Georgian Egg Production Faces Bankruptcy
28 March, 2013
Georgian Egg Production Faces Bankruptcy
Georgian egg production may face bankruptcy in a month if it will not be put in equal competitive conditions with the import.
Georgian egg production, the only national industry that managed to supplant import completely, is on the brim of bankruptcy since December of last year since the new government cancelled strict sanitary control on the imported egg adopted from 2007 as a preventive remedy against the poultry flue. According to Zurab Uchumbegashvili, Chairperson of Association of Georgian Poultry Enterprises
as well as stakeholder of Kumisi poultry, the preventive rules were aimed on blocking egg and poultry import globe over in pursuance with the internationally agreed consensus so as to combat the poultry flue. Due to this preventive rule importers apart of customs control had to get a special permission of Georgian National Food Agency (GNFA) with the agriculture ministry that included on-spot sanitary inspection of egg producing enterprises [by GNFA] product of which were slated for import. Plus FAO [the Food and Agriculture organization at the UN] accredited paper-work was to be attached. This kind of intricate sanitary control turned out boring to importers so that they gave up importing in Georgia. On the other hand, the said control proved itself as a protecting tool to Georgian local producers so much that the number of poultries increased from 2 to 23 and they became able to meet Georgian market demand on egg and chicken by 100% and 70% respectively in two years. Consequently, egg industry became the single national field in the 80%-import-dependent Georgia that supplanted egg import completely and started exporting product since 2009 to Iraq.
However the new government found the said sophisticated sanitary control opposing to the World Trade Organization (WTO) rules and made it void starting this past December. As a result imported egg pays only 12% of customs toll like all other agriculture product import in Georgia. Removal of protection umbrella left local poultries vulnerable against the cheaper Turkish and Ukrainian import so that in a quarter Georgian egg producers were led to the brim of bankruptcy and all of the 23 enterprises are put on sale. They expect bankruptcy in a month if government does not put them in equal competitive conditions with the import.
Georgian agriculture ministry swears it together with the finance ministry works on the tax code to alleviate the problem to egg producers. However, government assures no sanitary procedures were revoked but the rule of law restored.
“Georgia as a WTO member has agreements with Turkey and Ukraine [both WTO members] that were violated by ex-power to block the egg import artificially. Now the law is restored and egg import increased obviously however we work to increase competitive power of our product through targeted programs so as to preserve the right of consumers without artificial market-protection,” agriculture ministry commented to Georgian Journal.
Georgian poultry claims government lingers with the decision while the Turkish and Ukrainian approach discriminates Georgian import notwithstanding the WTO rules so diligently observed by new government.
“All we ask for is fair competition. As a matter of fact, all imported eggs in Georgia are cheaper as producers enjoy the state support; on the other hand, Georgia taxes their import less than they tax import to their country. Turkey for instance, imposes 80% of customs toll on egg import plus 20% of internal taxes while they pay just 12% of customs toll in Georgia. Besides, Turkish egg producers are exempted from Value Added Tax (VAT) and enjoy state subsidies. As to Ukraine it is such a huge corn exporter globe over and the corn feeding for poultry is so cheap there that we can never compete with them without exemptions. Let us export to Turkey and Ukraine under similar conditions they enjoy in Georgia, or exempt us from 18% of VAT like all agriculture products except eggs are exempted. Otherwise we will not survive,” Uchumbegashvili said.
Print
Other Stories
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
17.09.2018
18.09.2018
USD
1
USD
2.6128
2.6156
EUR
1
EUR
3.0578
3.0498
GBP
1
GBP
3.4296
3.4259
RUB
100
RUB
3.8669
3.8379
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
2.6156
EUR
1
EUR
3.0498
GBP
1
GBP
3.4259
RUB
100
RUB
3.8379
September 2018
Mon Tue Wed Thu Fri Sat Sun
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30