Agricultural projects success-show
02 December, 2010
Agricultural projects success-show

Georgian agriculture projects funded by the US-supported Millennium Challenge Georgia Fund (MCG) are assessed successful. USD 32 million-worth investments were made in total 283 projects within the four year Agribusiness Development Activity project of the MCG and 2600 jobs were created. Georgian government believes success of the project will attract more investments in Georgian agriculture sector.
Georgia, a traditional agricultural country, faces a task to restore its currently underdeveloped agriculture. Georgian agriculture that was making about 55% of GDP in

80s of the last century cuts a modest 9% in Georgian GDP today. Banks shun financing agriculture - agriculture ranks below 1% in the total loan portfolio of Georgian banking sector.
Therefore agriculture was listed among the priorities of the USD 395 million-worth MCG compact launched in 2006 in Georgia. USD 20.2 million-worth grant was disbursed within the frames of the Agribusiness Development Activity (ADA) project of the MCG to finance agriculture-oriented projects throughout Georgia. The ADA project is completed presently and to assess the aftermath of the works done within the project, the grantees held a show-case exhibition Agri-Food Expo November 29, 2010.
Since 2007, total 283 grant projects have been financed with the budget of USD15.9 million, generating the same amount of matching investments that eventually doubled total investment made through MCG into the country’s agribusiness sector up to USD 32 million. The projects are implemented in every region of Georgia in the sectors such as cattle-breeding, poultry farming, beekeeping, fruits and vegetables processing, dairy and many more, and they aim at the development of primary production, small and medium enterprises and farm services centers throughout Georgia.  As a result of ADA Project implementation, up to 3 thousand new jobs have been created in rural areas, indirectly benefiting more than 100 thousand people.
Both Georgian government and MCG officials assess the ADA project implementation as successful; all financed projects became successful irrespective of global financial crisis. About 15 enterprises even manage to export their product.   
According to Nika Gilauri, Prime Minister of Georgia, the ADA project aimed to show to investors and private sector that Georgian agriculture can be profitable and it can create jobs and bring profits.
“Of course USD 36 million could not make the entire Georgian agriculture flourish but the boon of the project is that about 300 different projects came true, more than 2600 people are employed, and all these projects turned out profitable. It proves that Georgian agriculture has a huge potential as an exporter, job creator, innovative, open to new technologies. Now we see that more investors and businessmen are ready to invest in agriculture, produce products in Georgia, export and employ Georgians,” Gilauri told media during the event.
As Giorgi Abdushelishvili, CEO of MCG, explained to Georgian Journal, the ADA project participant businesses are supposed to be more and more successful as far as they learn how to manage their business, how to be in line with international standards, be open to high tech, supply local market and hit oversee markets.
ADA participant exporters are focused on fruit, nut, and processed fruits mainly. The key market is CIS for fruit and vegetable, and EU – for nut.
Ilia Giorgadze, an individual entrepreneur who runs cold storage business, started his business from zero, establishing a cold storage infrastructure [of 250 ton capacity] in Gurjaani, Kakheti region, thanks to USD 150 thousand ADA grant and USD 154 thousand of his co-financing. He mainly focuses on storage and sale of persimmons, grapes and nectarines harvested at his own garden; he also purchases needed quantities of fruit throughout Georgia. The export goes to Ukraine generally, however, Armenian and Azeri wholesalers also purchase product in Georgia so as to export them to Russia ultimately.  Giorgadze plans to enter Swiss market next year after the year-long negotiations with the Swiss Company gets through.  
“There is a demand for bio-food in Europe and our fruit is of bio material actually but you need some time to assure them that all procedures of fruit gardening are implemented in line of bio-product standards that takes about 2 years,” Giorgadze told GJ. “We are negotiating with a Swiss company for more than a year already and hope to export to Switzerland next year.”
Tornike Margvelashvili, Sales manager of Ekopex LLC located in Mtskheta District, focused on raw nut export to EU countries including Germany, Holland, Austria and Czech Republic starting 2006. Later he shifted the focus on local market. After the enterprise was reequipped [by USD 125 thousand of ADA grant and more than USD 153 thousand of co-financing] Ekopex started processing and packing of shelled, roasted and grounded nut as he found it more profitable. The enterprise plans to resume export [of packed product this time] to EU and hit US market as well.

Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
19.02.2019
20.02.2019
USD
1
USD
2.6404
2.6498
EUR
1
EUR
2.9908
2.9977
GBP
1
GBP
3.4130
3.4246
RUB
100
RUB
3.9898
4.0023
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6498
EUR
1
EUR
2.9977
GBP
1
GBP
3.4246
RUB
100
RUB
4.0023