Don’t blame EU!
30 June, 2011
Don’t blame EU!

As a matter of fact, to meet the food safety standards set by the EU to Georgia within the framework of talks on Deep and Comprehensive Free Trade Agreement (DCFTA) the EU began by surveying the stronger control over slaughterhouse infrastructure. The point is, the key paragraphs of food security-related legislation that was suspended starting 2005 in Georgia and supposed to become active in 2010, was postponed till 2011 under the excuse that it might harm the entrepreneurs as most

of small entrepreneurs could not afford adoption of appropriate standards at enterprises. Moreover, the law came into force in 2011 under test regime, exempting food enterprise from penalties till 2012 so as they could adopt all relavant standards and equipment required by the law.

However, the control over the slaughterhouse infrastructure became crucial for Georgian government starting past fall and to observe strong international food standards the government made obligatory to deliver meat to Tbilisi market only via slaughterhouse.

However, as much as the slaughterhouse infrastructure is underdeveloped at the moment in Georgia, the obligation covered only the Capital of Georgia and only the beef. Mutton and pork remained uncontrolled.  However as far as tout of four licensed slaughterhouses three are far from Tbilisi, Natakhtari slaughterhouse under the Iberula brand situated near Tbilisi became almost a market monopolist. As a result meat prices doubled in past October and minister of agriculture promised that prices would not increase anymore and would decrease by 20% after Iberula develops its own trade outlet network in Tbilisi.  Iberula addressed to the network development and prices somewhat regulated for a while however starting June when usually meat prices go down due to seasonal effect prices doubled again. And a Georgian majority MP ascribed reasons to the EU food safety requirements set as obligatory to start talks on the DCFTA. The MP did not mention anything on the EU requirements demanding adoption of the effective anti-trust body to no avail for 5 years already. The statement upset the EU. Echanove Juan-Jose, a member of the EU commission Delegation in Georgia, spread an official disclaimer on June 23, 2011 and asked not to blame the EU in meat price hike and put out a set of problems jacking the meat price up: inflation, decline in meat production caused by the lack of governmental support to small farmers, underdeveloped slaughterhouse infrastructure that do not match the demand and the monopolist nature of slaughterhouse market.

“The EU has never asked the government to right now start enforcing the issuethat all meat reaching the market should be slaughtered in slaughterhouses, and, definitely, not as a pre-condition to start DCFTA agreement negotiations,” Echanove Juan-Jose stated.

What the EU is asking for is the gradual implementation, as planned, of the food safety strategy of Georgia, in order to have a proper food safety system in place. It is up to Georgia to define the steps and the sequence of the measures – the statement stresses adding that there are other various measures related to animal health and food security where the EU would like to see substantial improvements but Georgian government is not as active as it should, including animal identification, state-own managed vaccination surveillance and campaigns, accreditation of private veterinarians, etc.

“We wonder why the Government is not yet sufficiently tackling all these topics whereas, in the case of slaughterhouses, it is acting so promptly. Slaughtering in slaughter houses does not guarantee, per se, the food safety of the meet. It is just a step in a whole process. Without implementing the whole range of steps, the underlying problems will not be solved.

“We call on the government for a systemic approach on this topic, not for the adoption of ‘ad hoc’ measures… Ideally, there should be slaughterhouses available in most districts of Georgia. The current number is yet insufficient,” the EU statement says.

Shota Murghulia, an economic analyst, presumes that Georgian government resists adoption of the EU recommendation on restoring effective anti-trust body trying to discredit the EU recommendation so as to show to society that not all recommendations including the anti-trust service may be good. According to him, meat price-hike was reasoned by half-observance of the EU recommendations that missed the anti-trust service along with other factors indicated by the EU. The anti-trust service discharges market of monopolist activity that may occur as a result of stronger food security rules.

“EU recommendations must be adopted in full set to be effective. The stronger meat quality control caused creation  of the market monopolist that is uncontrolled in Georgia and jacked prices up,” he told Georgian Journal. “I doubt that government reluctant to restore the effective anti-trust service tried to show that not all EU recommendations are good; they are still negotiating with the EU to change its anti-trust recommendation but the EU will never change it and it was a mistake to ascribe the meat price hike to EU.”

The statement of the civil society of Georgia incorporating non-governmental watchdogs also accentuate  the questioned prices  increased not from following the EU trade standards, but from not ensuring free and fair competition on the Georgian market.

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
25.09.2018
26.09.2018
USD
1
USD
2.6226
2.6226
EUR
1
EUR
3.0868
3.0868
GBP
1
GBP
3.4416
3.4416
RUB
100
RUB
3.9814
3.9814
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
2.6226
EUR
1
EUR
3.0868
GBP
1
GBP
3.4416
RUB
100
RUB
3.9814