11 minute read
Dairy farm in Sighnaghi founded to supply domestic market with raw milk
February 10th, 2020, http://www.fao.org/georgia/news/detail-events/en/c/1261267/
The Food and Agriculture Organization of the United Nations (FAO), under the European Union (EU)- supported European Neighborhood Program for Agriculture and Rural Development (ENPARD), implemented a series of trainings for farmers and rural producers in five different municipalities (Lagodekhi, Akhmeta, Tetritskaro, Tsalka and Tskaltubo) of Georgia. The main objective of the trainings was to help rural producers and farmers focus on market and profitability potential before taking production initiatives. The main areas and topics covered during the trainings were target market selection and marketing standards, distribution channel identification and commercialization of harvest, the effect of seasonality on prices and sales, the importance of record-keeping and budgeting, the need for bookkeeping and budgeting to make production decisions, pricing decisions based on profitability and exploring production alternatives based on profitability results. In total, more than 70 participants attended the trainings.
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7)
FAO grant competition announced
February 13th, 2020, https://kalo.ge/news/view?id=8158
The Food and Agriculture Organization of the United Nations (FAO), with the assistance of the European Union (EU), has announced a grant competition in support of agricultural initiatives. The goal of this grant competition is to improve access to finance, services and manufacturing equipment for farmers, rural households, cooperatives, small- and medium-sized enterprises (SMEs), ultimately resulting in an increased competitiveness of the agricultural sector and better livelihoods for the rural population. Grants will be awarded in amounts of between GEL 1,000 and GEL 150,000 (up to a maximum of 40% of the total cost of investment).
8)
New project to increase small farm and cooperative access to finance
February 13th, 2020, https://kalo.ge/news/view?id=8157
A memorandum of understanding was signed by the head of the Frankfurt School of Finance and Management and the Ministry of Agriculture and Rural Development Agency (ARDA) regarding the implementation of the FinExCoop Georgia project. The project, which aims at improving access to finance for small commercial farms and agricultural cooperatives in Georgia, is being funded by the European Neighborhood Program for Agriculture and Rural Development (ENPARD) and the L Agence Francaise de Developpment (AFD).
9)
FAO, EU provide trainings on improved greenhouse production
February 14th, 2020, http://www.fao.org/georgia/news/detail-events/en/c/1262872/
The Food and Agriculture Organization of the United Nations (FAO), under the European Union (EU)- supported European Neighborhood Program for Agriculture and Rural Development (ENPARD), has implemented a series of training modules on successful greenhouse production for farmers, extension staff of the public and private sector and rural producers of Georgia. The main objective of the training was to increase the knowledge of different partners that provide support to the farmers in the field as well as train some lead farmers that are already active in greenhouse production. The trainings focused on specific practices covering relevant to the production of the vegetable crops that are more widely produced in Georgia. The trainings also provided technical recommendations for farmers to avoid practices that may reduce their yield or make their investments less sustainable.
February 18th, 2020, https://www.usaid.gov/georgia/news-information/news/usaid-supports
The United States Agency for International Development (USAID) has been a supporter of Georgia’s hazelnut industry since 2011, when the industry as largely disorganized and inefficient. Since then, USAID support has helped the sector develop an industry with larger, higher-quality harvests, modern processing facilities and a grading system that ensures that hazelnut prices reflect their quality. This is especially important for the approximate 50,000 smallholders and microenterprises engaged in the industry. USAID plans on continuing its support to the industry over the next five years. Specifically, the organization has announced its intention to: (1) help two hazelnut industry associations (GHGA and HEPA) become financially independent and effectively serve the needs of their members, (2) catalyze investments in hazelnut processing infrastructure and related technical expertise, (3) stablish a hazelnut traceability system and (4) pilot a warehouse receipts system that will expand smallholders’ access to finance.
11) New project launched to develop organic agriculture in Georgia
February 19th, 2020, https://www.apsny.ge/2020/eco/1582141864.php
The Austrian Development Agency (ADA) has announced the launch of a four-year project to develop the organic agricultural sector of Georgia while also solving various social and environmental problems in the country. The Green Economy: Sustainable Mountain Tourism and Organic Agriculture (GRETA) project aims to make local products manufactured in mountainous (and less polluted) regions more competitive and meet various standards, which will also facilitate the implementation of the organic certification process. The project will also play an active role in the development of agritourism and help mountainous regions of Georgia to improve their business environments, thereby generating additional income generating opportunities for the local population and reducing migration from the region.
Funding for the project is being provided by the European Union (EU) (EUR 3 million), the Swedish International Development Cooperation Agency (EUR 2.8 million) and ADA itself (EUR 1 million).
12) World Bank approves loan for irrigation and land market development
February 20th, 2020, https://www.worldbank.org/en/news/loans-credits/2020/02/20/
The World Bank has approved a new EUR 18.2 million loan to Georgia for irrigation and land market development. The loan has a maturity of 23 years and a grace period of 16 years. Funds will be used to improve the delivery of irrigation and drainage services in selected areas as well as to develop improved policies, procedures and systems for a national land registration program.
13) Financial education program for agricultural entrepreneurs launched
February 24th, 2020, http://www.messenger.com.ge/issues/4589_february_24_2020/4589_econ_one.html
The National Bank of Georgia has developed a new financial education program and a practical guide specifically for agricultural entrepreneurs as part of an effort to support the development of agribusiness. The program also aims to help agribusiness entrepreneurs choose the most appropriate financial products and make the right financial decisions. The program's design is simple and is packed with practical examples, tips and standards to help entrepreneurs easily apply theoretical skills in practice.
The Make Better Financial Solutions program is being implemented in cooperation with the European Fund for Southeast Europe (EFSE) and the Civil Development Agency (CiDA).
February 25th, 2020, https://mepa.gov.ge/En/News/Details/13847
First Deputy Minister of Agriculture Giorgi Khanishvili held a meeting with an expert from the Institute for the Development of Agricultural Cooperation in Asia (IDACA) and representatives of Japan International Cooperation Agency (JICA) to discuss the development of agricultural cooperatives. It was agreed that recommendations for the further development of agricultural cooperatives would be conducted within the framework of the Creation of Business-Oriented Agricultural Cooperatives project being jointly implemented by Agricultural and Rural Development Agency and JICA.
The Ministry of Agriculture considers the development of agricultural cooperatives a priority.
15) New opportunities for SMEs within the green economy
February 25th, 2020, https://mepa.gov.ge/En/News/Details/13848
Deputy Minister of Agriculture Nino Tandilashvili and First Deputy Minister of Economy Ekaterine Mikabadze met with representatives of the small- and medium-sized business community as well as other governmental and non-governmental institutions as part of the EU4Environment program to discuss the green economy and the new growth opportunities it affords small- and medium-sized businesses. In particular, the parties discussed the introduction of eco-innovations and resource-efficient technologies that enable SMEs to move to a circular economy as well as other ways of encouraging clean production. The parties also worked to identify local companies that could be approached as partners in implementing such approaches and helping to develop innovative business strategies.
The meeting was organized by the Ministry of Economy, with assistance provided by the United Nations Environment Program (UNEP) and United Nations Industrial Development Organization (UNIDO).
February 26th, 2020, http://bizzone.info/agriculture/2020/1582761347.php
Following extensive research, the Institute of Public Affairs of Georgia has announced the five most promising agricultural products for export to Romania and Bulgaria: chacha (grape), unfermented fruit and vegetable juices, peaches, dried fruits and berries. Research into this was conducted as part of the Black Sea Basin Action Program 2014-2020, which aims at piloting trading opportunities in agriculture by creating a modern innovative online platform.
Private Sector
February 3rd, 2020, https://agenda.ge/en/news/2020/281
Georgia imported a total of USD 29.6 million worth of milk in 2019, out of which the value of sugar-free milk was only USD 8.3 million. The represents an increase from 2018 (USD 24.8 million worth of milk) and represents 0.33% of total imports. At the same time, Georgian milk exports in 2019 amounted to a value of USD 767,300, all of which was thickened or sugar-added milk.
February 3rd, 2020, https://commersant.ge/en/post/fruit-prices-rose-by-283
According to the National Statistical Office, the price of several food products rose by 11.3% in 2019, including fruit (by 28.3%), dairy products (by 15.0%), meat (by 14.2%) and bakery products (by 5.1%). Prices for alcohol and tobacco also rose, with tobacco prices increasing by 20.3% and alcohol prices increasing by 3.4%.
19) Georgia to host Women in Wine Expo
February 13th, 2020, http://georgiatoday.ge/news/19437/Women-in-Wine-Expo-to-Unite-Global-Wine
Georgia will host the two-day Women in Wine Expo, which aims to bring global women wine professionals together and help close the industry’s gender gap. Now in its second year, the expo will focus on both general issues in the wine industry as well as those specifically related to women. This includes panel discussions on entrepreneurship, how women can identify resources and secure funding to start their own businesses and how to establish a successful market strategy. The Women in Wine Expo is the first of its kind in Europe, attracting participation from women from the United States, Canada, the United Kingdom, France, Spain, Italy, Hungary, Greece, Turkey, Armenia, Lebanon, South-Africa, Nigeria and, of course, Georgia.
While the number of women wine professionals continues to rise globally, women worldwide are still paid just 63% of what men earn (according to the World Economic Forum) and are often underrepresented as lead winemakers, sommeliers and in leadership positions in wine companies.
20) Fifth Congress of the Georgian Dairy Sector to be held in Tbilisi
February 14th, 2020, https://kalo.ge/news/view?id=8161
More than 200 participants are expected to attend the Fifth Congress of the Georgian Dairy Sector in Tbilisi in March. At the event, participants will discuss last year’s results as well as ways to further developing the sector. Participants will also receive up-to-date information on the latest technology and farm management from world leading practitioners.
The event is being organized by the Greek Hellenic Association, with support from the Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD).
21) Walnut exports skyrocket
February 17th, 2020, https://commersant.ge/en/post/georgia-increases-walnut-exports
The export value of in-shell walnuts and walnut kernels from Georgia amounted to USD 1.4 million in 2019, exceeding USD 1 million for the first time. This is mostly due to a drastic increase in the volume of exports. Specifically, walnut exports increase 10-fold in 2019, reaching 321 tons. Although this is still a relatively small volume (and exports are still lower than imports), the trend represents impressive growth. The main markets for Georgian walnut in 2019 were Kazakhstan, Kyrgyzstan, Russia and Belarus.
February 19th, 2020, https://commersant.ge/en/post/milk-production-down-3-meat-by-95-egg-by-4-in-q4
According to preliminary data, milk production in the fourth quarter of 2019 amounted to 91.7 million liters (2.7% less year-on-year). Milk production for the entire year amounted to 546.9 million liters (1.5% less year-on-year). At the same time, meat production also decreased to 20,900 tons in the fourth quarter (9.5% less year-on-year). Meat production for all of 2019 amounted to 67,600 tons (6.9% less yearon-year). Similarly, egg production in the fourth quarter also decreased to 148.7 million (3.8% less yearon-year), with egg production of the entire year amounting to 605.5 million (4.6% less year-on-year).
23) Efforts to boost Georgian honey quality and export potential
February 24th, 2020, https://cbw.ge/economy/georgian-honey-to-fully-satisfy-quality-standards-soon
In 2019, Georgia exported only 6.5 tons of honey, a significant decline from the 21 tons it exported in 2018. This is despite efforts to popularize Georgian honey in international markets, including through the two important platforms (www.honeyofgeorgia.com and www.jarahoney.com). It turns out that a large part of the problem has to do with the perception of Georgian honey as being an inferior product. Now, state and other organizations’ efforts are being directed at overturning this perception, especially through the introduction of measures to increase the quality of honey produced in the country. Specifically, the National Food Agency has begun collecting and monitoring honey samples and publishing the results. So far, efforts seem to be paying off, with only 8% found to have defects (as compared to 54% just one year ago). Additionally, other organizations are now engaged in awareness raising campaigns (both internally to further increase quality and externally to boost perceptions) that will, hopefully, result in Georgian honey becoming a brand synonymous with excellence in niche markets around the globe.
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.
