Private Sector

15) ENPARD grants to support food production amid COVID-19 pandemic

April 28th, 2020, https://cbw.ge/economy/georgia-receives-grant-from-eu

The Ministry of Agriculture, the European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO) are awarding grants to support food production and security during the COVID-19 pandemic. The grants, which are being awarded under the EU’s European Neighborhood Program for Agriculture and Regional Development (ENPARD), will focus on the vegetable, cereal, potato, beef, dairy, honey and wine value chains. The grants will allow farmers, cooperatives and small- and medium-sized enterprises to invest in equipment such as tractors, harvesters and greenhouses.

Private Sector

16) Increase in vegetable prices forecasted

April 2nd, 2020, http://bizzone.info/agriculture/2020/1585880964.php

With the early vegetable season about to begin, many vegetable producers are concerned that COVID19 measures could impact production this year and lead to higher prices for vegetables. While companies engaged in vegetable production have indicated that, so far, the measures taken to combat the spread of COVID-19 have not yet negatively impacted work, they could in the near future as more workers will be needed. Specifically, companies have expressed concerns that there will be a shortage of workers. Although many do not think this alone would cause prices to rise, vegetable producers are also facing unfavorable weather conditions, specifically an unusually dry winter that prevented the land from being properly cultivated, and a rise in the costs of production.

17) COVID-19 pandemic as an opportunity for Georgia’s food industry

April 5th, 2020, https://cbw.ge/economy/levan-divitashvili-it-a-chance-for-food-sector-to-increase-production-and-employment

The Minister of Agriculture has stated that the food industry has the potential to become one of the most important employers in the country as its functioning is essential during the current pandemic state. Moreover, he noted that increased production opportunities (including for new products) have arisen due to restrictions on trade imposed by other countries. This presents Georgia’s food industry with the opportunity to increase production in the short term and then find new outlets for this increased production once the pandemic situation is over. The end result of this would be a more robust food industry that produces more and provides more employment opportunities.

18) No food shortage expected in Georgia

April 13th, 2020, https://mepa.gov.ge/En/News/Details/17911

The Eurasian Economic Union (EEU) has taken the decision to ban the export of a number of food products through June 30, 2020; however, the government of Georgia does not believe that this will cause a shortage of food products in Georgia as the government has been proactive in monitoring food supplies (especially for essential foods) and diversifying markets to keep Georgia supplied.

19) Raw milk producers request government assistance

April 14th, 2020, https://cbw.ge/economy/farmers-ask-for-subsidizing-raw-milk-production

The government of Georgia has included milk powder as an essential food product, meaning that the government will work to maintain the price of milk powder under a special state program of measures during the COVID-19 pandemic. Producers of raw milk, however, are requesting that the government rethink this decision, arguing that subsidizing milk powder sends funds out of the country and undermines the work of raw milk producers. Instead, they argue that the government should support the production of raw milk, thereby assisting domestic producers and keeping funds in the country. Further, they argue that such a decision needs to be made shortly as many raw milk producers are suffering and in jeopardy of having to close their businesses.

20) Government takes actions to ensure no food shortages occur

April 14th, 2020, https://commersant.ge/en/post/can-the-coronavirus-spark-food-shortages-in-georgia

Concerns regarding food shortages, especially for specific products, have risen as countries continue to enact measures aimed at combatting the spread of COVID-19. In Georgia, consumers became alarmed when Russia imposed a ban on the export of Russian rice, buckwheat, soybeans, turnips and onions through the end of June 2020. Georgia authorities, however, have been active in procuring import agreements with other sources to ensure that products (especially essential products) will remain available to Georgian consumers. Moreover, the government has announced that it will strictly control the prices of essential products during the state of emergency and quarantine.

21) Dairy producers moving to online sales

April 15th, 2020, https://kalo.ge/news/view?id=8355

Measures taken to combat the spread of COVID-19 have made online sales even more relevant, including for industries not typically associated with them. Of particular note is that small- and mediumsized dairy producers in Georgia are quickly working to develop an online presence and boost sales through this channel. This is proving to be an important outlet for them as entering the network of supermarkets (the main providers of food products during the COVID-19 pandemic) has certain difficulties for new players, especially smaller producers. Although these efforts are, by and large, simple (i.e. social media posts), recent success could prove to provide an impetus for these producers to develop a more sophisticated online sales strategy in the future.

22) 2019 agricultural production numbers released

April 16th, 2020, https://agenda.ge/en/news/2020/1178

The production of wheat, barley, potatoes, stone fruits and citrus decreased in Georgia in 2019. At the same time, the production of maize, nuts and subtropical fruits increased in the country. In particular, Georgia produced the following in 2019:

102,500 tons of wheat (a 4.3% year-on-year decrease) 54,400 tons of barley (a 5.7% year-on-year decrease) 205,900 tons of maize (a 6% year-on-year increase) 208,600 tons of potatoes (a 12.2% year-on-year decrease) 38,600 tons of stone fruit (a 28.7% year-on-year decrease) 31,700 tons of nuts (a 37.2% year-on-year increase) 20,400 tons of subtropical fruit (a 27.5% year-on-year increase) 64,400 tons of citrus (a 2.9% year-on-year decrease)

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.