Beneficiaries of state agricultural insurance program to receive compensation for hail damage

13) USDA, Land O’Lakes International launch livestock investment project

July 21st, 2020, https://agroface.ge/news/0ebb9f0c-dde9-48ec-8224-000e8cf88d0f

The five-year Invest in Safe and Quality Livestock (SQIL) project has been launched in Georgia to increase local beef and dairy productivity as well as boost producer competitiveness and market access. Specifically, the project aims to: (1) increase access to appropriate technologies, (2) improve productivity and (3) instill practices that boost food safety. To accomplish this, the project will provide co-financing support to private local enterprises as well as offer business development opportunities.

Eligible beneficiaries are profit-oriented enterprises registered in Georgia that are currently engaged in producing beef and dairy products. Startups are not eligible to participate. Co-financing will be provided up to 50% of the total cost of investment and must be between USD 5,000 and USD 25,000 (in national currency equivalent). The project is being funded by the United States Department of Agriculture and Land O’Lakes International Development Georgia.

Private Sector

14) 150,000-ton wheat harvest and 80,000-ton barley harvest predicted this year

July 3rd, 2020, https://agenda.ge/en/news/2020/2109

The harvesting of wheat and barley in the Kakheti region has entered an active phase, with this year’s forecasts predicting that 150,000 tons of wheat and 80,000 tons of barley will be harvested. This is less than last year, mostly due to struggles associated with climatic conditions. At the same time, demand for both wheat and barley have been increasing, leading to the higher prices for both products than in previous years.

Harvesting began in mid-June in the Kakheti region. Wheat-cultivating areas make up approximately 71,000 hectares in the region, and barley-cultivating areas make up approximately 22,000 hectares. Reports so far indicate that the harvest and storage of grain crops is proceeding smoothly.

15) Prices of food and non-alcoholic beverages up 13.6% year-on-year

July 3rd, 2020, https://bm.ge/en/article/fruit-price-increased-by-46-meat--by-132-dairy-products--by-172-in-june-/59695/

According to Geostat, the prices of food and non-alcoholic beverages have increased 13.6% in the last year. This includes the prices of fruits and grapes (up 46.5%); milk, cheese and eggs (up 17.2%); fish (up 15.8%); coffee, tea and cocoa (up 14.8%); oils and fats (up 13.5%); meat (up 13.1%); sugar, jam, honey, chocolates and confectioneries (up 12.6%); bread and cereals (up 10.0%); and mineral waters, soft drinks and fruit and vegetable juices (up 9.3%).

The overall annual inflation rate was 6.1%.

16) Bank of Georgia supports Kakhetian traditional winemaking project

July 3rd, 2020, https://netgazeti.ge/news/465332/

In partnership with Bank of Georgia, Kakhetian traditional winemakers have planted vineyards in Gori, Kakheti and Racha as part of a new project started last year. The aim of the project is to prepare approximately 880 hectares of vineyards for cultivation by spring 2021 and approximately 1,000 hectares of vineyards by the end of 2022. This will significantly increase production and give more opportunities for the development of traditional winemaking in the area.

The total cost of the project is approximately USD 20 million, and more than 3,000 people have been employed in these regions as a result of works undertaken thus far.

17) TBC Bank offers improved loan conditions under Preferential Agro Credit program

July 14th, 2020, https://bm.ge/en/article/tbc-offers-improved-conditions-to-wineries-under-preferential-agro-credit-/60361/

TBC Bank will offer improved loan conditions to wineries under the state’s Preferential Agro Credit program. The program allows grape processing enterprises (including wineries) to apply for loans of between GEL 20,000 and GEL 15,000,000 and receive up to 11% in co-financing on the annual interest for a period of up to 48 months.

The overall aim of the program is to simplify the work of winemakers and give them the opportunity to meet the Vintage 2020 standards.

18) Peach, nectarine exports exceed 6,000 tons

July 15th, 2020, https://mepa.gov.ge/En/News/Details/19019

As of July 14, 2020, Georgia exported 6,179 tons of peaches and nectarines, 640 tons more year-onyear. The top countries exported to were Russia (3,796 tons), Armenia (1,857 tons) and Azerbaijan (417 tons). This rise in exports is largely due to the effective work of refrigeration plants and storage enterprises, which have been working at full capacity, as well as the fact necessary export documents can now be prepared and issued under the single window principle.

19) Fish production up 3.5%

July 17th, 2020, https://cbw.ge/economy/georgias-fish-production-in-2019-rose-by-35

Fish production in aquaculture complexes in Georgia rose by 3.5% in 2019, amounting to 2,465 tons. This increase is due to an expansion in both aquaculture impoundment space as well as an increase in basin space used in fish production. The Kakheti region was the largest producer of fish in 2019 (35.1% of total fish production), followed by Kartli (30.3%) and Guria (10.1%).

20) USD 100 million hazelnut harvest predicted for 2020

July 18th, 2020, https://cbw.ge/economy/agriculture-minister-expects-100-million-hazelnut-harvest-in-2020

During a meeting with hazelnut growers and the Samegrelo regional governor, Agriculture Minister Levan Davitashvili stated that the government is forecasting an abundant harvest of high-quality hazelnuts this year. In particular, the government believes this year’s harvest will be approximately 55,000 tons and exceed a value of USD 100 million. This would represent a big rebound for the sector, which has struggled in recent years.

21) Georgia a top-20 wine exporter

July 28th, 2020, https://commersant.ge/en/post/georgia-among-top-20-wine-exporting-countries

According to statistics published by the American Wine Association, Georgia is now a top-20 wine exporter, with more than USD 220 million in wine exports in 2019 (ranked 16th in the world). The top countries are the United States, Germany, New Zealand, Portugal, Great Britain, South Africa, Argentina, Singapore, China, Hong Kong, Lithuania, the Netherlands, Austria and Belgium.

22) Okriba Ltd. establishes tea plantation in Tkibuli

July 29th, 2020, https://cbw.ge/economy/tea-plantations-planted-in-tkibuli-with-the-support-of-the-bank-of-georgia

Within the framework of the United Agro Project and with funding from Bank of Georgia, Okriba Ltd. has established tea plantations on 55 hectares in Tkibuli. In addition to rehabilitating the land, the company also built a tea processing plant and procured equipment to dry and package tea. The company also has the ability to produce dried fruit in its processing plant.

In addition to support from the United Agro Project and Bank of Georgia, Okriba Ltd. also received a grant under the state’s rehabilitation program, Georgian Tea. The rehabilitation and establishment of a processing facility project cost an estimated GEL 1.35 million.

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.