Private Sector

that the fruit trees and grapevines that they plant will be of a certified quality, free of viruses and diseases.

The event was organized by Food and Agriculture Organization of the United Nations (FAO) under the European Union (EU)-funded Innovative Action for Private Sector Competitiveness in Georgia project, which is part of wider EU4Business support to private sector development in Georgia.

8)

National Food Agency hosts conference on pest control

January 20th, 2020, https://agenda.ge/en/news/2020/177

Earlier this month, the National Food Agency hosted a conference to discuss methods of fighting agricultural pests, especially the newly-appeared Drosophila suzukii (commonly known as the spotted wing drosophila –a fruit fly). The conference, which was organized by the National Food Agency and the United States Agency for International Development (USAID), was attended by leading U.S. and Georgian scientists.

9)

JICA technical assistance program to develop agricultural cooperatives

January 27th, 2020, https://kalo.ge/news/view?id=8127

Georgian representatives have meet with representatives of the Japan Office of the International Cooperation Agency (JICA) to discuss priority directions for sharing Japanese experience and other cooperation initiatives. The main topic of discussion during this meeting, however, was the development of agricultural cooperatives in Georgia. To this end, a group of Japanese experts will study the needs of cooperatives and prepare a set of recommendations, including completing study tours in Japan.

The development of cooperatives is important for Georgia and its agricultural sector as Georgia currently has 1,044 registered agricultural cooperatives, incorporating a total of 10,739 farmers.

Private Sector

10) Ministry of Agriculture’s 2020 budget set

December 29th, 2019, http://georgiatoday.ge/news/18878/Agri-Review-December-2019-%E2%80%93-The-Sector-at-a-Glance

Parliament has approved the state budget for 2020, with the Ministry of Agriculture being allocated GEL 353 million (2.4% of the total budget). Compared to the 2019 budget, this represents a 4% increase. Of the GEL 353 million, GEL 293 million will be directed toward agricultural development, and GEL 60 million will be used on environmental protection. In general, more funding will be provided to the Scientific-Research Center, the Agriculture and Rural Development Agency and Georgian Amelioration. At the same time, there will be slight budgetary decreases for the National Food Agency, the Agriculture Development Program and the National Wine Agency.

The largest share of the Ministry’s budget will be directed to the Agriculture and Rural Development Agency (GEL 143 million), which will continue financing its preferential agricultural credit project. The Ministry’s budget also includes GEL 2.4 million to establish a new agency focused on land-related issues. The National Agency for Sustainable Land Management and Land Use Monitoring will be charged with developing an agricultural land policy, collecting data on agricultural land use and establishing a unified land database.

January 13th, 2020, http://georgiatoday.ge/news/19010/Georgia-Ranked

According to income generated from sales in 2018, Georgia is now the 18th-ranked country worldwide in terms of wine exports. The top four countries were France, Italy, Spain and Australia.

12) 30,000 tons of U.S. wheat imported in December 2019

January 14th, 2020, https://agenda.ge/en/news/2020/119

The Georgian Wheat and Bread Producers Association has announced that Georgia has begun wheat imports from the U.S. The first such delivery occurred in December 2019, with approximately 30,000 tons. This represents an important move for Georgia as the U.S. is a strategic partner and U.S. wheat helps diversify Georgia’s wheat imports and enhances food safety in the country. Negotiations between Georgia and the U.S. are already underway regarding more wheat imports.

13) 2019 berry exports reach value of USD 977,000

January 15th, 2020, https://cbw.ge/economy/georgias-berry-exports-hit-977-000-usd-exporter-companies-and-their-objectives

Through the first 11 months of 2019, Georgia exported 198.8 tons of berries valued at a total of USD 977,000. This represents substantially more in terms of value than in 2018 (USD 445,500) and 2017 (USD 477,000). The top three importing countries of Georgian berries were Russia (USD 818,200 in value imported), the United Arab Emirates (USD 97,500 in value imported) and Armenia (USD 34,900 in value imported).

14) Price of Russian grain may increase

January 16th, 2020, https://commersant.ge/en/post/grain-prices-may-rise-in-georgia

Russia’s Ministry of Agriculture is considering enacting a non-tariff quota for its grain exports through June of this year. For Georgia, this means some uncertainty regarding the price of Russian grain imports. Although significant price fluctuations are not expected at this time, the situation does highlight the need for Georgia to diversify its grain supplies, a process which has already begun with new grain imports from Kazakhstan and the U.S. already having started.

15) 2019 a historic year for Georgian exports

January 20th, 2020, https://agenda.ge/en/news/2020/174

2019 was a record year for Georgia in terms of exports, with total export value increasing 12.4% yearon-year and reaching USD 3.77 billion. Of particular note was an unprecedented increase in wine exports of 13.2%, reaching a value of USD 223 million). Other notable export increases include:

Nuts –a 10.6% increase, with a total value of USD 67 million Water (still and mineral) –a 21.2% increase, with a total value of USD 133.5 million Citrus fruits –44.4% increase, with a total value of USD 21 million Peaches, apricots, cherries and plums –53.2% increase, with a total value of USD 13 million Apples, pears and quinces –210% increase, with a total value of USD 5 million

January 21st, 2020, https://cbw.ge/economy/agro-2019-analysis-by-agso

Consulting company Agro Solutions has analyzed the most important developments affecting Georgian agriculture in 2019; here’s a brief summary of their findings:

Agricultural land ownership –Parliament passed a two-year moratorium on the sale of agricultural lands to foreign citizens. Foreigners are allowed to own agricultural land if they inherit it or, potentially, if they are the dominant partner of a Georgia-incorporated legal entity. The passed legislation does not restrict financial institutions from agricultural land ownership, regardless of their ownership structure. Brown marmorated stink bug –Georgia has successfully implemented a program to fight against the brown marmorated stinkbug, providing valuable experience and knowledge in the global fight against the pest. Strategy for 2021-2027 and Action Plan for 2021-2023 –the Georgian Ministry of Agriculture prepared the Strategy and Action Plan for developing villages and agribusiness, specifically focusing on: improving the competitiveness of the agricultural sector, improving the social condition in villages, maintaining reasonable use of natural resources, adapting to climate change and improving food, veterinary and plant protection systems. Land registration –as land registration is key to implementing a number of state and international programs, the government approved measure to simplify land registration through January 1, 2022. Wine exports –Georgia recorded dramatic progress in wine exports, with 2019 proving to be a record year. Food product labeling –new technical regulations came into effect on January 1, 2019, introducing additional requirements for labeling food products, with the aim of increasing the awareness of consumers.

A more comprehensive summary of their findings can be found here .

17) 50,000 tons of tangerines harvested this season

January 22nd, 2020, https://agenda.ge/en/news/2020/208

Georgia’s tangerine harvest has now come to a close, with a total harvest of 50,000 tons of the fruit being harvested this season. So far, 31,000 tons have already been exported, 5% more than at this time last year. The largest importing countries of Georgian tangerines have been Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Ukraine. Additionally, Georgia will begin exports to six new countries this year: Lithuania, Moldova, Poland, Qatar, Singapore and Slovenia.

18) Georgian company to launch trout caviar production this year

January 22nd, 2020, https://commersant.ge/en/post/caviar-production-to-be-launched-in-georgia

The Georgian Roe company is set to produce approximately 100 kilograms of trout caviar by spring of this year. The company notes that the production of caviar is very complicated and requires large investments (including large time investments). For this particular harvest, they have been working for ten years.

Georgian Roe has owned two fish farms in the Gori district for nearly two decades and currently produces two tons of roe per year. The company employs 60 people.

January 23rd, 2020, https://agenda.ge/en/news/2020/224

Swiss chocolate company Camille Bloch intends to plant hazelnuts plantations in Georgia, using the nuts in the production of its Ragusa chocolate. To this end, the company has already held discussions with Georgian representatives, registered as a legal entity in Georgia and found 561 hectares of land in the Lagodekhi municipality (Eastern Georgia).

The company plans to employ 40 people and cultivate hazelnuts using new technology to increase overall productivity.

20) Record level of wine exports in 2019

January 23rd, 2020, https://agenda.ge/en/news/2020/225

Last year, 341 Georgian wine companies exported a total of 94 million bottles of wine to 53 countries, a 9% year-on-year increase and the highest export volume in the history of independent Georgia. This resulted in a USD 240 million earned from wine sales, 17% more year-on-year. The top 5 countries to import Georgian wine in 2019 were: Russia (58,384,540 bottles), China (7,089,259 bottles), Poland (4,114,972 bottles), Belarus (2,787,065 bottles) and Lithuania (708,408 bottles).

Georgia also exported 31.6 million bottles of brandy and 625,000 bottles of chacha in 2019, 58% more and 48% more year-on-year respectively.

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.