Harvest Stumbles over Storage Problems
12 September, 2013
Harvest Stumbles over Storage Problems
Georgian agriculture expects almost doubled harvest this year in spite of natural disasters affecting most of the country. Still the government however cannot make even a tentative prognosis of how much the local production may reduce the overwhelming import that makes up to 80% of the Georgian market.
To alleviate the persevering import problem in the country by boosting local production, Georgian government has undertaken an agricultural project in support of farmers and entrepreneurs involved in the agricultural sector (including
storage and processing). The support consisted in the financing of spring works as well as ensuring the steady supply of preferential credits. As a result, the amount of cultivated land plots increased by over 70 thousand hectares (ha) this year. By preliminary data, the corn harvest, including the most demanded wheat and maize, as well as potato is expected to double, Ministry of Agriculture of Georgia informed Georgian Journal. Moreover, production capacity of all kinds of agricultural products per hectare such as potato, cucumber, tomato, unions, carrots, etc are expected to enhance significantly. Harvest of grapes, citrus and fruits is forecasted to enhance by 20% compared to past year. However, how successfully the harvested product will be sold and stored still persists as an endemic problem of Georgian agricultural entrepreneurs. Low quality of products, low marketing skills of Georgian farmers plus the lack of fridge storehouse network obstructs the locally produced harvest from the market and makes the country import-dependent.
“There are 34 fridge storehouses throughout Georgia with total a 95 thousand tons of storage capacity; however, 80% of it is unused due to miscommunication between producers and storage owners, the transportation and very low product quality problems due to low technological and farming skills of farmers,” MOA explains.
According to MOA, storage facilities are beyond the reach of farmers, as their use dictates high transportation costs. Besides, storage cost stands at GEL 35 per ton while the refrigerator facilities do not assume responsibilities if the stored product perishes. The entire risk goes to producers. As a matter of fact, the product can be stored only if it is of high quality and has gone through all required technological methods, whereas farmers have no idea how skillfully they handled the product and how perishable it can be in the refrigerator. An alternative could be if the storage facility owners purchased the product from producers in bulk. This option however is tied to the quality-and-volume problem. Storage is profitable business only if it works at high capacity. The storage capacity starts from at least 1 thousand ton. One producer cannot provide even 100 tons of decent quality produce fit for the storage. Therefore, to escape risks and cut down on transportation and storage costs, producers prefer to store their goods at home as possible. This leads to inevitable wastes while 40% of the storage capacity remains unused throughout the country.
As a result, gardeners in the hail-ridden Kakheti region who enjoyed a remarkably high peach harvest this year, simply threw away thousands of tons of the defective peach that could have been processed into jams and juices should there have been nearby processing plants. The same pitiful scenario looms for citrus fruits. The sector pundits say the way-out is the development of processing industry. There were 400 processing plants in Georgia during the Soviet time, of which only 14 are operational today. The MOA’s agricultural development project aims to enhance this number to at least 60 this year, so that each plant operates in each district. 30 start-up processing plants are already financed in the project. They however become operational next year, i.e. this year farmers still face old problems.
Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to 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.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
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,
Exchange Rates
GEL Exchange Rate
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
November 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