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113 Geo r g i a
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Agriculture Bulletin State and Commercial Olive Nurseries to Be Established in Georgia Georgian Nut Producers Receive Trainings from International Experts First Orchard of Paradise Apples Planted in Georgia
107 Million Bottles of Wine Exported in 2021
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Georgian Agriculture Finance Bulletin Edition #113, January 2022
Contents State Initiatives ........................................................................................................... 2 1)
State and Commercial Olive Nurseries to Be Established in Georgia.............................................. 2
Foreign Aid ................................................................................................................. 2 2) 3) 4)
Georgian Nut Producers Receive Trainings from International Experts ......................................... 2 FAO, ADC Provided GEL 1 Million for Local Development Initiatives .............................................. 2 EU-FAO Grant Beneficiaries Undergo Training on Using Modern Agricultural Machinery ............. 2
Private Sector.............................................................................................................. 3 5) 6) 7) 8) 9) 10) 11) 12) 13)
Georgia Harvests Over 150 Tons of Kiwi in 2021 ............................................................................ 3 Table Grape Exports More Than Double ......................................................................................... 3 First Orchard of Paradise Apples Planted in Georgia ...................................................................... 3 Georgia Added to List of Countries Allowed to Export Snails to the EU ......................................... 3 107 Million Bottles of Wine Exported in 2021 ................................................................................ 3 Georgia Exports 173 Tons of Honey in 2021 ................................................................................... 4 Hazelnut Exports Up 28% ................................................................................................................ 4 Milk and Dairy Prices Up 10-13% .................................................................................................... 4 Efforts to Reduce the Impact of Economic Bullying on the Wine Industry ..................................... 4
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 #113, January 2022
State Initiatives 1)
State and Commercial Olive Nurseries to Be Established in Georgia
January 6th, 2022, https://bm.ge/en/article/state-and-commercial-olive-nurseries-to-be-established-in-georgia/99031/
Agriculture Minister Levan Davitashvili has announced that several state and commercial olive nurseries are to be established in Georgia. According to the Minister, an agreement on their establishment has already been reached between the government and the International Olive Council.
Foreign Aid 2)
Georgian Nut Producers Receive Trainings from International Experts
December 23rd, 2021, https://www.fao.org/georgia/news/detail-events/en/c/1461048/
More than 20 Georgian walnut and almond producers participated in trainings organized under the EU Innovative Action for Private Sector Competitiveness in Georgia program and implemented under the EU4Business program. The trainings, conducted in the town of Kvareli, were conducted by international experts and covered a broad spectrum of topics in the nut production cycle, including farm design, sapling selection, variety selection, pruning, irrigation, pest management, harvesting and post-harvest handling. Among the most important topics, participants learned different recommended methods and techniques for pruning and irrigation as well as for pest management. The training sessions were conducted in collaboration with the Association of Almond and Walnut Growers of Georgia.
3)
FAO, ADC Provided GEL 1 Million for Local Development Initiatives
January 12th, 2022, https://www.fao.org/georgia/news/detail-events/en/c/1469085/
Over the past three years, more than 600 farmers have benefitted from support under a joint Food and Agriculture Organization of the United Nations (FAO) and Austrian Development Cooperation (ADC) project. The Agriculture and Rural Development Project, which has been operational in Georgia since 2018 and will last through the end of 2022, aims to help communities and individuals in the Shida Kartli, RachaLechkhumi and Kvemo Svaneti regions both strengthen their capacities and become more active in local development. The project encourages communities to come together to develop community development plans that cover their basic socio-economic needs and development vision. This includes initiative such as arranging water/irrigation systems and better equipping a local school. So far, the project has provided GEL 1 million in funding to the target communities.
4)
EU-FAO Grant Beneficiaries Undergo Training on Using Modern Agricultural Machinery
January 26th, 2022, https://www.fao.org/georgia/news/detail-events/en/c/1470154/
The European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO), in cooperation with agricultural machinery provider Agromotors, trained 20 farmers on getting the most out of the modern agricultural machines received using EU-FAO agricultural grants (under the European Neighborhood Program for Agriculture and Rural Development (ENPARD)). The training took place in Tamariani (Lagodekhi municipality) and included both a theoretical session and practical field exercises. The training will help farmers learn to maximize their usage of modern agricultural machinery, which will reduce costs and increase yields and quality.
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BFC. Georgian Agriculture Finance Bulletin. Edition #113, January 2022
Private Sector 5)
Georgia Harvests Over 150 Tons of Kiwi in 2021
January 6th, 2022, https://bm.ge/en/article/georgian-farmers-sell-kiwi-more-successfully---kiwi-producers-association/99039/
Georgia’s kiwi harvest for 2021 is estimated at over 150 tons, most of which was exported. Japan is the leading market for Georgian kiwis, importing approximately 50 tons in 2021 (up from 25.84 tons in 2020 but down from 154.2 tons in pre-pandemic 2019). The Georgian Kiwi Producers Association notes that exports to European Union (EU) markets are still an issue due to documentation requirements.
6)
Table Grape Exports More Than Double
January 10th, 2022, https://commersant.ge/en/post/exports-of-fresh-table-grapes-from-georgia-doubled
Over the first 11 months of 2021, Georgia exported 966.54 tons of grapes, amounting to USD 712.27 million in revenue. This represents a year-on-year increase of 508.34 tons and USD 354.2 million. The top 5 export markets were: Russia (856.76 tons and USD 633.87 million), Ukraine (50.31 tons and USD 24.54 million), Qatar (10 tons and USD 20.13 million), Armenia (9.35 tons and USD 25.71 million) and Kazakhstan (40 tons and USD 8.01 million). During the same period, the import of table grapes into Georgia also increased from 870 tons in 2020 to 1,646 tons in 2021.
7)
First Orchard of Paradise Apples Planted in Georgia
January 17th, 2022, https://commersant.ge/en/post/the-first-orchard-of-paradise-apples-planted-in-georgia
A small orchard of paradise apples has been planted in Narekvavi (Mtskheta municipality) under the Paradise Garden M7 project. Harvests from this orchard are planned to be used for making apple jam. A recent market study found that paradise apple production has great potential in Georgia. Although not used as a raw food product, paradise apples are popular among processors. It is hoped that increased production will help expand export opportunities for apple-based products.
8)
Georgia Added to List of Countries Allowed to Export Snails to the EU
January 18th, 2022, https://agenda.ge/en/news/2022/123
Following the adoption of new regulations under the Deep and Comprehensive Free Trade Area (DCFTA) agreement with the European Union (EU), Georgia has been added to a list of countries allowed to export snails to EU markets. In preparation for this, the Ministry of Agriculture has implemented a number of projects designed to support the development of snail production in the country, including preferential lending schemes of over GEL 10 million.
9)
107 Million Bottles of Wine Exported in 2021
January 18th, 2022, https://georgiatoday.ge/georgia-exports-107-mln-bottles-of-wine-in-2021/
According to the Georgian National Wine Agency, Georgia exported 107 million bottles of wine in 2021, amounting to USD 250 million in revenue. This represents a 16% year-on-year increase in terms of both volume and revenue. The largest volume of wine was exported to Russia (62,115,759 bottles). Georgia also exported 42.2 million bottles of brandy in 2021 (a 30% year-on-year increase), amounting to USD 78.3 million in revenue (a 19% year-on-year increase). Additionally, Georgia exported 1 million bottles of chacha (a 145% year-on-year increase), amounting to USD 2.6 million in revenue (a 126% year-on-year increase). It should be noted that, for the first in the history of independent Georgia, Georgian wine exports to the United States exceeded 1 million bottles.
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BFC. Georgian Agriculture Finance Bulletin. Edition #113, January 2022
10) Georgia Exports 173 Tons of Honey in 2021 January 19th, 2022, https://sputnik-georgia.ru/20220119/eksport-meda-iz-gruzii-vyros-v-vosem-raz-263717535.html
In 2021, Georgia exported 173 tons of honey, amounting to USD 657,000 in revenue. This represents a year-on-year increase of 696% in terms of volume and 436% in terms of revenue. More than 80% of the Georgian honey exported in 2021 went to European markets. Internationally, Georgian honey is more expensive than its Argentinean and Chinese counterparts; however, its taste and ecological cleanliness help distinguish it and make it more attractive to buyers.
11) Hazelnut Exports Up 28% January 25th, 2022, https://georgiatoday.ge/georgian-hazelnuts-exports-up-28/
According to the Ministry of Agriculture, Georgia exported 18,400 tons of hazelnuts between August 1, 2021 and January 23, 2022, amounting to USD 84.5 million in revenue. This represents a year-on-year increase of 28% in terms of volume and 11% in terms of revenue. The top 5 export markets during this period were: Italy (7,621 tons), Germany (3,533 tons), Armenia (1,290 tons), China (785 tons) and Spain (522 tons).
12) Milk and Dairy Prices Up 10-13% January 26th, 2022, https://agroface.ge/news/ba704daf-198c-474c-83e3-abd870208361
Prices for raw dairy materials are on the rise globally, resulting in prices for milk and dairy products to increase by 10-13%. This is negatively impacting the dairy and dairy products market in Georgia. This increase is due to a major festival period in China as well as the winter period being more expensive for cattle feed and a lower-producing time of the year. Cumulatively, this means that the prices for dairy products should be cheaper beginning in the spring, although this is by no means a certainty. Currently, many are turning to milk powder to make products and keep prices lower; however, demand (and, consequently, prices) for milk powder is also increasing. To help stabilize this issue in Georgia, experts are calling on solutions that will help Georgian producers better select dairy cattle varieties, better manage and maintain pastureland and better utilize arable land for grain (feed) production.
13) Efforts to Reduce the Impact of Economic Bullying on the Wine Industry January 26th, 2022, https://eurasianet.org/georgian-wine-industry-seeks-to-reduce-risk-of-russian-economic-bullying
Georgia’s wine industry is thriving once again; however, its success currently on shaky ground as 55% of its exports currently go to the Russian market. This leaves the sector vulnerable to economic bullying from the Kremlin. For example, Russia imposed a ban on Georgian wine vintages in 2006 that sent the industry crashing. At the time, Russia accounted for 75% of its exports. The ban, however, forced producers to make quick improvements to boost quality and start paying more attention to marketing. Moreover, the Georgian National Wine Agency, in September 2021, approved a plan to help Georgian wine producers and distributors expand existing markets and find new markets outside of the Commonwealth of Independent States (CIS). Remembering the lessons learned from 2006, many producers are actively working to reduce their dependency on Russian imports by ensuring they keep their Russian exports to 20% or less of their overall exports.
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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.