AGRICULTURE BULLETIN
Georgian Wine’s International Image a State Priority
FAO, EU Farmer Field Schools Support Women Farmers
Live Sheep Exports Down 18.1%
Farmers Earn GEL 17.7 Million from Sale of Sub-Standard Apples
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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 » BFC Max-Högger-Strasse 6 Phone: +41 44 784 22 22 info@bfconsulting.com CH-8048 Zurich, Switzerland Fax: +41 44 784 23 23 www.bfconsulting.com Georgian
Bulletin Edition #125, January 2023 Contents State Initiatives ........................................................................................................... 2 1) Georgian Wine’s International Image a State Priority 2 2) Registration of Beekeepers Becomes Mandatory in 2023 .............................................................. 2 3) National Competition Agency to Monitor Nut Market 2 4) Georgian Wine Promotion at International Fairs and Local Events ................................................ 2 Foreign Aid ................................................................................................................. 2 5) FAO, EU Farmer Field Schools Support Women Farmers 2 6) FAO, EU Program Promotes Environmentally-Friendly Pest Control .............................................. 3 Private Sector.............................................................................................................. 3 7) Increased Agricultural Imports in December 2022 3 8) Live Sheep Exports Down 18.1% ..................................................................................................... 3 9) Farmers Earn GEL 17.7 Million from Sale of Sub-Standard Apples 3 10) Agricultural Exports Still Dependent on Russia ............................................................................... 3 11) 223,600 Tons of Grapes Processed Annually 4 12) Call for State Support of Almond Production .................................................................................. 4 13) Georgian Fish Exports Increased 3 Times 4 14) Revenue from Wine Exports Up 5% in 2022 ................................................................................... 4
Agriculture Finance
State Initiatives
1) Georgian Wine’s International Image a State Priority
January 12th, 2023, https://agenda.ge/en/news/2023/110
Georgian Agriculture Minister Otar Shamugia has stated that the international image of Georgian wine remains a priority for the Ministry of Agriculture. The Minister also noted that quality control remains a key challenge for the sector to continue boosting exports. He added that strengthening laboratory capabilities was especially important in this regard as the sector strives to increase international demand for Georgian wines.
2) Registration of Beekeepers Becomes Mandatory in 2023
January 13th, 2023, https://cbw.ge/economy/registration-of-beekeepers-becomes-mandatory-in-2023
The registration of beekeepers has become mandatory in Georgia. Starting from the beginning of this year, the movement of bee families and the buying and selling of bee-related products are prohibited by entities that are not registered. The move will help encourage the export of bee-related products as it increases product traceability and quality. The new registration requirement was positively received by the Association of Beekeepers of Georgia, which believes it will now be easier for Georgian bee-related products to enter key markets across Europe and elsewhere.
3) National Competition Agency to Monitor Nut Market
January 17th, 2023, https://bm.ge/en/article/competition-agency-to-monitor-nut-market/124824/
Georgia’s National Competition Agency has begun monitoring the nut market following requests from local producers. The purpose of this monitoring is to ensure a fair market that respects existing legislation related to competition, especially pricing.
4) Georgian Wine Promotion at International Fairs and Local Events
January 24th, 2023, https://agenda.ge/en/news/2023/272
The National Wine Agency has allocated GEL 2 million (USD 756,000) to promote Georgian wine at international industry fairs and domestic events in 2023. In particular, the National Wine Agency hopes to help Georgian wines reach greater export levels to key markets such as China, Germany, Japan, Poland, South Korea, the United Kingdom and the United States. Vinexpo Paris, which will be held in February in the French capital, will be the first international exhibition of the year where Georgian producers will have an opportunity to showcase their products and find new trade partners.
Foreign Aid
5) FAO, EU Farmer Field Schools Support Women Farmers
January 24th, 2023, https://www.fao.org/georgia/news/detail-events/en/c/1629113/
The Food and Agriculture Organization of the United Nations (FAO), with the support of the European Union (EU) within the European Neighborhood Program for Agriculture and Rural Development (ENPARD), established 24 farmer field schools between October and December 2022. The schools united more than 330 smallholder women farmers from 21 villages and trained them on improving production practices as a means to increasing production quality, quantity and, ultimately, profitability. The schools have focused
BFC. Georgian Agriculture Finance Bulletin Edition #125, January 2023 Page 2
on women engaged in home-level dairy production and also included specific trainings on diagnosing and preventing diseases.
6) FAO, EU Program Promotes Environmentally-Friendly Pest Control
January 26th, 2023, https://www.fao.org/georgia/news/detail-events/en/c/1629293/
The Food and Agriculture Organization of the United Nations (FAO), with support from the European Union (EU) within its EU4Business initiative, has implemented the Mating Disruption Program. The program aims to bring innovative agricultural practices to Georgia that will simultaneously improve the quality and quantity of Georgian wine while also ensuring pests that disrupt the sector are controlled in environmentally-friendly ways. In particular, the program will use the targeted application of pheromones to disrupt the mating cycles of known pests.
Private Sector
7) Increased Agricultural Imports in December 2022
January 9th, 2023, https://east-fruit.com/novosti/spros-na-importnuyu-produktsiyu-v-gruzii-ostaetsya-vysokim/
The import of agricultural products in December 2022 reached a nine-year high, mostly due to the increased influx of Russian citizens concerned about Russia’s war in Ukraine. In total, Georgia imported USD 17 million worth of agricultural products in December 2022, USD 6 million more than in December 2021.
8) Live Sheep Exports Down 18.1%
January 12th, 2023, https://bm.ge/en/article/sheep-exports-from-georgia-are-down/124539/
According to official statistics, the export of live sheep over the January–November 2022 period was down 18.1% year-on-year. The main export markets for Georgian live sheep were Azerbaijan (4,913 tons worth USD 11.3 million), Saudi Arabia (1,324 tons worth USD 5.6 million), the United Arab Emirates (358 tons worth USD 1.5 million), Egypt (350 tons worth USD 1.2 million) and Jordan (473 tons worth USD 1.1 tons).
9) Farmers Earn GEL 17.7 Million from Sale of Sub-Standard Apples
January 13th, 2023, https://commersant.ge/en/post/farmers-earned-177-million-gel-from-selling-sub-standard-apples
Fruit processing enterprises involved in a state program to facilitate the sale of sub-standard apples have processed more than 73,000 tons of non-standard apples. This has resulted in farmers receiving more than GEL 17.7 million in income, with the state subsidizing GEL 10 million of that amount. The state program, which began in September 2022, offers GEL 0.10 per kilogram of sub-standard apples purchased by a processing enterprise. A total of 15 processing enterprises are engaged in the program.
10) Agricultural Exports Still Dependent on Russia
January 16th, 2023, https://commersant.ge/en/post/georgian-exports-still-depended-on-russia-in-2022
2022 was a more difficult year for Georgian agriculture, as evidenced by a drop in annual exports. In fact, revenues from the export of fruits, nuts and vegetables dropped from USD 230 million in 2021 to USD 190 million in 2022. This is not surprising given the ongoing war in Ukraine. Yet despite many Russian citizens fleeing their own country, Russia’s share in Georgian exports remained at the same level as in 2021. This clearly shows Georgia’s continued dependence on the Russian market.
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11) 223,600 Tons of Grapes Processed Annually
January 18th, 2023, https://bizzone.info/agriculture/2023/1674092035.php
According to information recently published by the research organization ISET, Georgia has processed, on average, 223,600 tons of grapes annually since 2012. The majority of this is used in wine production, which has seen its export volumes increase by an average of 21% each year. In fact, Georgian wine accounted for 21% of the total export value of all Georgia agriculture in 2021.
12) Call for State Support of Almond Production
January 19th, 2023, https://bm.ge/en/article/there-is-no-demand-for-almonds-in-the-domestic-market association/125014/ Leri Tabatadze, founder of the Almond & Walnut Producer Association, has stated that there is a lack of domestic demand for almonds. This is due to the lack of an almond consumption culture in Georgia as well as issues with almond processing. This, in turn, is causing problems for almond producers in finding sales outlets. In particular, there have been calls for the state to step in and help the industry develop, especially in developing enough quality to enter European and other key markets.
13) Georgian Fish Exports Increased 3 Times
January 23rd, 2023, https://commersant.ge/en/post/georgian-fish-exports-increased-3-times
In 2022, Georgia increased the value of its fish exports by three times year-on-year, reaching USD 1.7 million in value in 2022 as compared to USD 546,500 in 2021. The main export markets for Georgian fish were Armenia (USD 1.1 million), Azerbaijan (USD 536,000) and Turkey (USD 35,100). At the same time, fish imports into Georgia increased from USD 5.0 million in value in 2021 to USD 8.0 million in 2022. The main importing countries were Turkey (USD 3.9 million), Norway (USD 3.8 million) and the Netherlands (USD 105.9 million).
14) Revenue from Wine Exports Up 5% in 2022
January 24th, 2023, https://www.newsgeorgia.ge/v-kakih-stranah-pjut-gruzinskoe-vino-dannye-o-postavkah-za-2022-god/
In 2022, Georgia exported USD 252 million worth of wine, a 5% year-on-year increase. This was enough to represent fifth place on the list of Georgian export products. But despite recent efforts to diversify export markets, Russia remained the main market for Georgian wine exports, with its share actually increasing to 63.7% in 2022 from 54.6% in 2021. The top five countries to import Georgian wine in 2022 were Russia (USD 160.8 million), Poland (USD 14.5 million), Ukraine (USD 13.5 million), China (USD 12.5 million) and Kazakhstan (USD 10 million).
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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.
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