BFC Georgian Agriculture Finance Bulletin. Edition #95, July 2020
State Initiatives 1)
Change made to Preferential Agro Credit program
July 2nd, 2020, https://mepa.gov.ge/En/News/Details/19001
Changes have been made to the state-run Preferential Agro Credit program to allow the program to better address the economic damage caused by the COVID-19 pandemic. In particular, the following changes have been made: • • • • •
2)
Grape producers and processors will now be eligible to participate in the program. The limit for preferential agricultural credit under the program will be raised from GEL 5 million to GEL 10 million. The leasing limit under the program will be raised from GEL 5 million to GEL 10 million, and the co-financing term will be extended to up to 36 months (instead of up to 24 months). A secondary collateral component for loans issued for working capital in hazelnut production will be added within the program. A sub-component to support tea production will also be added under the program, allowing beneficiaries to take a working capital loan of between GEL 20,000 and GEL 5 million for a period of up to 12 months.
26,000 hectares of agricultural land treated against locusts
July 3rd, 2020, http://bizzone.info/agriculture/2020/1593824574.php
Approximately 26,000 hectares of agricultural land in Georgia have been treated against locusts, including in the Kakheti, Kvemo Kartli, Mtskheta-Mtianeti, Samtskhe-Javakheti and Shida Kartli regions as well as in the suburbs of Tbilisi. The National Food Agency carries out measures against the pest annually under its Plant Protection and Phytosanitary Reliability program and has been successful in stopping the spread of the pest and limiting its damage to the agricultural sector.
3)
Plant the Future program beneficiaries expecting first harvests
July 7th, 2020, https://agenda.ge/en/news/2020/2140
Farmers and beneficiaries of the state-run Plant the Future program are expecting their first harvests this year. Among them is a cherry farmer operating in the village of Pkhvenisi (Gori municipality), who is expecting a 30-ton harvest from his eight hectares of land. He received GEL 72,000 in financing from the state to start his cherry orchard. The Plant the Future program began in 2015 in order to boost agriculture and help open new enterprises. More than GEL 16 million has been allocated through the program, helping establish nurseries and orchards on more than 10,000 hectares.
4)
Wine and spirit quality control efforts step up
July 20th, 2020, https://mepa.gov.ge/En/News/Details/19027
In early 2020, significant changes were made to the technical regulations for wine and spirits production as part of an effort to better detect possible falsifications in alcoholic beverages and protect the competitiveness of wine and spirits in local and international markets. Under the changes, the carbon isotope ratio analysis and testing will be conducted to determine that products are produced from grapes. So far this year, products designated for export were inspected at 175 wine and spirits companies, resulting in 13 of them being denied certification.
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