11/2017
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63 Geo r g i a Agriculture Bulletin 20 ‘Georgian Tea’ program beneficiaries in last 2 years EU-supported cooperatives take study tour in Latvia EIB signs 3 agreements worth GEL 280 million
Western Georgia prepares for difficult winter
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Strategy developed for agricultural extension services .................................................................. 2 20 ‘Georgian Tea’ program beneficiaries in last 2 years ................................................................. 2 Agricultural sector expenses versus results .................................................................................... 2 Proposed 2017 budget increase for Agriculture Ministry ............................................................... 3
Foreign Aid ................................................................................................................. 3 5) 6) 7) 8) 9) 10) 11) 12) 13)
EU-supported cooperatives take study tour in Latvia ..................................................................... 3 Plans to fight brown marmorated stink bug announced ................................................................ 3 Trilateral agreement to improve phytosanitary standards ............................................................. 4 EC report positively assesses agricultural measures ....................................................................... 4 FAO holds workshop on sustainable development goals................................................................ 4 Working group to improve animal identification system................................................................ 5 Conference held to boost agricultural education ........................................................................... 5 USDA assists Georgia to increase technical capabilities.................................................................. 5 EIB signs 3 agreements worth GEL 280 million ............................................................................... 6
Private Sector.............................................................................................................. 6 14) 15) 16) 17) 18)
Western Georgia prepares for difficult winter ................................................................................ 6 Georgian nut exports down 57% ..................................................................................................... 6 Distribution company helping small farmers find sales .................................................................. 6 Meat, milk and egg production decreases ...................................................................................... 7 Storage facility and slaughterhouse third quarter results............................................................... 7
Note: The Georgia Agriculture Bulletin presents a monthly roundup of headlines and news stories related 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. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
Strategy developed for agricultural extension services
November 7th, 2017, http://www.fao.org/georgia/news/detail-events/en/c/1056468/
Representatives of international donors, stakeholders and the Ministry of Agriculture gathered to discuss the draft National Strategy for Agricultural Extension in Georgia 2018-2019. The draft strategy was prepared by the Ministry of Agriculture with the support of the European Union (EU) in partnership with the Food and Agriculture Organization of the United Nations (FAO). The primary goal of the strategy is to improve the competitiveness of the agriculture sector in Georgia by delivering quality advising services to farmers. This is to be achieved by upgrading the existing 54 Information and Consultation Centers (ICCs) into a more coherent, results-oriented and demand-driven national extension service. Initially this will be achieved through the reorganization of resources within the Ministry of Agriculture. The implementation of the strategy will be conducted in two phases. In the first phase (in 2018), pilot extension packages will be introduced in selected regions. The extension packages will address a particular crop or livestock enterprise or a specific area of farm business. Each package will be comprised of a range of information materials as well as an information dissemination plan setting out exactly how and when the materials and media will be used to convey messages to farmers. They will also set quantitative targets for the number of farmers to be reached in different ways and for the ultimate impact of the extension. During the second phase (in 2019), the pilots will be expanded and replicated in other regions to achieve full national coverage. The pilot regions will be Racha Lechkhumi and Guria.
2)
20 ‘Georgian Tea’ program beneficiaries in last 2 years
November 8th, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052384
In 2016-2017, the state-run ‘Georgian Tea’ program signed agreements with 20 beneficiaries. The total area of plantations affected by the agreements makes up 495 hectares. The total cost spent on rehabilitation was GEL 1.24 million, out of which the Agricultural Projects Management Agency (APMA) contributed GEL 894,500. Of the aforementioned data, 14 agreements were signed this year, covering 247 hectares of plantations, and the total cost spent on rehabilitation this year has been GEL 618,000, GEL 450,600 of which was contributed by APMA.
3)
Agricultural sector expenses versus results
November 17th, 2017, http://cbw.ge/economy/expenditures-agriculture-sector-vs-results/
According to the state budget, GEL 628.9 million has been spent on 11 state programs in the agricultural sector since 2013. As a result, the agriculture ratio in GDP and agricultural sector output has increased slightly. It is important that, since the start of state agriculture programs, agrarian sector real growth paces have not risen considerably. For example, when the preferential agro credit program started in 2013, the agrarian sector real growth pace was 11.3%. Later, however, growth marked 1.5% on average, and the sector did not grow at all in 2016. Moreover, the growth in the ratio in GDP has only been about 1% since 2012 and has been relatively stagnate since 2013.
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4)
Proposed 2017 budget increase for Agriculture Ministry
November 22nd, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052521
Draft amendments to the 2017 state budget that envisage allocating GEL 323 million to the Ministry of Agriculture have been submitted to Parliament. This represents an increase of GEL 65 million in comparison to the originally approved budget. GEL 35 million would be used for the rehabilitation of the melioration system (which would be removed as an item from the 2018 state budget). Another GEL 35 million would support the fight against the brown marmorated stink bug, including funding for the procurement of equipment (GEL 20 million) and pesticides (GEL 15 million). At the same time, budgetary support for agrocredits would be reduced by GEL 5 million, as negotiations are underway with the European Investment Bank (EIB) for this purpose.
Foreign Aid 5)
EU-supported cooperatives take study tour in Latvia
November 6th, 2017, http://enpard.ge/en/eu-supported-cooperatives-took-study-tour-latvia/
The European Neighborhood Program for Agriculture and Rural Development (ENPARD) partner ‘CARE International in the Caucasus’ organized a study tour for twelve EU-supported agricultural cooperatives. The tour, made to Latvian cooperatives working in beekeeping and milk processing, hopes to establish relationships with Latvian farmers and companies. Georgian beekeepers visited the Latvian Beekeepers Association, which unites 3,250 farmers, as well as several fields of local beekeepers, with both sides sharing theoretical and practical knowledge. Georgian beekeepers also attended the ‘Marketing, Quantitative and Qualitative Growth and Branding of Products” training conducted by leading marketing specialists. Georgian milk producers also visited farmers working at livestock farms, at breeding farms and in food processing enterprises, becoming acquainted with principles based on the European standards, the work scheme of dairy collecting centers and the production technology of different types of natural yoghurts and ice cream. They were also introduced to the principles of cooperative management and decision-making. During the tour, the Georgian side also met with the representatives of the Ozlonek InformationConsultation Center and representatives of the Georgian Embassy in Latvia, who spoke about the future of relations between the two countries and the desire to arrange similar study tours for farmers working in different spheres.
6)
Plans to fight brown marmorated stink bug announced
November 6th, 2017, http://moa.gov.ge/En/News/2384
Agriculture Minister Levan Davitashvili met with specialists of the National Food Agency regarding the fight against the brown marmorated stink bug. At the meeting, the Minister announced that preventative measures against the pest have been planned and will be implemented according to the experience gained fighting the pest this year. The plan will include a complex of measures to be implemented in the next few years and will involve cooperation with the business sector, experts from different countries and international partners.
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This year, efforts to fight the pest included treatment activities that made use of special equipment, machinery, tractor aggregates and aviation as well as giving 230,000 families insecticides, pheromones and information materials. Additionally, 21,000 fake trap-pheromones were placed throughout the country, including in 351 villages in eastern Georgia. 700,000 new brochures were also published and distributed to increase public awareness about the situation. All measures and activities taken to fight the brown marmorated stink bug have been supported by the United States Agency for International Development (USAID) through their ‘Restoring Efficiency to Agriculture Production’ (REAP) project.
7)
Trilateral agreement to improve phytosanitary standards
November 13th, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052422
A trilateral agreement was signed between the Ministry of Agriculture, the United States Agency for International Development (USAID) and the Czech Development Fund. The agreement will establish a four-year project that aims to assist Georgia in introducing and improving phytosanitary standards. The project plans to accomplish this through perfecting the registration system for plant protection, controlling harmful organisms and improving monitoring. A budget has yet to be determined for the project.
8)
EC report positively assesses agricultural measures
November 14th, 2017, http://cbw.ge/economy/european-commission-appraises-fulfillment-obligations-agrarian-sector/
The European Commission (EC) has published a report on obligations that Georgia is to have fulfilled as part of EU Association Agreement. The report positively notes both a 25% reduction of negative trade balance and a trend for increased diversification of trade markets as well as a growth in exports. The report also specifically mentions the positive steps made by government-implemented measures in the agricultural sector, particularly the village development strategy for 2017-2020 and government support of agricultural cooperatives and seed farming. The report also notes the positive moves made in the adoption of the institutional reforms plan prepared by National Food Agency, which will increase food safety and phytosanitary controls, as well as Georgia’s integration into the European and Mediterranean Sea plant protection organization.
9)
FAO holds workshop on sustainable development goals
November 16th, 2017, http://www.fao.org/georgia/news/detail-events/en/c/1062870/
The Food and Agriculture Organization of the United Nations (FAO) and representatives of the government of Georgia held an awareness-raising workshop about the United Nations’ sustainable development goals (SDGs) for 2030. At the workshop, FAO introduced the vision and principles for achieving the 2030 agenda, and Mamuka Meskhi, assistant FAO representative in Georgia, spoke about FAO’s role in implementing and monitoring SDGs. FAO is implementing a project in Georgia which aims to develop the capacity of the Ministry of Agriculture to implement and monitor SDGs. The final product of the project will be a two-year action plan that will include a needs assessment of the Ministry and other government agencies regarding SDG implementation and monitoring. This action plan will be submitted in the spring 2018.
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10) Working group to improve animal identification system November 20th, 2017, http://www.ipress.ge/new/92259-FAOs-tsarmomadgenleb
The Animal Identification-Registration Working Group, in which the Food and Agriculture Organization of the United Nations (FAO) and the National Food Agency are collaborating, has invited a French expert to work on improving the model of the Animal Identification-Registration System (NAITS), with the ultimate goal of developing a unified strategy that will make the registration-identification system more flexible and tailor-made for Georgia's needs. The end goal is to enhance food safety and human health by being able to instantly react to disease situations and quarantine infected and at-risk animals. The current Registration-Identification System in Georgia has been in existence since 2012; however, Georgia has slowly been switching to a new, improved system. For this switch to a more flexible and uniquely-tailored system, the Swiss Agency for Development and Cooperation (SDC) and the Austrian Development Agency (ADC) have allocated USD 5 million dollars.
11) Conference held to boost agricultural education November 22nd, 2017, http://www.ge.undp.org/content/georgia/en/home/presscenter/
The Ministries of Education and Agriculture organized the ‘New Skills for Agriculture’ conference in Tbilisi. The goal of the conference was to discuss the prospects and challenges of vocational education and training in agriculture. This is especially important as Georgia faces a 12% national unemployment average, including 30% unemployment among youth and hidden unemployment in agriculture. Vocational education and training is seen as an effective way to address these issues and create more jobs and learning opportunities, especially in rural areas. The conference brought together representatives of the Georgian government, businesses, farmer associations and educational institutions. Participants discussed new trends in vocational education and training, including work-based learning and university minor programs for vocational teachers. The conference was organized with support from the United Nations Development Programme (UNDP) and the Swiss Agency for Development and Cooperation (SDC), in partnership with the National Center of Education Quality Development, the Georgian Farmers Association and other partners. It was part of European Union (EU) Vocational Skills Week 2017, which took place in different European and EUneighborhood countries.
12) USDA assists Georgia to increase technical capabilities November 24th, 2017, http://moa.gov.ge/En/News/3396
The US Department of Agriculture (USDA) is providing assistance to the Ministry of Agriculture within the ‘Agricultural Statistical Capacity Building’ project. The project, which includes providing Georgia with 43 new tablet computers, will help the Ministry gather information and analyze data more effectively as well as improve information delivery performance and make agricultural statistics more reliable. This, in turn, will help the government make better decisions in the effective implementation of agricultural policies. The project is a result of a memorandum of understanding signed between the Ministry of Agriculture and the USDA in May 2017 that provides training and technical assistance to the Ministry, including electronic data processing and the implementation of agricultural research.
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13) EIB signs 3 agreements worth GEL 280 million November 29th, 2017, http://agenda.ge/news/91621/eng
The European Investment Bank (EIB) has signed three agreements that, in total, will make up to GEL 280 million (USD 103.2 million) available to Georgian small- and medium-sized enterprises (SMEs). Credo bank will receive GEL 12 million (USD 4.4 million) for on-lending to Georgian micro- and small-sized enterprises, primarily those located in rural areas and run by women. The two other agreements were signed with TBC bank and will be used to support innovative Georgian companies over the next two years. They include agreements that GEL 42 million (USD 15.5 million) will be used for small loans to SMEs, in order that they can sustain jobs and create new business opportunities in Georgia. All agreements were made possible with financial assistance from the European Union's InnovFin and EU4Business programs.
Private Sector 14) Western Georgia prepares for difficult winter November 7th, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052357
Western Georgia is preparing for a difficult winter following the destruction of many crops by the brown marmorated stink bug, particularly the destruction of cereal and citrus crops. In particular, the regions of Guria, Samegrelo, Ajara and Abkhazia are expected to be hit the hardest. The prices of products have already risen, and this trend is expected to continue throughout the winter. For example, a sack of corn (16 kilograms) currently costs GEL 22 (up from GEL 15 last year) and is expected to reach GEL 35-40. And the cost per kilogram of haricot is now GEL 5 (up from GEL 3.50 last year) and could potentially reach GEL 7.
15) Georgian nut exports down 57% November 9th, 2017, https://www.newsgeorgia.ge/trevozhnaya-statistika-eksport-oreha-iz-gruzii-sokratilsya-na-57/
For January-September 2017, nut exports from Georgia were down 57% year-on-year in terms of value. This year, nut exports for the period amounted to USD 50 million, whereas last year this number was USD 117 million. The Ministry of Agriculture notes that the decrease in exports is due to the fact that the harvest of nuts this year was reduced by 40%, mostly due to pests and the spread of diseases. Agriculture Minister Levan Davitashvili has stated that it is urgent to take measures to reduce damage to the industry next year.
16) Distribution company helping small farmers find sales November 16th, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052471
Georgian Farmers Distribution Company has begun finding new and reliable sales markets for local farmer products. The company has already made an arrangement with Ajara Group to provide products to its hotels and restaurants. The company has also signed contracts with 50 farmers for the provision of these materials.
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Georgian Farmers Distribution Company cooperates mostly with small farmers and producers, with the goal of strengthening this agricultural niche. The company plans to expand within the next two years and be the main supplier for all large hotel and restaurant chains.
17) Meat, milk and egg production decreases November 21st, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052504
Meat production in the third quarter amounted to 12,000 tons, a 17.8% year-on-year decrease. At the same time, milk production was 142 million liters (a 12.1% year-on-year decrease), and egg production was 135.3 million units (a 6.6% year-on-year decrease). The cattle population in the country was 952,500 (down 86% year-on-year); the poultry population was 9.53 million a 6.6% year-on-year decrease); and the pig population was 233,800 (a year-on-year increase of 19%).
18) Storage facility and slaughterhouse third quarter results November 21st, 2017, http://www.sarke.com/cgi/search/news.asp?Code=10052505
There were an estimated 75 slaughterhouses operating in Georgia in the third quarter of 2017, 52% of which are located in just three regions: Kvemo Kartli (18.7%), Imereti (17.3%) and Kakheti (16%). During the third quarter, 83,300 animals were slaughtered across the country, resulting in 8,480 tons of meat (44.6% of which was beef). Also in the third quarter of this year, there were 43 cold storage facilities operating in Georgia, with 37.2% operating in Shida Kartli and 23.3% operating in Tbilisi. These facilities stored 68,000 tons of production, 70.7% of which was chicken meat (including frozen chicken meat), 9.3% of which was beef and pork meat (including semi-finished products) and 6.3% of which was fish. Sales from these facilities totaled GEL 23.3 million in the third quarter. There were also 37 elevators operating in Georgia in the third quarter, 67.6% of which were located in Kvemo Kartli. Sales from these elevators amounted to GEL 51.5 million, 69.1% of which was from local production. Wheat flour was the most prominent product from elevators in terms of both cost and volume, accounting for about 86% of total local production sold.
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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.