries, a 19% year-on-year increase. This resulted in revenues of USD 145 million. Moreover, steady growth was observed in wine exports to important markets such as Belarus, China, Kazakhstan, Latvia, Poland, Russia and Ukraine. The top five destination countries for Georgian wine exports so far have been China, Kazakhstan, Poland, Russia and Ukraine. During this same period, Georgia also exported 22 million bottles of brandy (a 21% year-on-year increase) and 570,000 bottles of chacha (a 115% year-on-year increase). In total, Georgia earned USD 234 million in revenue from the sale of alcoholic beverages abroad during this period.
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com Articles are taken directly from local sources without any fact-checking; they are provided as a convenience and for informational purposes only. Business & Finance Consulting (BFC)’s editing is limited to providing a short summary in English of the texts, highlighting the main points of the original articles. All rights reserved by the authors. BFC takes no responsibility and does not make any representation or warranty, express or implied, or assume any responsibility whatsoever for the content, accuracy, and reliability, or completeness of any of the articles.