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Agriculture Bulletin State Program to Promote Georgian Wine Launched UNDP Support for Youth-Based Initiatives in Rural Communities Seasoning and Spice Exports Reach USD 8.9 Million
Record High Volume of Wine Exported
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Georgian Agriculture Finance Bulletin Edition #112, December 2021
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
New Citrus Processing Plant Opens in Mukhaestate ...................................................................... 2 State Program to Promote Georgian Wine Launched ..................................................................... 2 Two More Tea Plantations to Be Rehabilitated with State Assistance ........................................... 2 New Meat Production Facility to Be Built in Tbilisi ......................................................................... 2 Georgia, Turkey Discuss Reducing Tariffs on Agricultural Products ................................................ 2
Foreign Aid ................................................................................................................. 3 6) 7) 8)
UNDP Support for Youth-Based Initiatives in Rural Communities .................................................. 3 Georgia Eyes Becoming a Sustainable Agritourism Destination ..................................................... 3 Grant Agreement Signed with SIDA ................................................................................................ 3
Private Sector.............................................................................................................. 3 9) 10) 11) 12) 13) 14) 15) 16) 17)
Wheat Imports Down 21.8% ........................................................................................................... 3 Seasoning and Spice Exports Reach USD 8.9 Million....................................................................... 4 Record High Volume of Wine Exported ........................................................................................... 4 Georgia’s Dairy Sector Faces Issues with Sales Markets and Inflation ............................................ 4 Persimmon Exports Reach 11,200 Tons .......................................................................................... 4 3,449 Tons of Apples Exported from Georgia ................................................................................. 4 Georgian Hazelnut Exports on the Rise ........................................................................................... 4 Bread Prices in Georgia the Cheapest in the Region ....................................................................... 5 Tangerine Exports up 34% in the Last Four Months ....................................................................... 5
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 #112, December 2021
State Initiatives 1)
New Citrus Processing Plant Opens in Mukhaestate
December 5th, 2021, https://www.newsgeorgia.ge/%d0%
A new plant for receiving, sorting and packing citrus fruits has opened in Mukhaestate (Kobuleti municipality). The plant employs 60 local residents and, during the high season, will operate 24 hours per day. It has the capacity to process 40 tons of citrus per day. Within its first year of operation, the plant expects to accept and process 500 tons of citrus, which it will then export to markets in Armenia, Kazakhstan, Russia and Uzbekistan. The plant was built and opened thanks to GEL 88,000 in support from the state-run Support for the Development of Rural Entrepreneurship grant program.
2)
State Program to Promote Georgian Wine Launched
December 10th, 2021, https://wine.gov.ge/En/News/34865
As part of an effort to increase the export potential of Georgian wine, the government of Georgia launched the State Program to Promote Georgian Wine in September 2021. The program is aimed at increasing the competitiveness and awareness of Georgian wine on international markets as well as the diversification of strategic and priority export markets. The program will be implemented by the LEPL National Wine Agency.
3)
Two More Tea Plantations to Be Rehabilitated with State Assistance
December 13th, 2021, https://sputnik-georgia.ru/20211213/vosstanovlenie
Within the framework of the state program for the rehabilitation of tea plantations, two projects will be implemented to restore tea production on 50 hectares in Western Georgia. In particular, tea plantations in the villages of Dedalauri and Sochkheti (both in Imereti) will be rehabilitated. The total cost of rehabilitation works is expected to be GEL 186,320, of which the government will pay GEL 129,400 and the companies Ertoba and Greenhill will pay GEL 57,000.
4)
New Meat Production Facility to Be Built in Tbilisi
December 13th, 2021, https://sputnik-georgia.ru/20211213/novoe
A new meat production facility will be built in Tbilisi within the framework of the state’s Produce in Georgia program. According to a press release, the facility will employ up to 300 people and will be equipped with the most modern equipment. To this end, the government transferred a land plot and the buildings located on it to the Nikora company for a symbolic price of GEL 1. GEL 15 million is expected to be invested for its construction.
5)
Georgia, Turkey Discuss Reducing Tariffs on Agricultural Products
December 16th, 2021, https://www.newsgeorgia.ge/%d0%b
Representatives from Georgia and Turkey have held a series of meetings to further liberalize tariffs for agricultural products. These meetings were held within the framework of expanding the Free Trade Agreement between the two countries, which was first signed in 2007. The two sides also discussed the launch of a scheme aimed at stimulating Turkish investments into Georgia’s economy, particularly investments that will create joint companies and new jobs as well as increasing cooperation in tourism.
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BFC. Georgian Agriculture Finance Bulletin. Edition #112, December 2021
Foreign Aid 6)
UNDP Support for Youth-Based Initiatives in Rural Communities
December 9th, 2021, https://georgiatoday.ge/youth-initiatives-to-revive-rural-communities/
The United Nations Development Program (UNDP), with USD 315,000 in funding provided by the government of Denmark, is supporting dozens of community-based projects focused on social responsibility and civic activism in six regions of Georgia (Guria, Imereti, Kvemo Kartli, Mtskheta-Mtianeti, Racha-Lechkhumi-Kvemo Svaneti and Samegrelo-Zemo Svaneti). In particular, these projects are youthbased initiatives aimed at helping young people bring rural communities together. These include projects to improve educational opportunities and processes (especially in light of the COVID-19 pandemic), set up a greenhouse in a local schoolyard and motivate communities to generate and enact new ideas for positive change.
7)
Georgia Eyes Becoming a Sustainable Agritourism Destination
December 16th, 2021, https://www.fao.org/georgia/news/detail-events/en/c/1460929/
Boasting rich gastronomic traditions, deep cultural heritages and beautiful views of nature, Georgia has set its sights on becoming a top sustainable agritourism destination in the Caucasus over the course of the next decade. To this end, a new roadmap is being developed to guide investments in agritourism in a responsible and eco-friendly manner. This roadmap is being jointly developed by the European Bank for Reconstruction and Development (EBRD), the Food and Agriculture Organization of the United Nations (FAO), the Ministry of Agriculture, the Georgian National Tourism Administration, the Elkana Biological Farming Association and Georgia’s Farmers Association. In particular, the roadmap provides four strategic directions and recommends the development of high-quality and diverse products and services. The roadmap also provides guidance on how to safeguard living cultural heritage while also adapting to climate change and complying with food safety and quality standards.
8)
Grant Agreement Signed with SIDA
December 20th, 2021, https://mepa.gov.ge/En/News/Details/20629
The Ministry of Agriculture and the Swedish International Development Cooperation Agency (SIDA) have signed a grant agreement that will help the Ministry strengthen its institutional capacity, especially as related to management efficiency and promoting the sustainable management of natural resources. Environmental protection, including the sustainable use of natural resources, is an emphasis of the Ministry under its Save the Nature – Georgia 2021–2024 program. This program includes initiatives to develop specific government strategies and action plans, particularly in improving biodiversity and air quality monitoring.
Private Sector 9)
Wheat Imports Down 21.8%
December 1st, 2021, https://bm.ge/en/article/wheat-imports-down-by-218-in-10m2021/96564/
Georgia purchased 318,657 tons of wheat and muslin worth USD 78.6 million during the first ten months of 2021, which is 21.8% less year-on-year in terms of volume and 10.9% less year-on-year in terms value. The main supplier of imported wheat this year has been Russia, although these figures are also down. Other countries importing wheat into Georgia include the United States of America, Kazakhstan and Armenia. In parallel with the reduction of wheat imports, the import of wheat flour has increased. In Page 3
BFC. Georgian Agriculture Finance Bulletin. Edition #112, December 2021
particular, Georgia imported 22,451.86 tons of flour worth USD 6.8 million, which is 146.9% more yearon-year in terms of volume and 167.9% more year-on-year in terms of volume.
10) Seasoning and Spice Exports Reach USD 8.9 Million December 7th, 2021, https://commersant.ge/en/post/georgia-exported-seasonings-and-spices-worth-89-mln
During the January–October 2021 period, Georgia exported USD 8.9 million worth of seasonings and spices, a similar figure to the amount exported during the same period in 2020. The top five markets to import Georgian seasonings and spices are Russia (USD 3.4 million), China (USD 2.1 million), Ukraine (USD 1 million), the United States of America (USD 961,000) and Armenia (USD 159,000).
11) Record High Volume of Wine Exported December 8th, 2021, https://wine.gov.ge/En/News/34864
Between January and November of this year, Georgia exported 96,150,065 bottles of wine worth USD 222 million. This represents a year-on-year increase of 14% in terms of volume and 4% in terms of value. It also represents the highest figure independent Georgia has ever exported. This success is due to dynamic growth in strategic markets such as China, Poland and the United States of America as well as growth in other markets such as Canada and Russia. In total, 421 companies exported wine during this period.
12) Georgia’s Dairy Sector Faces Issues with Sales Markets and Inflation December 8th, 2021, http://bizzone.info/agriculture/2021/1639013403.php
Georgia’s dairy sector is facing a number of issues, including challenges from complicated sales (especially at the international level) and inflation. While markets are slowly starting to return to pre-pandemic indicators, sales in the dairy sector are still lagging behind their 2019 numbers. Georgia’s dairy sector is also being hit hard from Georgia’s current inflation rate of 12.5%. It is important to note that inflation in Georgia is forecast to decline by March 2022. For the country’s dairy sector to fully rebound then, it will need to work diligently to boost sales by working closely with domestic and international buyers.
13) Persimmon Exports Reach 11,200 Tons December 13th, 2021, https://mepa.gov.ge/En/News/Details/20623
During the period of September 1–December 12, 2021, Georgia exported 11,200 tons of persimmon, earning a revenue of USD 5.6 million. The majority were exported to Armenia (5,097 tons), Russia (3,645 tons), Ukraine (2,263 tons), Turkey (108 tons), Kazakhstan (62 tons) and Moldova (39 tons).
14) 3,449 Tons of Apples Exported from Georgia December 13th, 2021, https://mepa.gov.ge/En/News/Details/20622
During the period of August 1–December 12, 2021, Georgia exported 3,449 tons of apples, earning revenue of USD 2.2 million. Most of the exports were to Russia (3,443 tons), with a small amount (5 tons) exported to Armenia.
15) Georgian Hazelnut Exports on the Rise December 14th, 2021, https://mepa.gov.ge/En/News/Details/20625
During the period of August 1–December 12, 2021, Georgia exported 16,100 tons of hazelnuts, earning USD 73.8 million in revenue. This represents a year-on-year increase of 33% in terms of export volume Page 4
BFC. Georgian Agriculture Finance Bulletin. Edition #112, December 2021
and a year-on-year increase of 14% in terms of earned revenue. The majority of hazelnut exports went to markets in the European Union (EU), most notably Italy (6,590 tons) and Germany (3,124 tons). There were also significant exports to Armenia (1,076 tons) and China (780 tons).
16) Bread Prices in Georgia the Cheapest in the Region December 15th, 2021, https://commersant.ge/en/post/bread-in-georgia-is-the-cheapest-in-the-region
Although bread prices in Georgia are the cheapest in the region, it is not expected that bread prices will be revised anytime soon in the country. This is due to a growth in the import of flour resulting in increased competition in the market. It should be noted that market forces have made it more profitable in Georgia to import flour over grain. This has resulted in bread producers having more choices in terms of quality and price.
17) Tangerine Exports up 34% in the Last Four Months December 22nd, 2021, https://agenda.ge/en/news/2021/4023
Exports of tangerines have increased 34% in the last four months and now amount to 31,900 tons. This represents a value of USD 15.7 million, which is a 37% year-on-year increase. Tangerine exports are most exported to Russia (22,267 tons), Armenia (5,254 tons) and Ukraine (3,138 tons), although smaller amounts are also exported to Belarus, Kazakhstan, Kyrgyzstan, Lithuania, Moldova, Slovenia and Tajikistan.
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