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nomic development in the region, increase wine production and provide more employment opportunities for locals.
The Optimizing the Potential of Local Assets for the Rural Development of Keda Municipality project is being supported by the European Union (EU)-funded European Neighborhood Program for Agriculture and Rural Development (ENPARD).
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9)
SDC, FAO project to support agricultural development at the local level
March 25th, 2020, http://www.fao.org/georgia/news/detail-events/en/c/1267969/
The Austrian Development Cooperation (ADC) is funding a joint project by the Food and Agriculture Organization of the United Nations (FAO) and the Ministry of Agriculture that aims to support rural and agricultural development in Georgia. Specifically, the project, which is being implementing in Shida Kartli and Racha-Lechkhumi/Kvemo Svaneti, aims to enhance the competitiveness of the agricultural sector, increase food production and reduce poverty and social injustices. To accomplish these goals, the project will establish local initiative groups to plan project activities. Additionally, four demonstration plots will be created to showcase the best agricultural practices and expertise, including those that promote environment-friendly agricultural practices that reduce the risks and impact of climate change and ensure the formation of sustainable ecosystems. The project will also provide farmers with grant opportunities to boost local investment in agricultural production and, ultimately, improve living conditions.
The results of the project are also planned to be used in the development of a new National Strategy of Rural and Agricultural Development.
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March 2nd, 2020, https://agenda.ge/en/news/2020/637
In February 2020, the prices of food and non-alcoholic beverages increased in Georgia by an average of 1.3%. This includes increases to the price of vegetables (an 8% increase), fruits (a 3.6% increase), nonalcoholic beverages (a 1.7% increase) and sugar and sweetened products (a 0.7% increase). At the same time, prices decreased for oils and fats (a 0.6% decrease) and milk, cheese and eggs (a 0.3% decrease). Overall, the consumer price index increased by 0.3% in February 2020 as compared to January 2020, while the annual inflation rate increase to 6.4%.
11) Slaughterhouse data for Q4 2019 released
March 2nd, 2020, https://kalo.ge/news/view?id=8226
According to the National Statistics Office, there were 94 animal and bird slaughterhouses active in Georgia in the fourth quarter of 2019. During the fourth quarter, these slaughterhouses produced 9,669.4 tons of meat, including beef (43.4%), poultry meat (34.1%), pork (19.1%) and lamb and mutton (3.2%). On average, the price for slaughtering an animal during the fourth quarter was GEL 24.8 for cattle, GEL 22.8 for pigs and GEL 10.8 for sheep and goats.
March 4th, 2020, http://bizzone.info/agriculture/2020/1583371533.php
Georgia’s poultry industry is on the verge of bankruptcy due to the import of cheap, low-quality alternatives. In fact, imported poultry products now occupy as much as 70% of the domestic market. Experts hold that the industry would be doing well if the imported poultry products were of a higher quality as they would be on par with the prices of domestic products. However, the cheap, low-quality imports (mostly from Turkey and China) leave no ability for Georgian producers to compete. This has many producers calling for restrictions and/or regulations on the import of poultry products. Not only would this help support the industry, it would also boost food safety for the population and bring the country more in line with European Union (EU) norms.
March 5th, 2020, https://kalo.ge/news/view?id=8236
The Dairy Producers Association postponed this month’s Fifth Congress of the Georgian Dairy Sector due to the rapid spread of COVID-19. The Dairy Producers Association, in cooperation with the Food and Agriculture Organization of the United Nations (FAO), will monitor the situation and, as soon as the situation has been stabilized, will announce new dates for the event.
14) 12.1 million bottles of wine exported in first two months of 2020
March 9th, 2020, http://georgiatoday.ge/news/19794/Jan-Feb-2020%3A-Georgia-Exports
During the first two months of 2020, Georgia exports 12.1 million bottles of wine to 39 countries, generating USD 31 million. This represents a year-on-year increase of 7% in terms of value. The top five countries to import Georgian wine during this period were Russia (7.59 million bottles), Ukraine (1.31 million bottles), Poland (1.11 million bottles), China (562 thousand bottles) and Kazakhstan (274 thousand bottles).
15) Agricultural sector snapshot
March 16th, 2020, http://georgiatoday.ge/news/19961/Agriculture-in-Georgia%3A-Are
Since 2012, the government of Georgia has been highlighting the importance of the development of the agricultural sector by boosting state financial support and launching a number of support programs. The results of these efforts are, however, not as strong as one would hope given increased state attention. In fact, there has been no real growth in the sector. While there has been some production growth in some individual industries, overall growth in terms of GDP has been showing a clear downward trend. Moreover, foreign direct investment (FDI) in the sector has also been declining, only accounting for an average of 1.1% of total FDI during the 2009-2019 period. Similarly, agriculture’s share of total employment is also declining, albeit only slightly (from 37% in 2011 to 33% in 2018). This macro-level picture clearly shows that more reforms and structural changes are needed if the sector is to reach its full potential.
March 18th, 2020, https://kalo.ge/news/view?id=8263
Although milk prices are typically lower int eh spring-summer season, milk prices are expected to remain higher this year due to a number of reasons, including increased prices for feeding dairy cattle and an overall decrease in dairy cattle numbers in the country. These higher prices are expected to continue throughout the year, outpacing inflation. Currently, the price per liter for milk is GEL 1.17, up from GEL 1.00 just one year ago.
17) Georgian supplies of meat, fish adequate for the current situation
March 23rd, 2020, https://agenda.ge/en/news/2020/892
Agriculture Minister Levan Davitashvili has announced that Georgian supplies of meat and fish are adequate to get through the COVID-19 pandemic. Moreover, there are no issues for Georgia in replenishing its supplies. The Minister was careful to ensure citizens that the government is continuously monitoring the food supply in the country to ensure that the population will not suffer from food shortages.
18) Georgian wine industry faces uncertain future
March 24th, 2020, https://commersant.ge/en/post/uncertain-future-and-expectations-of-georgian-wine-industry
The COVID-19 outbreak and global response measures are putting Georgia’s wine industry in a difficult situation and making its future uncertain. Although crisis situations often represent a good time for businesses to make investments in the future, Georgia’s wine industry is unable to do so due to a lack of funding caused by the near cessation of exports, no tourism and the closure of restaurants. This has caused many to being laying off workers in a bid to weather the storm. While the outlook may seem bleak at the moment, there is optimism in that China is showing positive recovery dynamics now that it has been able to control the outbreak within its own borders. It just remains to be seen how long it will take the rest of the world to do the same.
19) Georgian wheat, flour supplies sufficient
March 28th, 2020, https://mepa.gov.ge/En/News/Details/16886
Agriculture Minister Levan Davitashvili recently visited the Georgia’s largest wheat mill to ascertain the status of the country’s wheat and flour supply amid the COVID-19 pandemic. Following this visit, the Minister reported that there is a sufficient supply of wheat and flour for the country and that there should be no delays in normal production. The visit was arranged within the framework of the State Program for Preservation of the Prices on Essential Foodstuffs, which aims to ensure adequate supplies of wheat and maintain stable prices of flour.
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.
